Stockholders' Equity

3 Months Ended

Dec. 31, 2013

Stockholders' Equity [Abstract]

Stockholders' Equity

8. STOCKHOLDERS’ EQUITY

The 2006 Equity Incentive Plan became effective on May 12, 2006 (as amended, the “2006 Equity Incentive Plan”). The 2006 Equity Incentive Plan provides for grants of stock options as well as grants of stock, including restricted stock. We have approximately 1.0 million shares of common stock authorized for issuance under the 2006 Equity Incentive Plan.

Treasury Stock

During the three months endedDecember 31, 2013, we repurchased 33,568 common shares from our employees to satisfy minimum tax withholding requirements upon the vesting of restricted stock issued under the 2006 Equity Incentive Plan.We issued 7,500 shares out of treasury stock under our share-based compensation programs for restricted shares granted.

Restricted Stock

Restricted Stock Awards:
Fiscal Year	Shares Granted	Weighted Average Fair Value at Date of Grant	Shares Vested	Shares Forfeited	Shares Outstanding	Expense recognized through December 31, 2013
2006	384,850	$ 24.78	258,347	126,503	-	$ 6,402
2006	25,000	17.36	25,000	-	-	434
2007	20,000	25.08	20,000	-	-	502
2007	4,000	26.48	4,000	-	-	106
2008	101,650	19.17	85,750	15,900	-	1,779
2009	185,100	8.71	146,400	38,700	-	1,344
2010	225,486	3.64	147,456	78,030	-	495
2011	320,000	3.39	240,129	73,205	6,666	816
2012	107,500	2.07	69,167	-	38,333	160
2013	12,500	5.00	4,167	-	8,333	24
2014	7,500	4.60	-	-	7,500	1

During the three months endedDecember 31, 2013 and2012, we recognized $104 and $91, respectively, in compensation expense related to these restricted stock awards. At December 31, 2013, the unamortized compensation cost related to outstanding unvested restricted stock was $147. We expect to recognize $93of this unamortized compensation expense during the remaining nine months of our 2014 fiscal year and $54thereafter. A summary of restricted stock awards for the years ended September 30,2013 and 2012and three months endedDecember 31, 2013, is provided in the table below:

		Three Months Ended		Years Ended September 30,
			December 31, 2013	2013	2012
Unvested at beginning of year			159,246	257,826	376,200
	Granted		7,500	12,500	107,500
	Vested		(105,914)	(111,080)	(192,973)
	Forfeited		-	-	(32,901)
Unvested at end of period			60,832	159,246	257,826

Phantom Stock Units

Phantom stock units (“PSUs”) are primarily granted to the members of the Board of Directors as part of their overall compensation. These PSUs are paid via unrestricted stock grants to each director upon their departure from the Board of Directors. We record compensation expense for the full value of the grant on the date of grant. For the three months endedDecember 31, 2013 and 2012, we recognized $36 and $36 in compensation expense related to these grants.

From time to time, PSUs are granted to employees. These PSUs are paid via unrestricted stock grants to each employee upon the satisfaction of the grant terms. We record compensation expense for the PSUs granted to employees over the grant vesting period. For the three months endedDecember 31, 2013 and 2012, we recognized zero and $363 in compensation expense related to these grants.

Stock Options

We utilized a binomial option pricing model to measure the fair value of stock options granted.Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, the risk-free rate of return, and actual and projected employee stock option exercise behaviors. The expected life of stock options is not considered under the binomial option pricing model that we utilize. No options were granted in the three month period ended December 31, 2013. The assumptions used in the fair value method calculation for the years ended2013 and 2012are disclosed in the following table:

		Years Ended September 30,
			2013	2012
Weighted average value per option granted during the period		$	3.43		N/A
Dividends (1)		$	-		N/A
Stock price volatility (2)			66.6%		N/A
Risk-free rate of return			0.9%		N/A
Option term			10.0 years		N/A
Expected life			6.0 years		N/A
Forfeiture rate (3)			10.0%		N/A
	(1) We do not currently pay dividends on our common stock.
	(2) Based upon the Company's historical volatility.
	(3) Based upon the company's historical data.

Stock-based compensation expense recognized during the period is based on the value of the portion of the share-based payment awards that is ultimately expected to vest during the period. Stock-based compensation expense recognized in the Consolidated Statements of Comprehensive Income is based on awards ultimately expected to vest. We estimate our forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The following table summarizes activity under our stock option plans.

		Weighted Average
	Shares	Exercise Price
Outstanding, September 30, 2011	20,000	$	3.24
Options granted	-		-
Exercised	-		-
Forfeited and Cancelled	-		-
Outstanding, September 30, 2012	20,000	$	3.24
Options granted	150,000		5.76
Exercised	-		-
Forfeited and Cancelled	-		-
Outstanding, September 30, 2013	170,000	$	5.46
Options granted	-		-
Exercised	-		-
Forfeited and Cancelled	-		-
Outstanding, December 31, 2013	170,000	$	5.46

The following table summarizes options outstanding and exercisable at December 31, 2013:

Exercise Prices	Outstanding as of December 31, 2013	Remaining Contractual Life in Years		Weighted-Average Exercise Price	Exercisable as of December 31, 2013		Weighted-Average Exercise Price
$3.24	20,000	7.55	$	3.24	13,333	$	3.24
$5.76	150,000	9.33	$	5.76	-	$	-
	170,000		$	5.46	13,333	$	3.24

Our 2011 options vest over a three year period at a rate of one-third per year upon the annual anniversary date of the grant. Our 2013 options cliff vest at the end of a two year period ending at the anniversary date of the grant. All options expire ten years from the grant date if they are not exercised. Upon exercise of stock options, it is our policy to first issue shares from treasury stock, then to issue new share. Unexercised stock options expire July 2021 and May 2023.

During the three months endedDecember 31, 2013 and 2012, we recognized $62and $3, respectively, in compensation expense related to our stock option awards. At December 31, 2013, the unamortized compensation cost related to outstanding unvested stock options was $317. We expect to recognize$182 of this unamortized compensation expense during the remaining nine months of our 2014 fiscal year and $135 thereafter.

The intrinsic value of stock options outstanding and exercisable was $33 and $31 at December 31, 2013 and 2012, respectively. The intrinsic value is calculated as the difference between the fair value as of the end of the period and the exercise price of the stock options.