Stock-based Compensatin, Equity Grants, and Warrants

9 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation, Equity Grants, and Warrants

Stock-based compensation expense

All grants of equity are presently made under the 2006 Long Term Incentive Plan. As of June 30, 2015, 0.9 million shares remained available for grant under the Plan. Options issued under the Plan are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Exercisability of option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares.

Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of income:



		(in thousands)				(in thousands)
		Three Months Ended				Nine Months Ended
	Ref	June 30,				June 30,
		2015		2014		2015		2014
DLH employees		$	72	$	78	$	241	$	263
Non-employee directors	(a)	—		—		177		109
Total compensation expense		$	72	$	78	$	418	$	372

Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. The shares vested immediately and stock expense was recognized accordingly.

Unrecognized stock-based compensation expense



		(in thousands)
		Nine Months Ended
		June 30,
	Ref	2015		2014
Unrecognized expense for DLH employees	(a)	$	105	$	196
Unrecognized expense for non-employee directors	(b)	125		150
Total unrecognized expense		$	230	$	346

Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance.

Ref (b): Unrecognized stock expense related to prior years equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. The shares will vest and expense will be recorded upon future satisfaction of specified performance.

Stock option activity for the nine months ended June 30, 2015

The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.

(in years)

Weighted

Average

(in thousands)

Average

Remaining

Aggregate

Number of

Exercise

Contractual

Intrinsic

Ref

Price

Term

Value

Options outstanding, September 30, 2014

2,380

$1.40

7.81

1,589

Granted

—

Canceled

(a)

(44

)

$1.40

Options outstanding, June 30 2015

2,336

$1.40

7.05

3,128

Ref (a): Shares canceled upon termination of employment or expiration of period to complete performance conditions.

Stock options shares outstanding, vested and unvested for the period ended



		(in thousands)
		Number of Shares
		June 30,
	Ref	2015	2014
Vested and exercisable		968	463
Unvested	(a)	1,368	1,692
Options outstanding		2,336	2,155

Ref (a): Certain awards vest upon satisfaction of certain performance criteria.