Note 6 - Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Equity [Text Block]

NOTE 6— STOCKHOLDERS’ EQUITY

Warrants

The following table summarizes information about shares issuable under warrants outstanding as of March 31, 2023:

	Warrant shares outstanding		Weighted Average exercise price		Weighted Average remaining life		Intrinsic value
Outstanding at January 1, 2023		4,268,221		2.18		.50		-
Issued		-		-		-		-
Exercised		-		-		-		-
Outstanding and exercisable at March 31, 2023		4,268,221		2.18		.25		125,828

Shares to Be Issued

As of March 31, 2023, and 2022, there were 2,136,101 and 2,000,127 respectively of shares to be issued whose issuance has been deferred under the terms of an employment agreements with the Chief Executive Officer, and other employees of Milestone Scientific. Such shares will be issued to each party upon termination of their employment.

As of March 31, 2023, and 2022, there were 382,697 and 174,364 respectively of  shares to be issued to non-employees,  for services rendered. The number of shares was fixed at the date of grant and were fully vested upon grant date.

The following table summarizes information about shares to be issued on March 31, 2023 and 2022.

	March 31, 2023		March 31, 2022
Shares-to-be-issued, outstanding January 1, 2023 and 2022, respectively		2,440,673		2,066,343
Granted in current period		78,125		108,148
Issued in current period		-		-
Shares-to be issued outstanding March 31, 2023 and 2022, respectively		2,518,798		2,174,491

Stock Options Plans

The Milestone Scientific Inc. 2020 Equity Compensation Plan, as amended and restated (the "2020 Plan"), provides for awards of restricted common stock, restricted stock units, options to purchase common stock and other awards, up to a maximum 4,000,000 shares of common stock and expires in June 2031. Options may be granted to employees, directors, and consultants of Milestone Scientific for the purchase of shares of common stock at a price not less than the fair market value of common stock on the date of grant. In general, 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. For three months ended March 31, 2023 and 2022, Milestone Scientific recognized $362,751 and $305,370 of total employee compensation cost, respectively, recorded in general and administrative expenses on the statement of operations.

A summary of option activity for employees under the plans and changes during the three months ended March 31, 2023 is presented below:     

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2023		3,059,989		2.36		6.38		-
Granted during 2023		-		-		-		-
Exercised during 2023		-		-		-		-
Forfeited or expired during 2023		-		-		-		-
Options outstanding March 31, 2023		3,059,989		2.36		6.13		-
Exercisable, March 31, 2023		1,081,651		2.16		4.55		-

A summary of option activity for non-employees under the plans and changes during the three months ended March 31, 2023 presented below:

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2023		91,663		1.75		2.55		1,083
Granted during 2023		8,333		0.89		4.99		-
Exercised during 2023		-		-		-		-
Options outstanding March 31, 2023		99,996		1.68		2.53		8,583
Exercisable, March 31, 2023		86,109		1.78		2.21		7,583

For the three months ended March 31, 2023 and 2022 , Milestone Scientific recognized approximately $7,798 and $4,978 expense related to non-employee options, respectively.

The information below summarizes the restricted stock award activity for three months ended March 31, 2023.

	Number of Shares			Weighted Average Grant-Date Fair Value per Award
Non-vested as January 1, 2023		435,293			1.18
Granted		-			-
Vested		(192,835	)		-
Cancelled					-
Non-vested as March 31, 2023		242,458			1.33

As of March 31, 2023, there are 49,615 restricted shares granted and deferred under the terms of  employment agreements with each Territory Manager of Milestone Scientific. Such shares will be issued to each party upon completion of 2 years of employment. For the three months ended March 31, 2023 and 2022, the Company recognized stock compensation expense of approximately $9,400 and 22,000 respectively. As of March 31, 2023, the total unrecognized compensation expense was $28,100, related to unvested restricted stock awards, which the Company expects to recognize over an estimated weighted-average period of .78 years. 

As of  March 31, 2023, the Company entered into restricted stock agreements with members of the Board of Directors of the Company. The Company granted 899,390 restricted stock awards with a fair market value of $0.82 per share. Such restricted stock vests as follows: 25% on the grant date in June 2023, and 25% quarterly, on the first day of the following months:   October 2023,  January 2023, and  April 2024. These awards vest immediately upon a change of control as defined in the agreements. As of March 31, 2023 the Company recognized approximately $140,000 for restricted stock expenses recorded in general and administrative expenses on the statement of operations. As of  March 31, 2023, the total unrecognized stock compensation expense was approximately $20,000 related to non-vested restricted stock awards with the members of the Board of Directors, which the Company expects to recognize over an estimated weighted average period of 0.1 years