Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 57

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 increase to the allowance is recognized
as an increase in cost of sales. The valuation allowance is only reduced if or when the underlying inventory is sold or destroyed.
At this time, the cost of sales recognized would include the previous adjusted cost basis.

8.
Convertible Notes Payable, Related Parties

The
Company accounts for Convertible Notes Payable, Related Parties in accordance with ASC 470, Debt. Based on analysis performed
by the Company, no embedded conversion or redemption features required bifurcation as derivatives in accordance with ASC 815, Derivatives
and Hedging.

9.
Basic and Diluted Net Loss Per Common Share

Milestone
Scientific presents “basic” earnings (loss) per common share applicable to common stockholders and, if applicable, “diluted”
earnings (loss) per common share applicable to common stockholders pursuant to the provisions of ASC 260, “Earnings per Share”.
Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted
average number of common shares outstanding and to be issued common shares as follows: 82,322,910 and 82,008,336 for the three and nine
months ended September 30, 2025 and 79,966,833 and 80,165,181 for the three and nine months ended September 30, 2024 respectively.
The calculation of diluted earnings per common share is like that of basic earnings per common share, except that the denominator is
increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common
shares, such as those issuable upon the exercise of stock options, were issued during the period. Since Milestone Scientific had net
losses in the nine months ended September 30, 2025 and 2024, the assumed effects of the exercise of potentially dilutive outstanding
stock options, unissued restricted stock awards (“RSA”), and convertible notes payable, related parties, were not included
in the calculation as their effect would have been anti-dilutive. Such outstanding options, convertible notes payable, and RSAs totaled
8,357,969 and 3,684,697 for the nine months ended September 30, 2025, and 2024, respectively.

10. Recent
Accounting Pronouncements

Recently
Issued Accounting Pronouncement

In
November 2024,