XML 43 R31.htm IDEA: XBRL DOCUMENT v3.25.3
Stock-based Compensation and Equity Grants (Tables)
 12 Months Ended
Sep. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense
Total stock-based compensation expense, presented in the table below, was recorded in general and administrative expenses included in our consolidated statements of operations for the years ended September 30, 2025 and 2024 (in thousands):
 20252024
DLH employees (a)
$846 $1,280 
Non-employee directors
618 618 
Stock-based compensation expense
$1,464 $1,898 

(a) 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, 2025, as follows using the Monte Carlo Method.

Volatility
50%
Grant DatePerformance Vesting BasePerformance Vesting Criteria(Years)
Calculated Fair Value
December 20, 2024RevenueRevenue increase at the end of the measurement period as compared to the year ended September 30, 20243$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 measurement 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

Unrecognized stock-based compensation expense

Unrecognized stock-based compensation expense is presented in the table below for the years ending September 30, 2025 and 2024 (in thousands):
 20252024
Unrecognized expense for stock compensation expense (a)
$3,292 $4,417 

(a): On a weighted average basis, this expense is expected to be recognized within the next 2.3 years.
Schedule of Restricted Stock Unit Activity
Restricted Stock Unit ("RSU") activity for the year ended September 30, 2025:

  Performance Vesting
  Service
Vesting
Total
Outstanding, September 30, 2024185,574 131,289 316,863 
Granted (a)
156,453 235,009 391,462 
Vested
— (122,897)(122,897)
Cancelled(109,566)(10,941)(120,507)
Outstanding, September 30, 2025232,461 232,460 464,921 
Schedule of Stock Option Activity A summary of the Company's stock option awards is as follows:
Weighted
Average
WeightedRemainingAggregate
Number ofAverageContractualIntrinsic
SharesExerciseTermValue
(in thousands)Price(in years)(in thousands)
Outstanding, September 30, 20241,236 $9.28 6.1$1,313 
Granted
— — — — 
Exercised— — — — 
Cancelled(299)9.39 — — 
Outstanding, September 30, 2025937 $9.65 5.6$10 
Vested and exercisable, September 30, 2025902 $9.59 5.5$10 
Schedule of Stock Option Shares Outstanding, Vested and Expected to Vest
Stock options shares outstanding, vested and unvested for the years ended September 30, 2025 and 2024 (in thousands):
Number of Shares
20252024
Vested and exercisable902 1,176 
Unvested (a)35 60 
Options outstanding937 1,236 

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