XML 33 R18.htm IDEA: XBRL DOCUMENT v3.21.1
Equity
 6 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Equity Equity
Equity Plans
We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain three equity incentive compensation plans, collectively described as our “Equity Plans”:
•the 2010 Equity Incentive Plan,
•the 2012 Equity Incentive Plan, and
•the 2019 Equity Incentive Plan.
We issue new shares of common stock to satisfy awards issued under our Equity Plans. In March 2021, our shareholders approved the Amended and Restated EMCORE Corporation 2019 Equity Incentive Plan, which was adopted, subject to shareholder approval, by the Company’s Board of Directors in December 2020 and increased the maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2019 Equity Incentive Plan by an additional 2,138,000 shares.
Stock-based compensation
The effect of recording stock-based compensation expense was as follows:
Stock-based Compensation Expense - by award typeFor the three months ended March 31,For the six months ended March 31,
(in thousands)2021202020212020
Employee stock options$1 $4 $2 $9 
Restricted stock units and awards501 552 932 928 
Performance stock units and awards269 363 586 655 
Employee stock purchase plan84 46 173 93 
Outside director equity awards and fees in common stock67 80 132 161 
Total stock-based compensation expense$922 $1,045 $1,825 $1,846 
Stock-based Compensation Expense - by expense typeFor the three months ended March 31,For the six months ended March 31,
(in thousands)2021202020212020
Cost of revenue$203 $202 $344 $338 
Selling, general, and administrative510 591 1,069 1,076 
Research and development209 252 412 432 
Total stock-based compensation expense$922 $1,045 $1,825 $1,846 
401(k) Plan
We have a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under this savings plan, participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. Since June 2015, all employer contributions are made in cash. During each of the three months ended March 31, 2021 and 2020, our matching contribution in cash was approximately $0.3 million. During each of the six months ended March 31, 2021 and 2020, our matching contribution in cash was approximately $0.6 million and $0.5 million, respectively.
Income (Loss) Per Share
The following table sets forth the computation of basic and diluted net income (loss) per share:
Basic and Diluted Net Income (Loss) Per ShareFor the three months ended March 31,For the six months ended March 31,
(in thousands, except per share)2021202020212020
Numerator:
Income (Loss) from continuing operations$4,384 $(5,081)$6,953 $(6,416)
Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share4,384 (5,081)6,953 (6,416)
Denominator:
Denominator for basic net income (loss) per share - weighted average shares outstanding32,968 29,033 31,219 28,931 
Denominator for fully diluted net (income) loss per share - weighted average shares outstanding34,451 29,033 32,492 28,931 
Net income (loss) per basic share$0.13 $(0.18)$0.22 $(0.22)
Net income (loss) per fully diluted share$0.13 $(0.18)$0.21 $(0.22)
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation1,536 2,161 1,331 1,704 
Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock units and awards, performance stock units, stock options, and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method. The anti-dilutive stock options and shares of outstanding and unvested restricted stock were excluded from the computation of net loss per share for the three and six months ended March 31, 2020 due to the Company incurring a net loss for the period.
Employee Stock Purchase Plan
We maintain an Employee Stock Purchase Plan (“ESPP”) which provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is a 6-month duration plan with new participation periods beginning on approximately February 25 and August 26 of each year. The purchase price is set at 85% of the average high and low market price of our common stock on either the first or last trading day of the participation period, whichever is lower, and annual contributions are limited to the lower of 10% of an employee’s compensation or $25,000.

Public Offering
On February 16, 2021, we closed our offering of 6,655,093 shares of our common stock, which included the full exercise of the underwriters’ option to purchase 868,056 additional shares of common stock, at a price to the public of $5.40 per share, resulting in net proceeds to us from the offering, after deducting the underwriting discounts and commissions and other offering expenses, of approximately $33.1 million. The shares were sold by us pursuant to an underwriting agreement with Cowen and Company, LLC, dated as of February 10, 2021.
Future Issuances
As of March 31, 2021, we had common stock reserved for the following future issuances:
Future IssuancesNumber of Common Stock Shares Available for Future Issuances
Exercise of outstanding stock options30,732 
Unvested restricted stock units and awards1,967,291 
Unvested performance stock units and awards (at 200% maximum payout)
1,934,000 
Purchases under the employee stock purchase plan186,197 
Issuance of stock-based awards under the Equity Plans1,826,518 
Purchases under the officer and director share purchase plan88,741 
Total reserved6,033,479