| Reconciliation of Income Tax Expense (Benefit) |
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|
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|
|
|
|
Three Months Ended |
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December 31, |
|
2022 |
|
2021 |
|
|
|
|
|
|
Income tax benefit at U.S. federal statutory rates |
$ |
(7,751,197) |
|
$ |
(1,315,724) |
State income tax benefit, net of federal benefit |
|
(600,164) |
|
|
(101,875) |
Non-deductible expenses |
|
113,456 |
|
|
257,196 |
Effect of stock options exercised |
|
83,736 |
|
|
(23,350) |
U.S. research and development tax credit |
|
(1,090,000) |
|
|
(1,963,430) |
Effect of foreign income tax rates |
|
(80,110) |
|
|
(29,761) |
Effect of global intangible low taxed income |
|
— |
|
|
88,267 |
Change in valuation allowance |
|
9,256,119 |
|
|
3,089,596 |
Other, net |
|
(118) |
|
|
113,736 |
Income tax (benefit) expense |
$ |
(68,278) |
|
$ |
114,655 |
|
| Significant Components of Deferred Tax Assets and Liabilities |
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December 31, |
|
September 30, |
|
2022 |
|
2022 |
Deferred tax assets: |
|
|
|
|
|
Federal net operating loss carryforwards |
$ |
26,379,703 |
|
$ |
23,627,461 |
State net operating loss carryforwards |
|
3,064,102 |
|
|
2,850,956 |
Foreign net operating loss carryforwards – U.K. |
|
15,927,491 |
|
|
15,773,497 |
Foreign capital allowance – U.K. |
|
128,490 |
|
|
128,490 |
U.S. research and development tax credit carryforwards |
|
9,571,789 |
|
|
8,481,789 |
U.S. research and development expense |
|
3,660,867 |
|
|
— |
Accrued compensation |
|
1,521,363 |
|
|
1,227,290 |
Share-based compensation |
|
5,199,290 |
|
|
4,325,354 |
Interest expense |
|
2,340,375 |
|
|
2,206,484 |
Change in fair value of derivative liabilities |
|
372,203 |
|
|
220,607 |
Other, net – U.K. |
|
265,631 |
|
|
265,631 |
Other, net – Malaysia |
|
4,988 |
|
|
— |
Other, net – U.S. |
|
83,284 |
|
|
81,507 |
Gross deferred tax assets |
|
68,519,576 |
|
|
59,189,066 |
Valuation allowance for deferred tax assets |
|
(54,628,571) |
|
|
(45,372,452) |
Net deferred tax assets |
|
13,891,005 |
|
|
13,816,614 |
Deferred tax liabilities: |
|
|
|
|
|
In-process research and development |
|
(882,427) |
|
|
(882,427) |
Covenant not-to-compete |
|
(13,468) |
|
|
(17,508) |
Other, net - Malaysia |
|
— |
|
|
(17,641) |
Other, net – U.S. |
|
(6,373) |
|
|
(14,120) |
Net deferred tax liabilities |
|
(902,268) |
|
|
(931,696) |
Net deferred tax asset |
$ |
12,988,737 |
|
$ |
12,884,918 |
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| Schedule of Deferred Tax Amounts Classified in Balance Sheets |
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December 31, |
|
September 30, |
|
2022 |
|
2022 |
|
|
|
|
|
|
Deferred tax asset – U.K. |
$ |
13,047,175 |
|
$ |
12,965,985 |
Deferred tax asset – Malaysia |
|
4,988 |
|
|
— |
Total deferred tax asset |
$ |
13,052,163 |
|
$ |
12,965,985 |
|
|
|
|
|
|
Deferred tax liability – U.S. |
$ |
(63,426) |
|
$ |
(63,426) |
Deferred tax liability – Malaysia |
|
— |
|
|
(17,641) |
Total deferred tax liability |
$ |
(63,426) |
|
$ |
(81,067) |
|