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Stock-Based Compensation and Equity Grants (Tables)
 3 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense
Stock-based compensation expense shown in the table below, is recorded in general and administrative expenses in our consolidated statements of operations as follows (in thousands):

Three Months Ended
December 31,
20242023
DLH employees (a)$13 $540 
Non-employee directors (b)180 80 
Total stock option expense$193 $620 

(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 708,325 and 367,795 shares at December 31, 2024 and 2023, respectively. During the three months ended December 31, 2024 and 2023, the Company granted 312,906 and 169,544 shares of restricted stock units, respectively. During the three months ended December 31, 2024, 156,453 shares of the RSUs granted have performance-based vesting criteria and the remaining 156,453 shares have service-based vesting criteria. During the three months ended December 31, 2023, 84,773 shares of the RSUs granted have performance-based vesting criteria and the remaining 84,771 shares have service-based vesting criteria.
Unrecognized stock-based compensation expense is presented in the table below (in thousands):
December 31,
 20242023
Unrecognized expense for DLH employees (a)$5,302 $7,983 
Unrecognized expense for non-employee directors539 539 
Total unrecognized expense$5,841 $8,522 

(a) On a weighted average basis, the unrecognized expense as of December 31, 2024 is expected to be recognized within the next 2.57 years.
Summary of Performance Vesting Critera
Volatility
50%
Grant DatePerformance Vesting BasePerformance Vesting Criteria(Years)Fair Value
December 20, 2024RevenueRevenue increase at the end of the performance period as compared to the year ended September 30, 20273$0.65 
December 20, 2024Stock price
Stock price is at least $23.04 per share average for the 30 days prior to the end of the performance period
3$1.67 
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 
Notes:
Results based on 100,000 simulations
Schedule of Stock Option Activity A summary of the Company's stock option awards is as follows:
(in years)
Weighted
WeightedAverage(in thousands)
(in thousands)AverageRemainingAggregate
Number ofExerciseContractualIntrinsic
SharesPriceTermValue
Options outstanding, September 30, 2024
1,237 $9.28 6.1$1,313 
Granted— — — — 
Exercised
— — — — 
Cancelled(50)16.01 — — 
Options outstanding, December 31, 2024
1,187 $9.31 5.80$652 
Vested and exercisable, December 31, 2024
1,127 $9.07 5.70$652 
Schedule of Option Shares Outstanding, Vested and Expected to Vest
Stock option shares outstanding, vested and unvested balance as follows (in thousands):
December 31,September 30,
20242024
Vested and exercisable1,127 1,177 
Unvested (a)60 60 
Options outstanding1,187 1,237 
(a) Certain awards vest upon satisfaction of certain performance criteria.