Company: NGVC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025419
Chunk: 74

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 74
---
 net

			$
			12,195

			13,488

			(1) Internal-use software at September 30, 2024 has been reclassified from other intangibles to be consistent with the current period presentation.

15

11. Accrued Expenses

The composition of accrued expenses as of June 30, 2025 and September 30, 2024 is summarized as follows, dollars in thousands:

			As of

			June 30,

			September 30,

			2025

			2024

			Payroll and employee-related expenses

			$
			18,688

			21,874

			Accrued property, sales, and use tax payable

			8,029

			9,607

			Accrued marketing expenses

			406

			413

			Deferred revenue

			2,042

			1,895

			Other

			2,316

			2,058

			Total accrued expenses

			$
			31,481

			35,847

12. Income Taxes

Income taxes are accounted for in accordance with the provisions of FASB ASC Topic 740 “Income Taxes” (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.

On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA). The OBBBA, among other things, makes changes to certain business-related exclusions, deductions and credits. As the effects of changes in tax law are recognized in the period of change, this legislation is not reflected in the Company’s unaudited consolidated financial statements for the periods ended June 30, 2025. The Company is currently evaluating the impact of the OBBBA, but does not expect it to have a material impact on its consolidated financial statements.

13. Related Party