Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 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 June 30,				Nine months ended June 30,
	2021		2020		2021		2020
Cost of sales	$	98	$	80	$	269	$	222
Sales and marketing	614		609		1,762		1,669
Research and development	259		283		762		908
General and administrative	1,132		910		3,538		2,524
Stock-based compensation before income taxes	2,110		1,882		6,331		5,323
Income tax benefit	(541)		(399)		(1,369)		(1,111)
Stock-based compensation after income taxes	$	1,569	$	1,483	$	4,962	$	4,212

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, 2020	3,393	$12.20
Granted	497	17.58
Exercised	(625)	11.24
Forfeited / Canceled	(142)	14.18
Balance at March 31, 2021	3,123	$13.16	3.91	$	21,864
Exercisable at March 31, 2021	1,949	$11.52	2.86	$	16,745

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $20.11 as of June 30, 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:

	Nine months ended June 30,
	2021	2020
Weighted average per option grant date fair value	$7.45	$6.18
Assumptions used for option grants:
Risk free interest rate	0.51% - 1.035%	0.44% - 1.73%
Expected term	6.00 years	6.00 years
Expected volatility	44% - 46%	42%
Weighted average volatility	44%	36%
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, 2021 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, 2020	972	$	13.20	—	$	—
Granted	346	$	18.65	18	$	25.15
Vested	(349)	$	12.74	—	$	—
Canceled	(94)	$	13.81	—	$	—
Nonvested at March 31, 2021	875	$	15.48	18	$	25.15