Quarterly report [Sections 13 or 15(d)]

Note 13 - Income Taxes

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Note 13 - Income Taxes
 9 Months Ended
Jun. 30, 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

    

Nine Months Ended

  
   

June 30,

    

June 30,

  
   

2025

    

2024

    

2025

    

2024

  
                                 

Income tax benefit at U.S. federal statutory rates

   $ (1,537,851 )   $ (2,171,412 )   $ (3,566,933 )   $ (5,609,213 )

State income tax benefit, net of federal benefit

     (403,409 )     (168,129 )     (560,518 )     (434,313 )

Non-deductible expenses

     58,150       2,000       78,763       2,708  

U.S. research and development tax credit

     6,722       1,109,784       (421,986 )     692,784  

Effect of change in effective tax rate

     554,430       —       554,430       —  

Change in valuation allowance

     1,321,958       1,227,757       3,916,244       5,348,034  

Income tax expense

   $ —     $ —     $ —     $ —