Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Stock Option Plans

v3.7.0.1
Note 6 - Stock Option Plans
3 Months Ended
Mar. 31, 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
months ended
March
31,
2017
and
2016
respectively, Milestone Scientific recognized
$133,810
and
$134,405
of total employee stock based compensation cost, respectively. As of
March
31,
2017
and
2016,
there was
$734,114
and
$1,026,024
of total unrecognized compensation cost related to nonvested options, respectively, which Milestone Scientific expects to recognize these cost over a weighted average period of 
2.7
years and
2.99
years as of
March
31,
2017
and
2016,
respectively.
 
 
In
March
2016,
the FASB issued ASU No.
2016
-
09,
Stock Compensation (Topic
718),
which includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The standard is effective for annual periods beginning after
December
15,
2016.
During the
first
quarter
2017,
the Company adopted this ASU. The key effects of the adoption on the Company's financial statements include that the Company will now recognize windfall tax benefits as deferred tax assets instead of tracking the windfall pool and recording such benefits in equity. Additionally, the Company has elected to recognize forfeitures by estimating them at the time of grant.
This adoption of this pronouncement had no material effects on Milestone Scientific'
s financial statements. 
 
A summary of option activit
y for employees under the plans and changes during the
three
month ended
March
31,
2017,
is presented below:
 
   
Number of
Options
   
Weighted
A
veraged
Exercise Price $
   
Weighted Average Remaining
Contractual
Life (Years)
   
Aggregate Intrinsic Options Value $
 
Options outstanding January 1, 2017
   
1,511,995
     
1.74
     
2.97
     
5.469
 
Granted
   
211,179
     
1.64
     
4.78
     
 
 
Exercised during 2017
   
(83,333
)    
.75
     
 
     
 
 
Forfeited or expired
                               
Options outstanding March 31, 2017
   
1,639,841
     
1.87
     
3.14
     
 
 
Exercisable, March 31, 2017
   
1,118,096
     
1.84
     
2.70
     
 
 
 
 
A summary of option activity for non-employees under the plans as of
March
31,
2017
and
2016,
and changes during the year 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 March 31, 2017
   
224,999
     
2.53
     
5.12
     
-
 
Exercisable, March 31, 2017
   
10,183
     
2.33
     
5.07
     
-
 
 
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 will re-measure 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
months ended
March
31,
2017,
and
2016
Milestone Scientific recognized income of
$17,092
and expensed
$1,175,
respectively related to non-employee options.