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Note 9 - Stockholders' Equity | 3 Months Ended
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Mar. 31, 2021
Notes to Financial Statements |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9— STOCKHOLDERS' EQUITY Public Offering and Private Placement In the second quarter of 2020, the Company completed two public offerings. In April 2020, a Common Stock offering generating gross proceeds of approximately $5.1 million ( 5,420,000 common shares and 2,710,000 warrants). The combined price of the shares and warrants was $0.95 per share. The warrants are exercisable at a price of $1.20 per share and have an expiration of three ( 3 ) years from the issue date. In June 2020, the Company completed a second Common Stock offering generating gross proceeds of approximately $14.6 million ( 6,770,000 common shares and 3,749,000 warrants). The combined price of the shares and warrants was $2.15 per share. The warrants are exercisable at $2.60 and expire three ( 3 ) years from the issue date. Warrants The following table summarizes information about shares issuable under warrants outstanding as of March 31, 2021 :
|  | Warrant shares outstanding |  |  | Weighted Average exercise price |  |  | Weighted Average remaining life |  |  | Intrinsic value |
Outstanding at January 1, 2021 |  |  | 6,369,396 |  |  | $ | 1.49 |  |  | $ | 2.48 |  |  | $ | 2,784,117 |
Issued |  |  | - |  |  |  |  |  |  |  |  |  |  |  |  |
Exercised |  |  | (1,918,925 | ) |  |  | 1.57 |  |  |  | - |  |  |  | 4,044,164 |
Expired or cancelled |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding and exercisable at March 31, 2021 |  |  | 4,450,471 |  |  | $ | 2.14 |  |  | $ | 2.26 |  |  | $ | 6,381,930 |
The following table summarizes information about shares issuable under warrants outstanding as of March 31, 2020
|  | Warrant shares outstanding |  |  | Weighted Average exercise price |  |  | Weighted Average remaining life |  |  | Intrinsic value |
Outstanding at January 1, 2020 |  |  | 1,074,171 |  |  | $ | 0.50 |  |  | $ | 4.10 |  |  | $ | 956,012 |
Issued |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  |
Exercised |  |  | (460,725 | ) |  |  | 0.50 |  |  |  | - |  |  |  | 630,389 |
Expired or cancelled |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding and exercisable at March 31, 2020 |  |  | 613,446 |  |  | $ | 0.50 |  |  | $ | 3.85 |  |  | $ | 460,085 |
Shares to Be Issued As of March 31, 2021 and 2020 , there were 2,264,127 and 2,306,698 shares to be issued whose issuance has been deferred to the interim Chief Executive Officer, former Chief Financial Officer, and other employees of Milestone Scientific, respectively. As of March 31, 2021 and 2020 , there were 144,024 and 159,835 shares, respectively, to be issued to non-employees, that will be issued 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, 2021 and 2020 , respectively.
|  | March 31, 2021 |  |  | March 31, 2020 |
Shares-to-be-issued, outstanding January 1, 2021 and 2020, respectively |  |  | 2,440,878 |  |  |  | 2,375,760 |
Granted in current period |  |  | 33,238 |  |  |  | 102,768 |
Issued in current period |  |  | (65,965 | ) |  |  | (11,995 | )
Shares-to be issued outstanding March 31, 2021 and 2020, respectively |  |  | 2,408,151 |  |  |  | 2,466,533 |
Stock Options Plans In June 2011, the stockholders of Milestone Scientific approved the 2011 Stock Option Plan (the "2011 Plan") which originally provided for stock options to our employees, directors and consultants and incentive and non-qualified stock options to purchase up to 2,000,000 shares of common stock and was later amended in 2016 to increase the maximum number of shares reserved for grant to 4,000,000. Generally, options become exercisable over a three -year period from the grant date and expire five years after the date of grant. As of March 31, 2021, and December 31, 2020, the Company had 293,505, and 424,425, respectively, remaining options available for grants. The Milestone Scientific Inc. 2020 Equity Compensation Plan (the "Plan") provides for awards of restricted common stock and options to purchase up to a maximum 2,000,000 shares of common stock and expires in December 2030. 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. There were no shares a granted under this plan as March 31, 2021 or December 31, 2020, respectively. Milestone Scientific recognizes compensation expense 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, 2021 and 2020, Milestone Scientific recognized $113,507 and $56,988 of total employee compensation cost, respectively. As of March 31,2021 there was $914,389 of total unrecognized compensation cost related to non- vested options. Milestone Scientific expects to recognize these costs over a weighted average period of 2.7 years A summary of option activity for employees under the plans and changes during the years ended March 31, 2021 and 2020 is presented below:
| Number of Options | Weighted Averaged Exercise Price $ | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Options Value $ |
Options outstanding January 1, 2021 | 1,953,443 |  | 1.88 |  | 3.09 |  | 476,964 |
Granted | 32,175 |  | 3.11 |  | - |  | - |
Exercised during 2021 | - |  | - |  | - |  | - |
Forfeited or expired | (435,558) |  | 1.58 |  | - |  | - |
Options outstanding March 31, 2021 | 1,550,060 |  | 1.98 |  | 3.62 |  | 2,457,153 |
Exercisable, March 31, 2021 | 745,045 |  | 1.93 |  | 2.60 |  | 1,222,127 |
The Company used the following assumptions to calculate the fair value of the stock option grants using the Black-Scholes option pricing model on the measurement date during the three month period ended March 31, 2021, risk free interest rate of 1.42% , Volatility of 89.46% (which is based on the Company's historical volatility over the expected term), expected term of 3 years, 0% dividend rate and closing price of the stock of $3.11 .
| Number of Options | Weighted Averaged Exercise Price $ | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Options Value $ |
Options outstanding January 1, 2020 | 1,212,442 |  | 1.71 |  | 2.40 |  | - |
Granted | - |  | - |  | - |  | - |
Exercised during 2020 | - |  | - |  | - |  | - |
Forfeited or expired | - |  | - |  | - |  | - |
Options outstanding March 31, 2020 | 1,212,442 |  | 1.71 |  | 2.40 |  | - |
Exercisable, March 31, 2020 | 1,117,829 |  | 1.84 |  | 1.84 |  | - |
A summary of option activity for non-employees under the plans and changes during the years ended March 31, 2021 and 2020 is presented below:
| Number of Options | Weighted Averaged Exercise Price $ |  | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Options Value $ |
Options outstanding January 1, 2021 | 74,997 |  | 1.41 |  |  | 3.18 |  | 54,748 |
Granted | 16,666 |  | 4.30 |  |  |  |  |  |
Exercised during 2021 | - |  | - |  |  | - |  | - |
Options outstanding March 31, 2021 | 91,663 |  | 1.87 |  |  | 3.30 |  | 161,660 |
Exercisable, March 31, 2021 | 52,769 |  | 1.34 |  |  | 2.37 |  | 117,829 |
| Number of Options | Weighted Averaged Exercise Price $ | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Options Value $ |
Options outstanding January 1, 2020 | 49,998 |  | 1.87 |  | 2.94 |  | - |
Granted | 8,333 |  | 1.65 |  |  |  | - |
Exercised during 2020 | - |  | - |  | - |  | - |
Options outstanding March 31, 2020 | 58,331 |  | 1.87 |  | 2.94 |  |  |
Exercisable, March 31, 2020 | 41,663 |  | 1.71 |  | 2.03 |  | 84,579 |
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 ,2021 and 2021, Milestone Scientific recognized approximately $10,329 and $- zero expense related to non-employee options, respectively. The Company used the following assumptions to calculate the fair value of the stock option grants using the Black-Scholes option pricing model on the measurement date during the three months ended March 31, 2021, risk free interest rate of 0.2% - 1.41 %, Volatility of 86.97% to 89.90%, expected term of 5 years, 0% dividend rate and closing price of the stock of $3.57 to $4.30 .

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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