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Stock-based Compensation, Equity Grants, and Warrants (Tables) | 9 Months Ended
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Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-based Compensation Expense | 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 |  | Nine Months Ended
| Ref |  | June 30, |  | June 30,
|  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
DLH employees |  |  | $ | 68 |  |  | $ | 55 |  |  | $ | 199 |  |  | $ | 117 |
Non-employee directors | (a) |  | 173 |  |  | 8 |  |  | 970 |  |  | 496 |
Total stock option expense |  |  | $ | 241 |  |  | $ | 63 |  |  | $ | 1,169 |  |  | $ | 613 |
Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. Unrecognized stock-based compensation expense
|  |  | (in thousands)
|  |  | June 30,
| Ref |  | 2018 |  | 2017
Unrecognized expense for DLH employees | (a) |  | $ | 980 |  |  | $ | 398 |
Unrecognized expense for non-employee directors | (b) |  | $ | — |  |  | $ | — |
Total unrecognized expense |  |  | $ | 980 |  |  | $ | 398 |
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 53 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 | 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, June 30, 2018 |  |  | 2,169 |  |  | $ | 4.38 |  |  | 5.9 |  | $ | 6,514 |
Stock Options Fair Value Assumptions | 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 granted during the current fiscal year 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 Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested and unvested for the period ended
|  |  | (in thousands)
|  |  | Number of Shares
|  |  | June 30, |  | 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 Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=115993241&loc=d3e301413-122809 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5047-113901 + Details
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- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of number, weighted-average exercise price or conversion ratio, aggregate intrinsic value, and weighted-average remaining contractual term for outstanding and exercisable options that are fully vested and expected to vest. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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