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Stock-based Compensation and Equity Grants (Tables) | 12 Months Ended
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Sep. 30, 2020
Share-based Payment Arrangement [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 Statements of Operations:
|  | (in thousands)
|  | Year Ended
| Ref | September 30,
|  | 2020 |  | 2019
DLH employees |  | $ | 563 |  |  | $ | 263 |
Non-employee directors | (a) | 347 |  |  | 527 |
Total stock option expense |  | $ | 910 |  |  | $ | 790 |
Ref (a): In the first quarter of fiscal 2019, we issued 90,000 restricted stock units to the Company's non-employee directors, all of which vested as of September 30, 2020. The shares of common stock underlying such restricted stock units were issued on October 5, 2020. Equity grants of restricted stock units, in accordance with DLH compensation policy for non-employee directors, were made in the first quarter of fiscal 2020 totaling 63,177 restricted stock units. The restricted stock units were granted on October 1, 2020. Unrecognized stock-based compensation expense
|  | (in thousands)
|  | Year Ended
|  | September 30,
| Ref | 2020 |  | 2019
Unrecognized expense for DLH employees | (a) | $ | 2,633 |  |  | $ | 631 |
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 4.58 years.
Schedule of 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, 2019 |  | 2,134 |  |  | $4.36 |  | 5.9 |  | $ | 4,815 |
Granted | (a) | 750 |  |  | $6.74 |  | — |  |  | — |
Exercised |  | (395) |  |  | $0.99 |  | — |  |  | — |
Cancelled |  | (360) |  |  | $2.89 |  | — |  |  | — |
Options outstanding, September 30, 2020 |  | 2,129 |  |  | — |  |  | 7.4 |  | $ | 6,583 |
Ref (a): Utilizing a volatility 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 year ended September 30, 2020, as follows using the Monte Carlo and Black Scholes methods.
Schedule of Stock Options, Valuation Assumptions |
|  |  |  |  |  | Volatility
|  |  |  |  |  | 50%
|  |  |  | Vesting | Expected |
|  | Strike | Stock | Threshold | Term | Calculated
Grant Date | Ref | Price | Price | Price | (Years) | Fair Value
July 13, 2020 | (a) | $ | 8.02 |  | $ | 8.02 |  | Service | 10 | $ | 4.69 |
July 13, 2020 |  | $ | 8.02 |  | $ | 8.02 |  | $ | 12.00 |  | 10 | $ | 4.79 |
July 13, 2020 |  | $ | 8.02 |  | $ | 8.02 |  | $ | 14.00 |  | 10 | $ | 4.76 |
July 13, 2020 |  | $ | 8.02 |  | $ | 8.02 |  | $ | 16.00 |  | 10 | $ | 4.76 |
Notes: |  |  |  |  |  |
Results based on 100,000 simulations |  |  |  |  |
Ref (a): Options granted vest after completion of a one-year service period.
Schedule of Stock Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested and unvested for the years ended:
|  | (in thousands)
|  | Number of Shares
|  | September 30,
| Ref | 2020 |  | 2019
Vested and exercisable | (a) | 1,213 |  |  | 1,300 |
Unvested | (b) | 916 |  |  | 834 |
Options outstanding |  | 2,129 |  |  | 2,134 |
Ref (a): Weighted average exercise price of vested and exercisable shares was $2.25 and $1.51 at September 30, 2020 and 2019, respectively. Aggregate intrinsic value was approximately $6.1 million and $3.9 million at September 30, 2020 and 2019, respectively. Weighted average contractual term remaining was 4.6 years and 3.8 years at September 30, 2020 and 2019, respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria.

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