Company: MLSS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017171
Chunk: 12

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 a material adverse effect on Milestone Scientific’s ability to produce and sell its products. Although alternate sources of supply exist, and new manufacturing relationships could be established, Milestone Scientific would need to recover its existing tools or have new tools produced. Establishment of new manufacturing relationships could involve significant expense and delay. Any curtailment or interruption of the supply, because of termination of such a relationship, would have a material adverse effect on Milestone Scientific’s financial condition, business, and results of operations.

OnJanuary 3, 2023, the Company launched an E-Commerce platform selling and shipping STA Single Tooth Anesthesia System® (STA) and handpieces directly to dental offices and dental groups within the U. S. For the threemonths endedMarch 31, 2025, E-Commerce accounted for50% of net product sales and oneinternational distributor accounted for13% of net product sales. For the threemonths endedMarch 31, 2024, E-commerce accounted for53% of net product sales and oneinternational distributor accounted for15% of net product sales.

The Company had threedistributors that accounted for29%,23%,12% of accounts receivable, respectively, for the threemonths ended March 31, 2025. The Company had threedistributors that accounted for22%,13% and11% of accounts receivable, respectively as of December 31, 2024.

As ofMarch 31, 2025, the Company had foursuppliers that accounted for13%,12%,14% and27%, respectively, of accounts payable and accounts payable related party. The Company had the Company had twosuppliers that accounted for31% and30%, respectively of accounts payable and accounts payable related to the party as of December 31, 2024.

NOTE 11-- RELATED PARTY TRANSACTIONS

United Systems

Milestone Scientific has a supply agreement with United Systems, the principal supplier of its handpieces, pursuant to which it procures manufactured products under specific purchase orders, but without minimum purchase commitments. Purchases from this supplier were approximately $487,000and $777,000for the threemonths endedMarch 31, 2025and2024, respectively. As March31,2025, andDecember 31, 2024, Milestone Scientific owed this supplier approximately $770,000and $663,000, respectively, which is included in accounts payable and accrued expenses related party on the unaud