Company: MLSS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026919
Chunk: 5

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 5
---
 activities should be modified to align with the Company’s overall near- and long-term strategies. See Note10for revenues by geographical market, based on the customer’s location, and product category for the threeand sixmonths ended June 30, 2025, and2024respectively.

5.

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

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 within2business 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 due90days or less from the date of invoicing. As of June 30, 2025andDecember 31, 2024, accounts receivable was recorded, net of allowance for credit losses of$10,000, respectively.

7. Inventories

Inventories principally consist of finished goods and component parts stated at the lower cost ( first-in, first-out method) or net realizable value. Inventory quantities on hand are reviewed on a quarterly basis and 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 notsubsequently 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 which time the cost of sales recognized would include the previous adjusted cost basis.

8.

The Company accounts for Convertible Notes Payable, Related Parties in accordance with ASC470, Debt. Based on analysis performed by the Company, noembedded conversion or redemption features required bifurcation as derivatives in accordance with ASC815, Derivatives