Stockholders' Equity

6 Months Ended

Mar. 31, 2020

Stockholders’ Equity

The changes in stockholders’ equity for the prior year comparable period is as follows:


	Common Stock
(dollars in thousands)	Shares	Amount		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
Balance at September 30, 2018	32,774,118	$	33	$	236,115	$	(6,449)	$	(100,045)	$	129,654
Cumulative adjustment related to the adoption of ASC 606	—	—		—		—		730		730
Net loss	—	—		—		—		(5,022)		(5,022)
Exercise of stock options, grants of restricted stock awards, and vesting of restricted stock units	409,060	—		8		—		—		8

Stock compensation expense	—	—		1,556		—		—		1,556
Foreign currency translation	—	—		—		(427)		—		(427)
Balance at December 31, 2018	33,183,178	$	33	$	237,679	$	(6,876)	$	(104,337)	$	126,499
Net loss	—	—		—		—		(4,362)		(4,362)
Exercise of stock options, grants of restricted stock awards, and vesting of restricted stock units	197,642	—		116		—		—		116
Stock compensation expense	—	—		2,011		—		—		2,011
Forfeitures of restricted stock awards	(33,163)	—		—		—		—		—
Foreign currency translation	—	—		—		198		3		201
Balance at March 31, 2019	33,347,657	$	33	$	239,806	$	(6,678)	$	(108,696)	$	124,465

Stock Compensation Incentive Plans

During the quarter ended March 31, 2020, the Company's shareholders approved an amendment and restatement to its Second Amended and Restated 2006 Omnibus Long-Term Incentive Plan (the Third Amended and Restated 2006 Omnibus Long-Term Incentive Plan) to increase the number of shares of common stock reserved for issuance from 16,300,000 to 19,100,000.

Stock Compensation Expense

Stock-based compensation expense was $2.3 million for the six months ended March 31, 2020, which included $2.4 million of expense related to equity-classified stock options and RSUs & RSAs (restricted stock units and awards) and a $0.1 million benefit related to liability-classified SARs (cash-settled stock appreciation rights).

Stock Options and RSUs & RSAs

The following table presents stock option and RSUs & RSAs grant activity:


	Six Months Ended
	March 31, 2020
Stock Options granted:
Options containing only service conditions:	415,719
Weighted average exercise price	$	6.82
Weighted average grant date fair value	$	2.72

Options containing performance or market conditions:	402,800
Weighted average exercise price	$	6.82
Weighted average grant date fair value	$	2.62

RSUs & RSAs granted:
RSUs & RSAs containing only service conditions:	310,493
Weighted average grant date fair value	$	5.92

RSUs & RSAs containing performance or market conditions:	173,600
Weighted average grant date fair value	$	4.49

The stock options and RSUs & RSAs containing only service conditions will vest over a four year service period. The stock options and RSUs & RSAs containing performance conditions will vest upon the achievement of specified financial targets of the Company or its business units. The stock options and RSUs & RSAs containing market conditions will vest upon the achievement of specified increases in the Company’s share price. Vesting is measured the first day of each fiscal quarter over the four-year terms of the awards, starting with the first fiscal quarter after the first anniversary of the grant date, based upon the trailing 20-days average of the Company’s share price.

The range of assumptions used to determine the fair value of stock options containing only service conditions using the Black-Scholes option-pricing model during the six months ended March 31, 2020 include a dividend yield of 0.0%, expected volatility rates of 46.5% to 51.0%, risk-free interest rates of 0.5% to 1.5%, and expected terms of 4.6 to 7.4 years.

The range of assumptions used to determine the fair value of stock options and RSUs & RSAs containing market conditions using Monte Carlo simulations during the six months ended March 31, 2020 include a dividend yield of 0.0%, expected volatility rates of 46.7% to 51.2%, risk-free interest rates of 1.5% to 1.7%, and expected holding period (% of remaining term for stock options only) of 30.7% to 100%.

SARs

During the three months ended March 31, 2020, the Company did not issue any SARs, 225,267 SARs were exercised requiring the Company to make cash payments of $0.6 million, and 29,815 SARs were canceled. As of March 31, 2020, 178,500 SARs were outstanding.

Share Repurchase Program

The Company did not repurchase shares during the six months ended March 31, 2020 or 2019. As of March 31, 2020, the Company has $10.1 million of remaining authorization to repurchase shares under its share repurchase program.