Stock-Based Compensation Expense

3 Months Ended

Apr. 01, 2013

Stock-Based Compensation Expense

Stock-Based Compensation Expense

Note 2 — Stock-Based Compensation Expense

A summary of non-cash, stock-based compensation expense is as follows:

	For the Three Months Ended
	(in thousands)
	April 1, 2013		April 2, 2012
Restricted stock compensation expense, net of forfeitures	98		106
Stock option compensation expense	6		—
Total non-cash, stock-based compensation expense, net of forfeitures	$	104	$	106

As of April 1, 2013, the unrecognized compensation expense related to stock options and restricted shares of stock granted under the Cosi, Inc. 2005 Omnibus Long-Term Incentive Plan (the “2005 Plan”) was approximately $0.7 million and will be recognized on a straight-line basis over the remaining vesting period through fiscal 2017.

Pursuant to the 2005 Plan and in accordance with the terms and conditions prescribed by the Compensation Committee of our Board of Directors, we granted and issued 30,000 shares of restricted stock and 25,000 options to purchase common stock to key employees during the first quarter of fiscal 2013. The vesting of 5,000 of these shares and all options occurs as follows: (i) 20% of the grant vested on the grant date, and (ii) an additional 20% vests on each anniversary of the grant date, provided that at each such date the employee continues to be employed by the Company. The remaining 25,000 shares of restricted stock vest at a rate of 6,250 at the end of every calendar quarter in 2013. The value of the shares and the options for the grants made during the quarter, based on the closing price of our common stock on the date of the grants, was approximately $0.2 million. We did not grant any shares of restricted stock or options to purchase common stock to employees during the first quarter of fiscal 2012.

Stock-based compensation expense, net of forfeitures, relating to grants for restricted share of stock and options to purchase common stock of approximately $0.1 million is included in the accompanying consolidated statements of operations for each of the quarters ended April 1, 2013 and April 2, 2012.

During the first quarter of fiscal 2013 and 2012, 4,725 and 50 shares, respectively, of previously issued restricted common stock were forfeited. The value of the forfeited shares, based on the closing price of our common stock on the date of the grants, was immaterial. The amount of the reversal of the previously amortized costs related to the forfeited shares reflected in the accompanying consolidated statements of operations for the three-month periods ended April 1, 2013 and April 2, 2012 was also immaterial.