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

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---
 to distributors are on credit terms. The Company estimates losses from the ability
or inability of its distributor to make payments on billed.

Distributors’ credit sales are due 90 days or
less from the date of invoicing. As of September 30, 2025, and December 31, 2024, accounts receivable were recorded, net of allowance
for credit losses of $10,000, respectively.

7. Inventories

Inventories principally consist of finished goods
and parts stated at the lower cost (first-in, first-out method) or net realizable value. Inventory quantities on hand are reviewed
quarterly. A provision for excess slow moving, defective, and obsolete inventory is recorded if required based on past and expected future
sales, potential technological obsolescence, and product expiration requirements.

The valuation allowance creates a new cost basis
for the inventory, and it is not subsequently marked up through a reduction in the valuation allowance based on any changes in the
underlying facts and circumstances. When the valuation allowance is initially recorded, the increase to the allowance is recognized
as an increase in cost of sales. The valuation allowance is only reduced if or when the underlying inventory is sold or destroyed.
At this time, the cost of sales recognized would include the previous adjusted cost basis.

8.
Convertible Notes Payable, Related Parties

The
Company accounts for Convertible Notes Payable, Related Parties in accordance with ASC 470, Debt. Based on analysis performed
by the Company, no embedded conversion or redemption features required bifurcation as derivatives in accordance with ASC 815, Derivatives
and Hedging.

9.
Basic and Diluted Net Loss Per Common Share

Milestone
Scientific presents “basic” earnings (loss) per common share applicable to common stockholders and, if applicable, “diluted”
earnings (loss) per common share applicable to common stockholders pursuant to the provisions of ASC 260, “Earnings per Share”.
Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted
average number of common shares outstanding and to be issued common shares as follows: 82,322,910 and 82,008,336 for the three and nine
months ended September 30, 2025 and 79,966,833 and 80,165,181 for the three and nine months ended September 30,