Note 7 - Stock Option Plans

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 7 — STOCK OPTION PLANS

The Milestone Scientific Inc., Amended and Restated 2020 Equity Incentive Plan, provides for awards of restricted common, stock restricted stock units, options to purchase and other awards. On June 28, 2023 the plan was amended and restated (the "2020 Plan") to increase the maximum shares that can be issued thereunder to 11,500,000 shares of common stock. The plan 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. 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 expenses 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, 2025, and 2024, Milestone Scientific recognized approximately $171,000 and $175,000 of total employee compensation cost, respectively, recorded in general and administrative expenses on the statement of operations.

As of March 31, 2025, there was $0.7 million of total unrecognized compensation cost related to non-vested options. Milestone Scientific expects to recognize these costs over a weighted average period of 1.0 years.

There were no options granted to employees during the three months ended March 31, 2025 is presented below:

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding at January 1, 2025		2,951,989		2.29		4.54		-
Granted during 2025		-		-				-
Exercised during 2025		-		-		-		-
Forfeited or expired during 2025		-		-		-		-
Options outstanding March 31, 2025		2,951,989		2.33		4.29		-
Exercisable, March 31, 2025		2,103,433		2.29		3.72		-

A summary of option activity for non-employees under the plans and changes during the three months ended March 31, 2025 is presented below:

	Number of Options			Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding at January 1, 2025		99,996			1.74		2.12		5,750
Granted during 2025		16,666			0.94		4.94
Exercised during 2025		-
Forfeited or expired during 2025		(8,333	)		1.65
Options outstanding March 31, 2025		108,329			1.62		2.49		4,750
Exercisable, March 31, 2025		83,326			1.83		1.87		3,722

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 three months ended March 31, 2025, and 2024 Milestone Scientific recognized approximately $6,600 and $1,100 expense related to non-employee options, respectively. 

A summary of restricted stock under the plans and changes during the three months ended March 31, 2025 is presented below:

	Number of Shares			Weighted Average Grant-Date Fair Value per Award
Non-vested as January 1, 2025		365,171			0.89
Granted		-			-
Vested		(182,584	)		0.89
Cancelled		(28,090	)		0.89
Non-vested as March 31, 2025		154,497			0.89

As of March 31, 2025, all restricted shares granted and deferred under the terms of employment agreements with each Territory Manager of Milestone Scientific are fully vested. Such shares will be issued to each party upon completion of 2 years of employment. For the three months ended March  31, 2025 and 2024, the Company recognized stock compensation expense of approximately $0 and $2,100, respectively. As of March 31, 2025 there was no unrecognized compensation expense.

As of March 31, 2025, the Company entered into restricted stock agreements with members of the Board of Directors of the Company. The Company granted 730,340 restricted stock awards with a fair market value of $0.89 per share. Such restricted stock vests as follows: 25% on the grant date in June 2024, and 25% quarterly, on the first day of the following months:   October 2024,  January 2025, and  April 2025. These awards vest immediately upon a change of control as defined in the agreements. For the three months ended March  31, 2025 and 2024, the Company recognized approximately $154,000 and $137,500 for restricted stock expenses recorded in general and administrative expenses on the statement of operation. As of March 31, 2025 there was no unrecognized compensation expense.