XML 32 R18.htm IDEA: XBRL DOCUMENT
v3.22.2

Stockholders' Equity | 9 Months Ended
--- | ---
Jun. 30, 2022
Equity [Abstract] |
Stockholders' Equity | Note 11. Stockholders’ Equity On October 2, 2019, we registered the issuance of 6,350,000 shares of Common Stock, par value $0.01 per share (“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. The shares available for issuance will automatically increase on January 1st of each year, by the lesser of (A) three percent (3%) of the number of shares of Common Stock outstanding as of the close of business on the immediately preceding December 31st; and (B) the number of shares of Common Stock determined by the Board on or prior to such date for such year. Restricted Units Information with respect to our non-vested restricted stock units for the nine months ended June 30, 2022 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, 2021 |  | 1,420,532 |  |  | 654,619 |  |  | 2,075,151 |  | $ | 44.20 |  |  |  |  |
Granted |  | 782,887 |  |  | 383,637 |  |  | 1,166,524 |  | $ | 69.99 |  |  |  |  |
Vested |  | (929,585 | ) |  | (474,681 | ) |  | (1,404,266 | ) | $ | 60.17 |  |  |  |  |
Forfeited |  | (195,273 | ) |  | (134,847 | ) |  | (330,120 | ) | $ | 53.37 |  |  |  |  |
Non-vested at June 30, 2022 |  | 1,078,561 |  |  | 428,728 |  |  | 1,507,289 |  | $ | 61.99 |  |  |  |  |
Expected to vest |  |  |  |  |  | 1,507,289 |  | $ | 61.99 |  |  | 0.92 |  | $ | 38,014 |
Stock-based Compensation Stock-based compensation was included in the following captions in our Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2022 and 2021 (in thousands):
|  | Three Months Ended June 30, |  |  | Nine Months Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Cost of connected services |  | $ | 97 |  |  | $ | 165 |  |  | $ | 440 |  |  | $ | 937 |
Cost of professional services |  |  | 625 |  |  |  | 1,543 |  |  |  | 2,944 |  |  |  | 4,008 |
Research and development |  |  | 2,531 |  |  |  | 4,774 |  |  |  | 8,672 |  |  |  | 13,377 |
Sales and marketing |  |  | 1,239 |  |  |  | 2,774 |  |  |  | 2,083 |  |  |  | 8,351 |
General and administrative |  |  | 1,761 |  |  |  | 5,454 |  |  |  | 4,881 |  |  |  | 15,506 |
Restructuring and other costs, net |  |  | — |  |  |  | — |  |  |  | 4,000 |  |  |  | — |
|  | $ | 6,253 |  |  | $ | 14,710 |  |  | $ | 23,020 |  |  | $ | 42,179 |
For the nine months ended June 30, 2022, we had lower stock-based compensation expense relating to our performance-based restricted stock units compared to the nine months ended June 30, 2021. Compensation cost for our performance-based restricted stock units is recognized based on the number of units expected to vest upon the achievement of the performance conditions. During the nine months ended June 30, 2022, we recorded $4.0 million, net of $5.0 million in forfeitures, in stock-based compensation due to the resignation of our former CEO and the resulting modification of certain stock-based awards in Restructuring and other costs, net. We recorded $2.4 million, net of $0.2 million in forfeitures, in stock-based compensation due to the retirement of our former CFO and resignation of our former General Counsel and the resulting modification of certain stock-based awards.

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI https://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration