Stock Option Plans

3 Months Ended

Mar. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

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 months ended March 31, 2016 and 2015, Milestone Scientific recognized $134,505 and $82,124 of total employee compensation cost related to options that vested each year, respectively. As of March 31, 2016 and 2015, there was $1,026,024 and $949,780 of total unrecognized compensation cost related to non-vested options which Milestone Scientific expects to recognize over a weighted average period of 2.99 years and 3.10 years as of March 31, 2016 and 2015, respectively.

A summary of option activity for employees under the plans and changes during the three months ended March 31, 2016, is presented below:

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Outstanding, January 1, 2016		1,419,436		1.56		2.78		1,220,338
Granted		348,908		1.72		4.85		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding, March 31, 2016		1,768,344		1.59		2.99		466,050
Exercisable, March 31, 2016		1,157,983		1.33		2.43		465,309

A summary of option activity for non-employees under the plans and changes during the three months ended March 31, 2016, is presented below:

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Outstanding, January 1, 2016		8,333		2.70		4.83		-
Granted		-		-		-		-
Expired		-		-		-		-
Exercised		-		-		-		-
Outstanding, March 31, 2016		8,333		2.70		4.58		-
Exercisable, March 31, 2016		2,777		2.70		4.58		-

The fair value of the options was estimated on the date of grant using the Black Scholes option-pricing model. As of March 31, 2016, Milestone Scientific recognized $1,175 expense related to non-employee options that vested.

In accordance with the provisions of FASB ASC 505-50-15, all other issuances of common stock, stock options or other equity instruments to non-employees as consideration for goods or services received by Milestone Scientific are accounted for based on the fair value of the equity instruments issued (unless the fair value of the consideration received can be more reliably measured). The fair value of any options or similar equity instruments issued is estimated based on the Black-Scholes option-pricing model and the assumption that all of the options or other equity instruments will ultimately vest. Such fair value is measured as of an appropriate date pursuant to the guidance, (generally, the earlier of the date the other party becomes committed to provide goods or services or the date of performance by the other party is complete) and capitalized or expensed as if Milestone Scientific had paid cash for the goods or services.