Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 60

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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    $3,713,215 

The
Company had an allowance on slow moving Medical finished goods due to the slow adoption of the epidural instruments and handpieces
for approximately $1.1 million as of September 30, 2025, and December 31, 2024, respectively. 

NOTE
5 — ADVANCES ON CONTRACTS 

The
advances on contracts represent funding of future STA devices, epidural instruments, and epidural replacements parts. The balance of
advances as of September 30, 2025 and December 31, 2024 is approximately $1.4 million and $1.3 million, respectively.
The advance is classified as current based on the estimated annual usage of the underlying inventory.  

NOTE
6 — CONVERITBLE NOTE PAYABLE, RELATED PARTY

On
April 9, 2025, the Company issued a series of promissory notes (the “Notes”) in the aggregate amount of $800,000, to Mr.
Neal Goldman, Ms. Benedetta Casamento, and Dr. Didier Demesmin, each of whom is a director of the Company.  The Notes are due April
9, 2028, and bear interest at the annual rate of prime less 2.50%, payable annually. All principal and interest shall be payable
in cash and/or shares of common stock at the sole discretion of the Company.

The
Notes are convertible into shares of common stock by the holder at any time and by the Company at maturity. If the Company sells
equity securities for gross proceeds in excess of $4,000,000,
the holders may request repayment of their note in either cash, shares of common stock or a combination of cash and shares;
provided, that the holders would then be entitled to receive only so much cash as the net proceeds to the Company in such sale of
equity securities, after payment of other indebtedness and other uses (other than working capital) specified as a use of the
proceeds in the relevant offering or disclosure documentation, shall be in excess of $4,000,000.
Upon a liquidation event of the Company, as defined in the Notes which includes a sale of the Company or assets, a merger,
reorganization or combination transaction where the shareholders before the transaction own less than 50%
of the Company after the transaction and a liquidation, dissolution or winding-up of the Company, the