Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
6 Months Ended
Mar. 31, 2023
Income Taxes [Abstract]  
Reconciliation of Income Tax Expense (Benefit)

Three Months Ended

Six Months Ended

March 31,

March 31,

2023

2022

2023

2022

Income tax benefit at U.S. federal statutory rates

$

(8,160,487)

$

(2,983,109)

$

(15,911,684)

$

(4,298,833)

State income tax benefit, net of federal benefit

(631,855)

(230,978)

(1,232,019)

(332,853)

Non-deductible expenses

334,113

102,733

447,569

359,929

Effect of stock options exercised

(19,887)

—

63,849

(23,350)

U.S. research and development tax credit

(1,330,000)

(913,000)

(2,420,000)

(2,876,430)

Effect of foreign income tax rates

(19,026)

(9,677)

(99,136)

(39,438)

Effect of global intangible low taxed income

—

(75,278)

—

12,989

Change in valuation allowance

9,767,083

4,043,065

19,023,202

7,132,661

Other, net

(6,500)

38,794

(6,618)

152,530

Income tax (benefit) expense

$

(66,559)

$

(27,450)

$

(134,837)

$

87,205

Significant Components of Deferred Tax Assets and Liabilities

March 31,

September 30,

2023

2022

Deferred tax assets:

Federal net operating loss carryforwards

$

28,569,803

$

23,627,461

State net operating loss carryforwards

3,233,713

2,850,956

Foreign net operating loss carryforwards – U.K.

16,003,790

15,773,497

Foreign capital allowance – U.K.

128,490

128,490

U.S. research and development tax credit carryforwards

10,901,789

8,481,789

U.S. research and development expense

8,228,433

—

Accrued compensation

622,992

1,227,290

Share-based compensation

5,981,261

4,325,354

Interest expense

2,463,631

2,206,484

Change in fair value of derivative liabilities

100,687

220,607

Other, net – U.K.

265,631

265,631

Other, net – Malaysia

4,979

—

Other, net – U.S.

970,352

81,507

Gross deferred tax assets

77,475,551

59,189,066

Valuation allowance for deferred tax assets

(64,395,654)

(45,372,452)

Net deferred tax assets

13,079,897

13,816,614

Deferred tax liabilities:

In-process research and development

—

(882,427)

Covenant not-to-compete

(9,428)

(17,508)

Other, net - Malaysia

—

(17,641)

Other, net – U.S.

—

(14,120)

Net deferred tax liabilities

(9,428)

(931,696)

Net deferred tax asset

$

13,070,469

$

12,884,918

Schedule of Deferred Tax Amounts Classified in Balance Sheets

March 31,

September 30,

2023

2022

Deferred tax asset – U.K.

$

13,065,490

$

12,965,985

Deferred tax asset – Malaysia

4,979

—

Total deferred tax asset

$

13,070,469

$

12,965,985

Deferred tax liability – U.S.

$

—

$

(63,426)

Deferred tax liability – Malaysia

—

(17,641)

Total deferred tax liability

$

—

$

(81,067)