Quarterly report [Sections 13 or 15(d)]

Shareholders Equity

v3.26.1
Shareholders Equity
 6 Months Ended
Mar. 31, 2026
Shareholders Equity  
Shareholders' Equity

13. Shareholders’ Equity

 

Share-based Compensation

 

Amended and Restated 2013 Incentive Stock Plan, as amended

 

As of March 31, 2026, there were vested and unvested shares of restricted stock and stock options outstanding under the Company’s Amended and Restated 2013 Incentive Stock Plan, as amended (“Incentive Stock Plan”). The Incentive Stock Plan, as amended, provides for total shares available for restricted stock and stock options of 15,000 (7,500 restricted stock shares and 7,500 stock option shares). The Incentive Stock Plan authorizes the Compensation Committee of the Board of Directors to grant non-statutory stock options and restricted stock to employees. Vesting periods are established by the Compensation Committee at the time of grant.

 

As of March 31, 2026, there were 7,204 shares available to be granted under the Plan (4,052 shares available for restricted stock grants and 3,152 shares available for non-qualified stock option grants).

Restricted Stock

 

The Company has an annual incentive compensation program (“AICP”) for its executives which is administered under the Company’s Incentive Stock Plan. The AICP includes a long-term incentive (“LTI”) compensation program in the form of restricted stock awards comprised of two components: one that vests based on future service only, and a second that vests based on future service and performance. Initial awards under both service-only and service plus performance-based components of the AICP LTI plan are determined based on financial performance measures for the immediately preceding fiscal year.

 

The Company did not grant shares of restricted stock under the AICP during the six months ended March 31, 2026. The Company granted 48 shares of restricted stock under the AICP during the six months ended March 31, 2025. All of the original 48 shares granted during the six months ended March 31, 2025 have been adjusted to zero (0) shares based on the probable outcome as compared to their respective financial targets.

 

Share-based compensation expense attributable to restricted stock was $15 and $53 for the three-month periods and $55 and $108 for the six-month periods ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was approximately $34 of unrecognized compensation expense related to restricted stock outstanding and the weighted average remaining vesting period for those grants was 0.6 years.

 

A summary of restricted stock activity is presented as follows:

 

 

 

Number of Shares

 

 

Weighted Average

Fair Value ($)

 

Non-vested restricted stock outstanding as of September 30, 2025

 

 

 906

 

 

 

 0.71

 

Granted

 

 

 -

 

 

 

 -

 

Vested

 

 

 (592 )

 

 

 0.79

 

Non-vested restricted stock outstanding as of December 31, 2025

 

 

 314

 

 

 

 0.56

 

Granted

 

 

 -

 

 

 

 -

 

Vested

 

 

 -

 

 

 

 -

 

Non-vested restricted stock outstanding as of March 31, 2026

 

 

 314

 

 

 

 0.56

 

 

Stock Options

 

All stock options outstanding as of March 31, 2026 and September 30, 2025 were non-qualified stock options, had exercise prices equal to the market price on the date of grant, and had expiration dates ten years from the date of grant.

 

The Company did not grant stock options during the six months ended March 31, 2026. The Company’s stock options previously granted generally vest on annual schedules during periods ranging from two to four years, although some options are fully vested upon grant. Share-based compensation expense attributable to stock options is recognized over their estimated remaining lives and was $71 and $69 for the three-month periods and $144 and $133 for the six-month periods ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was approximately $317 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average remaining vesting period for those options was 2.4 years.

A summary of stock option activity is presented as follows:

 

 

 

Number of Shares

 

 

Weighted Average Exercise Price per share ($)

 

 

Weighted Average Fair Value per share ($)

 

 

Weighted Average Remaining Contractual Life (Years)

 

 

Total Intrinsic Value of Options ($)

 

Options outstanding as of September 30, 2025

 

 

 4,412

 

 

 

 0.78

 

 

 

 0.68

 

 

 

 7.28

 

 

 

 -

 

Granted

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Forfeited

 

 

 (9 )

 

 

 6.70

 

 

 

 6.10

 

 

 

 -

 

 

 

 -

 

Options outstanding as of December 31, 2025

 

 

 4,403

 

 

 

 0.76

 

 

 

 0.67

 

 

 

 7.04

 

 

 

 -

 

Granted

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Forfeited

 

 

 (55 )

 

 

 0.59

 

 

 

 0.51

 

 

 

 -

 

 

 

 -

 

Options outstanding as of March 31, 2026

 

 

 4,348

 

 

 

 0.72

 

 

 

 0.64

 

 

 

 6.86

 

 

 

 32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable as of September 30, 2025

 

 

 2,970

 

 

 

 0.98

 

 

 

 0.87

 

 

 

 6.55

 

 

 

 -

 

Exercisable as of March 31, 2026

 

 

 3,196

 

 

 

 0.86

 

 

 

 0.76

 

 

 

 6.31

 

 

 

 22

 

 

Treasury Stock

 

During the six months ended March 31, 2026, the Company reissued 592 of its treasury shares to fulfill commitments for the issuance of previously granted restricted stock awards that became fully vested and unrestricted. These treasury shares were reissued in lieu of issuing new shares of the Company’s common stock, therefore, while its total number of outstanding shares of common stock increased as a result of the issuance, its total number of issued shares of common stock did not increase. Of these shares, 135 were returned to the Company by the grantees on January 7, 2026, to satisfy statutory tax withholding obligations on the vested restricted stock awards.