Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 78

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 78
---

Company identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease
liabilities:

    ●
    As
    the Company’s leases do not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the
    present value of the lease payments. The Company has utilized its incremental borrowing rate based on the long-term borrowing costs
    of comparable companies in the Medical Device industry.
  
    ●
    Since
    the Company elected to account for each lease component and its associated non-lease components as a single combined lease component,
    all contract consideration was allocated to the combined lease component.
  
    ●
    The
    expected lease terms include non-cancellable lease periods. Renewal option periods are not included in the determination of
    the lease terms as they were not reasonably certain to be exercised.

The
components of lease expense were as follows: 

 SCHEDULE OF COMPONENTS OF LEASE EXPENSE 

    September 30, 2025  
    September 30, 2024  
    September 30, 2025  
    September 30, 2024 

    Three Months  
    Nine Months 

    September 30, 2025  
    September 30, 2024  
    September 30, 2025  
    September 30, 2024 
  
    Cash paid for operating lease liabilities 
    $31,882  
    $30,373  
    $95,645  
    $95,645 
  
    Cash paid for finance lease liabilities 
     3,417  
     2,685  
     10,251  
     8,055 
  
    Weighted Average Remaining Lease Term 

    Finance leases (years) 

      4.50 years   
      0.29
                                            years  
  
    Operating leases (years) 

     1.5
years   
      2.50 years  
  
    Weighted-average discount rate – operating leases 

     9.20% 
     9.20%
  
    Weighted-average discount rate – finance leases 

     9.20% 
     9.20%

NOTE
14— SUBSEQUENT EVENTS

On
November 7, 2025, Mr. Osser resigned from the Board of Directors. Mr. Osser will continue as