Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation (Tables)

Stock Based Compensation (Tables)

9 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Aggregate Non-vested Restricted Stock and Restricted Stock Units Granted and Performance Shares

The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock and restricted stock units and performance shares:

	Restricted Stock Units			Weighted Average Grant Date Fair Value		Restricted Shares			Weighted Average Grant Date Fair Value		Performance Shares			Weighted Average Grant Date Fair Value
Outstanding at October 2, 2022		66,000		$	1.52		180,000		$	1.75		-			-
Granted		42,000			3.05		40,000			3.09		135,000			2.37
Vested		(66,000	)		1.52		(60,000	)		1.75		-			-
Forfeited		(3,000	)		3.00		(40,000	)		1.75		-			-
Outstanding at October 1, 2023		39,000		$	3.06		120,000		$	2.20		135,000			2.37
Granted		39,500			7.17		-			-		-			-
Vested		(12,000	)		3.00		(60,000	)		2.20		(135,000	)		2.37
Forfeited		-			-		-			-		-			-
Outstanding at June 30, 2024		66,500		$	5.51		60,000		$	2.20		-		$	-

Schedule of Assumptions and Results for the Monte Carlo Simulation

The assumptions and results for the Monte Carlo simulation are as follows:

	Assumptions
Performance Period Start		10/2/2023
Performance Period End		10/1/2028
Term of simulation ⁽¹⁾		5.42 years
Time steps in simulation		1,365
Time steps per year		252
Common share price at valuation date ⁽²⁾	$	3.04
Volatility (annual) ⁽⁴⁾		50.0	%
Risk-free rate (annual) ⁽⁵⁾		3.37	%
Cost of equity ⁽⁶⁾		11.5	%
Dividend yield ⁽³⁾		0.0	%

	Tranche 1		Tranche 2		Tranche 3		Tranche 4		Tranche 5
Number of performance shares in the Tranche ⁽¹⁾		27,000		27,000		27,000		27,000		27,000
Fair Value of One Performance share ⁽⁷⁾	$	2.75	$	2.58	$	2.39	$	2.18	$	1.93
Total Fair Value of Tranche	$	74,345	$	69,742	$	64,446	$	58,819	$	52,238
Derived Service Period (Years) ⁽⁷⁾		0.71		1.13		1.60		2.06		2.48

(1)

Based on the terms of the Performance Shares agreement issued by the Company on May 3, 2023.

(2)

Closing price of OPXS shares on the Valuation Date, as obtained via S&P Capital IQ.

(3)

Expected dividends provided by management.

(4)

Based on historical volatility of OPXS and comparable public companies.

(5)

Interest rate for US Treasury commensurate with the Performance Shares holding period, as of the Valuation Date, as obtained via S&P Capital IQ.

(6)

Estimated cost of equity for OPXS as of the Valuation Date.

(7)

Based on Monte Carlo simulation.

Schedule of Unrecognized Compensation Costs

	Stock Compensation
	(thousands)
	Recognized Compensation Expense								Unrecognized Compensation Expense
	Three months ended				Nine months ended				As of period ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023		June 30, 2024		October 1, 2023

Restricted Shares	$	33	$	33	$	107	$	78	$	66	$	173
Performance Shares		33		43		212		43		-		212
Restricted Stock Units		24		5		41		13		309		77
Total Stock Compensation	$	90	$	81	$	360	$	134	$	375	$	462