Stock-Based Compensation (Tables)

3 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

The following table shows stock-based compensation expense that is included in the consolidated results of operations (in thousands):

	Three months ended December 31,
	2021		2020
Cost of sales	$	86	$	82
Sales and marketing	490		525
Research and development	322		210
General and administrative	1,119		928
Stock-based compensation before income taxes	2,017		1,745
Income tax benefit	(430)		(365)
Stock-based compensation after income taxes	$	1,587	$	1,380

Schedule of Stock Option Activity

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

	Options Outstanding	Weighted Average Exercise Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2021	2,952	$13.20
Granted	452	22.74
Exercised	(1,099)	10.84
Forfeited / Canceled	(43)	16.78
Balance at December 31, 2021	2,262	$16.18	4.85	$	19,000
Exercisable at December 31, 2021	1,008	$13.03	3.53	$	11,636

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $24.57 as of December 31, 2021, 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 following table 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,
	2021	2020
Weighted average per option grant date fair value	$10.23	$7.12
Assumptions used for option grants:
Risk free interest rate	1.25% - 1.46%	0.51% - 0.54%
Expected term	6.00 years	6.00 years
Expected volatility	46%	44%
Weighted average volatility	46%	44%
Expected dividend yield	—	—

Schedule of Nonvested Restricted Stock Units

The following table presents a summary of our non-vested restricted stock and performance stock units as of December 31, 2021 and changes during the three months then ended (in thousands, except per common share amounts):

	RSUs			PSUs
	Number of Awards	Weighted Average Grant Date Fair Value		Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at September 30, 2021	812	$	15.72	18	$	25.15
Granted	285	$	22.95	—	$	—
Vested	(192)	$	14.24	(3)	$	25.15
Canceled	(35)	$	15.50	—	$	—
Nonvested at December 31, 2021	870	$	18.42	15	$	25.15