Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 55

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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    transfer a distinct good or service to the customer and is the unit of account in ASC 606.

     10 

The Company derives its revenues from the sale
of its products, primarily dental and medical instruments, handpieces, and other related products. The Company sells its products
directly to consumers in the United States and through a global distribution network that includes both exclusive and non-exclusive
distribution agreements international. The Company derives its revenues from the sale of its products, primarily dental and medical
instruments, handpieces, and other related products. The Company sells its products directly to consumers in the United States and
through a global distribution network that includes both exclusive and non-exclusive distribution agreements international.

Revenue is recognized at the point of shipment for all sales. The
Company has no obligation to product sales for any installation, set-up, or maintenance, these being the responsibility of the buyer.
Milestone Scientific’s only obligation after sale is the standard commercial warranty against manufacturing defects if the alleged
defective unit is returned within the warranty period.

E-Commerce

The
Company sells its STA Single Tooth Anesthesia Systems® (STA) and handpieces directly to dental offices and dental groups
within the United States via an online portal. The Company’s E-Commerce portal accepts online payments via credit and debit
cards. The cost of delivery is charged to the customer along with appropriate sales tax. The Company recognizes revenue from product
sales at the time the product ships to a customer via a third-party carrier. 

Sales
Returns

The
Company records allowances for product returns as a reduction of revenue at the time product sales are recorded. Several factors are
considered in determining whether an allowance for product returns is required, including the customers’ return rights, the Company’s
historical experience with returns, and the amount of product in the distribution channel not consumed by end users and subject to return.
The Company relies on historical return rates to estimate returns.

Financing
and Payment

The
Company’s payment terms differ by geography and customer, but payments from distributors are required within 90 days or less from the
date of shipment. The E-Commerce portal sells directly to end users and accepts online payments via credit and debit cards
through a third-party. These payments from the third party are typically settled within two business days.

Disaggregation
of Revenue

The
Company operates in two operating segments: Dental and Medical. The Company eval