XML 38 R25.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Stock-Based Compensation and Equity Grants (Tables) | 3 Months Ended
--- | ---
Dec. 31, 2024
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 in our consolidated statements of operations as follows (in thousands):
|  |  |  | Three Months Ended |
|  |  |  | December 31, |
|  |  |  |  |  | 2024 |  | 2023 |
DLH employees (a) |  |  |  |  |  | $ | 13 |  |  | $ | 540 |  |
Non-employee directors (b) |  |  |  |  |  | 180 |  |  | 80 |  |
Total stock option expense |  |  |  |  |  | $ | 193 |  |  | $ | 620 |  |
(a) Included in this amount are equity grants of restricted stock units ("RSU") to Executive Officers, which were issued in accordance with the DLH long-term incentive compensation policy in this fiscal year, and stock option grants to employees during prior fiscal years. The RSUs issued and outstanding totaled 708,325 and 367,795 shares at December 31, 2024 and 2023, respectively. During the three months ended December 31, 2024 and 2023, the Company granted 312,906 and 169,544 shares of restricted stock units, respectively. During the three months ended December 31, 2024, 156,453 shares of the RSUs granted have performance-based vesting criteria and the remaining 156,453 shares have service-based vesting criteria. During the three months ended December 31, 2023, 84,773 shares of the RSUs granted have performance-based vesting criteria and the remaining 84,771 shares have service-based vesting criteria. Unrecognized stock-based compensation expense is presented in the table below (in thousands):
|  | December 31, |
|  | 2024 |  | 2023 |
Unrecognized expense for DLH employees (a) |  | $ | 5,302 |  |  | $ | 7,983 |  |
Unrecognized expense for non-employee directors |  | 539 |  |  | 539 |  |
Total unrecognized expense |  | $ | 5,841 |  |  | $ | 8,522 |  |
(a) On a weighted average basis, the unrecognized expense as of December 31, 2024 is expected to be recognized within the next 2.57 years.
Summary of Performance Vesting Critera |
|  |  |  |  |  | Volatility |
|  |  |  |  |  | 50% |
Grant Date | Performance Vesting Base | Performance Vesting Criteria |  | (Years) |  | Fair Value |
December 20, 2024 | Revenue | Revenue increase at the end of the performance period as compared to the year ended September 30, 2027 |  | 3 |  | $ | 0.65 |  |
December 20, 2024 | Stock price | Stock price is at least $23.04 per share average for the 30 days prior to the end of the performance period |  | 3 |  | $ | 1.67 |  |
December 15, 2023 | Revenue | Revenue increase at the end of the performance period as compared to the year ended September 30, 2023 |  | 3 |  | $ | 3.82 |  |
December 15, 2023 | Stock price | Stock price is at least $25.65 per share average for the 30 days prior to the end of the performance period |  | 3 |  | $ | 5.36 |  |
Notes: |  |  |  |  |  |  |
Results based on 100,000 simulations |  |  |  |  |
Schedule of Stock Option Activity | A summary of the Company's stock option awards is as follows:
|  |  |  |  |  | (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, 2024 |  | 1,237 |  |  | $ | 9.28 |  |  | 6.1 |  | $ | 1,313 |  |
Granted |  | — |  |  | — |  |  | — |  |  | — |  |
Exercised |  | — |  |  | — |  |  | — |  |  | — |  |
Cancelled |  | (50) |  |  | 16.01 |  |  | — |  |  | — |  |
Options outstanding, December 31, 2024 |  | 1,187 |  |  | $ | 9.31 |  |  | 5.80 |  | $ | 652 |  |
Vested and exercisable, December 31, 2024 |  | 1,127 |  |  | $ | 9.07 |  |  | 5.70 |  | $ | 652 |  |
Schedule of Option Shares Outstanding, Vested and Expected to Vest | Stock option shares outstanding, vested and unvested balance as follows (in thousands):
|  |  | December 31, |  | September 30, |  |
|  |  | 2024 |  | 2024 |  |  |  |
Vested and exercisable |  |  | 1,127 |  |  | 1,177 |  |  |  |  |
Unvested (a) |  |  | 60 |  |  | 60 |  |  |  |  |
Options outstanding |  |  | 1,187 |  |  | 1,237 |  |  |  |  |
(a) Certain awards vest upon satisfaction of certain performance criteria.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (e) -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (e) -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAndExercisableTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration