Stock-based Compensation

9 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and nine months ended June 30, 2020 and June 30, 2019, respectively.


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Stock-based compensation expense	$	1,659	$	3,699	$	4,869	$	7,993

Stock Options

Following is a summary of stock option activity for the nine months ended June 30, 2020:


	Nine Months Ended
	June 30, 2020
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	523,754	$	14.34
Granted	950	10.67
Exercised	(126,492)	11.05

Cancelled	(3,088)	9.70
Outstanding at end of period	395,124	$	15.43
Exercisable at end of period	365,348	$	15.62
Vested or expected to vest in the future	394,255	$	15.44

As of June 30, 2020 and September 30, 2019, total unrecognized compensation cost related to unvested stock options was $56 thousand and $0.1 million, respectively. The remaining cost as of June 30, 2020 is expected to be recognized over a weighted-average period of 0.56 years.

Restricted Stock Awards

During the nine months ended June 30, 2020, the Company issued time-based restricted stock awards that vest ratably over three years on each anniversary from the grant date and performance-based restricted stock awards with a payout subject to the achievement of performance and market conditions over a three-year period.

Following is a summary of restricted stock activity for the nine months ended June 30, 2020:


	Nine Months Ended June 30, 2020
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	778,814	611,607	1,390,421
Granted	260,131	327,571	587,702
Vested	(242,921)	(296,277)	(539,198)
Forfeited	—	(17,674)	(17,674)
End of period	796,024	625,227	1,421,251

Each of our performance-based restricted share represents a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2019, we cash settled 135,337 shares earned above target level based on the performance level achieved under our 2017 performance-based award plan. The cash payment totaled $2.1 million, which was reflected as a reduction to paid-in capital in the accompanying condensed consolidated statements of stockholders' equity. We have not cash settled any such performance-based awards prior to or subsequent to the November 2019 transaction, and we have no current plans to cash settle any additional performance-based restricted shares in the future.

As of June 30, 2020 and September 30, 2019, total unrecognized compensation cost related to unvested restricted stock awards was $9.5 million and $9.0 million, respectively. The remaining cost as of June 30, 2020 is expected to be recognized over a weighted average period of 1.82 years.