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13. STOCK-BASED COMPENSATION
3 Months Ended
Dec. 31, 2025
Equity [Abstract]  
STOCK-BASED COMPENSATION

13. STOCK-BASED COMPENSATION

As of December 31, 2025 there were 10,670,582 shares available and authorized for issuance under the Plan. Although the Board is authorized to increase the number of shares in the Plan up to 15% of the Company’s outstanding common shares on a semi-annual basis, as of December 31, 2025 it has not authorized any increased in Plan shares since the Company filed its latest Registration Form on Form S-8 on May 8, 2025.

The Company recognized $12,132 and $3,021 for the three months ended December 31, 2025 and 2024, respectively, in stock-based compensation.

STOCK OPTIONS

The following is a summary of stock option activity during the three months ended December 31, 2025:

 

Number of
Option Shares

 

 

Weighted Average
Exercise Price ($)

 

Balance, September 30, 2025

 

 

2,162,186

 

 

$

15.66

 

Options expired

 

 

(6,087

)

 

$

14.69

 

Options forfeited

 

 

(19,935

)

 

$

15.17

 

Options exercised

 

 

(106,425

)

 

$

8.76

 

Balance, December 31, 2025

 

 

2,029,739

 

 

$

16.03

 

As of December 31, 2025, there were options exercisable to purchase 1,557,844 shares of common stock in the Company. and 471,895 unvested options outstanding that cannot be exercised until vesting conditions are met. As of December 31, 2025, the outstanding options had a weighted average remaining term of 6.7 years and an intrinsic value of $2,146. Forfeitures of options are recognized as they occur.

The Company recognized stock-based compensation expense relating to stock options of $941 and $1,078 for the three months ended December 31, 2025 and 2024, respectively. As of December 31, 2025, the Company expects to recognize $4,461 of stock-based compensation for the non-vested outstanding options over a weighted-average period of 1.46 years.

RESTRICTED STOCK UNITS

The Company grants RSUs that contain either a) service conditions, b) performance conditions, or c) market performance conditions. RSUs containing service conditions vest monthly, quarterly or annually. RSUs containing performance conditions generally vest over 1 year, and the number of shares earned depends on the achievement of predetermined Company metrics and may also include a service condition. RSUs that contain market conditions will vest based on the terms of the agreement and generally are either 1 year or over the employee’s term of employment.

The Company recognizes the expense equal to the total fair value of the RSUs on the grant date spread out over the term that the performance conditions related to the RSUs are expected to be met. The time-based RSUs granted were valued equal to the stock price on the grant date and the value of market-based and performance based RSUs were valued utilizing the Monte-Carlo valuation model. The expense is recognized ratably over the requisite service period and forfeitures are recognized as they occur.

The following table summarizes the activity for all restricted stock units (“RSUs”) during the three months ended December 31, 2025:

 

Number of
Shares

 

 

Weighted
Average
Fair Value
Per Share

 

 

Aggregate
Intrinsic Value

 

Outstanding at September 30, 2025

 

 

12,891,419

 

 

$

9.16

 

 

$

186,926

 

Granted

 

 

911,829

 

 

$

14.59

 

 

 

 

Vested

 

 

(94,441

)

 

$

9.48

 

 

 

 

Forfeited

 

 

(74,077

)

 

$

7.99

 

 

 

 

Outstanding at December 31, 2025

 

 

13,634,730

 

 

$

9.53

 

 

$

137,983

 

As of December 31, 2025, the Company had 13,634,730 outstanding unvested time-based restricted stock awards, which will vest over the weighted average 2.6 years. As of December 31, 2025, the unrecognized compensation costs related to all RSUs is $105,987.

The Company recognized stock-based compensation expenses related to time-based RSUs, of $10,891 and $1,943 for the three months ended December 31, 2025 and 2024, respectively.

PERFORMANCE STOCK UNITS

The following table summarizes the activity for all performance stock units (“PSUs”) during the three months ended December 31, 2025:

 

 

Number of
Shares

 

 

Weighted
Average
Fair Value
Per Share

 

 

Aggregate
Intrinsic Value

 

Outstanding at September 30, 2025

 

 

38,460

 

 

$

10.61

 

 

$

558

 

Granted

 

 

 

 

$

 

 

 

 

Vested

 

 

(38,460

)

 

$

10.61

 

 

 

 

Outstanding at December 31, 2025

 

 

 

 

$

 

 

$

 

The PSUs vest based on the achievement of certain milestones closely tied to the employees’ job responsibilities.

As of December 31, 2025, the Company had no outstanding unvested performance-based restricted stock awards.

Stock-based compensation expense relating to PSUs was $299 for the three months ended December 31, 2025, compared to no expense for three months ended December 31, 2024.