Stock-Based Compensation (Tables)

3 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

As follows, stock-based compensation expense is included in the consolidated results of operations (in thousands):

	Three months ended December 31,
	2019			2018
Cost of sales	$	64		$	55
Sales and marketing	431			353
Research and development	294			200
General and administrative	811			806
Stock-based compensation before income taxes	1,600			1,414
Income tax benefit	(332		)	(294		)
Stock-based compensation after income taxes	$	1,268		$	1,120

Schedule of Stock Option Activity

The following table summarizes our stock option activity (in thousands, except per common share amounts):

	Options Outstanding		Weighted Average Exercised Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2019	3,348		$10.85
Granted	594		17.71
Exercised	(404	)	10.31
Forfeited / Canceled	(35	)	11.27
Balance at December 31, 2019	3,503		$12.08	4.5	$	19,868
Exercisable at December 31, 2019	2,015		$10.58	3.4	$	14,378

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $17.72 as of December 31, 2019, which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price.

Schedule of Valuation Assumptions

The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:

	Three months ended December 31,
	2019	2018
Weighted average per option grant date fair value	$6.56	$4.36
Assumptions used for option grants:
Risk free interest rate	1.67% - 1.73%	2.78% - 2.93%
Expected term	6.00 years	6.00 years
Expected volatility	36%	33%
Weighted average volatility	36%	33%
Expected dividend yield	0	0

Schedule of Nonvested Restricted Stock Units

The table below presents a summary of our non-vested restricted stock units as of December 31, 2019 and changes during the three months then ended (in thousands, except per common share amounts):

	Number of Awards		Weighted Average Grant Date Fair Value
Nonvested at September 30, 2019	888		$	11.65
Granted	240		$	17.67
Vested	(214	)	$	11.53
Canceled	(28	)	$	11.04
Nonvested at December 31, 2019	886		$	13.33