Quarterly report [Sections 13 or 15(d)]

Note 13 - Income Taxes

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Note 13 - Income Taxes
 6 Months Ended
Mar. 31, 2026
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,

  
   

2026

    

2025

    

2026

    

2025

  
                                 

Income tax benefit at U.S. federal statutory rates

   $ (649,435 )   $ (1,649,002 )   $ (1,769,276 )   $ (2,029,082 )

State income tax benefit, net of federal benefit

     (102,054 )     (127,680 )     (278,029 )     (157,109 )

Non-deductible expenses

     18,946       19,874       20,596       20,613  

U.S. research and development tax credit

     (137,696 )     (197,911 )     (254,453 )     (428,708 )

Other

     5,255       —       13,407       —  

Change in valuation allowance

     864,984       1,954,719       2,267,755       2,594,286  

Income tax expense

   $ —     $ —     $ —     $ —