Veru Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Income Taxes [Abstract]

Schedule Of Income Before Income Taxes, By Jurisdictions



	2016			2015			2014
Domestic	$	1,068,580		$	4,524,499		$	2,837,835
Foreign		1,745,336			2,162,541			1,119,356
Total	$	2,813,916		$	6,687,040		$	3,957,191

Reconciliation Of Income Tax Expense (Benefit)



	2016			2015			2014
Income tax expense at statutory rates	$	957,000		$	2,274,000		$	1,345,000
State income tax, net of federal benefits		149,000			362,000			248,000
Non-deductible expenses - other		50,000			51,000			(5,000)
Non-deductible business acquisition expenses		556,000			—			—
Effect of lower foreign income tax rates		(305,648)			(351,244)			(175,632)
Effect of change in U.K. tax rate		1,251,000			—			—
Effect of reinvestment allowance - Malaysia		—			—			(9,000)
Effect of export allowance - Malaysia		—			(85,000)			—
Effect of change in Illinois tax rate		—			202,000			—
Effect of conversion of charitable contribution to NOL		—			(36,174)			—
Other		87,839			(59,578)			56,762
Change in valuation allowance		(18,000)			(16,000)			64,000
Effect of UK tax rate change on valuation allowance		(258,000)			—			—
Income tax expense	$	2,469,191		$	2,341,004		$	1,524,130

Summary Of Federal And State Income Tax Provision (Benefit)



	2016			2015			2014
Deferred – U.S.	$	881,000		$	1,856,000		$	561,000
Deferred – U.K.		1,162,000			162,000			496,000
Deferred – Malaysia		11,817			(92,261)			(44,666)
Subtotal		2,054,817			1,925,739			1,012,334
Current – U.S.		104,000			83,606			219,000
Current – Malaysia		310,374			331,659			292,796
Current - U.K.		—			—			—
Subtotal		414,374			415,265			511,796
Income tax expense	$	2,469,191		$	2,341,004		$	1,524,130

Significant Components Of Deferred Tax Assets And Liabilities



Deferred Tax Assets	2016			2015
Federal net operating loss carryforwards	$	2,756,000		$	4,428,000
State net operating loss carryforwards		400,000			644,000
AMT credit carryforward		489,000			390,000
Foreign net operating loss carryforwards – U.K.		10,955,000			12,388,000
Foreign capital allowance – U.K.		112,000			114,000
Other, net - Malaysia		9,850			13,097
Restricted stock – U.K.		1,000			—
Share-based compensation		101,000			128,000
Deemed dividend - Malaysia		942,000			—
Other, net - U.S.		25,000			8,000
Gross deferred tax assets		15,790,850			18,113,097
Valuation allowance for deferred tax assets		(2,299,000)			(2,575,000)
Net deferred tax assets		13,491,850			15,538,097
Deferred Tax Liabilities:
Foreign capital allowance – Malaysia		(119,919)			(111,349)
Net deferred tax assets	$	13,371,931		$	15,426,748

Schedule Of Deferred Tax Amounts Classified In Balance Sheets



	2016			2015
Current assets – U.S.	$	2,020,000		$	854,000
Current assets – U.K.		5,000			162,000
Total current assets		2,025,000			1,016,000
Long-term assets – U.S.		2,693,000			4,740,000
Long-term assets – U.K		8,764,000			9,769,000
Total long-term assets		11,457,000			14,509,000
Long-term liability – Malaysia		(110,069)			(98,252)
	$	13,371,931		$	15,426,748

Changes In Valuation Allowance For Deferred Tax Assets



	Balance at			Charged to Costs						Balance at
Year	October 1			and Expenses			Deductions/Other			September 30
2014	$	2,147,000		$	432,000		$	12,000		$	2,591,000
2015	$	2,591,000		$	(16,000)		$	—		$	2,575,000
2016	$	2,575,000		$	(276,000)		$	—		$	2,299,000