Stock-based Compensation

6 Months Ended

Mar. 31, 2022

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 six months ended March 31, 2022 and 2021, respectively.


	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2022		2021		2022		2021
Stock-based compensation expense	$	2,424	$	2,549	$	4,532	$	6,060

Stock Options

Following is a summary of stock option activity for the six months ended March 31, 2022:


	Six Months Ended
	March 31, 2022
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	114,259	$	17.89
Granted	236	16.58
Exercised	(788)	12.32
Expired	(86,000)	19.11

Outstanding at end of period	27,707	$	14.26
Exercisable at end of period	27,471	$	14.24

As of both March 31, 2022 and September 30, 2021, there was less than $0.1 million of total unrecognized compensation costs related to unvested stock options. The costs remaining as of March 31, 2022 are expected to be recognized over a weighted-average period of 1.94 years.

Restricted Stock Awards

During the six months ended March 31, 2022, the Company issued time-based and performance-based restricted stock awards. The time-based restricted shares granted to our non-employee directors vest on the first anniversary of the grant, while the time-based restricted shares granted to our executive officers and other employees generally vest ratably over two to three years from the date of grant. Performance-based restricted share awards vest subject to the achievement of performance and market conditions over a three-year performance period.

Following is a summary of restricted stock activity for the six months ended March 31, 2022:


	Six Months Ended March 31, 2022
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	738,155	486,574	1,224,729
Granted (a)	269,617	246,844	516,461
Vested	(552,417)	(279,277)	(831,694)
Forfeited	(18,158)	(28,298)	(46,456)
End of period	437,197	425,843	863,040

(a) Each of our performance shares represent 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 2021, we issued 177,759 shares earned above target level based on the performance level achieved under the fiscal 2019 performance-based award plan.

As of March 31, 2022 and September 30, 2021, total unrecognized compensation costs related to unvested restricted stock awards was $10.7 million and $7.2 million, respectively. The costs remaining as of March 31, 2022 are expected to be recognized over a weighted average period of 1.87 years.