Note 13:    Stock-Based Compensation
From time to time, the Company grants stock options and restricted stock awards to directors, officers, and employees. These awards are valued at the grant date by determining the fair value of the instruments. The value of each award is amortized on a straight-line basis over the requisite service period.
Stock Options
The following table summarizes stock option activity for the years ended September 30, 2025 and 2024:
Number of
Options
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life
Intrinsic
Value
Outstanding at September 30, 202353,750$21.51 1.54$540 
Granted17,50040.00  
Exercised(6,250)15.00  
Forfeited(5,000)40.00  
Outstanding at September 30, 202460,000$26.04 1.29$130 
Exercisable at September 30, 202460,000$26.04 1.29$130 
  
Outstanding at September 30, 202460,000$26.04 1.29$130 
Forfeited(60,000)26.04  
Outstanding at September 30, 20250$— 0$— 
Exercisable at September 30, 20250$— 0$— 
The Company recognized compensation expense of approximately $200,000 and $325,000 during the years ended September 30, 2025 and 2024, respectively, related to stock option awards and restricted stock awards granted to certain employees and officers based on the grant date fair value of the awards. No forfeitures are estimated. During the years ended September 30, 2025 and 2024, 0 and 17,500 stock options were granted, respectively. During the years ended September 30, 2025 and 2024, no restricted stock awards were granted.
At September 30, 2025 the Company had approximately $0.5 million of unrecognized compensation expense associated with restricted stock awards.

Historical Timeline

Fiscal YearFiled
2025Dec 17, 2025Showing above
2024Dec 19, 2024

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.