Annual report pursuant to Section 13 and 15(d)

Note D - Income Taxes (Tables)

v3.5.0.2
Note D - Income Taxes (Tables)
12 Months Ended
Sep. 30, 2016
Notes Tables  
Summary of Valuation Allowance [Table Text Block]
Year Ended   Balance at Beginning of Year   Income Tax Benefit   Reversal for State NOL Expiration and Utilization   Balance at End of Year
September 30, 2016   $ 658,808     $ (78,044 )   $ (258,360 )   $ 322,404  
September 30, 2015     847,826       (53,836 )     (135,182 )     658,808  
September 30, 2014     975,258       -       (127,432 )     847,826  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
    September 30,
2016
  September 30,
2015
Current deferred income tax assets (liabilities):                
Inventories   $ -     $ 309,791  
Accrued expenses and reserves     -       261,452  
Prepaid expenses     -       (42,304 )
Net operating loss carry forwards and credits     -       652,533  
      -       1,181,472  
Valuation allowance     -       (34,573 )
Net current deferred tax asset   $ -     $ 1,146,899  
                 
Long-term deferred income tax assets (liabilities):                
Intangibles   $ (67,450 )   $ (39,819 )
Property and equipment depreciation     (815,374 )     (726,035 )
Net operating loss carry forwards and credits     702,113       938,168  
Stock-based compensation     221,905       49,926  
Inventories     388,292       -  
Prepaid expenses     (44,511 )     -  
Accrued expenses and reserves     312,227       25,887  
Goodwill     (786,577 )     (706,779 )
      (89,375 )     (458,652 )
Valuation allowance     (322,404 )     (624,235 )
Net long-term deferred tax liability   $ (411,779 )   $ (1,082,887 )
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
    September 30,
2016
  September 30,
2015
  September 30,
2014
Federal statutory rate     34 %     34 %     34 %
State income taxes     1 %     1 %     1 %
Permanent differences     -       1 %     2 %
Change in valuation allowance     (3 %)     (3 %)     (1 %)
Expiration of state NOL’s     2 %     2 %     1 %
Research and development credits     (1 %)     -       -  
Excess tax benefits from stock-based compensation (adoption of ASU 2016-09)     (7 %)     -       -  
Tax rate     26 %     35 %     37 %
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
    September 30,
2016
  September 30,
2015
  September 30,
2014
Current:                        
Federal   $ 428,638     $ 67,373     $ 115,049  
State     106,623       65,820       46,303  
      535,261       133,193       161,352  
Deferred:                        
Federal     2,434,294       2,377,590       2,903,110  
State     (93,523 )     (35,545 )     116,516  
      2,340,771       2,342,045       3,019,626  
Income tax expense   $ 2,876,032     $ 2,475,238     $ 3,180,978