Company: MLSS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026919
Chunk: 14

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 sell its products. Although alternate sources of supply exist, and new manufacturing relationships could be established, Milestone Scientific would need to recover its existing tools or have new tools produced. Establishing new manufacturing relationships could involve significant expense and delay. Any curtailment or interruption of the supply, because of termination of such a relationship, would have a material adverse effect on Milestone Scientific’s financial condition, business, and results of operations.

OnJanuary 3, 2023, the Company launched an E-Commerce platform selling and shipping STA Single Tooth Anesthesia System® (STA) and handpieces directly to dental offices and dental groups within the U. S. For the threemonths endedJune 30, 2025, andJune 30, 2024, E-Commerce accounted for53% and66% of net product sales, respectively. For the threemonths endedJune 30, 2025, oneinternational distributor accounted for10% of net product sales. For the sixmonths endedJune 30, 2025, andJune 30, 2024, E-Commerce accounted for50% and59% of net product sales, respectively.

The Company hadthreedistributors that accounted for32%,16%,13% of accounts receivable, respectively, for sixmonths ended June 30, 2025. The Company had threedistributors that accounted for22%,13% and11% of accounts receivable, respectively as of December 31, 2024.

As ofJune 30, 2025, the Company had foursuppliers that accounted for25%,24%,12% and11%, respectively, of accounts payable and accounts payable, related party. The Company had twosuppliers that accounted for31% and30%, respectively of accounts payable and accounts payable, related party as of December 31, 2024.

NOTE 12-- RELATED PARTY TRANSACTIONS

United Systems

Milestone Scientific has a supply agreement with United Systems, the principal supplier of its handpieces, pursuant to which it procures manufactured products under specific purchase orders, but without minimum purchase commitments. Purchases from this supplier were approximately $285,000and $772,000for the threeand sixmonths ended June 30, 2025. Purchases from this supplier were approximately $423,000and $1.2million for the threeand sixmonths ended June 30, 2024.

As of June30,2025, andDecember 31,