Note 9 - Income Taxes
|3 Months Ended|
Dec. 31, 2020
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
December 31, 2020,the Company recorded income tax expense of
$684,000reflecting an effective tax rate of
17.8%.The differences between the effective tax rate and the statutory tax rate were primarily related to excess tax benefits from non-qualified stock options exercised during the quarter as well as research and development credits.
For theThe differences between the effective tax rate and the statutory tax rate were related to nondeductible meals and entertainment, nondeductible stock compensation, foreign derived intangibles income deduction (FDII) and research and development credits.
December 31, 2019,the Company recorded a provision for income taxes of
$123,000,reflecting an effective tax rate of
Deferred taxes recognize the impact of temporary differences between the amounts of the assets and liabilities recorded for financial statement purposes and these amounts measured in accordance with tax laws. The Company's realization of deferred tax temporary differences is contingent upon future taxable earnings. The Company reviewed its deferred tax asset for expected utilization using a “more likely than
not”criteria by assessing the available positive and negative factors surrounding its recoverability and determined that as of
December 31, 2020and
September 30, 2020a valuation allowance against our deferred tax assets is
notrequired. The Company will continue to assess the need for a valuation allowance based on changes in assumptions of estimated future income and other factors in future periods.
December 31, 2020,the Company does
nothave any unrecognized tax benefits. It is the Company's practice to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does
notexpect any material changes in its unrecognized tax positions over the next
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef