Quarterly report [Sections 13 or 15(d)]

Note 13 - Income Taxes

v3.25.1
Note 13 - Income Taxes
 6 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 13 – Income Taxes

 

The Company accounts for income taxes using the liability method, which requires the recognition of deferred tax assets or liabilities for the tax-effected temporary differences between the financial reporting and tax bases of its assets and liabilities, and for net operating loss (NOL) and tax credit carryforwards.

 

A reconciliation of income tax expense, which is zero as a result of the Company’s full valuation allowance for deferred tax assets, and the amount computed by applying the U.S. statutory rate of 21% to loss from continuing operations is as follows:

 

   

Three Months Ended

    

Six Months Ended

  
   

March 31,

    

March 31,

  
   

2025

    

2024

    

2025

    

2024

  
                                 

Income tax benefit at U.S. federal statutory rates

   $ (1,649,002 )   $ (1,827,651 )   $ (2,029,082 )   $ (3,437,801 )

State income tax benefit, net of federal benefit

     (127,680 )     (141,512 )     (157,109 )     (266,184 )

Non-deductible expenses

     19,874       596       20,613       708  

U.S. research and development tax credit

     (197,911 )     (247,000 )     (428,708 )     (417,000 )

Change in valuation allowance

     1,954,719       2,215,567       2,594,286       4,120,277  

Income tax expense

   $ —     $ —     $ —     $ —