Company: MLSS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026919
Chunk: 18

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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, non-solicitation, non-competition, and invention agreement. Mr. Haverhals continues as a director of the Company and as a director of Milestone Scientific. Company recorded expenses of $67,000and $216,000related to the consulting agreement for the threeand sixmonths endedJune 30, 2025respectively.

Mr. Haverhals will be issued912,736shares of the Company's stock sixmonths after his resignation as CEO and in accordance with such consulting agreement. As ofJune 30, 2025the share have notbeen issued to Mr. Haverhals.

NOTE 13 - COMMITMENTS

( 1

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 of2,000STA instruments as of June 30, 2025. As ofJune 30, 2025, the purchase order commitment was approximately $2.5million, and approximately $786,000was paid and reported in advance on contracts in the unaudited consolidated balance sheet. As ofJune 30, 2025the Company recorded approximately $293,000for the development of the next generation instrument in advances on contracts in the unaudited consolidated balance sheet. As ofDecember 31, 2024, the purchase order commitment was approximately $3.2million, and approximately $932,000was paid and reported in advance on contracts in the consolidated balance sheet.

The advances on contracts represent funding of future epidural instruments, and epidural replacements parts. As ofJune 30, 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 $34,000and $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