Stockholder's Equity

6 Months Ended

Mar. 31, 2021

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. On January 1, 2021, in accordance with the automatic annual increase provisions of the Equity Incentive Plan, an aggregate of 1,130,547 shares of our Common Stock were added to the shares available for issuance under the Equity Incentive 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 six months ended March 31, 2021 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 September 30, 2020		2,042,918			771,387			2,814,305		$	18.63
Granted		652,976			290,035			943,011		$	59.65
Vested		(955,286	)		(403,502	)		(1,358,788	)	$	38.33
Forfeited		(19,826	)		(2,287	)		(22,113	)	$	31.42
Non-vested at March 31, 2021		1,720,782			655,633			2,376,415		$	40.08		1.20	$	212,855
Expected to vest								2,376,415		$	40.08		1.20	$	212,855

Stock-based Compensation

Stock-based compensation was included in the following captions in our Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2021 and 2020 (in thousands):

	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020
Cost of connected services	$	481	$	188	$	772	$	540
Cost of professional services		1,164		433		2,465		1,304
Research and development		4,465		1,948		8,603		4,923
Sales and marketing		2,938		1,776		5,577		3,366
General and administrative		5,096		2,215		10,052		5,396
	$	14,144	$	6,560	$	27,469	$	15,529