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Stock-based Compensation, Equity Grants, and Warrants | 6 Months Ended
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Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-based Compensation, Equity Grants, and Warrants | Stock-based Compensation, Equity Grants, and Warrants Stock-based compensation expense Options issued under equity incentive plans were designated as either an incentive stock or a non-statutory stock option. No option was granted with a term of more than 10 years from the date of grant. Exercisability of option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares. As of March 31, 2018, there were 1.7 million shares available for grant. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:
|  |  | (in thousands) |  | (in thousands)
|  |  | Three Months Ended |  | Six Months Ended
| Ref |  | March 31, |  | March 31,
|  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
DLH employees |  |  | $ | 67 |  |  | $ | 56 |  |  | $ | 131 |  |  | $ | 63 |
Non-employee directors | (a) |  | 104 |  |  | 8 |  |  | 797 |  |  | 486 |
Total stock option expense |  |  | $ | 171 |  |  | $ | 64 |  |  | $ | 928 |  |  | $ | 549 |
Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. Unrecognized stock-based compensation expense
|  |  | (in thousands)
|  |  | Six Months Ended
|  |  | March 31,
| Ref |  | 2018 |  | 2017
Unrecognized expense for DLH employees | (a) |  | $ | 1,011 |  |  | $ | 404 |
Unrecognized expense for non-employee directors | (b) |  | $ | — |  |  | $ | 8 |
Total unrecognized expense |  |  | $ | 1,011 |  |  | $ | 412 |
Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. The remaining term for the weighted average expense of these shares will be 56 months. Ref (b): Unrecognized stock expense related to prior year's equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. Stock option activity for the six months ended March 31, 2018 The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.
|  |  |  |  |  |  | (in years) |  |
|  |  |  |  |  |  | Weighted |  |
|  |  |  |  | Weighted |  | Average |  | (in thousands)
|  |  | (in thousands) |  | Average |  | Remaining |  | Aggregate
|  |  | Number of |  | Exercise |  | Contractual |  | Intrinsic
| Ref |  | Shares |  | Price |  | Term |  | Value
Options outstanding September 30, 2017 |  |  | 1,994 |  |  | $ | 3.83 |  |  | 6.4 |  | $ | 8,489 |
Granted |  |  | 217 |  |  | $ | 6.33 |  |  |  |  |
Exercised |  |  | (42 | ) |  | $ | 1.69 |  |  |  |  |
Options outstanding, March 31, 2018 |  |  | 2,169 |  |  | $ | 4.38 |  |  | 6.1 |  | $ | 7,093 |
Indication of Value Summary Utilizing a volatility range of 50% along with assumptions of a 10 year term and the aforementioned 10-day stock price threshold results in an indicated range of value of the Options as follows using the Monte Carlo Method.
|  |  |  |  |  | Volatility
|  |  |  |  |  | 50%
|  |  | Vesting |  | Expected |
| Strike | Stock | Threshold | Risk-Free | Term | Calculated
Grant Date | Price | Price | Price | Rate | (Years) | Fair Value
11/29/2017 | $ | 6.46 |  | $ | 6.46 |  | $ | 12.00 |  | 2.4 | % | 10 | $ | 3.98 |
12/01/2017 | $ | 6.28 |  | $ | 6.28 |  | $ | 8.00 |  | 2.4 | % | 10 | $ | 3.87 |
12/01/2017 | $ | 6.28 |  | $ | 6.28 |  | $ | 10.00 |  | 2.4 | % | 10 | $ | 3.82 |
Notes: |  |  |  |  |  |
Results based on 100,000 simulations |  |  |  |
Stock options shares outstanding, vested and unvested for the period ended
|  |  | (in thousands)
|  |  | Number of Shares
|  |  | March 31, |  | September 30,
| Ref |  | 2018 |  | 2017
Vested and exercisable | (a) |  | 1,335 |  |  | 1,327 |
Unvested |  |  | 834 |  |  | 667 |
Options outstanding |  |  | 2,169 |  |  | 1,994 |
Ref (a): Certain awards vest upon satisfaction of certain performance criteria.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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