Note 14 - Stockholders' Equity

12 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Equity [Text Block]

14. Stockholders’ Equity

In February 2014, the board of directors and stockholders approved the 2014 Long Term Incentive Plan, as amended (the “2014 Plan”). Under the 2014 Plan, an aggregate of 3,000,000 shares of common stock may be issued. The Company is authorized to issue nonqualified and incentive stock options to purchase common stock, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) to key employees, directors and consultants under the 2014 Plan. Options have a term not to exceed ten years, with the exception of incentive stock options granted to employees owning ten percent or more of the outstanding shares of common stock, which have a term not to exceed five years. The exercise price of any option may not be less than the fair market value of the common stock on the date of grant. In the case of incentive stock options granted to an employee owning ten percent or more of the outstanding shares of common stock, the exercise price of such option may not be less than 110% of the fair market value of the common stock on the date of grant. An RSU represents a contingent right to receive one share of the common stock upon vesting. Under the 2014 Plan, the Company may issue RSAs and RSUs to employees for no payment by the employee or for a payment below the fair market value on the date of grant. The RSAs and RSUs are subject to certain restrictions described in the 2014 Plan.

At September 30, 2023, an aggregate of 1,137,509 shares of common stock were available for issuance under the 2014 Plan.

The following table summarizes the combined activity under the equity incentive plans for the indicated periods:

	Number of Nonqualified Options Outstanding			Weighted Average Exercise Price per Share		Number of RSAs			Weighted Average Grant-date Fair Value per Share		Number of RSUs			Weighted Average Grant-date Fair Value per Unit
Outstanding at October 1, 2021		38,800		$	21.42		42,097		$	15.95		299,374		$	10.97
Granted		—			—		—			—		200,350			8.49
Exercised		—			—		—			—		—			—
Forfeited		(38,800	)		21.42		—			—		(51,603	)		9.17
Vested		—			—		(41,097	)		14.67		(124,262	)		11.20
Outstanding at September 30, 2022		—			—		1,000		$	14.59		323,859		$	9.54
Granted		—			—		—			—		228,250			4.70
Exercised		—			—		—			—		—			—
Forfeited		—			—		—			—		(7,312	)		8.44
Vested		—			—		(1,000	)		14.59		(167,248	)		9.94
Outstanding at September 30, 2023		—		$	—		—		$	—		377,549		$	6.46

During fiscal years 2023 and 2022, the Company issued 228,250 and 200,350 RSUs to certain of its employees, executive officers and directors under the 2014 Plan. The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU issued for fiscal years 2023 and 2022 was $4.70 and $8.49 per unit, respectively. The total grant date fair value of all RSUs issued for fiscal years 2023 and 2022 was $1.1 million and $1.7 million, respectively, which will be charged to expense over the next one to four years as the restrictions lapse. Compensation expense for RSUs was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of units that are anticipated to fully vest.   All RSUs outstanding at  September 30, 2023 and 2022 were issued from the 2014 Plan.

No RSAs have been issued since fiscal year 2019 and none were outstanding at September 30, 2023.

Stock-based compensation expense recognized for the fiscal years ended  September 30, 2023 and 2022 was $1.4 million and $1.7 million, respectively. The Company accounts for forfeitures as they occur and records compensation costs under the assumption that the holder will complete the requisite service period.  As of September 30, 2023, the Company had unrecognized compensation expense of $1.5 million relating to RSUs which is expected to be recognized over a weighted average period of 2.4 years.