Amtech Systems, 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, 2022

Schedule of Components of Income (Loss) Before Provision for Income Taxes

The following note related to income taxes summarizes the results from both continuing and discontinued operations. The components of income (loss) before provision for income taxes are as follows, in thousands:


	Years Ended September 30,
	2022		2021			2020
Domestic	$	15,275	$	(3,320	)	$	(18,652	)
Foreign		3,510		6,754			3,673
	$	18,785	$	3,434		$	(14,979	)

The components of the provision for income taxes are as follows, in thousands:


	Years Ended September 30,
	2022			2021			2020
Current:
Domestic federal	$	—		$	—		$	(239	)
Foreign		711			1,999			1,407
Foreign withholding taxes		255			292			201
Domestic state		77			(300	)		(59	)
Total current		1,043			1,991			1,310
Deferred:
Domestic Federal		(39	)		—			—
Foreign		414			(65	)		(566	)
Total deferred		375			(65	)		(566	)
Total provision	$	1,418		$	1,926		$	744

Schedule of Reconciliation of Actual Income Taxes to Income Taxes at Expected U.S. Federal Corporate Income Tax Rate

A reconciliation of actual income taxes to income taxes at the expected U.S. federal corporate income tax rate is as follows, in thousands, except percentages:


	Years Ended September 30,
	2022			2021			2020
Federal statutory rate		21.0	%		21.0	%		21.0	%
Tax expense (benefit) at the federal statutory rate	$	3,945		$	722		$	(3,146	)
Effect of permanent book-tax differences		11			54			145
State tax provision		554			24			34
Valuation allowance for net deferred tax assets		(3,138	)		842			3,775
Uncertain tax items		55			(276	)		(47	)
Tax rate differential		535			267			222
Other items		(544	)		293			(239	)
	$	1,418		$	1,926		$	744

Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities

The components of deferred tax assets and deferred tax liabilities are as follows, in thousands:


	September 30,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards	$	17,180		$	20,650
Accruals and reserves		1,441			1,250
Foreign tax credit		811			1,207
Operating lease liabilities		2,492			1,119
Foreign service fee		1,579			1,635
Other assets		467			1,092
Total deferred tax assets		23,970			26,953
Valuation allowance		(20,000	)		(23,292	)
Deferred tax assets, net of valuation allowance		3,970			3,661
Deferred tax liabilities:
Goodwill and identifiable intangible assets		(321	)		(499	)
Property and equipment, net		(758	)		(1,201	)
Operating lease, right-of-use assets		(2,494	)		(1,119	)
Prepaid assets		(318	)		(211	)
Total deferred tax liabilities		(3,891	)		(3,030	)
Total deferred tax assets (liabilities)	$	79		$	631

Schedule of Changes in Deferred Tax Valuation Allowance

Changes in the deferred tax valuation allowance are as follows, in thousands:


	Years Ended September 30,
	2022			2021
Balance at the beginning of the year	$	23,292		$	21,733
(Reductions) additions to valuation allowance		(3,292	)		1,559
Balance at the end of the year	$	20,000		$	23,292

Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows (in thousands):


	Years Ended September 30,
	2022		2021			2020
Balance at beginning of the year	$	949	$	1,225		$	1,272
Additions related to tax positions taken in prior years		55		—			—
Reductions due to resolution of uncertain tax position		—		(276	)		(47	)
Balance at the end of the year	$	1,004	$	949		$	1,225