Rosetta Stone 2015 Annual Report Download - page 89

Table of Contents
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

Restricted Stock Awards
The following table summarizes the Company's restricted stock activity for the years ended December 31, 2015 and 2014, respectively:





Nonvested Awards, January 1, 2014
634,031
$ 12.28
$ 7,785,901
Awards granted
236,338
11.69
Awards vested
(253,526)
10.72
Awards canceled
(134,198)
13.23
Nonvested Awards, December 31, 2014
482,645
12.59
6,074,136
Awards granted
481,992
9.05
Awards vested
(452,341)
10.56
Awards canceled
(170,717)
11.88
Nonvested Awards, December 31, 2015
341,579
10.61
3,624,153
During 2015 and 2014, 481,992 and 236,338 shares of restricted stock were granted, respectively. The aggregate grant date fair value of the awards in
2015 and 2014 was $4.4 million and $2.8 million, respectively, which will be recognized as expense on a straight-line basis over the requisite service period
of the awards, which is also the vesting period. The Company's restricted stock grants are accounted for as equity awards. The grant date fair value is based on
the market price of the Company's common stock at the date of grant. The Company did not grant any restricted stock prior to April 2009.
During 2015, 170,717 shares of restricted stock were forfeited. As of December 31, 2015, future compensation cost related to the nonvested portion of
the restricted stock awards not yet recognized in the statement of operations was $3.6 million and is expected to be recognized over a period of 1.93 years.
Restricted stock awards are considered outstanding at the time of grant as the stockholders are entitled to voting rights and to receive any dividends
declared subject to the loss of the right to receive accumulated dividends if the award is forfeited prior to vesting. Unvested restricted stock awards are not
considered outstanding in the computation of basic earnings per share.
Restricted Stock Units
The following table summarizes the Company's restricted stock unit activity from January 1, 2015 to December 31, 2015:







Units Outstanding, January 1, 2015
124,506
$ 12.52
$ 1,215,179
Units granted
63,436
8.49
Units released
—
—
Units cancelled
—
—
Units Outstanding, December 31, 2015
187,942
11.16
1,257,332
Vested and expected to vest at December 31, 2015
153,786
8.50
203,244
Vested and deferred at December 31, 2015
123,406
$ 12.58
$ 825,586
During 2015 and 2014, 63,436 and 43,842 restricted stock units were granted, respectively, to members of the Board of Directors as part of their
compensation package. Restricted stock units convert to common stock following the separation of service with the Company. The aggregate grant date fair
value of the awards in 2015 and 2014 was $0.5 million and $0.4 million, respectively. Beginning June 2015, all restricted stock unit awards vest quarterly
over a one year period from the date of grant, with expense recognized straight-line over the vesting period. Prior to June 2015, all restricted stock unit
awards were immediately vested with expense recognized in full on the grant date. The Company's restricted stock units are accounted for as
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