Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 110

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 110
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 million
for the nine months ended September 30, 2025, compared to the same period in 2024. The increase was primarily driven by a higher net loss
of $4.6 million during the period, partially offset by non-cash adjustments and changes in working capital items. Management continues
to monitor cash usage closely and implement measures aimed at improving operational efficiency and aligning expenses with revenue growth.

In
April 2024, we received approximately $2.0 million, net of expenses, from the sale of New Jersey net operating losses (“NOL”),
that were eligible for purchase under the State of New Jersey’s Economic Development Authority’s New Jersey Technology Business
Tax Certificate Transfer Program (“ NJEDA Program”). For the nine months ended September 30, 2024, the Company recorded approximately
$2.0 million in gain on sale of net operating losses within the unaudited condensed consolidated statement of operations.

Pursuant
to the NJEDA program, the Company must retain a physical presence in the state of New Jersey for 5 years after the sale of the NOLs.
If the Company does not retain a physical presence during the 5 years after the sale of the NOLs, the Company can be liable to pay the
state of New Jersey up to $2.2 million of the surrendered NOLs

Investing Activities

Net cash used in investing activities decreased by approximately $3.0 million
for the nine months ended September 30, 2025, compared to the same period in 2024. The change was primarily attributable to the sale of
$3.0 million in marketable securities during the prior-year period, which increased cash flows in 2024. As of September 30, 2025, the
Company held no marketable securities, reflecting a strategic decision to allocate available funds toward supporting ongoing operations
and commercialization efforts.

Financing Activities

Net cash provided by financing activities
increased by approximately $553,000 for the nine months ended September 30, 2025, compared to the same period in 2024. The increase
primarily resulted from the issuance of $800,000 in convertible notes payable during 2025, compared to $200,000 raised through a
public placement offering in 2024. The Company continues to evaluate financing opportunities to support working capital
requirements, product commercialization, and potential future growth initiatives.

Consideration of Company’s ability to continue as a going
concern

The