Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 77

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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. Haverhals will be an independent contractor
and will not be provided with health and accident insurance, life insurance, paid sick leave and/or paid vacation time. In connection
with the Consulting Agreement, he has also entered into a Company-standard form of non-disclosure, non-solicitation, non-competition,
and invention agreement.  Mr. Haverhals continues as a director of the Company and as a director of Milestone Scientific. The company
recorded expenses of $67,000 and $283,000 related to the consulting agreement for the three and nine months ended September 30,
2025, respectively.

Mr.
Haverhals will be issued 912,736 shares of the Company’s stock six months after his resignation as CEO and in accordance with
such consulting agreement. As of September 30, 2025, the shares have not been issued to Mr. Haverhals.

NOTE
13 — COMMITMENTS

(1)
Contract Manufacturing Agreement 

Milestone
Scientific has informal arrangements with third-party manufacturers of the STA devices and epidural instruments pursuant to
which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. The
Company has a purchase commitment for the delivery of 2,000 STA instruments as of September 30, 2025. As of September 30, 2025, the purchase
order commitment was approximately $2.3 million, and approximately $1.1 million was paid and reported in advance on contracts
in the unaudited consolidated balance sheet. As of September 30, 2025 the Company recorded approximately $306,000 for
the development of the next generation instrument in advances on contracts in the unaudited consolidated balance sheet. As of December
31, 2024, the purchase order commitment was approximately $3.2 million, and approximately $932,000 was paid and reported in
advance on contracts in the consolidated balance sheet. The advances in contracts represent funding for future epidural instruments
and epidural replacement parts. As of September 30, 2025, and December 31, 2024, the company also has advances on an open purchase
order for long lead items for a future purchase order for the manufacturing of Epidural instruments of approximately $34,000 and $168,000,
respectively.

(2)
Operating Leases

The