Equity and Stock-Based Compensation

9 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Equity and Stock-Based Compensation

9. Equity and Stock-Based Compensation

Stock-based compensation expense was $0.5 million and $0.2 million in the three months ended June 30, 2024 and 2023, respectively, and $1.2 million and $0.5 million in the nine months ended June 30, 2024 and 2023, respectively. Stock-based compensation expense is included in selling, general and administrative expenses.

The following table summarizes our stock option activity during the nine months ended June 30, 2024:

	Options			Weighted Average Exercise Price
Outstanding at beginning of period		672,924		$	8.76
Granted		557,500			5.66
Exercised		(5,000	)		5.67
Forfeited		(109,075	)		9.53
Outstanding at end of period		1,116,349		$	7.15
Exercisable at end of period		392,684		$	8.32
Weighted average fair value of options granted during the period	$	2.44

The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions:

	Nine Months Ended June 30,
	2024			2023
Risk free interest rate		4	%		4	%
Expected term	5 years			5 years
Dividend rate		—	%		—	%
Volatility		60	%		56	%

The following table summarizes our RSU activity during the nine months ended June 30, 2024:

	Number			Weighted Average Grant Date Fair Value
Nonvested at beginning of year		75,977		$	9.15
Granted		24,897			4.82
Released		(20,421	)		9.55
Forfeited		—			—
Nonvested at end of period		80,453		$	7.71