Note I - Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE I

— STOCKHOLDERS’ EQUITY

ISSUANCES COMMON STOCK

In

June

2016,

Milestone Scientific raised an additional

$2.0

million of gross proceeds in a private placement of

one

million shares of common stock, at a price of

$2.00

per share, to the same investors that participated in the

 

May

2014

Financing.

 

          In

July

2016,

Milestone Scientific raised gross proceeds of

$250,000

in a registered direct offering of

104,200

shares of common stock at

$2.40

per share. The transaction was covered by the prospectus supplement, filed with the United States Securities and Exchange Commission ("SEC) on

July

22,

2016,

to our shelf registration statement on Form S-

3

(SEC File No.:

333

-

209466).

 

In

December

2016,

Milestone Scientific completed an underwritten public offering of

2,000,000

shares of common stock and warrants to purchase up to

1,592,775

shares of common stock, including

92,775

additional warrants pursuant to a

partial exercise of the over-allotment option granted to the underwriters. Each share of common stock was sold in combination with a warrant to purchase

0.75

shares of common stock. The public offering price for each share and related

.75

share warrant was

$1.50

for gross proceeds of

$3,000,000.

The warrants have a

three

-year term and an exercise price of

$2.55

per share.  In

January

2017,

the underwriter exercised a portion of its over-allotment option to purchase an additional

123,700

shares of common stock at the public offering price of

$1.499

per share for gross proceeds of approximately

$186,000.

The gross proceeds from this offering, including proceeds from partial exercises of the over-allotment option, were approximately

$3,200,000,

before deducting underwriting discounts and commissions and other offering expenses of

$426,780.

  

ISSUANCES OF PREFERRED STOCK

In

May

of

2014,

Milestone completed a private placement, which raised gross proceeds in the total of

$10

million, from the sale of

$3

million of Milestone Scientific common stock

(two

million shares at

$1.50

per share) and

$7

million of our Series A Convertible Preferred Stock ("preferred stock")

(7,000

shares at

$1,000

per share), convertible into common stock at

$2.37

per share (as adjusted to date) on

May

14,

2019,

or

$1.50

per share unless certain conditions are not met both subject to anti-dilution adjustment.  Generally, each share of preferred stock entitles the holder to vote together with the holders of

Milestone Scientific

common stock, as a single class, on all matters submitted for the approval of the holders of

Milestone Scientific

common stock and has the number of votes equal to the number of shares of our common stock into which they are then convertible.  In addition, preferred stock is also entitled to share, pari passu, in any cash dividends declared on

Milestone Scientific

common stock on as converted basis.

SHARES TO BE ISSUED

As of

December

31,

2016

and

2015,

there were

1,270,481

and

963,451

shares, respectively, whose issuance has been deferred under the terms of an employment agreements with the Chief Executive Officer, Chief Financial Officer and other

employees of Milestone Scientific. Such shares will be issued to each party upon termination of their employment. The number of shares was fixed at the date of grant and were fully vested upon grant date.

SHARES RESERVED FO

R FUTURE ISSUANCE

At

December

31,

2016

and

2015

there were

4,600,250

and

2,391,220

shares reserved for future issuance and

3,329,769

and

1,427,769

shares underlying other stock options and warrants outstanding, respectively. At

December

31,

2016

and

2015

there were

1,270,481

shares and

963,451

shares, respectively, reserved for issuance in settlement of deferred compensation to officers of Milestone Scientific.