Equity

3 Months Ended

Dec. 31, 2021

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 granted under our Equity Plans. In March 2021, our shareholders approved the Amended and Restated EMCORE Corporation 2019 Equity Incentive Plan, which was adopted 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 following table sets forth stock-based compensation expense by award type:


	For the Three Months Ended December 31,
(in thousands)	2021		2020
Employee stock options	$	—	$	1
RSUs and RSAs	554		431
PSUs and PRSAs	407		317
ESPP	—		89
Outside director equity awards and fees in common stock	127		65
Total stock-based compensation expense	$	1,088	$	903

The following table sets forth stock-based compensation expense by expense type:


	For the Three Months Ended December 31,
(in thousands)	2021		2020
Cost of revenue	$	151	$	141
Selling, general, and administrative	755		559
Research and development	182		203
Total stock-based compensation expense	$	1,088	$	903

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 December 31, 2021 and 2020, our matching contribution in cash was $0.3 million.

Income Per Share

The following table sets forth the computation of basic and diluted net income per share:


	For the Three Months Ended December 31,
(in thousands, except per share data)	2021		2020
Numerator
Net income	$	2,414	$	2,569
Denominator
Weighted average number of shares outstanding - basic	36,950		29,503
Effect of dilutive securities
Stock options	7		—
PSUs, RSUs, and restricted stock	2,074		874
Weighted average number of shares outstanding - diluted	39,031		30,377
Earnings per share - basic	$	0.07	$	0.09
Earnings per share - diluted	$	0.06	$	0.08
Weighted average antidilutive options, unvested restricted RSUs and RSAs, unvested PSUs and ESPP shares excluded from the computation	53		161

Basic earnings per share ("EPS") is computed by dividing net income for the period by the weighted-average number of common stock outstanding during the period. Diluted EPS is computed by dividing net income for the period by the weighted average number of common stock outstanding during the period, plus the dilutive effect of outstanding restricted stock units ("RSUs") and restricted stock awards ("RSAs"), performance stock units ("PSUs"), stock options, and shares issuable under the employee stock purchase plan ("ESPP") as applicable pursuant to the treasury stock method. Certain of the Company's outstanding share-based awards, noted in the table above, were excluded because they were anti-dilutive, but they could become dilutive in the future.

Future Issuances

As of December 31, 2021, we had common stock reserved for the following future issuances:


			Number of Common Stock Shares Available for Future Issuances
Exercise of outstanding stock options			13,884
Unvested RSUs and RSAs			1,462,942
Unvested PSUs and PRSAs (at 200% maximum payout)			1,934,000
Issuance of stock-based awards under the Equity Plans			1,748,593
Purchases under the officer and director share purchase plan			88,741
Total reserved			5,248,160