Equity

6 Months Ended

Mar. 31, 2022

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 granted under our Equity Plans. In March 2022, 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 2021, 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 1.9 million shares.

Stock-Based Compensation

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

	For the Three Months Ended March 31,				For the Six Months Ended March 31,
(in thousands)	2022		2021		2022		2021
Employee stock options	$	—	$	1	$	—	$	2
RSUs and RSAs	549		501		1,103		932
PSUs and PRSAs	487		269		894		586
ESPP	—		84		—		173
Outside director equity awards and fees in common stock	108		76		235		141
Total stock-based compensation expense	$	1,144	$	931	$	2,232	$	1,834

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

	For the Three Months Ended March 31,				For the Six Months Ended March 31,
(in thousands)	2022		2021		2022		2021
Cost of revenue	$	178	$	203	$	329	$	344
Selling, general, and administrative	781		519		1,536		1,078
Research and development	185		209		367		412
Total stock-based compensation expense	$	1,144	$	931	$	2,232	$	1,834

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, 2022 and 2021, our matching contribution in cash was $0.3 million. During each of the six months ended March 31, 2022 and 2021, our matching contribution in cash was $0.6 million.

Income Per Share

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

	For the Three Months Ended March 31,				For the Six Months Ended March 31,
(in thousands, except per share data)	2022		2021		2022		2021
Numerator
Net (loss) income	$	(2,225)	$	4,384	$	189	$	6,953
Denominator
Weighted average number of shares outstanding - basic	37,217		32,968		37,082		31,219
Effect of dilutive securities
Stock options	—		6		4		2
PSUs, RSUs, and restricted stock	—		1,477		1,298		1,271
Weighted average number of shares outstanding - diluted	37,217		34,451		38,384		32,492
Earnings per share - basic	$	(0.06)	$	0.13	$	0.01	$	0.22
Earnings per share - diluted	$	(0.06)	$	0.13	$	0.01	$	0.21
Weighted average antidilutive options, unvested restricted RSUs and RSAs, unvested PSUs and ESPP shares excluded from the computation	75		1,536		72		1,331

Basic earnings per share ("EPS") is computed by dividing net (loss) income for the period by the weighted-average number of common stock outstanding during the period. Diluted EPS is computed by dividing net (loss) 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 March 31, 2022, 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	2,445,307
Unvested PSUs and PRSAs (at 200% maximum payout)	4,098,106
Issuance of stock-based awards under the Equity Plans	312,137
Purchases under the officer and director share purchase plan	88,741
Total reserved	6,958,175