Stock-Based Compensation Expense

3 Months Ended

Mar. 30, 2015

Stock-Based Compensation Expense [Abstract]

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)
	March 30, 2015		March 31, 2014
Restricted stock compensation expense, net of forfeitures		108		168
Stock option compensation expense		-		-
Total non-cash, stock-based compensation expense, net of forfeitures	$	108	$	168

As of March 30, 2015, 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 $0.9 million and will be recognized on a straight-line basis over the remaining vesting period through fiscal 2018. On August 26, 2014, the 2005 Plan was replaced by the Amended and Restated Cosi, Inc. 2005 Omnibus Long-Term Incentive Plan ("Amended and Restated 2005 Plan"), and all shares of stock issued to employees and directors after August 26, 2014, will be issued under the Amended and Restated 2005 Plan. We did not grant any shares of restricted stock to employees during the three months ended March 30, 2015.

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 1,029,164 shares of restricted common stock to key employees during the three-month period ended March 31, 2014. The vesting of 829,164 of these shares occurs as follows:  (i) 50% of the grant will vest over time at the rate of 25% per year on the anniversary of the grant date, and (ii) 50% of the grant will vest at the rate of 25% on the first day on which the closing price of the Company's common stock exceeds, for 30 consecutive days, specific price targets of $2.00, $2.50, $3.00, and $4.00, provided the employee remains employed by the Company through each vesting date.  The vesting of the remaining 200,000 of these shares occurred as follows: (i) 50% of the grant vested immediately on the grant date and (ii) the remaining 50% was scheduled to vest in four equal quarterly installments on June 17, 2014, September 17, 2014, December 17, 2014, and March 17, 2015, provided the employee remained employed by the Company through each vesting date; and 75,000 of these shares were forfeited on August 26, 2014, when the employee ceased to be employed by the Company. On February 19, 2015, the Company met the first market condition of $2.00 and vested 25% of the granted 50% of restricted stock.

The value of the shares for the grants made during the three months ended March 31, 2014, based on the closing price of our common stock on the date of the grants, was approximately $1.0 million.

In the three-month period ended March 30, 2015, we issued 5,729 shares of our restricted common stock to a new member of the Board of Directors under the 2005 Plan and pursuant to the Non-Employee Directors Stock Incentive Plan, pro-rated for the balance of the 2013-2014 term. These shares had immaterial aggregate value in 2015 and vested upon issuance.

During the three-month period ended March 30, 2015, 100,050 shares 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 approximately $0.1 million.