Quarterly Report (10-q)

Date : 11/08/2019 @ 9:57PM
Source : Edgar (US Regulatory)
Stock : Telenav Inc (TNAV)
Quote : 5.33  0.09 (1.72%) @ 5:00AM
After Hours
Last Trade
Last $ 5.33 ◊ 0.00 (0.00%)

Quarterly Report (10-q)

false--06-30Q1202000014744390.50.5P3Y700070000.0010.00160000000060000000046911000485660004691100048566000011000000.0010.0015000000050000000000000P0D 0001474439 2019-07-01 2019-09-30 0001474439 2019-09-30 0001474439 2019-06-30 0001474439 us-gaap:CostOfSalesMember 2018-07-01 2018-09-30 0001474439 us-gaap:ServiceMember 2019-07-01 2019-09-30 0001474439 2018-07-01 2018-09-30 0001474439 us-gaap:ProductMember 2019-07-01 2019-09-30 0001474439 us-gaap:GeneralAndAdministrativeExpenseMember 2019-07-01 2019-09-30 0001474439 us-gaap:ResearchAndDevelopmentExpenseMember 2018-07-01 2018-09-30 0001474439 us-gaap:SellingAndMarketingExpenseMember 2018-07-01 2018-09-30 0001474439 us-gaap:ServiceMember 2018-07-01 2018-09-30 0001474439 us-gaap:ProductMember 2018-07-01 2018-09-30 0001474439 us-gaap:SellingAndMarketingExpenseMember 2019-07-01 2019-09-30 0001474439 us-gaap:GeneralAndAdministrativeExpenseMember 2018-07-01 2018-09-30 0001474439 us-gaap:CostOfSalesMember 2019-07-01 2019-09-30 0001474439 us-gaap:ResearchAndDevelopmentExpenseMember 2019-07-01 2019-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember us-gaap:SegmentContinuingOperationsMember 2019-07-01 2019-09-30 0001474439 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001474439 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001474439 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001474439 us-gaap:CommonStockMember 2019-06-30 0001474439 us-gaap:RetainedEarningsMember 2018-06-30 0001474439 2018-06-30 0001474439 us-gaap:SegmentContinuingOperationsMember 2019-07-01 2019-09-30 0001474439 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001474439 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001474439 us-gaap:SegmentDiscontinuedOperationsMember 2019-07-01 2019-09-30 0001474439 us-gaap:RetainedEarningsMember 2019-09-30 0001474439 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001474439 us-gaap:CommonStockMember 2018-09-30 0001474439 us-gaap:CommonStockMember 2019-09-30 0001474439 us-gaap:RetainedEarningsMember 2018-09-30 0001474439 us-gaap:SegmentContinuingOperationsMember 2018-07-01 2018-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001474439 us-gaap:AdditionalPaidInCapitalMember us-gaap:SegmentDiscontinuedOperationsMember 2018-07-01 2018-09-30 0001474439 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001474439 2018-09-30 0001474439 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001474439 us-gaap:CommonStockMember 2018-06-30 0001474439 us-gaap:RetainedEarningsMember 2019-06-30 0001474439 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001474439 us-gaap:SegmentDiscontinuedOperationsMember 2018-07-01 2018-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001474439 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001474439 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember us-gaap:SegmentDiscontinuedOperationsMember 2019-07-01 2019-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001474439 us-gaap:AdditionalPaidInCapitalMember us-gaap:SegmentContinuingOperationsMember 2018-07-01 2018-09-30 0001474439 tnav:DevelopmentMember 2019-09-30 0001474439 tnav:DevelopmentMember 2019-07-01 2019-09-30 0001474439 tnav:ContentMember 2019-07-01 2019-09-30 0001474439 tnav:ContentMember 2019-06-30 0001474439 tnav:ContentMember 2019-09-30 0001474439 tnav:DevelopmentMember 2019-06-30 0001474439 tnav:XevoIncMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2018-07-01 2019-06-30 0001474439 tnav:GMMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-07-01 2019-09-30 0001474439 2018-07-01 2019-06-30 0001474439 tnav:GMMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-07-01 2018-09-30 0001474439 us-gaap:AccountingStandardsUpdate201602Member 2019-07-01 0001474439 tnav:FordMotorCompanyMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2018-07-01 2019-06-30 0001474439 tnav:FordMotorCompanyMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-07-01 2019-09-30 0001474439 tnav:XevoIncMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-07-01 2019-09-30 0001474439 tnav:FordMotorCompanyMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-07-01 2019-09-30 0001474439 tnav:FordMotorCompanyMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-07-01 2018-09-30 0001474439 tnav:GMMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-07-01 2019-09-30 0001474439 tnav:GMMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2018-07-01 2019-06-30 0001474439 tnav:BroughtinAutomotiveNavigationSolutionsMember us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0001474439 tnav:OnBoardAutomotiveNavigationSolutionsMember us-gaap:TransferredAtPointInTimeMember 2019-07-01 2019-09-30 0001474439 tnav:MobileNavigationMember us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0001474439 tnav:OnBoardAutomotiveNavigationSolutionsMember us-gaap:TransferredAtPointInTimeMember 2018-07-01 2018-09-30 0001474439 tnav:AutomotiveMaintenanceAndSupportMember us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0001474439 tnav:MobileNavigationMember us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0001474439 tnav:BroughtinAutomotiveNavigationSolutionsMember us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0001474439 tnav:AutomotiveMaintenanceAndSupportMember us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0001474439 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-09-30 0001474439 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0001474439 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-07-01 2019-09-30 0001474439 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-30 0001474439 us-gaap:AccumulatedTranslationAdjustmentMember 2019-07-01 2019-09-30 0001474439 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-06-30 0001474439 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001474439 us-gaap:EmployeeStockOptionMember 2018-07-01 2018-09-30 0001474439 us-gaap:RestrictedStockUnitsRSUMember 2018-07-01 2018-09-30 0001474439 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-30 0001474439 us-gaap:CorporateBondSecuritiesMember 2019-09-30 0001474439 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001474439 us-gaap:USTreasurySecuritiesMember 2019-09-30 0001474439 us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001474439 us-gaap:MunicipalBondsMember 2019-09-30 0001474439 us-gaap:CorporateBondSecuritiesMember 2019-06-30 0001474439 us-gaap:CommercialPaperMember 2019-06-30 0001474439 us-gaap:MoneyMarketFundsMember 2019-06-30 0001474439 us-gaap:AssetBackedSecuritiesMember 2019-06-30 0001474439 us-gaap:MunicipalNotesMember 2019-06-30 0001474439 us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-06-30 0001474439 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-06-30 0001474439 us-gaap:CommercialPaperMember 2019-06-30 0001474439 us-gaap:USTreasurySecuritiesMember 2019-06-30 0001474439 us-gaap:MunicipalNotesMember 2019-09-30 0001474439 us-gaap:CorporateBondSecuritiesMember 2019-09-30 0001474439 us-gaap:MoneyMarketFundsMember 2019-09-30 0001474439 us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-09-30 0001474439 us-gaap:USTreasurySecuritiesMember 2019-09-30 0001474439 us-gaap:CommercialPaperMember 2019-09-30 0001474439 us-gaap:CommercialPaperMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertibleDebtSecuritiesMember 2019-09-30 0001474439 tnav:InMarketMediaLLCMember 2019-08-31 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:MunicipalNotesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel1Member 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasurySecuritiesMember 2019-06-30 0001474439 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel3Member 2019-06-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel2Member 2019-06-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:MunicipalNotesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:AssetBackedSecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member 2019-06-30 0001474439 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0001474439 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2019-06-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasurySecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateBondSecuritiesMember 2019-06-30 0001474439 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:AssetBackedSecuritiesMember 2019-06-30 0001474439 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:CorporateBondSecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:CommercialPaperMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateBondSecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:CommercialPaperMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:MunicipalNotesMember 2019-06-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2019-06-30 0001474439 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0001474439 us-gaap:FairValueInputsLevel3Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:MunicipalNotesMember 2019-09-30 0001474439 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasurySecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:CommercialPaperMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasurySecuritiesMember 2019-09-30 0001474439 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel1Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel2Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:MunicipalNotesMember 2019-09-30 0001474439 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateBondSecuritiesMember 2019-09-30 0001474439 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-09-30 0001474439 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2019-09-30 0001474439 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel2Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:MunicipalNotesMember 2019-09-30 0001474439 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember 2019-09-30 0001474439 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-09-30 0001474439 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel1Member us-gaap:CorporateBondSecuritiesMember 2019-09-30 0001474439 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel1Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:CommercialPaperMember 2019-09-30 0001474439 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel3Member 2019-09-30 0001474439 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-09-30 0001474439 us-gaap:FairValueInputsLevel3Member us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateBondSecuritiesMember 2019-09-30 0001474439 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2019-09-30 0001474439 srt:MaximumMember 2019-10-01 2019-09-30 0001474439 srt:MinimumMember 2019-10-01 2019-09-30 0001474439 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001474439 us-gaap:EmployeeStockOptionMember 2018-07-01 2018-09-30 0001474439 srt:MaximumMember us-gaap:PerformanceSharesMember 2018-10-01 2018-10-31 0001474439 us-gaap:PerformanceSharesMember 2018-10-01 2018-10-31 0001474439 tnav:EquityIncentivePlan2009Member 2019-07-01 2019-09-30 0001474439 us-gaap:PerformanceSharesMember 2019-09-30 0001474439 srt:MaximumMember us-gaap:PerformanceSharesMember 2019-09-01 2019-09-30 0001474439 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-30 0001474439 us-gaap:StockOptionMember 2019-07-01 2019-09-30 0001474439 us-gaap:RestrictedStockUnitsRSUMember 2018-07-01 2018-09-30 0001474439 us-gaap:StockOptionMember 2018-07-01 2018-09-30 0001474439 us-gaap:RestrictedStockUnitsRSUMember 2019-09-30 0001474439 us-gaap:RestrictedStockUnitsRSUMember 2019-06-30 0001474439 tnav:EquityIncentivePlan2009Member 2019-06-30 0001474439 tnav:EquityIncentivePlan2009Member 2019-09-30 0001474439 us-gaap:PerformanceSharesMember 2019-07-01 2019-09-30 0001474439 2019-02-28 0001474439 2019-02-01 2019-02-28 0001474439 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember tnav:AdsBusinessMember 2019-09-30 0001474439 us-gaap:DiscontinuedOperationsHeldforsaleMember tnav:AdsBusinessMember 2019-06-30 0001474439 us-gaap:ServiceMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember tnav:AdsBusinessMember 2019-07-01 2019-09-30 0001474439 us-gaap:DiscontinuedOperationsHeldforsaleMember tnav:AdsBusinessMember 2018-07-01 2018-09-30 0001474439 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember tnav:AdsBusinessMember 2019-07-01 2019-09-30 0001474439 us-gaap:ServiceMember us-gaap:DiscontinuedOperationsHeldforsaleMember tnav:AdsBusinessMember 2018-07-01 2018-09-30 0001474439 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember tnav:AdsBusinessMember 2019-08-16 2019-08-16 0001474439 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember tnav:AdsBusinessMember 2019-08-16 tnav:security tnav:segment xbrli:pure xbrli:shares iso4217:USD iso4217:USD xbrli:shares tnav:milestone

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019

or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission file number: 001-34720
 
TELENAV, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
77-0521800
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification Number)

4655 Great America Parkway, Suite 300
Santa Clara, California 95054
(Address of principal executive offices, including zip code)
(408) 245-3800
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $0.001 Par Value per Share
TNAV
The NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
 
 
Accelerated filer
 
 
 
 
 
 
 
 
Non-accelerated filer
 
 
Smaller reporting company
 
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of September 30, 2019, there were 48,566,077 shares of the Registrant’s Common Stock outstanding.



TELENAV, INC.
TABLE OF CONTENTS
 
 
 
Page No.
1
 
 
 
Item 1.
1
 
 
 
 
1
 
 
 
 
2
 
 
 
 
3
 
 
 
 
4
 
 
 
 
5
 
 
 
 
6
 
 
 
Item 2.
22
 
 
 
Item 3.
37
 
 
 
Item 4.
37
 
 
39
 
 
 
Item 1.
39
 
 
 
Item 1A.
40
 
 
 
Item 2.
71
 
 
 
Item 6.
 



PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements.

TELENAV, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(unaudited)
 
 
September 30,
2019
 
June 30,
2019
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
19,278

 
$
27,275

Short-term investments
 
102,515

 
72,203

Accounts receivable, net of allowances of $7 and $7 at September 30, 2019 and June 30, 2019, respectively
 
52,973

 
69,781

Restricted cash
 
2,452

 
1,950

Deferred costs
 
19,416

 
18,752

Prepaid expenses and other current assets
 
4,281

 
3,784

Assets of discontinued operations
 
1,788

 
6,330

Total current assets
 
202,703

 
200,075

Property and equipment, net
 
5,304

 
5,583

Operating lease right-of-use assets
 
9,325

 

Deferred income taxes, non-current
 
798

 
998

Goodwill and intangible assets, net
 
15,483

 
15,701

Deferred costs, non-current
 
58,379

 
61,050

Other assets
 
18,977

 
1,414

Assets of discontinued operations, non-current
 
259

 
12,194

Total assets
 
$
311,228

 
$
297,015

Liabilities and stockholders’ equity
 
 
 
 
Current liabilities:
 
 
 
 
Trade accounts payable
 
$
17,804

 
$
16,061

Accrued expenses
 
38,365

 
48,899

Operating lease liabilities
 
3,566

 

Deferred revenue
 
43,073

 
31,270

Income taxes payable
 
635

 
800

Liabilities of discontinued operations
 
1,876

 
3,373

Total current liabilities
 
105,319

 
100,403

Deferred rent, non-current
 

 
1,266

Operating lease liabilities, non-current
 
7,011

 

Deferred revenue, non-current
 
104,184

 
103,865

Other long-term liabilities
 
639

 
811

Liabilities of discontinued operations, non-current
 
107

 
30

Commitments and contingencies
 

 

Stockholders’ equity:
 
 
 
 
Preferred stock, $0.001 par value: 50,000 shares authorized; no shares issued or outstanding
 

 

Common stock, $0.001 par value: 600,000 shares authorized; 48,566 and 46,911 shares issued and outstanding at September 30, 2019 and June 30, 2019, respectively
 
49

 
47

Additional paid-in capital
 
192,055

 
182,349

Accumulated other comprehensive loss
 
(1,729
)
 
(1,477
)
Accumulated deficit
 
(96,407
)
 
(90,279
)
Total stockholders’ equity
 
93,968

 
90,640

Total liabilities and stockholders’ equity
 
$
311,228

 
$
297,015


See accompanying Notes to Condensed Consolidated Financial Statements.

1


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

 
 
Three Months Ended
 
 
September 30,
 
 
2019
 
2018
Revenue:
 
 
 
 
Product
 
$
55,183


$
39,930

Services
 
9,272


6,322

Total revenue
 
64,455

 
46,252

Cost of revenue:
 
 
 
 
Product
 
31,989


23,588

Services
 
4,862


3,954

Total cost of revenue
 
36,851

 
27,542

Gross profit
 
27,604


18,710

Operating expenses:
 
 
 
 
Research and development
 
20,663


18,492

Sales and marketing
 
1,946


1,703

General and administrative
 
7,287


5,450

Total operating expenses
 
29,896

 
25,645

Loss from operations
 
(2,292
)

(6,935
)
Other income, net
 
561


1,590

Loss from continuing operations before provision for income taxes
 
(1,731
)

(5,345
)
Provision for income taxes
 
411


740

Loss from continuing operations
 
(2,142
)
 
(6,085
)
Discontinued operations:
 
 
 
 
Income (loss) from operations of Advertising business, net of tax
 
832

 
(1,485
)
Loss from sale of Advertising business
 
(4,818
)
 

Loss on discontinued operations
 
(3,986
)
 
(1,485
)
Net loss
 
$
(6,128
)
 
$
(7,570
)
 
 
 
 
 
Basic and diluted loss per share:
 
 
 
 
Loss from continuing operations
 
$
(0.04
)
 
$
(0.14
)
Loss on discontinued operations
 
$
(0.09
)
 
$
(0.03
)
Net loss
 
$
(0.13
)
 
$
(0.17
)
Weighted average shares used in computing basic and diluted loss per share
 
47,780


45,018

 
 
 
 
 
Stock-based compensation expense included in continuing operations above:
 
 
 
 
Cost of revenue
 
$
16

 
$
24

Research and development
 
1,095

 
1,251

Sales and marketing
 
135

 
166

General and administrative
 
506

 
607

Total stock-based compensation expense
 
$
1,752

 
$
2,048



See accompanying Notes to Condensed Consolidated Financial Statements.

2


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)


 
 
Three Months Ended
 
 
September 30,
 
 
2019
 
2018
Net loss
 
$
(6,128
)
 
$
(7,570
)
Other comprehensive income (loss):
 
 
 
 
Foreign currency translation adjustment, net of tax
 
(310
)
 
(217
)
Available-for-sale securities:
 
 
 
 
Unrealized gain on available-for-sale securities, net of tax
 
59

 
89

Reclassification adjustments for (loss) gain on available-for-sale securities recognized, net of tax
 
(1
)
 
2

Net increase from available-for-sale securities, net of tax
 
58

 
91

Other comprehensive loss, net of tax
 
(252
)
 
(126
)
Comprehensive loss
 
$
(6,380
)
 
$
(7,696
)


See accompanying Notes to Condensed Consolidated Financial Statements.


3


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
(unaudited)
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Accumulated Deficit
 
Total Stockholders' Equity
Three Months Ended September 30, 2019
 
Shares
 
Amount
 
Balance at June 30, 2019
 
46,911

 
$
47

 
$
182,349

 
$
(1,477
)
 
$
(90,279
)
 
$
90,640

Issuance of common stock upon exercise of stock options
 
1,326

 
1

 
8,340

 

 

 
8,341

Release of restricted stock units
 
329

 
1

 
(1,273
)
 

 

 
(1,272
)
Stock-based compensation expense, continuing operations
 

 

 
1,752

 

 

 
1,752

Stock-based compensation expense, discontinued operations
 

 

 
887

 

 

 
887

Foreign currency translation adjustment, net of tax
 

 

 

 
(310
)
 

 
(310
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
58

 

 
58

Net loss
 

 

 

 

 
(6,128
)
 
(6,128
)
Balance at September 30, 2019
 
48,566

 
$
49

 
$
192,055

 
$
(1,729
)
 
$
(96,407
)
 
$
93,968

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2018
 
44,871

 
$
45

 
$
167,895

 
$
(1,855
)
 
$
(57,202
)
 
$
108,883

Issuance of common stock upon exercise of stock options
 
5

 

 
25

 

 

 
25

Release of restricted stock units
 
385

 

 
(1,205
)
 

 

 
(1,205
)
Stock-based compensation expense, continuing operations
 

 

 
2,048

 

 

 
2,048

Stock-based compensation expense, discontinued operations
 

 

 
221

 

 

 
221

Foreign currency translation adjustment, net of tax
 

 

 

 
(217
)
 

 
(217
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
91

 

 
91

Net loss
 

 

 

 

 
(7,570
)
 
(7,570
)
Balance at September 30, 2018
 
45,261

 
$
45

 
$
168,984

 
$
(1,981
)
 
$
(64,772
)
 
$
102,276



See accompanying Notes to Condensed Consolidated Financial Statements.

4


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
 
Three Months Ended
 
 
September 30,
 
 
2019
 
2018
Operating activities
 
 
 
 
Net loss
 
$
(6,128
)
 
$
(7,570
)
Loss on discontinued operations
 
3,986

 
1,485

Loss from continuing operations
 
(2,142
)
 
(6,085
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
Stock-based compensation expense
 
1,752

 
2,048

Depreciation and amortization
 
922

 
1,010

Operating lease amortization, net of accretion
 
544

 

Accretion of net premium on short-term investments
 
12

 
5

Unrealized gain on non-marketable equity investments
 

 
(1,259
)
Realized loss on non-marketable equity investments
 
100

 

Other
 
1

 

Changes in operating assets and liabilities:
 
 
 
 
Accounts receivable
 
16,653

 
(252
)
Deferred income taxes
 
171

 
198

Deferred costs
 
1,979

 
(4,381
)
Prepaid expenses and other current assets
 
(502
)
 
369

Other assets
 
28

 
(35
)
Trade accounts payable
 
1,738

 
3,267

Accrued expenses and other liabilities
 
(10,259
)
 
(2,467
)
Income taxes payable
 
(152
)
 
149

Deferred rent
 

 
37

Operating lease liabilities
 
(897
)
 

Deferred revenue
 
12,221

 
6,842

Net cash provided by (used in) operating activities
 
22,169

 
(554
)
Investing activities
 
 
 
 
Purchases of property and equipment
 
(461
)
 
(99
)
Purchases of short-term investments
 
(41,418
)
 
(10,624
)
Purchase of long-term investments
 
(2,000
)
 

Proceeds from sales and maturities of short-term investments
 
11,052

 
10,865

Net cash provided by (used in) investing activities
 
(32,827
)
 
142

Financing activities
 
 
 
 
Proceeds from exercise of stock options
 
8,306

 
24

Tax withholdings related to net share settlements of restricted stock units
 
(832
)
 
(1,206
)
Net cash provided by (used in) financing activities
 
7,474

 
(1,182
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(336
)
 
(239
)
Net decrease in cash, cash equivalents and restricted cash
 
(3,520
)
 
(1,833
)
Net cash used in discontinued operations
 
(3,975
)
 
(1,740
)
Cash, cash equivalents and restricted cash, beginning of period
 
29,225

 
20,099

Cash, cash equivalents and restricted cash, end of period
 
$
21,730

 
$
16,526

Supplemental disclosure of cash flow information
 
 
 
 
Income taxes paid, net
 
$
739

 
$
166

Non-cash investing: Investment in LLC acquired in exchange for sale of Advertising business
 
$
15,600

 
$

Cash flows from discontinued operations:
 
 
 
 
Net cash used in operating activities
 
$
(3,569
)
 
$
(1,740
)
Net cash used in financing activities
 
(406
)
 

Net cash transferred from continuing operations
 
3,975

 
1,740

Net change in cash and cash equivalents from discontinued operations
 

 

Cash and cash equivalents of discontinued operations, beginning of period
 

 

Cash and cash equivalents of discontinued operations, end of period
 
$

 
$

Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
 
 
 
 
Cash and cash equivalents
 
$
19,278

 
$
13,596

Restricted cash
 
2,452

 
2,930

Total cash, cash equivalents and restricted cash
 
$
21,730

 
$
16,526


See accompanying Notes to Condensed Consolidated Financial Statements.

5


TELENAV, INC.
Notes to Condensed Consolidated Financial Statements
(unaudited)
1.
Summary of business and significant accounting policies
Description of business
Telenav, Inc., also referred to in this report as “we,” “our” or “us,” was incorporated in September 1999 in the State of Delaware. We are a leading provider of connected car and location-based products and services. We utilize our automotive navigation platform to deliver these products and services. Our automotive navigation platform allows us to deliver enhanced location-based services to automobile manufacturers, as well as original equipment manufacturers and tier one suppliers, to which we refer collectively as tier ones. Our automotive solutions primarily include navigation systems built into vehicles, or on-board, mobile phone based navigation systems, or brought-in, and advanced navigation solutions that offer on-board functionality combined with cloud functionality, or hybrid. Our fiscal year ends on June 30, and in this report we refer to the fiscal year ended June 30, 2019 as “fiscal 2019” and the fiscal year ending June 30, 2020 as “fiscal 2020.”
Commencing July 1, 2019, we operate in a single segment, automotive. Through June 30, 2019, we operated in three segments - automotive, advertising and mobile navigation. In August 2019, we completed the disposition of our digital advertising operations (the "Ads Business") and have presented the results of operations for the Ads Business as discontinued operations for all prior periods presented. See Note 12. Our mobile navigation services business represented less than 5% of total revenue for the three months ended September 30, 2019 and we expect the business to continue to decline. Our CEO, the chief operating decision maker, does not review mobile navigation revenue and cost of revenue separately. As a result, we have combined the mobile navigation business with the automotive business in a single segment.
Basis of presentation
The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.
Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall. The results of Jitu did not have a material impact on our financial statements for the three months ended September 30, 2019 and 2018.
The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2019, included in our Annual Report on Form 10-K for fiscal 2019 filed with the U.S. Securities and Exchange Commission, or SEC, on August 22, 2019, which we refer to as the Form 10-K.
Effective July 1, 2019, we adopted the requirements of Accounting Standards Update, or ASU, No. 2016-02, Leases  (ASC 842) as discussed in the section titled “Recently adopted accounting pronouncements” of this Note 1. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with this standard.
Certain prior period balances have been reclassified to conform to the current period presentation of discontinued operations.
Significant accounting policies
With the exception of changes in accounting policies associated with our adoption of the new lease accounting standard, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Form 10-K.

6

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Use of estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, including estimating and allocating the transaction price of customer contracts, the recoverability of accounts receivable and short-term investments, the determination of acquired intangibles and assessment of goodwill for impairment, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates.
Disaggregation of revenue
In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition (in thousands):
 
 
Three Months Ended September 30,
 
 
2019
 
2018
Product
 
 
 
 
On-board automotive navigation solutions (point in time)(1)
 
$
55,183

 
$
39,930

Total product revenue
 
55,183

 
39,930

Services
 
 
 
 
Brought-in automotive navigation solutions (over time)(2)
 
6,222

 
3,542

Automotive maintenance and support and other (over time)
 
600

 
10

Mobile navigation services (over time)
 
2,450

 
2,770

Total services revenue
 
9,272

 
6,322

Total revenue
 
$
64,455

 
$
46,252

(1)Includes i) royalties earned and recognized at the point in time usage occurs, ii) map updates and iii) customized software development fees.
(2)Includes royalties earned and recognized over time from the allocation of transaction price to service obligations for hybrid automotive solutions.

Contract assets
Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of September 30, 2019 and June 30, 2019, we had no contract assets.
Deferred costs
Changes in the balance of total deferred costs (current and non-current) during the three months ended September 30, 2019 were as follows (in thousands):
 
 
Deferred Costs
 
 
Content
 
Development
 
Total
Balance, June 30, 2019
 
$
71,466

 
$
8,336

 
$
79,802

Content licensing costs incurred
 
31,257

 

 
31,257

Customized software development costs incurred
 

 
1,215

 
1,215

Less: cost of revenue recognized
 
(33,304
)
 
(1,175
)
 
(34,479
)
Balance, September 30, 2019
 
$
69,419

 
$
8,376

 
$
77,795


Concentrations of risk and significant customers
Revenue related to products and services provided through Ford Motor Company and affiliated entities, or Ford, comprised 54% and 67% of total revenue for the three months ended September 30, 2019 and 2018, respectively. As of September 30, 2019 and June 30, 2019, receivables due from Ford were 42% and 33% of total accounts receivable, respectively.

7

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Revenue related to products and services provided through General Motors Holdings and its affiliates, or GM, comprised 25% and 16% of total revenue for the three months ended September 30, 2019 and 2018, respectively. As of September 30, 2019 and June 30, 2019, receivables due from GM were 23% and 15% of total accounts receivable, respectively.
Receivables due from Xevo, Inc. were 13% and 29% of total accounts receivable as of September 30, 2019 and June 30, 2019, respectively.
Restricted cash
As of September 30, 2019 and June 30, 2019, we had restricted cash of $2.5 million and $2.0 million, respectively, on our consolidated balance sheets, comprised primarily of prepayments from a customer.
Accumulated other comprehensive loss, net of tax
The components of accumulated other comprehensive loss, net of related taxes, and activity as of September 30, 2019, were as follows (in thousands):
 
 
Foreign Currency
Translation
Adjustments
 
Unrealized
Gains (Losses) on
Available-for-Sale
Securities
 
Total
Balance, net of tax as of June 30, 2019
 
$
(1,623
)
 
$
146

 
$
(1,477
)
Other comprehensive income (loss) before reclassifications, net of tax
 
(310
)
 
59

 
(251
)
Amount reclassified from accumulated other comprehensive loss, net of tax
 

 
(1
)
 
(1
)
Other comprehensive income (loss), net of tax
 
(310
)
 
58

 
(252
)
Balance, net of tax as of September 30, 2019
 
$
(1,933
)
 
$
204

 
$
(1,729
)


The amount of income tax benefit allocated to each component of accumulated other comprehensive loss was not material for the three months ended September 30, 2019.
Recently adopted accounting pronouncements
In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, or ASU 2018-15, which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. We early adopted ASU 2018-15 on July 1, 2019 on a prospective basis, and it did not have a material impact on our financial position or results of operations.
In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) which supersedes the guidance in topic ASC 840, Leases. The new standard, including subsequent amendments, requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease.  A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today.

We adopted ASC 842 effective July 1, 2019. We adopted the standard using the modified retrospective transition approach applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of right-of-use (ROU) assets and lease liabilities for operating leases that were not previously recorded. For information regarding the impact of ASC 842 adoption, see Leases and Note 5.
Leases
On July 1, 2019, we adopted ASC 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after July 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting.

8

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to July 1, 2019. We also elected to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.
Upon adoption, we recognized total ROU assets of $11.7 million, with corresponding liabilities of $13.0 million on the condensed consolidated balance sheets. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of operations and statements of cash flows.  
We recognize operating lease ROU assets and operating lease liabilities at the commencement date based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
We include operating leases in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, non-current on our condensed consolidated balance sheets.
Recent accounting pronouncements
With the exception of the recently adopted accounting pronouncements discussed above, there have been no other changes in accounting pronouncements during the three months ended September 30, 2019, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2019, that are of significance or potential significance to us.
2.
Net income (loss) per share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury-stock method.
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):
 
 
 
Three Months Ended September 30,
 
 
2019
 
2018
Loss from continuing operations
 
$
(2,142
)
 
$
(6,085
)
Net loss
 
$
(6,128
)
 
$
(7,570
)
Weighted average shares used in computing loss per share, basic and diluted
 
47,780

 
45,018

Loss from continuing operations per share, basic and diluted
 
$
(0.04
)
 
$
(0.14
)
Loss on discontinued operations
 
$
(0.09
)
 
$
(0.03
)
Net loss per share, basic and diluted
 
$
(0.13
)
 
$
(0.17
)



9

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

The following potential shares outstanding as of September 30, 2019 and 2018 were excluded from the computation of diluted loss per share for the periods presented because including them would have had an antidilutive effect (in thousands):
 
 
September 30,

 
2019
 
2018
Stock options
 
2,059

 
5,263

Restricted stock units
 
2,967

 
2,536

Total
 
5,026

 
7,799


3.
Cash, cash equivalents and short-term investments
Cash and cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds and commercial paper. Short-term investments consist of readily marketable debt securities with a remaining maturity of more than three months from the date of purchase. Short-term investments are classified as current assets, even though maturities may extend beyond one year, because they represent investments of cash available for operations. We classify all cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions. Marketable debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. We had no material realized gains or losses in the three months ended September 30, 2019 or 2018.
Short-term investments as of June 30, 2019 also included marketable equity securities, which are carried at fair value with unrealized gains and losses recognized in other income (expense), net. We had no net realized gains (losses) from marketable equity securities in the three months ended September 30, 2019 or 2018. As of September 30, 2019, we had no marketable equity securities.
Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2019 (in thousands):
Description
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
Cash
 
$
14,348

 
$

 
$

 
$
14,348

Cash equivalents:
 
 
 
 
 
 
 
 
Money market mutual funds
 
650

 

 

 
650

U.S. treasury securities
 
2,071

 

 

 
2,071

Commercial paper
 
1,994

 

 


 
1,994

Corporate bonds
 
215

 

 

 
215

Total cash equivalents
 
4,930

 

 

 
4,930

Total cash and cash equivalents
 
19,278

 

 

 
19,278

Short-term investments:
 
 
 
 
 
 
 
 
U.S. treasury securities
 
6,121

 
9

 
(3
)
 
6,127

U.S. agency securities
 
4,547

 
8

 
(4
)
 
4,551

Asset-backed securities
 
18,259

 
108

 
(13
)
 
18,354

Municipal securities
 
8,011

 
24

 
(1
)
 
8,034

Commercial paper
 
1,735

 
1

 

 
1,736

Corporate bonds
 
63,407

 
328

 
(22
)
 
63,713

Total short-term investments
 
102,080

 
478

 
(43
)
 
102,515

Cash, cash equivalents and short-term investments
 
$
121,358

 
$
478

 
$
(43
)
 
$
121,793



10

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)


Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2019 (in thousands):
Description
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
Cash
 
$
25,987

 
$

 
$

 
$
25,987

Cash equivalents:
 
 
 
 
 
 
 
 
Money market mutual funds
 
790

 

 

 
790

Commercial paper
 
498

 

 

 
498

Total cash equivalents
 
1,288

 

 

 
1,288

Total cash and cash equivalents
 
27,275

 

 

 
27,275

Short-term investments:
 
 
 
 
 
 
 
 
U.S. treasury securities
 
3,570

 
6

 
(4
)
 
3,572

U.S. agency securities
 
3,002

 
9

 
(2
)
 
3,009

Asset-backed securities
 
12,319

 
104

 
(10
)
 
12,413

Municipal securities
 
4,124

 
16

 

 
4,140

Commercial paper
 
1,986

 

 

 
1,986

Corporate bonds
 
45,492

 
269

 
(27
)
 
45,734

Total debt securities
 
70,493

 
404

 
(43
)
 
70,854

Marketable equity securities
 
250

 
1,099

 

 
1,349

Total short-term investments
 
70,743

 
1,503

 
(43
)
 
72,203

Cash, cash equivalents and short-term investments
 
$
98,018

 
$
1,503

 
$
(43
)
 
$
99,478



The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than 12 months or a continuous unrealized loss position for 12 months or greater, as of September 30, 2019 and June 30, 2019 (in thousands):

 
 
September 30, 2019
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. treasury securities
 
$
2,609

 
$
(1
)
 
$
2,998

 
$
(1
)
 
$
5,607

 
$
(2
)
U.S. agency securities
 
2,034

 
(4
)
 

 

 
2,034

 
(4
)
Asset-backed securities
 
5,128

 
(10
)
 
2,061

 
(3
)
 
7,189

 
(13
)
Municipal securities
 
1,621

 
(1
)
 

 

 
1,621

 
(1
)
Corporate bonds
 
18,388

 
(21
)
 
4,729

 
(2
)
 
23,117

 
(23
)
Total
 
$
29,780

 
$
(37
)
 
$
9,788

 
$
(6
)
 
$
39,568

 
$
(43
)

 
 
June 30, 2019
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. treasury securities
 
$

 
$

 
$
2,992

 
$
(5
)
 
$
2,992

 
$
(5
)
U.S. agency securities
 

 

 
998

 
(1
)
 
998

 
(1
)
Asset-backed securities
 

 

 
3,537

 
(11
)
 
3,537

 
(11
)
Commercial paper
 
493

 
(1
)
 

 

 
493

 
(1
)
Corporate bonds
 
4,600

 
(3
)
 
14,615

 
(24
)
 
19,215

 
(27
)
Total
 
$
5,093

 
$
(4
)
 
$
22,142

 
$
(41
)
 
$
27,235

 
$
(45
)


11

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)


There were 88 securities and 11 securities in an unrealized loss position for less than 12 months at September 30, 2019 and at June 30, 2019, respectively, and 25 securities and 51 securities in an unrealized loss position for 12 months or greater at September 30, 2019 and June 30, 2019, respectively.

The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of September 30, 2019 (in thousands):
 
 
Amortized
Cost
 
Estimated
Fair Value
Due within one year
 
$
33,742

 
$
33,770

Due between one and two years
 
41,908

 
42,147

Due between two and three years
 
26,430

 
26,598

Total
 
$
102,080

 
$
102,515



Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of other income (expense), net. In order to determine whether a decline in value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair market value. As of September 30, 2019, we did not consider any of our short-term investments to be other-than-temporarily impaired.
4.
Fair value of financial instruments
Cash equivalents and short-term investments
We measure certain financial instruments at fair value on a recurring basis. We utilize a hierarchy, which consists of three levels, for disclosure of the inputs used to determine the fair value of our financial instruments.
Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities.
Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 valuations are based upon information that is unobservable and significant to the overall fair value measurement.
Where applicable, we use quoted prices in active markets for similar assets to determine fair value of Level 2 short-term investments. If quoted prices in active markets for identical assets are not available to determine fair value, we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, we use third-party valuations utilizing underlying assets assumptions.
All of our cash equivalents and short-term investments are classified within Level 1 or Level 2. As of September 30, 2019 and June 30, 2019, we did not have any short-term investments that require Level 3 valuations. The fair values of these financial instruments were determined using the following inputs at September 30, 2019 (in thousands):

12

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

 
 
Fair Value Measurements at September 30, 2019 Using
 
 
 
 
Quoted Prices
in Active
Markets for
Identical
Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs
Description
 
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
 
Money market mutual funds
 
$
650

 
$
650

 
$

 
$

U.S. treasury securities
 
2,071

 
2,071

 

 

Commercial paper
 
1,994

 

 
1,994

 

Corporate bonds
 
215

 

 
215

 

Total cash equivalents
 
4,930

 
2,721

 
2,209

 

Short-term investments:
 
 
 
 
 
 
 
 
U.S. treasury securities
 
6,127

 
6,127

 

 

U.S. agency securities
 
4,551

 

 
4,551

 

Asset-backed securities
 
18,354

 

 
18,354

 

Municipal securities
 
8,034

 

 
8,034

 

Commercial paper
 
1,736

 

 
1,736

 

Corporate bonds
 
63,713

 

 
63,713

 

Total short-term investments
 
102,515

 
6,127

 
96,388

 

Cash equivalents and short-term investments
 
$
107,445

 
$
8,848

 
$
98,597

 
$

The fair values of our financial instruments were determined using the following inputs at June 30, 2019 (in thousands):
 
 
Fair Value Measurements at June 30, 2019 Using
 
 
 
 
Quoted Prices
in Active
Markets for
Identical
Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs
Description
 
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
 
Money market mutual funds
 
$
790

 
$
790

 
$

 
$

Commercial paper
 
498

 

 
498

 

Total cash equivalents
 
1,288

 
790

 
498

 

Short-term investments:
 
 
 
 
 
 
 
 
U.S. treasury securities
 
3,572

 
3,572

 

 

U.S. agency securities
 
3,009

 

 
3,009

 

Asset-backed securities
 
12,413

 

 
12,413

 

Municipal securities
 
4,140

 

 
4,140

 

Commercial paper
 
1,986

 

 
1,986

 

Corporate bonds
 
45,734

 

 
45,734

 

Total debt securities
 
70,854

 
3,572

 
67,282

 

Marketable equity securities
 
1,349

 
1,349

 

 

Total short-term investments
 
72,203

 
4,921

 
67,282

 

Cash equivalents and short-term investments
 
$
73,491

 
$
5,711

 
$
67,780

 
$

Accretion of net premium on short-term investments totaled $12,000 and $5,000 in the three months ended September 30, 2019 and 2018, respectively.
There were no transfers between Level 1 and Level 2 financial instruments in the three months ended September 30, 2019 and 2018.

13

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

We did not have any financial liabilities measured at fair value on a recurring basis as of September 30, 2019 or June 30, 2019.
Non-marketable equity investments
Our non-marketable equity securities are investments in privately held companies without readily determinable market values.
The carrying value of our non-marketable equity securities is measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in other income (expense), net. Non-marketable equity securities that we remeasure are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold.
Our net realized gains (losses) from non-marketable equity securities were $(100,000) and zero in the three months ended September 30, 2019 and 2018. Our net unrealized gains (losses) from the remeasurement of non-marketable equity securities were zero and $1.3 million in the three months ended September 30, 2019 and 2018.
The carrying value of our non-marketable equity securities, none of which required remeasurement to fair value, was $458,000 and $458,000 at September 30, 2019 and June 30, 2019, respectively.
In August 2019, we completed the disposition of our Ads Business in exchange for a non-marketable equity investment in inMarket Media, LLC ("inMarket") valued at $15.6 million. See Note 12. In assessing the fair value of our investment in inMarket, we made assumptions regarding estimated future cash flows, weighted average cost of capital and timing over which the cash flows will occur, amongst other factors.
An investment in a limited liability company such as inMarket that maintains a specific ownership account for each investor is deemed to be similar to an investment in a limited partnership. Accordingly, because we hold more than a 3% to 5% ownership interest in inMarket, we are required to account for our inMarket investment under the equity method of accounting. Our proportionate share of inMarket earnings for the period from the date of closing of the inMarket Transaction, August 16, 2019, through September 30, 2019 was not material.
Non-marketable debt investment
In the three months ended September 30, 2019, we invested $2.0 million in the form of a convertible note receivable in a privately held company without a readily determinable market value. The note receivable matures upon request for payment by a majority of note holders no sooner than October 31, 2021, or otherwise upon a change of control or event of default involving the privately held company. The note converts to preferred stock or common stock upon certain events as defined, including a qualified preferred stock financing round or a change in control of ownership. Interest accrues annually at 6% and is due in full upon maturity.
The convertible note is classified as available for sale and is carried at fair value within Level 3, with any unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. We did not have any unrealized or realized gains or losses in the three months ended September 30, 2019. The carrying value of our non-marketable debt investment was $2.0 million at September 30, 2019. We did not hold any non-marketable debt investments at June 30, 2019.
5.
Leases
We have entered into various non-cancelable office space operating leases with original lease periods expiring between 2019 and 2024. These do not contain material variable rent payments, residual value guarantees, covenants or other restrictions.
Operating lease costs for the three months ended September 30, 2019 were $817,000. The weighted-average remaining term of our operating leases was 3.4 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.0% as of September 30, 2019.

14

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Maturities of our operating lease liabilities, which do not include short-term leases, as of September 30, 2019 were as follows (in thousands):
Fiscal Year
 
September 30,
2019
2020
 
$
2,995

2021
 
3,124

2022
 
2,761

2023
 
2,313

2024
 
619

Total lease payments
 
11,812

Less: imputed interest
 
(978
)
Total operating lease liabilities
 
$
10,834


Cash payments included in the measurement of our operating lease liabilities were $0.9 million for the three months ended September 30, 2019.
6.
Balance sheet information
Goodwill and intangible assets, net
Goodwill as of September 30, 2019 and June 30, 2019 was $14.3 million and $26.1 million, respectively. The reduction in goodwill of $11.8 million was due to the sale of the Ads Business to inMarket. See Note 12.
Intangible assets consisted of the following (in thousands):
 
 
September 30,
2019
 
June 30,
2019
Acquired developed technology
 
$
13,875

 
$
13,875

Less accumulated amortization
 
(12,712
)
 
(12,494
)
Intangible assets, net
 
$
1,163

 
$
1,381


Acquired developed technology is amortized on a straight-line basis over the expected useful life. Amortization expense related to intangibles was $218,000 and $284,000 for the three months ended September 30, 2019 and 2018, respectively.
As of September 30, 2019, remaining amortization expense for intangible assets by fiscal year was as follows: $654,000 in fiscal 2020 and $509,000 in fiscal 2021.
Other assets
Other assets consisted of the following (in thousands):
 
 
September 30,
2019
 
June 30,
2019
Deposits and other assets
 
$
919

 
$
956

Non-marketable equity investments
 
458

 
458

Non-marketable equity investment greater than 5% in LLC
 
15,600

 

Non-marketable debt investment
 
2,000

 

Total other assets
 
$
18,977

 
$
1,414



15

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Accrued expenses
Accrued expenses consisted of the following (in thousands):
 
 
September 30,
2019
 
June 30,
2019
Accrued compensation and benefits
 
$
7,051

 
$
13,288

Accrued royalties
 
14,672

 
21,604

Customer overpayments and related reserves
 
4,674

 
4,291

Other accrued expenses
 
11,968

 
9,716

Total accrued expenses
 
$
38,365

 
$
48,899


7.
Deferred revenue and remaining performance obligations
Deferred revenue
Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition under our contracts with customers and is recognized upon transfer of control. Changes in the balance of total deferred revenue (current and non-current) during the three months ended September 30, 2019 were as follows (in thousands):
Beginning balance, June 30, 2019
 
$
135,135

Revenue recognized that was included in beginning balance
 
(13,515
)
Amount billed, net of revenue recognized that was not included in beginning balance
 
25,637

Ending balance, September 30, 2019
 
$
147,257

 
 
 

The cumulative adjustment as a result of changes in the estimate of the transaction price of customer contracts during the three months ended September 30, 2019 was a net increase in revenue recognized of $228,000. In addition, the amount of revenue recognized in the three months ended September 30, 2019 from performance obligations satisfied or partially satisfied in previous periods was $230,000.
Remaining performance obligations
Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that are expected to be invoiced and recognized as revenue in future periods. As of September 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations for our automotive segment was $84.6 million, which is expected to be recognized over a remaining period of approximately 5 to 8 years. This amount excludes the variable consideration that falls under the exemption for usage-based royalties promised in exchange for a license of intellectual property. We have used the practical expedient to not disclose amounts related to the comparative period under ASC 606.
The aggregate amount of transaction price allocated to the remaining performance obligations as of September 30, 2019 was not material.
8.
Commitments and contingencies
Guarantees and indemnifications
Our agreements with our customers generally include certain provisions for indemnifying them against liabilities if our products and services infringe a third party’s intellectual property rights or for other specified matters. We have in the past received indemnification requests or notices of their intent to seek indemnification in the future from our customers with respect to specific litigation claims in which our customers have been named as defendants. The maximum amount of potential future indemnification is unlimited.
We have agreed to indemnify our directors, officers and certain other employees for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon the termination of their services with us, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited. We have a directors’ and officers’ insurance policy that limits our potential exposure. We believe that any financial exposure related to these indemnification agreements is not material.
Other contractual commitments
As of September 30, 2019, we had $7.6 million of future minimum non-cancelable financial commitments primarily related to license fees due to certain of our third-party content providers, regardless of usage level. These commitments are primarily due within five years.

16

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Contingencies
From time to time, we may become involved in legal proceedings, claims and litigation arising in the ordinary course of business. When we believe a loss or a cost of indemnification is probable and which we can reasonably estimate, we accrue our estimate of the loss or cost of indemnification in our consolidated financial statements. Where we cannot determine the outcome of these matters, we do not make a provision in our financial statements until the loss or cost of indemnification, if any, is probable and can be reasonably estimated or the outcome becomes known. We expense legal fees related to these matters as they are incurred.
In addition, we have received, and expect to continue to receive, demands for indemnification from our customers, which demands can be very expensive to settle or defend, and we have in the past offered to contribute to settlement amounts and incurred legal fees in connection with certain of these indemnity demands. Furthermore, in response to these demands we may be required to assume control of and bear all costs associated with the defense of our customers in compliance with our contractual commitments.
Legal proceedings are subject to inherent uncertainties. Unfavorable outcomes could have a material adverse impact on our business, financial position, cash flows or overall trends in results of our operations.
9.
Stock-based compensation
Under our 2009 Equity Incentive Plan and 2011 Stock Option and Grant Plan, eligible employees, directors and consultants are able to participate in our future performance through awards of nonqualified stock options, incentive stock options and restricted stock units as authorized by our board of directors. In addition, we have granted restricted common stock in connection with certain acquisitions.
A summary of our stock option activity is as follows (in thousands except per share and contractual life amounts):
 
 

Number of
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
(years)
 
Aggregate
Intrinsic
Value
Options outstanding as of June 30, 2019
 
3,409

 
$
6.49

 
 
 
 
Granted
 

 

 
 
 
 
Exercised
 
(1,326
)
 
6.29

 
 
 
 
Canceled or expired
 
(24
)
 
5.22

 
 
 
 
Options outstanding as of September 30, 2019
 
2,059

 
$
6.64

 
4.92
 
$

As of September 30, 2019:
 
 
 
 
 
 
 
 
Options vested and expected to vest
 
2,021

 
$
6.67

 
4.87
 
$

Options exercisable
 
1,555

 
$
7.02

 
4.30
 
$


A summary of our restricted stock unit, or RSU, activity is as follows (in thousands except contractual life amounts):
 
 
Number of
Shares
 
Weighted
Average
Remaining
Contractual 
Life
(years)
 
Aggregate
Intrinsic 
Value
RSUs outstanding as of June 30, 2019
 
2,637

 
 
 
 
Granted
 
1,120

 
 
 
 
Vested
 
(485
)
 
 
 
 
Canceled
 
(305
)
 
 
 
 
RSUs outstanding as of September 30, 2019
 
2,967

 
1.74
 
$
14,181

As of September 30, 2019:
 
 
 
 
 
 
RSUs expected to vest
 
2,510

 
1.58
 
$
11,998



17

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)


Performance-based RSUs
In September 2019, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved the grant under our 2009 Equity Incentive Plan of performance-based RSUs covering a target of 560,000 shares of common stock under individual grants to several of our executive officers, which we refer to as the PSU Awards.
The PSU Awards are subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30 trading day period on or before the three-year anniversary of the PSU Awards’ grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the PSU Award becoming eligible to vest. If a stock price performance milestone is achieved, then one half of the shares that became eligible to vest under the PSU Award upon achievement of that stock price performance milestone will vest on the later of November 1, 2020, or the date that the Compensation Committee certifies achievement of the milestone, and the remaining one half of the shares that became eligible to vest will vest on the one-year anniversary of the date the performance milestone was achieved, in each case subject to the respective executive’s continued service with the Company through the applicable vesting date. The maximum number of shares subject to the PSU Award that may vest is 560,000.
In October 2018, the Compensation Committee approved the grant under our 2009 Equity Incentive Plan of performance-based RSUs covering a target of 240,000 shares of common stock to Dr. HP Jin, our Chairman of the Board of Directors, President and Chief Executive Officer, or CEO, which we refer to as the CEO PSU Award. The CEO PSU Award is subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30 trading day period on or before the three-year anniversary of the CEO PSU Award’s grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the CEO PSU Award becoming eligible to vest. If a stock price performance milestone is achieved, then one half of the shares that became eligible to vest under the CEO PSU Award upon achievement of that stock price performance milestone will vest on the later of November 1, 2019, or the date that the Compensation Committee certifies achievement of the milestone, and the remaining one half of the shares that became eligible to vest will vest on the one-year anniversary of the date the performance milestone was achieved, in each case subject to Dr. Jin’s continued service with the Company through the applicable vesting date. The maximum number of shares subject to the CEO PSU Award that may vest is 240,000. No shares had vested as of November 1, 2019.
Since achievement of the awards is dependent on a market condition, stock-based compensation expense associated with these awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service period has been met. We utilized the Monte Carlo valuation method to determine the fair value and derived service periods of each of the stock price performance milestones. Total stock-based compensation expense associated with the PSU Awards and the CEO PSU Award for the three months ended September 30, 2019 and 2018was not material. Total stock-based compensation expense associated with the CEO PSU Award for the three months ended 43373 was not material.
As of September 30, 2019, no performance-based RSUs had been earned or canceled, and 800,000 performance-based RSUs remained outstanding.
During the three months ended September 30, 2019, pursuant to the annual increase provisions of our 2009 Equity Incentive Plan, the number of shares available for grant under this plan increased by 1,666,666 shares. The last annual increase in the shares reserved for issuance under our 2009 Equity Incentive Plan occurred on July 1, 2019, and the plan expired in October 2019 as to new awards. Our board of directors also terminated the 2011 Stock Option and Grant Plan. A summary of our shares available for grant activity is as follows (in thousands):
 
 
Number of
Shares
Shares available for grant as of June 30, 2019
 
4,472

Additional shares authorized
 
1,667

Granted
 
(1,680
)
RSUs withheld for taxes in net share settlements
 
155

Canceled