Equity

9 Months Ended

Jun. 30, 2023

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 four equity incentive compensation plans, collectively described as our “Equity Plans”: (a) the 2010 Equity Incentive Plan (the “2010 Plan”), (b) the 2012 Equity Incentive Plan (the “2012 Plan”), (c) the Amended and Restated 2019 Equity Incentive Plan (the “2019 Plan”), and (d) the 2022 New Employee Inducement Plan.

We issue new shares of common stock to satisfy awards granted under our Equity Plans. In December 2022, our Board of Directors approved an amendment to the 2019 Plan, which, subject to shareholder approval at our 2023 annual meeting of shareholders, would increase the maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2019 Plan by an additional 1.549 million shares.

Stock-Based Compensation

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

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2023		2022		2023		2022
RSUs and RSAs	$	1,113	$	692	$	2,869	$	1,795
PSUs and PRSAs	517		708		1,818		1,602
Outside director equity awards and fees in common stock	83		123		295		358
Total stock-based compensation expense	$	1,713	$	1,523	$	4,982	$	3,755

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

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Cost of revenue	$	436	$	275	$	1,154	$	604
Selling, general, and administrative	980		1,001		3,006		2,537
Research and development	297		247		822		614
Total stock-based compensation expense	$	1,713	$	1,523	$	4,982	$	3,755

Loss Per Share

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

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands, except per share data)	2023		2022		2023		2022
Numerator
Net loss	$	(9,857)	$	(7,649)	$	(33,778)	$	(7,460)
Denominator
Weighted average number of shares outstanding - basic	53,926		37,425		45,546		37,197
Effect of dilutive securities
Stock options	—		—		—		—
PSUs, RSUs, and restricted stock	—		—		—		—
Weighted average number of shares outstanding - diluted	53,926		37,425		45,546		37,197
Earnings per share - basic	$	(0.18)	$	(0.20)	$	(0.74)	$	(0.20)
Earnings per share - diluted	$	(0.18)	$	(0.20)	$	(0.74)	$	(0.20)
Weighted average antidilutive options, unvested RSUs and RSAs, and unvested PSUs excluded from the computation	3,823		3,163		2,533		1,315

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”), and stock options 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. The anti-dilutive stock options and shares of outstanding and unvested restricted stock were excluded from the computation of earnings per share for the three and nine months ended June 30, 2023 and 2022 due to the Company incurring a net loss for such period.

Public Offering

On February 17, 2023, we closed our offering of 15,454,546 shares of our common stock at a price of $1.10 per share, resulting in net proceeds to us from the offering, after deducting the placement agent commissions and other offering expenses, of $15.4 million. The shares were sold by us pursuant to a Securities Purchase Agreement, dated as of February 17, 2023, between the Company and each purchaser named in the signature pages thereto and a Placement Agency Agreement, dated as of February 15, 2023, by and between the Company and A.G.P./Alliance Global Partners.

Future Issuances

Common stock reserved for future issuances as of June 30, 2023 was as follows:

	Amount
Exercise of outstanding stock options	9,981
Unvested RSUs and RSAs	4,491,733
Unvested PSUs and PRSAs (at 100% maximum payout)	1,750,068
Issuance of stock-based awards under the Equity Plans	599,585
Purchases under the officer and director share purchase plan	88,741
Total reserved	6,940,108