NOTE J — STOCK OPTION PLANS

The

2004

Stock Option Plan provided for the grant of options to purchase up to

750,000

shares of Milestone Scientific's common stock. Options

may

be granted to employees, officers, directors and consultants of Milestone Scientific for the purchase of common stock at a price

not

less than the fair market value of the common stock on the date of the grant. Generally, options become exercisable over a

three

-year period from the grant date and expire

five

years after the date of grant. There were

shares available for grant at

December 31, 2019

2018

under this plan.

June 2011,

the stockholders of Milestone Scientific approved the

2011

Stock Option Plan (the

"2011

Plan") which originally provided for stock options to our employees, directors and consultants and incentive and non-qualified stock options to purchase up to

2,000,000

shares of common stock and was later amended in

2016

to increase the maximum number of shares reserved for grant to

4,000,000.

Generally, options become exercisable over a

three

-year period from the grant date and expire

five

years after the date of grant.

Milestone Scientific recognizes compensation expense over the requisite service period and in the case of performance-based options over the period of the expected performance. For the

twelve

months ended

December 31, 2019

and

2018,

Milestone Scientific recognized

$181,448

and

$398,301

of total employee compensation cost, respectively. As of

December 31, 2019

and

2018,

there was

$82,526

and

$263,974

of total unrecognized compensation cost related to non- vested options, respectively. Milestone Scientific expects to recognize these costs over a weighted average period of

year and

1.75

years as of

December 31, 2019

and

2018,

respectively.

A summary of option activity for employees under the plans and changes during the years ended

December 31, 2019

and

2018

is presented below:

	Number of Options			Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding December 31, 2017		1,985,335			1.74		3.04		25,160
Granted		-			-		-		-
Exercised during 2018		-			-		-		-
Forfeited or expired		(315,114	)		1.50		-		-
Options outstanding December 31, 2018		1,670,221			1.71		2.40		-
Exercisable, December 31, 2018		1,317,632			1.79		2.15		-
Granted		-			-		-		-
Exercised during 2019		-			-		-		-
Forfeited or expired		(457,779	)		1.96		-		-
Options outstanding December 31, 2019		1,212,442			1.61		2.00		114,570
Exercisable, December 31, 2019		1,117,834			1.65		1.90		88,982

A summary of option activity for non-employees under the plans and changes during the years ended

December 31, 2019

and

2018,

is presented below:

	Number of Options			Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding December 31, 2017		224,999			2.53		4.32		-
Granted		8,333			0.75		4.33
Exercised during 2018		-			-		-		-
Forfeited or expired		(200,000	)		2.55		-
Options outstanding December 31, 2018		33,332			1.87		2.94
Exercisable, December 31, 2018		27,777			2.10		2.66
Granted		16,666			0.55		4.43		13,999
Exercised during 2019		-			-		-		-
Forfeited or expired		-			-		-
Options outstanding December 31, 2019		49,998			1.43		2.94		19,333
Exercisable, December 31, 2019		36,109			1.76		2.44		8,222

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. For the

twelve

months ended

December 31, 2019

and

2018,

Milestone Scientific recognized

$2,439

and

$9,384

expense related to non-employee options, respectively.