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Stock Option Plans
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock Option Plans Stock Option Plans
        The 2020 Equity Incentive Plan (the “2020 Plan”) was approved by Transphorm Technology’s board of directors on February 10, 2020 and Transphorm Technology’s stockholders on February 12, 2020, and became effective on the business day immediately prior to the closing of the Merger. Our stockholders approved the 2020 Plan on February 11, 2020. We assumed the 2020 Plan in connection with the Merger. As of June 30, 2020, there were 2,595,313 shares reserved for issuance and no equity awards outstanding under the 2020 Plan. The 2020 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to our employees and our parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance units, and performance shares to our employees, directors, and consultants and our parent and subsidiary corporations’ employees and consultants.
Subject to the adjustment provisions of the 2020 Plan, and the automatic increase described in the 2020 Plan, the maximum aggregate number of shares of our common stock that may be issued under the 2020 Plan is 5,050,000 shares of our common stock, which includes (i) 2,588,077 shares initially reserved for issuance, plus (ii) any shares of our common stock subject to issued and outstanding awards under Transphorm 2007 Plan or 2015 Plan that were assumed in the Merger and that, on or after the closing of the Merger, expire or otherwise terminate without having been exercised or issued in full, are tendered to or withheld by us for payment of an exercise price or for tax withholding obligations, or are forfeited to or repurchased by us due to failure to vest, with the maximum number of shares to be added to the 2020 Plan pursuant to this clause (ii) equal to 2,461,923 shares. Subject to the adjustment provisions of the 2020 Plan, the number of shares of common stock available for issuance under the 2020 Plan will also include an annual increase on the first day of each fiscal year beginning with our 2022 fiscal year and ending on (and including) our 2030 fiscal year, in an amount equal to the least of:
        The following tables summarize stock option activity and related information for the three and six months ended June 30, 2020 and 2019:
Number of Shares Available for GrantNumber of Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Term
(in Years)
Aggregate Intrinsic Value
Balance at April 1, 20202,591,909  2,458,091  $4.74  6.58$—  
Options canceled3,404  (3,404) $3.51  
Balance at June 30, 20202,595,313  2,454,687  $4.74  6.33$—  
Exercisable at June 30, 20202,251,243  $4.83  6.22$—  
Balance at April 1, 20191,653,674  2,371,545  $4.85  7.23$—  
Options granted(57,926) 57,926  $3.14  
Options canceled87,031  (87,031) $4.01  
Balance at June 30, 20191,682,779  2,342,440  $4.84  7.16$—  
Exercisable at June 30, 20191,865,066  $5.00  7.01$—  


Number of Shares Available for GrantNumber of Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Term
(in Years)
Aggregate Intrinsic Value
Balance at January 1, 20201,550,628  2,473,130  $4.67  6.84$—  
Options authorized1,029,588  —  $—  
Options exercised—  (3,346) $3.76  
Options canceled15,097  (15,097) $4.17  
Balance at June 30, 20202,595,313  2,454,687  $4.74  6.33$—  
Exercisable at June 30, 20202,251,243  $4.83  6.22$—  
Balance at January 1, 20191,648,039  2,377,180  $4.83  7.46$—  
Options granted(57,926) 57,926  $3.14  
Options canceled92,666  (92,666) $4.34  
Balance at June 30, 20191,682,779  2,342,440  $4.84  7.16$—  
Exercisable at June 30, 20191,865,066  $5.00  7.01$—  
 
As of June 30, 2020 and 2019, there was $224 thousand and $609 thousand, respectively, of unrecognized stock-based compensation cost related to stock options granted to employees under the 2007 Plan and the 2015 Plan. As of June 30, 2020 and 2019, the unrecognized compensation cost is expected to be recognized over an estimated weighted average amortization period of 1.0 year and 1.5 years, respectively.
        The accompanying condensed consolidated statement of operations and comprehensive loss includes stock-based compensation expense as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Cost of revenue$11  $10  $26  $20  
Research and development40  43  86  86  
Sales and marketing  12  16  
General and administrative48  77  112  154  
Total$104  $137  $236  $276