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STOCK-BASED COMPENSATION
 12 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
NOTE 8—STOCK-BASED COMPENSATION
 
The 2019 Stock Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the March 2019 Annual Meeting. The 2019 Plan replaced the 2010 Omnibus Incentive Compensation Plan (“2010 Plan”) that was approved by the Company’s stockholders at the January 2011 Annual Meeting. The 2019 Plan, like the 2010 Plan, is administered by the Compensation Committee of the Board of Directors and provides for the following types of awards: incentive stock options, nonqualified options, stock appreciation rights, restricted shares, restricted stock units, performance compensation awards, cash incentive awards, director stock and other equity-based and equity-related awards. Awards are generally granted to certain members of management and employees, as well as directors. The Company also has an ESPP, adopted in 2011, that provides for the purchase of Company common stock at a discounted stock purchase price. Under the 2019 Plan, 840,360 shares of common stock, plus any shares that are subject to awards granted under the 2010 Plan that expire, are forfeited or canceled without the issuance of shares (other than shares used to pay the exercise price of a stock option under the 2010 Plan and shares used to cover the tax withholding of the award under the 2010 Plan) may be issued over a term of ten years. Under the ESPP, 150,000 shares of common stock may be issued over a term of ten years.

Stock-based compensation expense totaled $0.7 million and $0.6 million for the fiscal years ended September 30, 2020 and 2019, respectively.

At September 30, 2020, there were 603,869 shares of common stock remaining available to be issued under the 2019 Plan and 74,718 shares of common stock remaining available to be issued under the ESPP.

Expenses relating to stock options that comply with certain U.S. income tax rules are neither deductible by the Company nor taxable to the employee. Further information regarding awards granted under the 2010 Plan, 2019 Plan and ESPP is provided below.
 
Stock Options
 
When options are granted, IEC estimates fair value using the Black-Scholes option pricing model and recognizes the computed value as compensation cost over the vesting period, which is typically four years. The contractual term of options granted under the 2010 Plan and 2019 Plan is generally seven years. The volatility rate is based on the historical volatility of IEC’s common stock.
 
Assumptions used in the Black-Scholes model and the estimated value of options granted during the fiscal years ended September 30, 2020 and 2019 follows:
 Years Ended
Valuation of OptionsSeptember 30,
2020		September 30,
2019
 
Assumptions for Black-Scholes:
Risk-free interest rate0.46 %1.64 %
Expected term in years5.55.5
Volatility40 %37 %
Expected annual dividendsnonenone
 
Value of options granted:
Number of options granted47,50070,000
Weighted average fair value per share$2.77$2.40
Fair value of options granted (000s)$132$168
 
A summary of stock option activity, together with other related data, follows:
 Years Ended
 September 30, 2020September 30, 2019
Stock OptionsNumber
of Options		Wgtd.  Avg. Exercise PriceNumber
of Options		Wgtd.  Avg. Exercise Price
Outstanding, beginning of period743,145 $4.54 737,145 $4.33 
Granted47,500 6.00 70,000 6.40 
Exercised(100,500)4.32 (34,000)4.46 
Forfeited(15,000)3.92 (24,250)3.70 
Expired(5,000)6.91 (5,750)4.06 
Outstanding, end of period670,145 $4.67 743,145 $4.54 
For options expected to vest  
Number expected to vest662,160 $4.66 733,068 $4.52 
Weighted average remaining life, in years3.33.5 
Intrinsic value (000s)$2,656  $1,757 
For exercisable options  
Number exercisable506,145 $4.31 566,146 $4.22 
Weighted average remaining life, in years2.12.5 
Intrinsic value (000s)$2,198  $1,521 
For non-exercisable options  
Expense not yet recognized (000s)$339 $329 
Weighted average years to be recognized2.83.3 
For options exercised
Intrinsic value (000s)$444  $77 
 
Restricted (Non-vested) Stock
 
Certain holders of IEC restricted stock have voting and dividend rights as of the date of grant, and, until vested, the shares may be forfeited and cannot be sold or otherwise transferred. At the end of the vesting period, which is typically four or five years (three years in the case of directors), holders have all the rights and privileges of any other common stockholder of the Company. The fair value of a share of restricted stock is its market value on the date of grant, and that value is recognized as stock compensation expense over the vesting period. 
 
A summary of restricted stock activity, together with related data, follows: 
 Years Ended
 September 30, 2020September 30, 2019
Restricted (Non-vested) StockNumber of Non-vested SharesWgtd. Avg. Grant Date Fair ValueNumber of Non-vested SharesWgtd. Avg. Grant Date Fair Value
Outstanding, beginning of period82,707 $5.25 103,233 $4.08 
Granted24,850 5.03 32,385 7.09 
Vested(44,482)4.80 (51,511)4.09 
Forfeited(13,250)6.09 (1,400)4.13 
Outstanding, end of period49,825 $5.32 82,707 $5.25 
For non-vested shares   
Expense not yet recognized (000s)$229 $328
Weighted average remaining years for vesting 1.52.0
For shares vested   
Aggregate fair value on vesting dates (000s) $317 $346
 
Stock Issued to Board Members
 
In addition to annual grants of restricted stock, included in the table above, board members may elect to have their meeting fees paid in the form of shares of the Company’s common stock. The Company has not paid any meeting fees in stock since May 21, 2013. 

Restricted Stock Units
 
Holders of IEC restricted stock units do not have voting and dividend rights as of the date of grant, and, until vested, the unit may be forfeited and cannot be sold or otherwise transferred. At the end of the vesting period, which is typically three years, holders will receive shares of the Company’s common stock and have all the rights and privileges of any other common stockholder of the Company. The fair value of a restricted stock unit is the market value of the underlying shares of the Company’s stock on the date of grant and that value is recognized as stock compensation expense over the vesting period. 
 
A summary of restricted stock unit activity, together with related data, follows: 
 Years Ended
 September 30, 2020September 30, 2019
Restricted Stock UnitsNumber of Non-vested SharesWgtd. Avg. Grant Date Fair ValueNumber of Non-vested SharesWgtd. Avg. Grant Date Fair Value
Outstanding, beginning of period153,186 $5.36 170,492 $3.96 
Granted50,556 9.19 63,011 7.09 
Vested(17,015)3.58 (12,258)4.64 
Forfeited— — (68,059)3.58 
Outstanding, end of period186,727 $6.56 153,186 $5.36 
For non-vested shares   
Expense not yet recognized (000s)$762  $659 
Weighted average remaining years for vesting 1.82.2
For shares vested   
Aggregate fair value on vesting dates (000s) $86  $—