Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Stock Option Plans

v3.7.0.1
Note 6 - Stock Option Plans
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
 
NOTE –
6
Stock Option Plans
 
Milestone Scientific recognizes compensation expense on a straight line basis over the requisite service period and in the case of performance based options over the period of the expected performance. For the
three
and 
six
months ended
June 30, 2017 
Milestone Scientific recognized
$110,305
and
$244,115
of total employee stock based
 compensation cost, respectively. 
For the
three
and
six
months ended
June 30, 2016,
Milestone Scientific recognized
$133,330
and
$266,601
of total employee stock based
 compensation cost, respectively.
As of
June 30, 2017
and
2016,
there was
$619,173
and
$884,183
of total unrecognized compensation cost related to nonvested options, respectively, which Milestone Scientific expects to recognize these cost over a weighted average period of 
2.5
years and
2.74
years as of
June 30, 2017
and
2016,
respectively.
 
A summary of option activity for employees under the plans and changes during the 
six
month ended
June 30, 2017,
is presented below:
 
   
Number of
Options
   
Weighted
Averaged
Exercise Price $
   
Weighted Average
Remaining
Contractual Life
(Years)
   
Aggregate Intrinsic
Options Value $
 
Options outstanding January 1, 2017
   
1,511,995
     
1.74
     
2.97
     
17,921
 
Granted
   
211,179
     
1.64
     
4.52
     
 
 
Exercised during 2017
   
(83,333
)    
0.75
     
 
     
 
 
Forfeited or expired
                               
Options outstanding June 30, 2017
   
1,639,841
     
1.87
     
2.89
     
 
 
Exercisable, June 30, 2017
   
1,130,958
     
1.88
     
2.46
     
 
 
 
A summary of option activity for non-employees under the plans as of
June 30, 2017
and changes during the 
six
month ended is presented below:
 
   
Number of
Options
   
Weighted
Averaged
Exercise
Price $
   
Weighted
Average
Remaining
Contractual
Life (Years)
   
Aggregate
Intrinsic
Options
Value $
 
Options outstanding January 1, 2017
   
224,999
     
2.53
     
5.32
     
-
 
Granted
   
-
     
 
     
 
     
 
 
Exercised during 2017
   
-
     
 
     
 
     
 
 
Forfeited or expired
   
-
     
 
     
 
     
 
 
Options outstanding June 30, 2017
   
224,999
     
2.53
     
4.82
     
-
 
Exercisable, June 30, 2017
   
10,183
     
2.33
     
3.86
     
-
 
 
The fair value of the non-employee options was estimated on the date of grant using the Black Scholes option-pricing model at the date of grant. In accordance with the provisions of FASB ASC
505,
Milestone Scientific re-measures the value of the grant at each presentation date unless there is a significant disincentive for non-performance or until performance has been. For the
three
and
six
months ended
June 30, 2017,
Milestone Scientific recognized expense of
$10,835
and income
$6,257,
respectively related to non-employee options.
For the
three
and
six
months ended
June 30, 2016,
Milestone Scientific recognized expense of
$8,421
and
$9,596
respectively related to non-employee options.