Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

Stock Based Compensation
6 Months Ended
Mar. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation

Note 7-Stock Based Compensation


Stock Options issued to Employees, Officers and Directors


The Optex Systems Holdings 2009 Stock Option Plan provides for the issuance of up to 75,000 shares to the Company’s officers, directors, employees and to independent contractors who provide services to Optex Systems Holdings as either incentive or non-statutory stock options determined at the time of grant. As of March 31, 2019, there were 25,000 fully vested stock options outstanding at an exercise price of $10 per share and an expiration date of December 18, 2020. During the six months ended March 31, 2019, 34,980 vested stock options expired (forfeited) unexercised. There were no new grants of stock options during the six months ended March 31, 2019.


Restricted Stock Units issued to Officers and Employees


The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock units granted under the Company’s 2016 Restricted Stock Unit Plan: 


Unvested as of October 1, 2017     182,000  
Granted - year ended September 30, 2018      
Vested - year ended September 30, 2018     (83,000 )
Unvested as of  September 30, 2018     99,000  
Granted – six months ended March 31, 2019     200,000  
Vested - six months ended March 31, 2019     (82,500
Unvested as of March 31, 2019     216,500  


Pursuant to the executive compensation package approved by our board of directors on November 20, 2018:


  On January 2, 2019, the Company granted 150,000 and 50,000 restricted stock units with a January 2, 2019 grant date, to Danny Schoening and Karen Hawkins, respectively, vesting as of January 1 each year subsequent to the grant date over a three year period at a rate of 34% in year one, and 33% each year thereafter. The stock price at grant date was $1.32 per share. The Company will amortize the grant date fair market value of $264 thousand to stock compensation expense on a straight line basis across the three year vesting period beginning on January 2, 2019.


  Effective as of January 1, 2019, Danny Schoening, CEO and Karen Hawkins, CFO received an 8% salary increase.


On January 7, 2019, the Company issued 55,565 common shares the three directors and officers, net of tax withholding of $37 thousand, in settlement of 82,500 restricted stock units which vested on January 1, 2019.


Stock Based Compensation Expense


Equity compensation is amortized based on a straight line basis across the vesting or service period as applicable. The recorded compensation costs for options and shares granted and restricted stock units awarded as well as the unrecognized compensation costs are summarized in the table below:


Stock Compensation


    Recognized Compensation Expense     Unrecognized Compensation Expense  
    Three months ended     Six months ended     As of period ended  
    March 31,
    April 1,
    March 31,
    April 1,
    March 31,
    September 30,
Stock Options   $     $     $     $ 8     $     $  
Restricted Stock Units     22       37       58       73       253       49  
Total Stock Compensation   $ 22     $ 37     $ 58     $ 81     $ 253     $ 49