Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2022

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 June 30,				Nine months ended June 30,
	2022		2021		2022		2021
Cost of sales	$	125	$	98	$	342	$	269
Sales and marketing	660		614		1,828		1,762
Research and development	252		259		890		762
General and administrative	1,106		1,139		3,342		3,538
Stock-based compensation before income taxes	2,143		2,110		6,402		6,331
Income tax benefit	(460)		(463)		(1,360)		(1,369)
Stock-based compensation after income taxes	$	1,683	$	1,647	$	5,042	$	4,962

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	559	22.20
Exercised	(1,307)	11.49
Forfeited / Canceled	(162)	17.61
Balance on June 30, 2022	2,042	$16.35	4.7	$	11,887
Exercisable at June30, 2022	984	$13.74	3.5	$	10,320

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $24.22 as of June 30, 2022, 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:

	Nine months ended June 30,
	2022	2021
Weighted average per option grant date fair value	$10.03	$7.45
Assumptions used for option grants:
Risk free interest rate	1.25% - 3.00%	0.51% - 1.035%
Expected term	6.00 years	6.00 years
Expected volatility	45% - 46%	44% - 46%
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 June 30, 2022 and changes during the nine 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	377	22.21		12	19.78
Vested	(290)	15.56		(3)	25.15
Canceled	(130)	17.15		—	—
Nonvested at June 30, 2022	769	$	18.71	27	$	22.69