The total liabilities associated with the unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate were $590,000, $615,000 and $546,000 at September 30, 2021, 2020 and 2019, respectively. It is not anticipated that the balance of unrecognized tax benefits at September 30, 2021 will change significantly over the next twelve months. The balance of unrecognized tax benefits as reflected in the table above at September 30, 2021 are recorded on the balance sheet as a reduction to deferred tax assets.
The Company’s policy is to recognize interest accrued and, if applicable, penalties related to unrecognized tax benefits in income tax expense for all periods presented. At September 30, 2021, the Company currently has no unrecognized tax benefits against which interest has been accrued, and there is no accrual recorded for penalties.
For the fiscal years ended September 30, 2021, 2020 and 2019, the Company did not recognize any expense for interest (net of federal impact) within income tax expense.
The Company is subject to income taxes in the U.S. federal and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of related tax laws and regulations and require significant judgment to apply. The Company’s federal income tax returns for the fiscal years ended September 30, 2017 and thereafter are open years subject to examination by the Internal Revenue Service. The Company files income tax returns in various state jurisdictions, as appropriate, with varying statutes of limitation. There are no state income tax examinations in process at this time.
11. Savings Plan
The Company sponsors a voluntary defined contribution savings plan covering all employees. The Company made contributions of $123,000, $112,000 and $96,000 for the fiscal years ended September 30, 2021, 2020 and 2019, respectively.
12. Share-Based Compensation
The Company accounts for share-based compensation under the provisions of ASC Topic 718 by using the fair value method for expensing stock options and stock awards.
Total share-based compensation expense was approximately $341,000, $177,000, and $173,000 for the fiscal years ended September 30, 2021, 2020 and 2019, respectively. The income tax impact recognized as a credit to additional paid in capital in the statement of shareholders’ equity related to share-based compensation arrangements was approximately $181,000, $17,000 and $0 for the fiscal years ended September 30, 2021, 2020 and 2019, respectively. Compensation expense related to share-based awards is recorded as a component of selling, general and administrative expenses.
The Company has two share-based compensation plans: (1) the 2009 Stock-Based Incentive Compensation Plan (the “2009 Plan”), which terminated with respect to the grant of any new awards on January 20, 2019, and (2) the 2019 Stock-Based Incentive Compensation Plan (the "2019 Plan"). The 2009 Plan and the 2019 Plan were approved by the shareholders on March 12, 2009 and April 2, 2019, respectively.
2009 Stock-Based Incentive Compensation Plan
The 2009 Plan authorized the grant of stock appreciation rights, restricted stock, options, RSUs and other equity-based awards. Options granted under the 2009 Plan may be either “incentive stock options” as defined in section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options, as determined by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”).
Subject to an adjustment necessary upon a stock dividend, recapitalization, forward split or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase or share exchange, extraordinary or unusual cash distribution, or other similar corporate transaction or event, the maximum number of shares of common stock available for awards under the 2009 Plan was 1,200,000, all of which could be issued pursuant to awards of incentive stock options. In addition, the 2009 Plan provided that no more than 300,000 shares of common stock per year may be awarded to any employee as a performance-based award under Section 162(m) of the Code. The 2009 Plan terminated on January 20, 2019 with respect to the grant of any new awards.