Stock-based Compensation, Equity Grants, and Warrants (Tables)

9 Months Ended

Jun. 30, 2016

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

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



		(in thousands)				(in thousands)
		Three Months Ended				Nine Months Ended
	Ref	June 30,				June 30,
		2016		2015		2016		2015
DLH employees		$	6	$	72	$	20	$	241
Non-employee directors	(a)	36		—		364		177
Total stock option expense		$	42	$	72	$	384	$	418

Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. The shares granted in first quarter 2016 vested immediately, and stock expense of approximately $304 thousand was recognized accordingly. For the nine months ended June 30, 2016, non-employee directors stock expense includes approximately $60 thousand related to prior year equity grants for which performance criteria was achieved in October 2015.

Unrecognized stock-based compensation expense



		(in thousands)
		Nine Months Ended
		June 30,
	Ref	2016		2015
Unrecognized expense for DLH employees	(a)	$	24	$	105
Unrecognized expense for non-employee directors	(b)	36		125
Total unrecognized expense		$	60	$	230

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

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
				Weighted	Average	(in thousands)
		(in thousands)		Average	Remaining	Aggregate
		Number of		Exercise	Contractual	Intrinsic
	Ref	Shares		Price	Term	Value
Options outstanding, September 30, 2015		2,324		$1.40	6.81	$	3,649
Granted		—		—	0
Exercised	(a)	(110	)	$1.40
Options outstanding, June 30, 2016		2,214		$1.40	6.01	$	8,365

Ref (a): Shares exercised by an executive officer in December 2015.

Stock Option Shares Outstanding, Vested and Expected to Vest

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



		(in thousands)
		Number of Shares
		June 30,
	Ref	2016	2015
Vested and exercisable		1,680	968
Unvested	(a)	534	1,368
Options outstanding		2,214	2,336

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