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 3-year period from the grant date and expire 5 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, 2026, and 2025, Milestone Scientific recognized approximately $257,000 and $171,000 of total employee compensation cost, respectively, recorded in general and administrative expenses on the statement of operations.

As of March 31, 2026, there was $1.0 million of total unrecognized compensation cost related to non-vested options. Milestone Scientific expects to recognize these costs over a weighted average period of 1.9 years.

A summary of option activity for employees under the plans and changes during the three months ended March 31, 2026 is presented below:

SCHEDULE OF STOCK OPTION ACTIVITY

A summary of option activity for non-employees under the plans and changes during the three months ended March 31, 2026 is presented below:

SCHEDULE OF STOCK OPTION ACTIVITY

For the three months ended March 31, 2026, and 2025 Milestone Scientific recognized approximately $1,200 and $6,600 expense related to non-employee options, respectively.

A summary of restricted stock under the plans and changes during the three months ended March 31, 2026 is presented below:

SCHEDULE OF RESTRICTED STOCK

On January 1, 2026, the Company entered into restricted stock agreements with members of the Board of Directors of the Company. The Company granted 681,818 restricted stock awards with a fair market value of $0.33 per share. Such restricted stock vests as follows: 25% on the grant date in January 1, 2026, and 25% on April 1, 2026, July 1, 2026 and October 1, 2026. These awards vest immediately upon a change of control as defined in the agreements.

For the three months ended March 31, 2026 and 2025, the Company recognized approximately $55,000 and $154,000 for restricted stock expenses recorded in general and administrative expenses on the statement of operation. As of March 31, 2026, there was $170,000 of unrecognized compensation expense related to these awards.