Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 47

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 Company can be liable to pay the
state of New Jersey up to $2.2 million of the surrendered NOLs

Investing Activities

Net cash used in investing activities decreased by approximately $3.0 million
for the nine months ended September 30, 2025, compared to the same period in 2024. The change was primarily attributable to the sale of
$3.0 million in marketable securities during the prior-year period, which increased cash flows in 2024. As of September 30, 2025, the
Company held no marketable securities, reflecting a strategic decision to allocate available funds toward supporting ongoing operations
and commercialization efforts.

Financing Activities

Net cash provided by financing activities
increased by approximately $553,000 for the nine months ended September 30, 2025, compared to the same period in 2024. The increase
primarily resulted from the issuance of $800,000 in convertible notes payable during 2025, compared to $200,000 raised through a
public placement offering in 2024. The Company continues to evaluate financing opportunities to support working capital
requirements, product commercialization, and potential future growth initiatives.

Consideration of Company’s ability to continue as a going
concern

The accompanying financial statements have been prepared in conformity
with U.S. generally accepted accounting principles (GAAP), which contemplate the continuation of the Company as a going concern. The going
concern basis assumes that assets will be realized and liabilities will be settled in the ordinary course of business at the amounts disclosed
in the unaudited condensed financial statements.

Since its inception, the Company has incurred
aggregate losses of approximately $132.7 million. Operating losses were approximately $1.1 million and $4.6 million for the three
and nine months ended September 30, 2025, respectively. As of September 30, 2025, Milestone Scientific had cash and cash equivalents
of approximately $1.3 million and working capital of approximately $3.1 million. Net cash flows used in operating activities were
approximately $2.7 million and $1.4 million for the nine months ended September 30, 2025, and 2024, respectively. Based on the
Company’s available cash resources, recurring operating losses, accumulated deficit, and the need for additional capital to
finance ongoing operations. Management has concluded that substantial doubt exists about the Company’s ability to continue as a
going concern for a