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Stock Based Compensation | 12 Months Ended
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Sep. 28, 2025
Share-Based Payment Arrangement [Abstract] |
Stock Based Compensation | Note 10 — Stock Based Compensation Restricted Stock, Performance Shares and Restricted Stock Units issued to Directors, Officers and Employees The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock and restricted stock units and performance shares: Schedule of Aggregate Non-vested Restricted Stock and Restricted Stock Units Granted and Performance Shares
|  | Restricted Stock Units |  |  | Weighted Average Grant Date Fair Value |  |  | Restricted Shares |  |  | Weighted Average Grant Date Fair Value |  |  | Performance Shares |  |  | Weighted Average Grant Date Fair Value |
Outstanding at October 1, 2023 |  |  | 39,000 |  |  | $ | 3.06 |  |  |  | 120,000 |  |  | $ | 2.20 |  |  |  | 135,000 |  |  | $ | 2.37 |
Granted |  |  | 40,500 |  |  |  | 7.17 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Vested |  |  | (13,000 | ) |  |  | 3.06 |  |  |  | (60,000 | ) |  |  | 2.20 |  |  |  | (135,000 | ) |  |  | 2.37 |
Forfeited |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at September 29, 2024 |  |  | 66,500 |  |  | $ | 5.56 |  |  |  | 60,000 |  |  | $ | 2.20 |  |  |  | - |  |  | $ | - |
Granted |  |  | 39,000 |  |  |  | 6.35 |  |  |  | 32,800 |  |  |  | 9.29 |  |  |  | - |  |  |  | - |
Vested |  |  | (24,000 | ) |  |  | 5.17 |  |  |  | (60,000 | ) |  |  | 2.20 |  |  |  | - |  |  |  | - |
Forfeited |  |  | (7,500 | ) |  |  | 5.19 |  |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Outstanding at September 28, 2025 |  |  | 74,000 |  |  | $ | 6.11 |  |  |  | 32,800 |  |  | $ | 9.29 |  |  |  | - |  |  | $ | - |
Restricted Stock Units On May 1, 2024, the Company granted an aggregate of 39,000 restricted stock units to eleven employees under its 2023 Equity Incentive Plan. As of the grant date, assuming a 7.7% forfeiture rate based on expected turnover across the three years, the aggregate value of the restricted stock units is $258 thousand which will be amortized across the three-year period on a straight-line basis. The restricted stock units will vest at a rate of 33.33% annually on the anniversary date of the grant and any unvested restricted stock units will be forfeited if employment terminates prior to the relevant vesting date. On June 4, 2024 there was an additional grant of 500 restricted stock units to one employee with a fair value of $4 thousand. The 500 restricted stock units will vest 100% on the anniversary date of the grant and will be forfeited if employment terminates prior to the relevant vesting date. On July 3, 2024 there was an additional grant of 1,000 restricted stock units to one employee with a fair value of $7 thousand. The 1,000 restricted stock units will vest 100% on the anniversary date of the grant and will be forfeited if employment terminates prior to the relevant vesting date. During the twelve months ended September 29, 2024, there were 13,000 shares vested under its 2023 Equity Incentive Plan for restricted stock units granted on May 1, 2023 and August 14, 2023, which resulted in 9,150 shares issued to eleven employees, net of tax withheld of $28 thousand. During the twelve months ended September 28, 2025, there were 24,000 shares vested under its 2023 Equity Incentive Plan for restricted stock units granted on May 1, 2023, May 1, 2024 and July 3, 2024, which resulted in 16,885 shares issued to eleven employees, net of tax withheld of $47 thousand. During the twelve months ended September 28, 2025, there were 7,500 restricted stock units forfeited on the resignation of two employees. On May 1, 2025, the Company granted an aggregate of 39,000 restricted stock units to eleven employees under its 2023 Equity Incentive Plan. As of the grant date, assuming a 12.8% forfeiture rate based on expected turnover across the three years, the aggregate value of the restricted stock units is $216 thousand which will be amortized across the three-year period on a straight-line basis. The restricted stock units will vest at a rate of 33.33% annually on the anniversary date of the grant and any unvested restricted stock units will be forfeited if employment terminates prior to the relevant vesting date. As of September 28, 2025, there were 74,000 unvested restricted stock units outstanding. Restricted Shares On April 30, 2020, the Board of Directors of the Company (the “Board”) voted to increase the annual board compensation for the three independent directors from $22,000 to $36,000 with an effective date of January 1, 2020, in addition to granting 100,000 shares of restricted stock to each independent director which vest at a rate of 20% per year (20,000 shares) each January 1st through January 1, 2025. The total fair value for the 300,000 shares was $525 thousand based on the stock price of $1.75 as of April 30, 2020. On each of January 1, 2021, January 1, 2022, and January 1, 2023, 60,000 of the restricted director shares vested. On February 16, 2023, 40,000 of the unvested restricted shares were forfeited and cancelled when one of the independent directors departed the Board. On May 9, 2023, the Board approved a grant of 40,000 shares of restricted stock to independent board member Dayton Judd. The shares vested 50% on each of January 1, 2024 and January 1, 2025. As of the grant date, the fair value of the shares was $124 thousand, to be amortized on a straight-line basis through December 31, 2024. The Company amortized the grant date fair value to stock compensation expense on a straight-line basis across the 5 five-year and 2 two-year vesting periods beginning on April 30, 2020 and May 9, 2023, respectively. On January 1, 2025, the remaining 60,000 shares were vested. On November 5, 2024, the Board approved the following Board compensation for the three independent directors, effective January 1, 2025: (a) a cash retainer of $44,000, paid quarterly, and (b) $66,000 in restricted stock awarded under the 2023 Equity Incentive Plan, with 100% vesting on January 1, 2026, the share price calculated on the basis of the 10-day Volume Weighted Average Price (“VWAP”), and the number of shares rounded up to the nearest 100 shares. The restricted stock award was made on November 5, 2024 and consisted of 7,600 shares of restricted stock for each independent director. The total fair value for the 22,800 shares was $185 thousand based on the stock price of $8.10 as of November 5, 2024. As of September 28, 2025, there were 22,800 of such unvested restricted shares outstanding which will vest on January 1, 2026. On August 11, 2025, the Board approved an award to Chad George of 10,000 shares of restricted stock under the Company’s 2023 Equity Incentive Plan pursuant to his employment as Optex Systems Holdings, Inc.’s President. The shares will vest on January 1, 2026. The total fair value for the 10,000 shares was $120 thousand based on the stock price of $12.00 as of August 12, 2025. As of September 28, 2025, there were 10,000 of such unvested restricted shares outstanding which will vest on January 1, 2026. The share issue was 7,035 shares, net of 2,965 shares which were withheld for taxes due upon the vesting date. Also see Note 14 “Subsequent Events” for additional restricted share issues occurring after September 28, 2025. Performance Shares On May 3, 2023, the Board approved a grant of 100,000 and 35,000 performance shares to Danny Schoening, CEO, and Karen Hawkins, CFO, respectively. Each performance share represents a contingent right to receive one share of common stock. The performance shares vest in five equal increments if, in each case and during a five-year performance period beginning on October 2, 2023, the average VWAP per share of common stock over a 30 consecutive trading day period equals or exceeds $3.70, $4.45, $5.35, $6.40, or $7.70. The fair value of the shares, as of the grant date, is $320 thousand and will be amortized through December 31, 2025 based on the derived service periods using a Monte Carlo simulation valuation model. On October 2, 2023, 27,000 performance shares vested each date for reaching the 30-day VWAP for Tranche 1. The Company issued a total of 21,060 shares on October 24, 2023 in settlement of the vested shares, net of tax withheld of $27 thousand. On December 22, 2023 and December 29, 2023, 27,000 performance shares vested each date for reaching the 30-day VWAP for Tranche 2 and Tranche 3. On January 8, 2024, the Company issued a total of 39,563 shares in settlement of the vested shares, net of tax withheld of $91 thousand. On March 11, 2024, 27,000 performance shares vested each date for reaching the 30-day VWAP for Tranche 4. The Company issued a total of 20,669 shares on March 13, 2024 in settlement of the vested shares, net of tax withheld of $46 thousand. On May 17, 2024, 27,000 performance shares vested for reaching the 30-day VWAP for Tranche 5. The Company issued a total of 20,426 shares on May 17, 2024 in settlement of the vested shares, net of tax withheld of $53 thousand. As of September 29, 2024 and September 28, 2025, there were no performance shares remaining to vest. The assumptions and results for the Monte Carlo simulation employed for the performance shares are as follows: Schedule of Assumptions and Results for the Monte Carlo Simulation for the Performance Shares
|  | Assumptions |
Performance Period Start |  |  | 10/2/2023 |
Performance Period End |  |  | 10/1/2028 |
Term of simulation (1) |  |  | 5.42 years |
Time steps in simulation |  |  | 1,365 |
Time steps per year |  |  | 252 |
Common share price at valuation date (2) |  | $ | 3.04 |
Volatility (annual) (4) |  |  | 50.0 | %
Risk-free rate (annual) (5) |  |  | 3.37 | %
Cost of equity (6) |  |  | 11.5 | %
Dividend yield (3) |  |  | 0.0 | %
|  | Tranche 1 |  |  | Tranche 2 |  |  | Tranche 3 |  |  | Tranche 4 |  |  | Tranche 5 |
Number of performance shares in the Tranche (1) |  |  | 27,000 |  |  |  | 27,000 |  |  |  | 27,000 |  |  |  | 27,000 |  |  |  | 27,000 |
Fair Value of One Performance share (7) |  | $ | 2.75 |  |  | $ | 2.58 |  |  | $ | 2.39 |  |  | $ | 2.18 |  |  | $ | 1.93 |
Total Fair Value of Tranche |  | $ | 74,345 |  |  | $ | 69,742 |  |  | $ | 64,446 |  |  | $ | 58,819 |  |  | $ | 52,238 |
Derived Service Period (Years) (7) |  |  | 0.71 |  |  |  | 1.13 |  |  |  | 1.60 |  |  |  | 2.06 |  |  |  | 2.48 |
| (1) | Based on the terms of the Performance Shares agreement issued by the Company on May 3, 2023.
| (2) | Closing price of OPXS shares on the Valuation Date, as obtained via S&P Capital IQ.
| (3) | Expected dividends provided by management.
| (4) | Based on historical volatility of OPXS and comparable public companies.
| (5) | Interest rate for US Treasury commensurate with the Performance Shares holding period, as of the Valuation Date, as obtained via S&P Capital IQ.
| (6) | Estimated cost of equity for OPXS as of the Valuation Date.
| (7) | Based on Monte Carlo simulation.
Stock Based Compensation Expense Equity compensation is amortized based on a straight-line basis across the vesting or service period as applicable. The recorded compensation costs for options and shares granted and restricted stock units awarded as well as the unrecognized compensation costs are summarized in the table below: Schedule of Unrecognized Compensation Costs
|  | (Thousands) |
|  | Recognized Compensation Expense |  |  | Unrecognized Compensation Expense |
|  | Year Ended |  |  | Year Ended |
|  | September 28, 2025 |  |  | September 29, 2024 |  |  | September 28, 2025 |  |  | September 29, 2024 |
Restricted Shares |  | $ | 226 |  |  | $ | 140 |  |  | $ | 112 |  |  | $ | 33 |
Performance Shares |  |  | - |  |  |  | 212 |  |  |  | - |  |  |  | - |
Restricted Stock Units |  |  | 157 |  |  |  | 73 |  |  |  | 342 |  |  |  | 284 |
Total Stock Compensation |  | $ | 383 |  |  | $ | 425 |  |  | $ | 454 |  |  | $ | 317 |
The unrecognized compensation expense for restricted shares and restricted stock units as of September 28, 2025, is expected to be recognized over a weighted-average period of 0.26 years and 2 years, respectively.

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