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Stock Option Plans
 6 Months Ended
Jun. 30, 2012
Stock Option Plans [Abstract]  
STOCK OPTION PLANS

NOTE – 5 STOCK OPTION PLANS

A summary of option activity for employees under the plans and changes during the six months ended June 30, 2012, is presented below:

 

                                 
    Number
of
Options		     Weighted
Averaged
Exercise
Price		     Weighted
Average
Remaining
Contractual
Life (Years)		     Aggregate
Intrinsic
Options
Value		  

Outstanding, January 1, 2012

     1,139,282     $ 0.89       3.62     $ 1,000  

Granted

     133,333       0.75       4.53       —    

Exercised

     —         —         —         —    

Forfeited or expired

     60,000       1.68       —         —    

Outstanding, June 30, 2012

     1,212,615       0.84       3.44       3,944  

Exercisable, June 30, 2012

     624,291       0.80       2.67       2,083  

Milestone recognizes compensation expense on a straight line basis over the requisite service period. During the six months ended June 30, 2012, Milestone recognized $58,505 of total compensation cost. As of June 30, 2012, there was $159,409 of total unrecognized compensation cost related to non-vested options which Milestone expects to recognize over a weighted average period of 2.75 years. A six percent rate of forfeiture is assumed in the calculation of the compensation cost for the period.

Expected volatilities are based on historical volatility of Milestone’s common stock over a period commensurate with anticipated term. Milestone uses historical data to estimate option exercise and employee termination within the valuation model.

A summary of option activity for non-employees under the plans and changes during the six months ended June 30, 2012, is presented below:

 

                                 
    Number
of
Options		     Weighted
Averaged
Exercise
Price		     Weighted
Average
Remaining
Contractual
Life (Years)		     Aggregate
Intrinsic
Options
Value		  

Outstanding, January 1, 2012

     414,999       1.87       1.43       12,000  

Granted

     —         —         —         —    

Exercised

     —         —         —         —    

Forfeited or expired

     125,000       1.77       —         —    

Outstanding, June 30, 2012

     289,999       1.91       1.51       13,000  

Exercisable, June 30, 2012

     274,443       1.96       1.44       13,000  

During the six months ended June 30, 2012, Milestone recognized $1,559 of expenses related to non-employee options that vested during the year. The total unrecognized compensation cost related to non-vested options was $700 as of June 30, 2012. A six percent rate of forfeiture is assumed in the calculation of the compensation cost for the period.

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 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 had paid cash for the goods or services.