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STOCK-BASED COMPENSATION | 3 Months Ended
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Dec. 31, 2019
STOCK-BASED COMPENSATION |
STOCK-BASED COMPENSATION | 2. STOCK-BASED COMPENSATION The Company’s 2008 Stock Option Plan (the “Plan”) was used to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees and aligning their interests with those of our shareholders. The Plan is described more fully in Note 9 in the Notes to the Consolidated Financial Statements in our Form 10‑K for the fiscal year ended September 30, 2019. In March 2018, our shareholders approved the amendment and restatement of the Plan in the form of the Amended and Restated 2018 Equity Incentive Plan (the "Equity Plan") and the Company currently grants equity awards from the Equity Plan. The purpose of the Equity Plan is to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees. The maximum number of common shares that may be granted under the Equity Plan is 700 shares plus the remaining shares from the 2008 Stock Option Plan. All options granted under the Plan and the Equity Plan had an exercise price equal to the fair market value of the underlying common shares on the date of grant. We expense the estimated fair value of stock options over the vesting periods of the grants. We recognize expense for awards subject to graded vesting using the straight-line attribution method, reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment is recognized at that time. Stock based compensation expense for the three months ended December 31, 2019 was $81. Stock based compensation expense for the three months ended December 31, 2018 was $25. The additional expense in the three months ending December 31, 2019 was due to the grants issued to our Chief Executive Officer in January 2019, option grants to all employees that were issued in 2019 as well as option grants for employees related to the Smithers Avanza acquisition, as described in Note 10. A summary of our stock option activity for the three months ended December 31, 2019 is as follows (in thousands except for share prices):
|  |  |  | Weighted- |  | Weighted-
|  |  |  | Average |  | Average
|  | Options |  | Exercise |  | Grant Date
|  | (shares) |  | Price |  | Fair Value
Outstanding - October 1, 2019 |  | 776 |  | $ | 1.61 |  | $ | 1.22
Exercised |  | — |  |  |  |  |  |
Granted |  | 11 |  | $ | 4.64 |  | $ | 3.14
Forfeited |  | (2) |  | $ | 1.56 |  |  |
Outstanding - December 31, 2019 |  | 785 |  | $ | 1.65 |  | $ | 1.25
Exercisable at December 31, 2019 |  | 223 |  |  |  |  |  |
The weighted-average assumptions used to compute the fair value of the options granted in the three months ended December 31, 2019 were as follows:
Risk-free interest rate |  | 1.77 | %
Dividend yield |  | 0.00 | %
Volatility of the expected market price of the Company's common shares |  | 71.0%-71.5 | %
Expected life of the options (years) |  | 8.0 |
As of December 31, 2019, our total unrecognized compensation cost related to non-vested stock options was $452 and is expected to be recognized over a weighted-average service period of 1.1 years. During the three months ended December 31, 2019, we granted a total of 54 restricted shares to members of the Company's leadership team. A summary of our restricted share activity for the three months ended December 31, 2019 is as follows:
|  | Restricted
|  | Shares
Outstanding – September 30, 2019 |  | 20
Granted |  | 54
Forfeited |  | —
Outstanding - December 31, 2019 |  | 74
As of December 31, 2019, our total unrecognized compensation cost related to non-vested restricted shares was $208 and is expected to be recognized over a weighted-average service period of 1.75 years.

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