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Stock-based Compensation and Equity Grants (Tables)
 12 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense
Total stock-based compensation expense, presented in the table below, is recorded in general and administrative expenses included in our consolidated statements of operations for the years ended September 30, 2024 and 2023 (in thousands):
 20242023
DLH employees (a)$1,280 $1,204 
Non-employee directors (b)618 718 
Stock option expense
$1,898 $1,922 

(a): Included in this amount are equity grants of restricted stock units ("RSU") to Executive Officers, which were issued in accordance with the DLH long-term incentive compensation policy in this fiscal year, and stock option grants to employees during prior fiscal years. The RSUs issued and outstanding totaled 316,863 and 211,228 at September 30, 2024 and 2023, respectively. During the fiscal year ended September 30, 2024, 169,544 RSUs were granted to Executive Officers. Of the RSUs granted, 84,773 have performance-based vesting criteria and the remaining 84,771 have service-based vesting criteria. At a 50% volatility and assumptions of a 3-year term and the performance vesting criteria results in an indicated a fair value. The RSUs granted during the fiscal year ended September 30, 2024, as follows using the Monte Carlo Method.

Volatility
50%
Grant DatePerformance Vesting BasePerformance Vesting Criteria(Years)
Calculated Fair Value
December 15, 2023RevenueRevenue increase at the end of the performance period as compared to the year ended September 30, 20233$3.82 
December 15, 2023Stock price
Stock price is at least $25.65 per share average for the 30 days prior to the end of the performance period
3$5.36 
January 27, 2023RevenueRevenue increase at the end of the performance period as compared to the year ended September 30, 20223$3.51 
January 27, 2023Stock price
Stock price is at least $33.21 per share average for the 30 days prior to the end of the performance period
3$2.92 
Notes: Results based on 100,000 simulations

(b): Equity grants of RSUs were made in accordance with DLH compensation policy for non-employee directors and a total of 61,525 and 50,367 restricted stock units were issued and outstanding at September 30, 2024 and 2023, respectively. These grants have service-based vesting criteria and vest at the end of this fiscal year.

Unrecognized stock-based compensation expense

Unrecognized stock-based compensation expense is presented in the table below for the years ending September 30, 2024 and 2023 (in thousands):
 20242023
Unrecognized expense for DLH employees (a)$4,417 $7,107 
Unrecognized expense
$4,417 $7,107 

(a): On a weighted average basis, this expense is expected to be recognized within the next 2.98 years.
Schedule of Stock Option Activity A summary of the Company's stock option awards is as follows:
Weighted
WeightedAverage
AverageRemainingAggregate
Number ofExerciseContractualIntrinsic
SharesPriceTermValue
(in thousands)(in years)(in thousands)
Outstanding, September 30, 2023
2,278 $8.40 5.8$8,693 
Exercised(760)4.12 —— 
Cancelled(282)14.73 —— 
Outstanding, September 30, 2024
1,236 $9.28 6.1$1,313 
Vested and exercisable, September 30, 2024
1,177 $9.37 6.0$1,313 
Schedule of Stock Option Shares Outstanding, Vested and Expected to Vest
Stock options shares outstanding, vested and unvested for the years ended September 30, 2024 and 2023 (in thousands):
Number of Shares
20242023
Vested and exercisable1,176 1,608 
Unvested (a)60 670 
Options outstanding1,236 2,278 

(a): Certain awards vest upon satisfaction of certain performance criteria.