15. Stockholders’ Equity

In September 1997, the board of directors and stockholders approved the 1997 Key Employee Stock Option Plan (as amended the “1997 Plan”) and, following amendments thereto, there has been reserved an aggregate of 2,250,000 shares of common stock for issuance thereunder. The 1997 Plan expired in November 2017.

In February 2014, the board of directors and stockholders approved the 2014 Long Term Incentive Plan (the “2014 Plan”), which replaced the 1997 Plan. Under the 2014 Plan, an aggregate of 1,500,000 shares of common stock may be issued. The Company is authorized to issue nonqualified and incentive stock options to purchase common stock and restricted stock awards of common stock 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. Under the 2014 Plan, the Company may issue shares of restricted stock to employees for no payment by the employee or for a payment below the fair market value on the date of grant. The restricted stock is subject to certain restrictions described in the 2014 Plan.

At September 30, 2018, an aggregate of 691,388 shares of common stock were available for issuance under the 2014 Plan. No further awards of stock options may be made under the 1997 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 Restricted Stock Awards			Weighted Average Grant-date Fair Value per Share
Outstanding at October 1, 2015		89,700		$	17.27		142,500		$	93.80
Granted		69,300			14.87		182,400			14.84
Exercised		—			—		—			—
Forfeited		—			—		(2,250	)		77.33
Vested		—			—		(49,000	)		90.73
Outstanding at September 30, 2016		159,000			16.23		273,650			39.98
Granted		51,300			21.42		109,500			21.12
Exercised		(4,000	)		8.78		—			—
Forfeited		(4,500	)		26.48		(3,250	)		28.73
Vested		—			—		(91,100	)		22.02
Outstanding at September 30, 2017		201,800			17.47		288,800			28.92
Granted		—			—		176,450			15.13
Exercised		(7,700	)		8.78		—			—
Forfeited		(4,000	)		17.63		(21,925	)		18.75
Vested		—			—		(116,100	)		45.19
Outstanding at September 30, 2018		190,100		$	17.81		327,225		$	16.42

During fiscal year 2018, the Company issued 176,450 shares of restricted stock under the 2014 Plan, as amended. The weighted average grant date fair value of the restricted stock was $15.13 per share. The grant date fair value of these awards was $2.7 million, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for restricted stock awards was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of shares that are anticipated to fully vest. Recipients of restricted stock awards are entitled to vote such shares and are entitled to dividends, if paid.

All of the restricted stock outstanding at September 30, 2018 and 2017 were issued from the 2014 Plan. The 89,700 stock options outstanding at October 1, 2015 were issued under the 1997 Plan. All remaining stock options granted subsequent to October 1, 2015 were granted under the 2014 Plan. All stock options outstanding are nonqualified options.

The total intrinsic value of the Company’s nonqualified stock options exercised during fiscal year 2018 and 2017 was $41,000 and $45,000, respectively. No nonqualified stock options were exercised during fiscal years 2016.

The following table summarizes information about stock options outstanding and exercisable at September 30, 2018:

	Options Outstanding								Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Term (in years)		Weighted Average Exercise Price		Intrinsic Value		Shares		Weighted Average Remaining Term (in years)		Weighted Average Exercise Price		Intrinsic Value
$8.78		24,500		0.2	$	8.78	$	120,540		24,500		0.2	$	8.78	$	120,540
$14.87		69,300		7.1		14.87		—		—		—		—		—
$21.42 to $26.48		96,300		5.1		22.32		—		—		2.5		23.30		—
		190,100		5.2	$	17.81	$	120,540		24,500		4.1	$	17.18	$	120,540

The Company recognized $2.3 million, $5.7 million and $5.2 million of stock-based compensation expense for the fiscal years ended September 30, 2018, 2017 and 2016, respectively. As of September 30, 2018, the Company had unrecognized compensation expense of $3.9 million relating to restricted stock awards. This unrecognized compensation expense is expected to be recognized over a weighted average period of 2.6 years. In addition, the Company had $0.1 million of unrecognized compensation expense related to nonqualified stock option awards which is expected to be recognized over a weighted average period of 0.8 years.