Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Stock Option Plans

v3.8.0.1
Note 6 - Stock Option Plans
9 Months Ended
Sep. 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
nine
months ended
September 30,
201
7
Milestone Scientific recognized
$299,175
and
$543,290
of total employee stock based compensation cost, respectively. For the
three
and
nine
months ended
September 30, 2016,
Milestone Scientific recognized
$81,678
and
$107,205
of total employee stock based compensation cost, respectively. As of
September 30, 2017
and
2016,
there was
1,421,364
and
$580,331
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
2.49
years as of
September 30, 2017
and
2016,
respectively.
 
A summary of option activity for employees under the plans and changes during the
 
nine
month ended
September 30, 2017,
is presented below:
 
 
Number of
Op
tions
 
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
1,383,121
 
2.04
 
4.26
 
 
 
Exercised during 2017
(83,333)
 
0.75
 
 
 
 
 
Forfeited or expired
               
Options outstanding September 30, 2017
2,811,783
 
1.98
 
3.31
 
 
 
Exercisable, September 30, 2017
1,380,958
 
1.98
 
2.22
 
 
 
 
A summary of option activity for non-employees under the plans As of
September 30, 2017
and changes during the
 
six
month ended is
 
   
Number of
Options
   
Weighted
Averaged
Exercise
Price $
   
Weighted
Average
Remaining
Contractual
Life (Years)
   
Aggregate
Intrinsic
Options
Value $
 
Options outstanding January 1, 2017
   
224,999
     
2.52
     
5.32
     
-
 
Granted
   
-
     
 
     
 
     
 
 
Exercised during 2017
   
-
     
 
     
 
     
 
 
Forfeited or expired
   
-
     
 
     
 
     
 
 
Options outstanding September 30, 2017
   
224,999
     
2.52
     
4.57
     
-
 
Exercisable, September 30, 2017
   
12,960
     
2.33
     
3.68
     
-
 
 
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
nine
months ended
September 30, 2017,
Milestone Scientific
recognized income of
$6,067
and 
$12,324,
respectively related to non-employee options. For the
three
and
nine
months ended
September 30, 2016,
Milestone Scientific recognized expense of
$2,807
and
$8,421
respectively related to non-employee options.