Warrant Liabilities (Tables)

12 Months Ended

Sep. 27, 2020

Significant inputs into the respective model at the inception and reporting period measurement dates are as follows:

	Issuance date			Period ended			Period ended			Period ended			Period ended
*Valuation Assumptions*	August 26, 2016			October 1, 2017			September 30, 2018			September 29, 2019			September 27, 2020
Exercise Price(1)	$	1.50		$	1.50		$	1.50		$	1.50		$	1.50
Warrant Expiration Date ⁽¹⁾		8/26/2021			8/26/2021			8/26/2021			8/26/2021			8/26/2021
Stock Price (2)	$	0.95		$	0.98		$	1.71		$	1.56		$	1.96
Interest Rate (annual) ⁽³⁾		1.23	%		1.62	%		2.88	%		1.63	%		0.12	%
Volatility (annual) ⁽⁴⁾		246.44	%		179.36	%		64.05	%		53.66	%		51.67	%
Time to Maturity (Years)		5			3.9			2.9			1.9			0.9
Calculated fair value per share	$	0.93		$	0.87		$	0.82		$	0.49		$	0.62

(1) Based on the terms provided in the warrant agreement to purchase common stock of Optex Systems Holdings, Inc. dated August 26, 2016.

(2) Based on the trading value of common stock of Optex Systems Holdings, Inc. as of each presented period ending date.

(3) Interest rate for U.S. Treasury Bonds, as of each presented period ending date, as published by the U.S. Federal Reserve.

(4) Based on the historical daily volatility of Optex Systems Holdings, Inc. as of each presented period ending date.

The warrants outstanding and fair values at each of the respective valuation dates are summarized below:

Warrant Liability	Warrants Outstanding			Fair Value per Share		Fair Value (000’s)
Fair Value as of period ended 9/30/2018		4,260,785		$	0.82	$	3,500
Reclassification to additional paid in capital upon exercise of warrants⁽¹⁾		(47,504	)				(48	)
Warrant buyback and cancellation⁽²⁾		(88,081	)				(72	)
Gain on Change in Fair Value of Warrant Liability							(1,344	)
Fair Value as of period ended 9/29/2019		4,125,200		$	0.49	$	2,036
Loss on Change in Fair Value of Warrant Liability							508
Fair Value as of period ended 9/27/2020		4,125,200		$	0.62	$	2,544

	(1)	Exercise of warrants for gross proceeds of $72 thousand and a warrant liability fair market value of $48 thousand as of the exercise date.

	(2)	Buyback of 88,081 warrants at $0.85 per warrant for a total consideration of ($75) thousand and a warrant liability fair market value of $72 thousand.