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Stock-based Compensation and Equity Grants (Tables) | 12 Months Ended
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Sep. 30, 2022
Share-Based Payment Arrangement [Abstract] |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense, presented in the table below, is recorded in general and administrative expenses included in our consolidated statements of operations for the years ending September 30, 2022 and 2021 (in thousands):
|  | 2022 |  | 2021
DLH employees (a) |  | $ | 1,960 |  |  | $ | 1,193 |
Non-employee directors (b) |  | 648 |  |  | 467 |
Total stock option expense |  | $ | 2,608 |  |  | $ | 1,660 |
(a): Included in this amount are equity grants of restricted stock units to Named Executive Officers ("NEO"), which were issued in accordance with the DLH long-term incentive compensation policy, and stock option grants to NEO and non-NEO company employees. The restricted stock units totaled 140,404 restricted stock units issued and outstanding at September 30, 2022. (b): In the first quarter of fiscal year 2022, we issued 53,510 restricted stock units to the Company's non-employee directors, all of which vested as of September 30, 2022. The shares of common stock underlying such restricted stock units were issued on September 30, 2022. Unrecognized stock-based compensation expense Unrecognized stock-based compensation expense is presented in the table below for the years ending September 30, 2022 and 2021 (in thousands):
|  | 2022 |  | 2021
Unrecognized expense for DLH employees (a) |  | $ | 5,214 |  |  | $ | 4,468 |
(a): On a weighted average basis, this expense is expected to be recognized within the next 4.20 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
|  | Shares |  | Price |  | Term |  | Value
Options outstanding, September 30, 2021 |  | 2,374 |  |  | $ | 5.60 |  |  | 5.6 |  | $ | 15,899 |
Granted (a) |  | 275 |  |  | 16.17 |  |  | — |  | — |
Exercised |  | (257) |  |  | 3.47 |  |  | — |  | — |
Options outstanding, September 30, 2022 |  | 2,392 |  |  | $ | 7.05 |  |  | 5.4 |  | $ | 13,566 |
(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, 2022, as follows using the Monte Carlo method:
Schedule of Stock Options, Valuation Assumptions |
|  |  |  | Vesting | Expected |
|  | Strike | Stock | Threshold | Term | Calculated
Grant Date |  | Price | Price | Price | (Years) | Fair Value
November 8, 2021 |  | $ | 16.01 |  | $ | 16.01 |  | Service | 10 | $ | 9.68 |
November 8, 2021 |  | $ | 16.01 |  | $ | 16.01 |  | $ | 24.00 |  | 10 | $ | 9.68 |
November 8, 2021 |  | $ | 16.01 |  | $ | 16.01 |  | $ | 28.00 |  | 10 | $ | 9.64 |
November 8, 2021 |  | $ | 16.01 |  | $ | 16.01 |  | $ | 32.00 |  | 10 | $ | 9.58 |
August 1, 2022 |  | $ | 17.77 |  | $ | 17.77 |  | $ | 23.00 |  | 10 | $ | 9.68 |
Notes: |  |  |  |  |  |
Results based on 100,000 simulations |  |  |  |  |
Schedule of Stock Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested and unvested for the years ended September 30, 2022 and 2021 (in thousands):
|  | Number of Shares
|  | 2022 |  | 2021
Vested and exercisable (a) |  | 2,117 |  |  | 1,662 |
Unvested (b) |  | 275 |  |  | 712 |
Options outstanding |  | 2,392 |  |  | 2,374 |
(a): Weighted average exercise price of vested and exercisable shares was $5.86 and $3.91 at September 30, 2022 and 2021, respectively. Aggregate intrinsic value was approximately $13.6 million and $13.9 million at September 30, 2022 and 2021, respectively. Weighted average contractual term remaining was 4.9 years and 4.0 years at September 30, 2022 and 2021, respectively. (b): Certain awards vest upon satisfaction of certain performance criteria.

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