Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 56

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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uates each of the two segments based
on performance, using segment financial information compiled in Note 10.

The
profitability of the segment helps the Company evaluate staffing levels, assess available cash for allocation to projects and resources,
and make informed decisions on whether the segment’s activities should be modified to align with the Company’s overall near- and
long-term strategies. See Note 10 for revenues by geographical market, based on the customer’s location, and product category
for the three and nine months ended September 30, 2025, and 2024 respectively.

5.
Cash and Cash Equivalents

Milestone
Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
As of September 30, 2025 and December 31, 2024, Milestone Scientific has approximately $1.3 million and $3.3 million, respectively
of cash and cash equivalents. As of September 30, 2025, Milestone Scientific had cash in accounts that exceeded the Federal
Deposit Insurance Corporation insurance limit of $250,000.

     11 

6. Accounts Receivable

The E-commerce portal sells directly to end users
and accepts online payments via credit and debit cards via a third-party credit card processor. These payments are settled
within two business days of the transaction. Sales 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