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Note R - Commitments and Other | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Commitments and Contingencies Disclosure [Text Block] | NOTE R — COMMITMENTS AND OTHER ( 1 ) Lease Commitments The headquarters for Milestone Scientific is located at 220 South Orange Ave, Livingston, New Jersey. Milestone Scientific leases approximately 7,625 square feet of office space. The lease term expires January 31, 2020 and provides for a monthly lease payment of $12,522. Additionally, Milestone Scientific has other smaller insignificant leases ending through 2017. Further, a third -party distribution and logistics center in Pennsylvania handles shipping and order fulfillment on a month-to-month basis. Aggregate minimum rental commitments under noncancelable operating leases are as follows:
|  | Year Ending December 31, 2017
2018 | $ | 150,264
2019 |  | 150,264
2020 |  | 12,522
| $ | 313,050
For the years ended December 31, 2017 and 2016, respectively, rent expense amounted to $141,428 and $133,657 respectively. ( 2 ) Other Commitments Milestone Scientific's employment agreement (the “2009 Agreement”) with Leonard Osser, its former Chief Executive Officer, provided for payments of $203,111 per year for five years to the executive or as he directs such payments, to a third party, to fund his acquisition of, or contribution to, an annuity, pension, or deferred distribution plan; or for an investment for the benefit of the executive and his family. Milestone Scientific expensed approximately $203,111 years ended December 31, 2017, and 2016 respectively to fund this obligation. In July 2017, Milestone Scientific entered into a new employment agreement with Mr. Osser, which superseded the 2009 Agreement pursuant to which he stepped down from his position as Chief Executive Officer and became Managing Director – China Operations. Pursuant to the new agreement, Milestone Scientific agreed to fund the last installment of $203,111 in 2018 as provided for in the 2009 Agreement. On December 19, 2017 the Board of Directors appointed Leonard Osser Interim Chief Executive Officer, replacing Leslie Bernhard. Mr. Osser will enter into a similar employment contract that he received 2017 before he resigned his position as CEO of the company. Mr. Osser placed on hold his position as Managing Director-China Operations and his consulting agreement with Milestone Medical to rejoined Milestone Scientific Inc. as Interim Chief Executive Officer. Mr. Osser will not receive or earn any compensation under these agreements until he is no longer Interim Chief Executive Officer. The technology underlying the SafetyWand® and CompuFlo®, and an improvement to the controls for CompuDent® were developed by the Director of Clinical Affairs and assigned to Milestone Scientific. Milestone Scientific purchased this technology pursuant to an agreement dated January 1, 2005. The Director of Clinical Affairs will receive additional payments of 2.5% of the total sales of products using certain of these technologies, and 5% of the total sales of products using certain other of the technologies until the expiration of the last patent. The Director of Clinical Affairs was granted, pursuant to the agreement, an option to purchase, at fair market value on the date of the grant 8,333 shares of common stock upon the issuance of each additional patent relating to these technologies. If products produced by third parties use any of these technologies (under license from us) then the Director of Clinical Affairs will receive the corresponding percentage of the consideration received by Milestone Scientific for such sale or license. The Director of Clinical Affairs’ royalty fee was $554,150 and $526,737 for twelve months ended December 31, 2017 and 2016, respectively. Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of $275,000 for twelve months ended December 31, 2017 and 2016, respectively. In January 2017, Milestone Scientific entered into a 12 -month agreement with Innovest S.p.A. to provide consulting services. This agreement will renew for successive 12 -month terms unless terminated by Innovest S.p.A or Milestone Scientific. Expenses recognized on this agreement were $80,000 for twelve months ended December 31, 2017 respectively. This agreement is expected to continue into 2018 On October 2, 2017, Milestone Scientific accepted the resignation of the then CEO, Daniel Goldberger. Subsequent to that date, Mr. Goldberger through his attorney advised Milestone Scientific ’s attorneys, that Mr. Goldberger was entitled, based on the circumstances he asserted with respect to his resignation after acceptance of such resignation, to his basic salary ( $300,000 ) for one year and certain other benefits (health and disability insurance for one year ( $30,000 estimated) and a car allowance of $1,200 per month), in accordance with his employment contract dated July 10, 2017. Under the circumstances asserted by Mr. Goldberger, he would also be entitled to the immediate vesting of options under the Milestone Scientific’s Stock Option Plan agreed to be granted to him pursuant to his employment agreement, exercisable for ninety days after his resignation, for 921,942 shares of Milestone Scientific at a price of $2.00 per share, which exercise price is more than the market price of Milestone Scientific’s shares on the date hereof. In February 2018, Milestone Scientific Inc. and Mr. Goldberger signed a settlement and released an agreement with respect to Mr. Goldberger’s leaving the Company, the gross settlement was $175,000 and, $75,000, was paid in March 2018. The remainder of the settlement will be paid over a nine -month period beginning in March 2018.

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