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STOCK-BASED COMPENSATION | 12 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Summary of Equity Plans and Activity The Company has stock-based compensation plans under which employees and non-employee directors may be granted stock-based awards such as stock options, restricted stock (“RSAs”), and restricted stock units (“RSUs”). During fiscal years 2023 and 2022, the following were share-based awards made to certain employees and their general terms and conditions are: •Stock options, which entitle the holder to purchase a specified number of shares of common stock at an exercise price equal to the closing market price of common stock on the date of grant; typically vest over 3 years; and typically expire 10 years from date of grant or 30 days post-termination. In the case of the options issued in relation to the Envigo acquisition, the options expire 10 years from date of grant or 1 year post-termination. •RSAs, which are shares granted at no cost on the grant date and typically vest over 2 years. With respect to RSAs, recipients do have voting rights on the stock during the vesting period. •RSUs, which represent an unsecured promise to grant at no cost a set number of shares of common stock upon the completion of the vesting schedule, and typically vest from 1 to 5 years. With respect to RSUs, recipients do not have voting rights on the stock during the vesting period. In March 2018, the Company's shareholders approved the amendment and restatement of the 2008 Stock Option Plan in the form of the Amended and Restated 2018 Equity Incentive Plan (as amended, the “Equity Plan”). Since March 2018, the Equity Plan has been amended three times: (i)in March 2020, the Company's shareholders approved an amendment to increase the number of shares issuable under the Equity Plan by 700,000 shares and to make corresponding changes to the number of shares issuable as incentive options and as RSAs or RSUs; (ii)in November 2021, the Company's shareholders approved an amendment to the Equity Plan to increase the number of shares available for awards thereunder by 1,500,000 shares and to make certain corresponding changes to the Equity Plan; and (iii)in March 2022, the Company's shareholders approved an amendment to remove certain limitations on the number of stock options, stock appreciation rights, RSAs and RSUs that could be awarded to an employee participant in any fiscal year. The Company currently grants equity awards from the Equity Plan. At September 30, 2023, 362,361 shares remained available for grants under the Equity Plan. The Company recognizes expense for all awards subject to graded vesting using the straight-line attribution method. The Company adjusts stock-based compensation expense for forfeitures in the period that a forfeiture occurs. The Company expenses the estimated fair value of stock options over the vesting periods of the grants. The following table provides stock-based compensation by the financial statement line item in which it is reflected:
| Fiscal Years Ended September 30,
| 2023 |  | 2022
General and administrative | $ | 7,844 |  |  | $ | 5,960 |
Other operating expense | — |  |  | 23,014 |
Stock-based compensation, before income taxes | 7,844 |  |  | 28,974 |
Provision for income taxes | (311) |  |  | (5,123) |
Stock-based compensation, net of income taxes | $ | 7,533 |  |  | $ | 23,851 |
No stock-based compensation related costs were capitalized in fiscal years 2023 and 2022. The weighted-average assumptions used to compute the fair value of options granted under the Black-Scholes model for the fiscal years ended September 30, 2023 and 2022 were as follows:
| 2023 |  | 2022
Risk-free interest rate | 4.29 | % |  | 1.24 | %
Dividend yield | — | % |  | — | %
Volatility of the expected market price of the Company’s common shares | 100.59 | % |  | 76.62 | %
Expected life of the options (years) | 3.57 |  | 3.24
The volatility assumption used to determine the fair values of options granted for fiscal years 2023 and 2022 is based on historical stock price activity. Further, the assumptions presented for fiscal years 2023 and 2022 are inclusive of the options issued in relation to the Envigo acquisition. Refer to Note 3 - Business Combinations for further information related to those options. A summary of the Company’s stock option activity and related information for the year ended September 30, 2023, is as follows:
| Options |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Life |  | Aggregate Intrinsic Value
| (in thousands) |  |  |  | (in years) |  | (in thousands)
Outstanding as of September 30, 2022 | 1,949 |  | $ | 12.54 |  |  |  |  |
Granted | 166 |  | 8.42 |  |  |  |  |  |
Exercised | (43) |  | 2.53 |  |  |  |  |  |
Cancelled | (325) |  | 13.89 |  |  |  |  |  |
Outstanding as of September 30, 2023 | 1,747 |  | $ | 12.06 |  |  | 6.59 |  | $ | 474 |
Exercisable as of September 30, 2023 | 1,310 |  | $ | 10.50 |  |  | 5.90 |  | $ | 474 |
Expected to vest as of September 30, 2023 | 437 |  | $ | 16.73 |  |  | 8.67 |  | $ | — |
The weighted-average grant date fair value of stock options granted was $5.72 and $32.56 for fiscal years 2023 and 2022, respectively. The total intrinsic value of options exercised during fiscal years 2023 and 2022 was $230 and $1,830, respectively, with intrinsic value defined as the difference between the market price on the date of exercise and the exercise price. A summary of the Company’s RSA activity for the year ended September 30, 2023 is as follows:
| Restricted Shares (in thousands) |  | Weighted- Average Grant Date Fair Value
Outstanding (non-vested) – September 30, 2022 | 149 |  | $ | 16.09 |
Granted | 16 |  | $ | 6.56 |
Vested | (107) |  | $ | 11.20 |
Forfeited | (17) |  | $ | 17.60 |
Outstanding (non-vested) – September 30, 2023 | 39 |  | $ | 25.03 |
As of September 30, 2023, the total unrecognized compensation cost related to unvested restricted shares was $124 and is expected to be recognized over a weighted-average service period of 0.70 years. The total fair value of the restricted shares granted during the fiscal years ended September 30, 2023 and 2022 was $102 and $1,197, respectively. The total fair value of restricted shares vested during the fiscal years ended September 30, 2023 and 2022 was $620 and $4,580, respectively. A summary of the Company’s RSUs for the year ended September 30, 2023 is as follows:
| Restricted Stock Units (in thousands) |  | Weighted- Average Grant Date Fair Value
Outstanding (non-vested) – September 30, 2022 | 551 |  | $ | 23.82 |
Granted | 546 |  | $ | 7.16 |
Vested | (137) |  | $ | 24.28 |
Forfeited | (23) |  | $ | 12.67 |
Outstanding (non-vested) – September 30, 2023 | 936 |  | $ | 14.29 |
As of September 30, 2023, the total unrecognized compensation cost related to unvested restricted stock units was $10,141 and is expected to be recognized over a weighted-average service period of 2.54 years. The total fair value of the restricted stock units granted during the fiscal years ended September 30, 2023 and 2022 was $3,908 and $13,067, respectively. The total fair value of restricted stock units vested during the fiscal years ended September 30, 2023 and 2022 was $940 and $0, respectively.

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