Stock-based Compensation and Equity Grants (Tables)

12 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-based Compensation Expense

Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our consolidated statement of operations:



		(in thousands)
		Year Ended
	Ref	September 30,
		2019		2018
DLH employees		$	263	$	266
Non-employee directors	(a)	527		1,109
Total stock option expense		$	790	$	1,375

Ref (a): Represents equity grants issued, in accordance with DLH compensation policy for non-employee directors on November 9, 2018, an aggregate of 101,667 shares of Common Stock of the Company were issued to the non-employee members of the Company's Board of Directors, in accordance with the Company's compensation policy for non-employee directors. During the fiscal year ended September 30, 2019, the Company revised its Board compensation policy to provide that equity grants were earned ratably throughout the year rather than retrospectively in the quarter following the completion of the fiscal year and in December 2018 we issued 90,000 restricted stock units to the Company's non-employee directors, all of which vested as of September 30, 2019. The shares of common stock underlying such restricted stock units were issued on November 7, 2019.

Unrecognized stock-based compensation expense



		(in thousands)
		Year Ended
		September 30,
	Ref	2019		2018
Unrecognized expense for DLH employees	(a)	$	631	$	876

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 Monte Carlo 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. On a weighted average basis, this expense is expected to be recognized within the next 4.14 years.

Schedule of Stock Option Activity

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, 2018		2,134		$4.31	6.3	$	6,949
Granted	(a)	35		$5.25
Exercised or canceled		(35	)	$1.12
Options outstanding, September 30, 2019		2,134		$4.36	5.9	$	4,815

Schedule of 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
		September 30,
	Ref	2019	2018
Vested and exercisable	(a)	1,300	1,335
Unvested	(b)	834	799
Options outstanding		2,134	2,134

Ref (a): Weighted average exercise price of vested and exercisable shares was $1.51 and $1.50 at September 30, 2019 and 2018, respectively. Aggregate intrinsic value was approximately $3.9 million and $5.7 million at September 30, 2019 and 2018, respectively. Weighted average contractual term remaining was 3.8 years years and 4.5 years at September 30, 2019 and 2018, respectively.

Ref (b): Certain awards vest upon satisfaction of certain performance criteria.