Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2016

Restricted stock transactions and outstanding awards are summarized as follows:



	Years Ended September 30,
	2016				2015				2014
	Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value
Beginning Outstanding	13,540		$	7.98	35,203		$	10.13	69,154		$	10.13
Released	(13,540	)	7.98		(21,663	)	11.47		(33,951	)	10.13
Ending Outstanding	—		$	—	13,540		$	7.98	35,203		$	10.13

Stock-based compensation expense for the fiscal years ended September 30, 2016, 2015 and 2014 reduced the Company’s results of operations as follows:



	Years Ended September 30,
	2016			2015			2014
	(dollars in thousands)
Effect on income before income taxes (1)	$	(1,390	)	$	(1,162	)	$	(795	)
Effect on income taxes	$	186		$	221		$	326
Effect on net income	$	(1,204	)	$	(941	)	$	(469	)

(1) Stock-based compensation expense is included in selling, general and administrative expense

Stock-based compensation plans are summarized in the table below:



Name of Plan	Shares Authorized	Shares Available	Options Outstanding	Plan Expiration
2007 Employee Stock Incentive Plan	3,000,000	722,102	1,603,887	Mar. 2020
1998 Employee Stock Option Plan	500,000	—	23,210	Jan. 2008
Non-Employee Directors Stock Option Plan	500,000	131,600	214,470	Mar. 2020
		853,702	1,841,567

Stock option transactions and the options outstanding are summarized as follows:



	Years Ended September 30,
	2016					2015					2014
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of period	1,627,477			$	9.11	1,063,324			$	7.37	1,059,567			$	6.71
Granted	360,075			5.25		327,500			9.74		272,906			7.01
Assumed - merger	—			—		367,229			14.19		—			—
Exercised	(15,346		)	3.28		(94,701		)	5.52		(263,643		)	4.31
Forfeited/canceled	(130,639		)	12.86		(35,875		)	24.71		(5,506		)	9.63
Outstanding at end of period	1,841,567			$	8.15	1,627,477			$	9.11	1,063,324			$	7.37

Exercisable at end of period	1,127,611			$	8.92	1,002,421			$	9.74	674,237			$	8.18

Weighted average grant-date fair value of options granted during the period	$	3.03				$	5.91				$	4.38

The following tables summarize information for stock options outstanding and exercisable as of September 30, 2016:



	Options Outstanding
Range of Exercise Prices	Number Outstanding	Remaining Contractual Life	Average Exercise Price		Aggregate Intrinsic Value
		(in years)			(in thousands)
2.95-4.85	192,954	5.69	$	3.19
5.01-5.20	5,010	2.78	5.05
5.25-5.25	337,600	9.13	5.25
5.40-7.00	107,261	2.85	6.26
7.01-7.01	266,106	7.20	7.01
7.15-7.87	54,390	4.53	7.59
7.98-7.98	239,873	5.21	7.98
8.20-9.94	91,888	5.72	8.87
9.98-9.98	281,750	8.14	9.98
10.50-27.47	264,735	2.70	15.52
	1,841,567	6.21	$	8.15	$	342

Vested and expected to vest as of September 30, 2016	1,838,990	6.21	$	8.15	$	342



	Options Exercisable
Range of Exercise Prices	Number Exercisable	Weighted Average Exercise Price		Aggregate Intrinsic Value
				(in thousands)
2.95-4.85	152,595	$	3.12
5.01-5.20	5,010	5.05
5.25-5.25	24,000	5.25
5.40-7.00	107,261	6.26
7.01-7.01	157,654	7.01
7.15-7.87	32,342	7.40
7.98-7.98	239,873	7.98
8.20-9.94	60,638	9.21
9.98-9.98	87,503	9.98
10.50-27.47	260,735	15.60
	1,127,611	8.92		$	280