Stock-based Compensation

9 Months Ended

Jun. 30, 2023

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, 2023 and 2022, respectively.


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2023		2022		2023		2022
Stock-based compensation expense	$	1,989	$	1,983	$	5,247	$	6,515

Stock Options

Following is a summary of stock option activity for the nine months ended June 30, 2023:


	Nine Months Ended June 30, 2023
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	27,507	$	14.31

Exercised	(1,576)	7.66

Forfeited	(236)	16.58
Outstanding at end of period	25,695	$	14.70
Exercisable at end of period	25,695	$	14.70

As of June 30, 2023, there was no remaining unrecognized compensation costs related to unvested stock options.

Restricted Stock Awards

During the nine months ended June 30, 2023, 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 nine months ended June 30, 2023:


	Nine Months Ended June 30, 2023
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	436,146	412,042	848,188
Granted (a)	249,534	425,398	674,932
Vested	(334,736)	(234,218)	(568,954)
Forfeited	(2,721)	(9,388)	(12,109)
End of period	348,223	593,834	942,057

(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 2022, we issued 92,104 shares earned above target level based on the performance level achieved under the fiscal 2020 performance-based award plan.

As of June 30, 2023 and September 30, 2022, total unrecognized compensation costs related to unvested restricted stock awards was $8.4 million and $7.3 million, respectively. The costs remaining as of June 30, 2023 are expected to be recognized over a weighted average period of 1.79 years.