Options issued under equity incentive plans are designated as either an incentive stock or a non-statutory stock option. No option is 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. As of June 30, 2020, there were 1.1 million shares available for grant.

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


		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
	Ref	June 30,						June 30,
		2020		2019		2020		2019
DLH employees		$	95	$	67	$	306	$	196
Non-employee directors	(a)	87		132		260		395
Total stock option expense		$	182	$	199	$	566	$	591

Ref (a): Equity grants of restricted stock units, in accordance with DLH compensation policy for non-employee directors were made in the first quarter of fiscal 2020 and in total 77,500 restricted stock units were issued and outstanding.


		(in thousands)
		June 30,
	Ref	2020
Unrecognized expense for DLH employees	(a)	$	1,007
Unrecognized expense for non-employee directors		87
Total unrecognized expense		$	1,094

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. On a weighted average basis, this expense is expected to be recognized within the next 3.82 years.

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, 2019		2,134	$	4.36	5.9	$	4,815
Granted	(a)	250	$	4.17	—	—
Exercised		(345)	$	1.05	—	—
Cancelled		(160)	$	1.29	—	—
Options outstanding, June 30, 2020		1,879	$	4.60	6.5	$	7,280

Ref (a): Utilizing a volatility of 50% along with assumptions of a 10-year term and the aforementioned 10-day stock price threshold results in an indicated range of value of the Options granted during the quarter ended December 31, 2019, as follows using the Monte Carlo Method.


									Volatility
									50%
						Vesting		Expected
		Strike		Stock		Threshold		Term	Calculated
Grant Date	Ref	Price		Price		Price		(Years)	Fair Value
October 18, 2019	(a)	$	4.17	$	4.17	Service		10	$	2.54
October 18, 2019		$	4.17	$	4.17	$	8.00	10	$	2.56
October 18, 2019		$	4.17	$	4.17	$	10.00	10	$	2.53

October 18, 2019		$	4.17	$	4.17	$	12.00	10	$	2.51


Notes:
Results based on 100,000 simulations


		(in thousands)

		June 30,	September 30,
	Ref	2020	2019
Vested and exercisable	(a)	1,072	1,300
Unvested	(b)	807	834
Options outstanding		1,879	2,134

Ref (a): Weighted average exercise price of vested and exercisable shares was $1.61 and $1.51 at June 30, 2020 and September 30, 2019, respectively. Aggregate intrinsic value was approximately $5.9 million and $3.9 million at June 30, 2020 and September 30, 2019, respectively. Weighted average contractual term remaining was 3.2 and 3.8 years at June 30, 2020 and September 30, 2019, respectively.