Stockholder's Equity

3 Months Ended

Dec. 31, 2020

Note 12. Stockholder’s Equity

Per the Amended and Restated Certificate of Incorporation, which was adopted on October 1, 2019, 600,000,000 shares of capital stock have been authorized, consisting of 40,000,000 shares of Preferred Stock, par value $0.01 per share, or Preferred Stock, and 560,000,000 shares of Common Stock, par value $0.01 per share (“Common Stock”).

On October 2, 2019, we registered the issuance of 6,350,000 shares of Common Stock, consisting of 5,300,000 shares of Common Stock reserved for issuance upon the exercise of options granted, or in respect of awards granted, under the Cerence 2019 Equity Incentive Plan, (“Equity Incentive Plan”), and 1,050,000 shares of Common Stock that are reserved for issuance under the Cerence 2019 Employee Stock Purchase Plan.

The Equity Incentive Plan provides for the grant of incentive stock options, stock awards, stock units, stock appreciation rights, and certain other stock-based awards. Awards issued under the Plan may not have a term greater than ten years from the date of grant.

Restricted Units

Information with respect to our non-vested restricted stock units for the three months ended December 31, 2020 was as follows:

	Non-Vested Restricted Stock Units
	Time-Based Shares			Performance- Based Shares			Total Shares			Weighted- Average Grant-Date Fair Value		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Non-vested at October 1, 2020		2,042,918			771,387			2,814,305		$	18.63
Granted		635,810			289,380			925,190		$	56.97
Vested		(872,310	)		(403,502	)		(1,275,812	)	$	39.16
Forfeited		(6,754	)		(1,596	)		(8,350	)	$	35.94
Non-vested at December 31, 2020		1,799,664			655,669			2,455,333		$	36.79		1.40	$	246,896
Expected to vest								2,455,333		$	36.79		1.40	$	246,896

Stock-based Compensation

Stock-based compensation was included in the following captions in our Condensed Consolidated Statements of Operations for the three months ended December 31, 2020 and 2019 (in thousands):

	Three Months Ended December 31,
	2020		2019
Cost of connected services	$	291	$	352
Cost of professional services		1,294		871
Research and development		4,098		2,975
Sales and marketing		2,529		1,590
General and administrative		4,139		3,181
	$	12,351	$	8,969