Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 54

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 54
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AP) for interim financial information with the instructions for Form 10-Q
and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete annual
financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments
(consisting of regular recurring entries) necessary to present such interim results fairly. Interim results are not necessarily indicative
of the results of operations which may be expected for a full year or any subsequent period. These unaudited consolidated financial statements
should be read in conjunction with the unaudited consolidated financial statements and notes thereto for the year ended December
31, 2024, included in Milestone Scientific’s Annual Report on Form 10-K.

3.
Use of Estimates

The
preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and
assumptions in determining the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the
unaudited condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period.
The most significant estimates relate to the inventory valuation and cash flow assumptions regarding evaluations of going concern
considerations. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors
that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes
in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could
differ from those estimates.

4.
Revenue Recognition

The
Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration
which the Company expects to receive in exchange for those goods or services. To achieve revenue recognition, the Company performs the
following five steps:

    i.
    identification
    of the promised goods or services in the contract;
  
    ii.
    determination
    of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract;  
  
    iii.
    measurement
    of the transaction price, including the constraint on variable consideration;
  
    iv.
    allocation
    of the transaction price to the performance obligations based on estimated selling prices; and
  
    v.
    recognition
    of revenue when (or as) the Company satisfies each performance obligation. A performance obligation is a promise in a contract to