Stock-based compensation expense is included in general and administrative expenses in our consolidated statements of operations. The following table summarizes stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2021, 2020, and 2019, respectively.


	Fiscal Year Ended September 30,
in thousands	2021		2020		2019
Stock options expense	$	25	$	133	$	178
Restricted stock awards expense	12,142		9,903		10,348
Stock-based compensation expense	$	12,167	$	10,036	$	10,526

Stock options have an exercise price equal to the fair market value of the common stock on the grant date, generally vest two or three years after the date of grant, and may be exercised thereafter until their expiration, subject to forfeiture upon termination of employment as provided in the applicable plan. Under certain conditions of retirement, eligible participants may receive a partial vesting of stock options. Stock options generally expire on the eighth anniversary from the date such options were granted, depending on the terms of the award.

The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model (Black-Scholes Model). As of September 30, 2021, the intrinsic value of our stock options outstanding and vested and exercisable were $0.1 million and $0.1 million, respectively. As of both September 30, 2021 and September 30, 2020, there was less than $0.1 million of total unrecognized compensation cost related to unvested stock options. The cost remaining as of September 30, 2021 is expected to be recognized over a weighted-average period of 0.4 years.

During fiscal 2018, the Compensation Committee of our Board of Directors approved the Employee Stock Option Program (ESOP). This program is available to all full-time employees and is designed to enable employees to share in potential price appreciation of the Company's stock. The ESOP matches stock purchases made by eligible employees meeting certain conditions with an option to purchase an additional share of the Company's shares on a one-to-one basis. The exercise price of the options granted is equal to the closing price of the Company's stock on the day the underlying shares are purchased by the employee, which is also the ESOP grant date. The options will vest on the second anniversary of the date of grant but are forfeited if (1) the eligible employee no longer works for the Company or (2) the underlying shares are sold before the two-year vesting period is over. The total number of options available under the ESOP is limited to 100,000, of which 31,732 options were granted through the end of fiscal 2021.


	Fiscal Year Ended September 30,
		2020			2019
Expected life of options		5.7 years			5.0 years
Expected volatility		51.52		%	46.69		%
Expected dividends		—			—
Weighted-average risk-free interest rate		0.43		%	2.70		%
Weighted-average fair value		$	4.99		$	4.50

We relied upon a combination of the observed exercise behavior of our prior grants with similar characteristics, the vesting schedule of the current grants, and an index of peer companies with similar grant characteristics to determine the expected life of the options granted. We considered historic returns of our stock and the implied volatility of our publicly-traded options in determining expected volatility. We assumed no dividends would be paid since our Board of Directors has suspended payment of dividends indefinitely and payment of dividends is restricted under our Senior Note covenants. The risk-free interest rate is based on the term structure of interest rates at the time of the option grant.


	2021			2020			2019
	Shares	Weighted- Average Exercise Price		Shares	Weighted- Average Exercise Price		Shares	Weighted- Average Exercise Price
Outstanding at beginning of period	392,465	$	15.47	523,754	$	14.34	533,052	$	14.26
Granted	—	—		950	10.67		30,782	10.23
Exercised	(278,206)	14.48		(128,921)	11.01		(31,450)	10.00


Forfeited	—	—		(3,318)	9.55		(8,630)	10.45
Outstanding at end of period	114,259	$	17.89	392,465	$	15.47	523,754	$	14.34
Exercisable at end of period	113,309	$	17.95	354,796	$	15.90	470,501	$	14.42


	Stock Options Outstanding				Stock Options Exercisable
Range of Exercise Price	Number Outstanding	Weighted-Average Contractual Remaining Life (Years)	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Contractual Remaining Life (Years)	Weighted-Average Exercise Price
$1 - $10	15,436	4.6	$	9.17	14,536	4.5	$	9.09
$11 - $15	315	3.5	11.61		265	2.9	11.36
$16 -$20	98,508	0.6	19.28		98,508	0.6	19.28
$1 - $20	114,259	1.2	$	17.89	113,309	1.1	$	17.95

The fair value of each restricted stock award with market conditions is estimated on the date of grant using the Monte Carlo valuation method. The fair value of restricted stock awards without market conditions is based on the market price of the Company's common stock on the date of grant. If applicable, the cash-settled component of any awards granted to employees is accounted for as a liability, which is adjusted to fair value each reporting period until vested.

Compensation cost arising from restricted stock awards granted to employees is recognized as an expense using the straight-line method over the vesting period. As of September 30, 2021 and September 30, 2020, there was $7.2 million and $9.0 million, respectively, of total unrecognized compensation cost related to unvested restricted stock awards. The cost remaining as of September 30, 2021 is expected to be recognized over a weighted-average period of 1.4 years.

During fiscal 2021, we issued time-based restricted stock awards and performance-based restricted stock awards with a payout subject to certain performance and market conditions. Each award type is discussed below.

During the year ended September 30, 2021, we issued 103,366 shares of performance-based restricted stock (2021 Performance Shares) to our executive officers and certain other employees that also have market conditions. The 2021 Performance Shares are structured to be awarded based on the Company's performance under three pre-determined financial and operational metrics at the end of the three-year performance period. After determining the number of shares earned based on the financial and operational metrics, which can range from 0% to 175% of the targeted number of shares, the award will be subject to further upward or downward adjustment by as much as 20% based on the Company's relative total shareholder return (TSR) compared against the S&P Homebuilders Select Industry Index during the three-year performance period. The 2021 Performance Shares were valued using the Monte Carlo valuation model due to the existence of the TSR market condition and had an estimated fair value of $15.24 per share on the date of grant.

A Monte Carlo valuation model requires the following inputs: (1) the expected dividend yield on the underlying stock; (2) the expected price volatility of the underlying stock; (3) the risk-free interest rate for the period corresponding with the expected term of the award; and (4) the fair value of the underlying stock. For the Company and each member of the peer group, the following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date for performance-based restricted stock granted in each of the fiscal years ended. The methodology used to determine these assumptions is similar to the Black-Scholes Model; however, the expected term is determined by the model in the Monte Carlo simulation.


	Fiscal Year Ended September 30,
	2021			2020			2019
Expected volatility	26.1% - 67.0%			21.2% - 54.8%			21.0% - 57.1%
Risk-free interest rate	0.23		%	1.61		%	2.92		%
Dividend yield	—			—			—
Grant-date stock price	$	14.07		$	15.62		$	9.82

Each of our performance 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.

The performance criteria of the 2019 Performance Share grant were satisfied as of September 30, 2021. Based on the actual performance level achieved, 552,417 performance-based restricted stock awards from the 2019 Performance Share grant cliff vested at the end of the three-year vesting period on November 15, 2021. Of the total $6.8 million compensation cost related to these awards, we have recognized $4.1 million, $1.3 million, and $1.1 million during the fiscal years ended September 30, 2021, 2020, and 2019, respectively. The remaining $0.3 million of unrecognized compensation cost will be recognized in the first quarter of fiscal 2022.

During the year ended September 30, 2021, we also issued 251,788 shares of time-based restricted stock (Restricted Shares) to our directors, executive officers, and certain other employees. Restricted Shares are valued based on the market price of the Company's common stock on the date of the grant. The Restricted Shares granted to our non-employee directors vest on the first anniversary of the grant, while the Restricted Shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant.


	Year Ended September 30, 2021
	Performance-Based(a)			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	796,024	$	14.71	610,130	$	13.85	1,406,154	$	14.34
Granted	164,296	17.90		251,788	14.21		416,084	15.67
Vested	(222,165)	22.40		(346,856)	14.36		(569,021)	17.50
Forfeited	—	—		(28,488)	11.77		(28,488)	11.77
End of period	738,155	$	13.45	486,574	$	13.79	1,224,729	$	13.59

(a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.


	Year Ended September 30, 2020
	Performance-Based			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	778,814	$	13.60	611,607	$	12.11	1,390,421	$	16.53
Granted	260,131	16.98		327,571	15.29		587,702	16.04
Vested	(242,921)	13.60		(302,255)	11.89		(545,176)	12.65
Forfeited	—	—		(26,793)	13.79		(26,793)	13.79
End of period	796,024	$	14.71	610,130	$	13.85	1,406,154	$	14.34


	Year Ended September 30, 2019
	Performance-Based(a)			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	644,785	$	16.47	431,783	$	16.60	1,076,568	$	16.53
Granted	467,819	9.95		448,657	9.82		916,476	9.89
Vested	(321,833)	15.36		(212,558)	16.41		(534,391)	15.78
Forfeited	(11,957)	13.44		(56,275)	12.20		(68,232)	12.42
End of period	778,814	$	13.60	611,607	$	12.11	1,390,421	$	16.53

(a) Grant and vesting activity during the year ended September 30, 2019 include 86,050 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.