Company: MLSS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017171
Chunk: 17

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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932,000was paid and reported in advance on contracts in the unaudited consolidated balance sheet.

The advances on contracts represent funding of future epidural instruments, and epidural replacements parts. As ofMarch 31, 2025andDecember 31, 2024the company also has advances on an open purchase order for long lead items for a future purchase order for the manufacturing of Epidural instrument of approximately $44,000and $168,000respectively.

( 2

The Company identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease liabilities:

  As the Company’s leases do not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the present value of the lease payments. The Company has utilized it...  
  Since the Company elected to account for each lease component and its associated non-lease components as a single combined lease component, all contract consideration was allocated to the combi...  
  The expected lease terms include non-cancellable lease periods. Renewal option periods are not included in the determination of the lease terms as they were not reasonably certain to be exercised.  

The components of lease expense were as follows:

                                                         Three months ended                                              
                                                         March 31, 2025                      March 31, 2024              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Cash paid for operating lease liabilities              $                       31,882      $                   31,882  
  Cash paid for finance lease liabilities                                         3,417                           2,685  
  Weighted Average Remaining Lease Term                                                                                  
  Finance leases (years)                                 4.75 years                          0.79 years                  
  Operating leases (years)                               2.00 years                          3.00 years                  
  Weighted-average discount rate – operating leases                                9.20                            9.20  
  Weighted-average discount rate – finance leases                                  9.20                            9.20  

NOTE 13 - SUBSEQUENT EVENTS

OnApril 9, 2025, the Company issued a series of promissory 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 dueApril 9, 2028, and bear interest at the annual rate of primeless2.50%, payable annually. All principal and interest shall be