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

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
---
 -                                                     -  
  Vested                                    ( 182,584                                                  0.89  
  Cancelled                                  ( 28,090                                                  0.89  
  Non-vested as March 31, 2025                154,497                                                  0.89  

As ofMarch 31, 2025, all restricted shares granted and deferred under the terms of employment agreements with each Territory Manager of Milestone Scientific are fully vested. Such shares will be issued to each party upon completion of2years of employment. For the threemonths ended March31,2025and2024, the Company recognized stock compensation expense of approximately $0and $2,100, respectively. As ofMarch 31, 2025there wasnounrecognized compensation expense.

As ofMarch 31, 2025, the Company entered into restricted stock agreements with members of the Board of Directors of the Company. The Company granted730,340restricted stock awards with a fair market value of $0.89per share. Such restricted stock vests as follows: 25% on the grant date inJune 2024, and25% quarterly, on the firstday of the following months: October 2024, January 2025, and April 2025. These awards vest immediately upon a change of control as defined in the agreements. For the threemonths ended March31,2025and2024, the Company recognized approximately $154,000and $137,500for restricted stock expenses recorded in general and administrative expenses on the statement of operation. As ofMarch 31, 2025there wasnounrecognized compensation expense.

NOTE 8 - INCOME TAXES

The utilization of Milestone Scientific's net operating losses maybe subject to a substantial limitation due to the "change of ownership provisions" under Section382of the Internal Revenue Code and similar state provisions. Such limitation mayresult in the expiration of the net operating loss carry forwards before their utilization. Milestone Scientific has established a100% valuation allowance for all its deferred tax assets due to uncertainty as to their future realization.

InApril 2024, we received approximately $2.0million, net of expenses, from the sale of New Jersey net operating losses (“ NOL”), that were eligible for sale under the State of New Jersey’s Economic Development Authority’s New Jersey Technology Business Tax Certificate Transfer Program (” NJEDA Program”). The Company recorded this amount within Gain on sale of net operating losses within the consolidated statement of operations.

Pursuant to