On the Company announced that its Board of Directors had approved a stock repurchase program under which it will purchase up to of its outstanding shares of common stock. On the Board of Directors increased the repurchase authorization by to of common stock. The program does obligate Clearfield to repurchase any particular amount of common stock during any period. The repurchase will be funded by cash on hand. The repurchase program is expected to continue indefinitely until the maximum dollar amount of shares has been repurchased or until the repurchase program is earlier modified, suspended or terminated by the board of directors. As of the Company repurchase up to of its outstanding shares of common stock.

The Company is authorized to issue shares of common stock at par value and undesignated shares. From the undesignated shares, shares have been designated as Series B Junior Participating Preferred Shares and of such shares have been issued or are outstanding. The Board of Directors by resolution, establish from the remaining undesignated shares different classes or series of shares and fix the relative rights and preferences of shares in any class or series.

The Company’s stock-based compensation plans are administered by the Compensation Committee of the Board of Directors, which selects persons to receive awards and determines the number of shares subject to each award and the terms, conditions, performance measures and other provisions of the award.

 

The Company currently has equity compensation plan, the Stock Compensation Plan, from which it grants equity awards that are used as an incentive for directors, officers, and other employees. The Stock Compensation Plan has shares available for issue as of As of of total unrecognized compensation expense related to non-vested awards is expected to be recognized over a period of approximately years. The Company recorded related compensation expense for the years ended and of and respectively. For the year ended of this expense was included in selling, general and administrative expense and was included in cost of sales. For the year ended of this expense was included in selling, general and administrative expense and was included in cost of sales. For the year ended of this expense was included in selling, general and administrative expense and was included in cost of sales.

The Company uses the Black-Scholes option pricing model to determine the weighted average fair value of options granted. During the fiscal year ended the Company granted employees non-qualified stock options to purchase an aggregate of shares of common stock with a weighted average contractual term of years, a year vesting term, and a weighted average exercise price of During the fiscal year ended the Company granted employees non-qualified stock options to purchase an aggregate of shares of common stock with a weighted average contractual term of years, a year vesting term, and a weighted average exercise price of There were stock options granted during the year ended The fair value was estimated at the grant date using the assumptions listed below:

 

		Year ended September 30, 2019				Year ended September 30, 2018
Dividend yield			0	%			0	%
Weighted average expected volatility			37.77	%			43.68	%
Weighted average risk-free interest rate			2.92	%			2.70	%
Weighted average expected life (in years)			3.0				3.7
Vesting period (in years)			3.0				3.0

 

The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after their grant date. The risk-free interest rate reflects the interest rate at grant date on -coupon U.S. governmental bonds having a remaining life similar to the expected option term.

 

Options are generally granted at fair market values determined on the date of grant and vesting normally occurs over a to -year period. However, options granted to directors have a year vesting period and a year contractual term. The maximum contractual term is normally years. Shares issued upon exercise of a stock option are issued from the Company’s authorized but unissued shares. There were options vested during the year ended and options vested during the year ended For the year ended there were stock options that were exercised using a cashless method of exercise. For the year ended there were stock options that were exercised using a cashless method of exercise. The intrinsic value of options exercised during the years ended and was and respectively.

 

Option transactions under the Stock Compensation Plan during the years ended and are summarized as follows:

 

		Number of shares				Weighted average exercise price				Weighted average fair value
Outstanding as of September 30, 2017			38,950			$	2.79
Granted			108,000				13.37			$	4.78
Cancelled or Forfeited			-				-
Exercised			(8,450	)			3.58
Outstanding as of September 30, 2018			138,500				10.99
Granted			172,000				12.17			$	3.53
Cancelled or Forfeited			(12,000	)			12.17
Exercised			(7,750	)			2.58
Outstanding as of September 30, 2019			290,750			$	11.86

 

The following table summarizes information concerning options exercisable under the Stock Compensation Plan:

 

Year ended		Exercisable				Weighted average remaining contractual life (in years)				Weighted average exercise price
September 30, 2019			58,750				2.40			$	9.19
September 30, 2018			30,500				1.89			$	2.58

The following table summarizes information concerning options currently outstanding at:

 

Year Ended		Number outstanding				Weighted average remaining contractual life (in years)				Weighted average exercise price				Aggregate intrinsic value
September 30, 2019			290,750				3.04			$	11.86			$	156,173
September 30, 2018			138,500				3.82			$	10.99			$	(4,097	)

The Company’s Stock Compensation Plan permits our Compensation Committee to grant other stock-based awards. The Company has awarded restricted stock grants to employees that vest over to years.

Restricted stock transactions during the years ended and are summarized as follows:

 

		Number of shares				Weighted average grant date fair value
Unvested shares as of September 30, 2017			370,530			$	15.24
Granted			7,235				14.17
Vested			(113,930	)			16.45
Forfeited			(15,222	)			15.41
Unvested shares as of September 30, 2018			248,613				14.65
Granted			4,340				14.40
Vested			(110,683	)			16.31
Forfeited			(11,830	)			14.47
Unvested shares as of September 30, 2019			130,440			$	13.25

 

The Company repurchased a total of shares of our common stock at an average price of in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended The Company repurchased a total of shares of our common stock at an average price of in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended

The Clearfield, Inc. Employee Stock Purchase Plan (“ESPP”) allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide that participating employees purchase the Company’s common stock on a voluntary after tax basis. Employees purchase the Company’s common stock at a price that is less than the lower of of the fair market value of share of common stock at the beginning or end of each stock purchase period or phase. The ESPP is carried out in -month phases, with phases beginning on and of each calendar year. For the phases that ended on and employees purchased and shares, respectively, at a price of For the phases that ended on and employees purchased and shares, respectively, at a price of and per share, respectively. As of the Company has withheld approximately from employees participating in the phase that began on After the employee purchase on shares of common stock were available for future purchase under the ESPP.