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Stockholders' Equity | 12 Months Ended
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Sep. 30, 2011
Stockholders' Equity [Abstract] |
Stockholders' Equity | 12. STOCKHOLDERS' EQUITY The 2006 Equity Incentive Plan became effective on May 12, 2006 (as amended, the “2006 Equity Incentive Plan”). The 2006 Equity Incentive Plan provides for grants of stock options as well as grants of stock, including restricted stock. We have approximately 1.0 million shares of common stock authorized for issuance under the 2006 Equity Incentive Plan. On May 12, 2008, 10,555 shares of outstanding common stock that were reserved for issuance upon exchange of previously issued shares pursuant to our Plan were cancelled. Treasury Stock On December 12, 2007, our Board of Directors authorized the repurchase of up to one million shares of our common stock, and the Company has established a Rule 10b5-1 plan to facilitate this repurchase. This share repurchase program was authorized through December 2009. D uring the year ended September 30, 2011, we repurchased 20,789 common shares from our employees to satisfy tax withholding requirements upon the vesting of restricted stock issued under the 2006 Equity Incentive Plan, and 130,258 unvested shares were forfeited by former employees and returned to treasury stock. W e issued 324,000 shares out of treasury stock under our share-based compensation programs. Finally, 9,616 phantom stock units granted to members of the Board of directors vested, triggering an issuance of 9,616 unrestricted shares from the balance held in treasury shares. Restricted Stock
Restricted Stock Awards: |  |  |  |  |  |  |  |
Fiscal Year |  | Shares Granted |  | Weighted Average Fair Value at Date of Grant |  | Vested |  | Forefeitures |  | Shares Outstanding |  | Expense recognized through September 30, 2011
2006 |  | 384,850 |  | $ 24.78 |  | 258,347 |  | 126,503 |  | - |  | $ 6,402
2006 |  | 25,000 |  | $ 17.36 |  | 25,000 |  | - |  | - |  | $ 434
2007 |  | 20,000 |  | $ 25.08 |  | 20,000 |  | - |  | - |  | $ 502
2007 |  | 4,000 |  | $ 26.48 |  | 4,000 |  | - |  | - |  | $ 106
2008 |  | 101,650 |  | $ 19.17 |  | 85,750 |  | 15,900 |  | - |  | $ 1,779
2009 |  | 185,100 |  | $ 8.71 |  | 146,400 |  | 38,700 |  | - |  | $ 1,344
2010 |  | 225,486 |  | $ 3.64 |  | 42,701 |  | 68,585 |  | 114,200 |  | $ 360
2011 |  | 320,000 |  | $ 3.39 |  | 7,627 |  | 50,373 |  | 262,000 |  | $ 174
During the years ended September 30, 2011, 2010 and 2009, we recognized $787, $1,272, and $1,748, respectively, in compensation expense related to these restricted stock awards. At September 30, 2011, the unamortized compensation cost related to outstanding unvested restricted stock was $865. We expect to recognize $480 and $299 of this unamortized compensation expense during the years ended September 30, 2012 and 2013, respectively. A summary of restricted stock awards for the years ended September 30, 2011, 2010 and 2009 is provided in the table below:
|  | Years Ended September 30,
|  | 2011 |  | 2010 |  | 2009
Unvested at beginning of year |  | 352,086 |  | 230,716 |  | 171,926
| Granted |  | 320,000 |  | 225,486 |  | 185,100
| Vested |  | (165,628) |  | (66,116) |  | (126,190)
| Forfeited |  | (130,258) |  | (38,000) |  | (120)
Unvested at end of year |  | 376,200 |  | 352,086 |  | 230,716
The fair value of shares vesting during the years ended September 30, 2011, 2010 and 2009 was $520, $423 and $1,202, respectively. Fair value was calculated as the number of shares vested times the market price of shares on the date of vesting. The weighted average grant date fair value of unvested restricted stock at September 30, 2011 was $3.41. All the restricted shares granted under the 2006 Equity Incentive Plan (vested or unvested) participate in dividends issued to common shareholders, if any. P hantom Stock Units We recognized $138 in compensation expense for 26,191 shares of performance-based phantom stock units (“PSU s”) are generally granted to the members of the Board of Directors in 2010, and $100 in compensation expense for 24,632 PSUs granted i n 2011. These PSU's will be paid via unrestricted stock grants to each director upon his departure from the Board of Directors. In accordance with the separation agreement resulting from the departure of one employee in fiscal 2009, 6,100 PSUs vested and expense of $59 was recorded. Stock Options We utilized a binomial option pricing model to measure the fair value of stock options granted. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, the risk-free rate of return, and actual and projected employee stock option exercise behaviors. The expected life of stock options is not considered under the binomial option pricing model that we utilize. The assumptions used in the fair value method calculation for the years ended September 30, 2011, 2010 and 2009 are disclosed in the following table:
|  |  | Years Ended September 30,
|  |  | 2011 |  | 2010 |  | 2009
Weighted average value per option granted during the period |  | $ | 2.05 |  |  | N/A |  | $ | 8.56
Dividends (1) |  | $ | - |  |  | N/A |  | $ | -
Stock price volatility (2) |  |  | 69.9% |  |  | N/A |  |  | 86.4%
Risk-free rate of return |  |  | 1.9% |  |  | N/A |  |  | 1.3%
Option term |  |  | 10.0 years |  |  | N/A |  |  | 10.0 years
Expected life |  |  | 6.0 years |  |  | N/A |  |  | 6.0 years
Forfeiture rate (3) |  |  | 0.0% |  |  | N/A |  |  | 0.0%
| (1) We do not currently pay dividends on our common stock.
| (2) Based upon the Company's historical volatility.
| (3) The forfeiture rate for these options was assumed on the date of grant to be zero based on the limited number of employees who have been awarded stock options.
Stock-based compensation expense recognized during the period is based on the value of the portion of the share-based payment awards that is ultimately expected to vest during the period. As stock-based compensa tion expense recognized in the C onsolidated S tatement s of O perations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. We estimate our forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The following table summarizes activity under our stock option plans.
|  |  |  | Weighted Average
|  | Shares |  | Exercise Price
Outstanding, September 30, 2008 |  | 161,000 |  | $ | 26.66
Options granted |  | 7,500 |  |  | 17.09
Exercised |  | - |  |  | -
Forfeited and Cancelled |  | (10,000) |  |  | 41.61
Outstanding, September 30, 2009 |  | 158,500 |  | $ | 19.87
Options granted |  | - |  |  | 12.31
Exercised |  | - |  |  | -
Forfeited and Cancelled |  | - |  |  | 33.35
Outstanding, September 30, 2010 |  | 158,500 |  | $ | 18.66
Options granted |  | 20,000 |  |  | 3.24
Exercised |  | - |  |  | -
Forfeited and Cancelled |  | (158,500) |  |  | 18.66
Outstanding, September 30, 2011 |  | 20,000 |  | $ | 3.24
The following table summarizes options outstanding and exercisable at September 30, 2011:
Range of Exercise Prices |  | Outstanding as of September 30, 2011 |  | Remaining Contractual Life in Years |  |  | Weighted-Average Exercise Price |  | Exercisable as of September 30, 2011 |  |  | Weighted-Average Exercise Price
$3.24 |  | 20,000 |  | 9.80 |  | $ | 3.24 |  | - |  | $ | 3.24
|  | 20,000 |  | 9.80 |  | $ | 3.24 |  | - |  | $ | 3.24
All of our outstanding options vest over a three-year period at a rate of one-third per year upon the annual anniversary date of the grant and expire ten years from the grant date if they are not exercised. Upon exercise of stock options, it is our policy to first issue shares from treasury stock, then to issue new shares. Unexercised stock options expire between July 2016 and November 2018. During the years ended September 30, 2011, 2010 and 2009, we recognized $19, $99 and $479, respectively, in compensation expense related to these awards. At September 30, 2011, the unamortized compensation cost related to outstanding unvested stock options was $39. We expect to recognize all of this unamortized compe nsation expense during the year ended September 30, 2012. There was no intrinsic value of stock options outstanding and exercisable at September 30, 2011 and 2010, respectively. The intrinsic value is calculated as the difference between the fair value as of the end of the period and the exerc ise price of the stock options.

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- Definition The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 3, 4, 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 4 -Section 08 -Paragraph d Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7, 11A -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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