Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 65

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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,081) 
     0.89 
  
    Cancelled 
     (28,090) 
     0.89 
  
    Non-vested as September 30, 2025 
     -  
     - 

The
Company granted 730,340 restricted stock awards with a fair market value of $0.89 per share. Such restricted
stock vests as follows: 25% on the grant date in June 2024, and 25% quarterly, on the first day of
the following months: October 2024, January 2025, and April 2025. These awards vest immediately upon a
change of control as defined in the agreements. For the nine months ended September 30, 2025, the Company
recognized approximately $0 and $155,500, respectively, for restricted stock expenses recorded in general and administrative expenses
on the statement of operations. As of September 30, 2025, there was no unrecognized compensation expense.

NOTE
9 — INCOME TAXES

The
utilization of Milestone Scientific’s net operating losses may be subject to a substantial limitation due to the “change of ownership
provisions” under Section 382 of the Internal Revenue Code and similar state provisions. Such limitations may result in the expiration
of the net operating loss carry forwards before their utilization. Milestone Scientific has established a 100% valuation allowance for
all its deferred tax assets due to uncertainty as to their future realization. 

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