Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 20

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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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 the sale of the NOLs, the Company can be liable to pay the
state of New Jersey up to $2.2 million of the surrendered NOLs

NOTE 10—
SEGMENT AND GEOGRAPHIC DATA

Operating
segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating
decision maker, who is responsible for allocating resources and assessing performance of operating segments, has been identified
as the Chief Executive Officer (the “CODM”). The Company conducts its business through two reportable
segments: Dental and Medical. These segments offer different products and services to various customer base. The CODM assesses the
financial performance of the segment and decides how to allocate resources based on Product sales, net, and operating income (loss).
Certain reclassifications have been made to the 2025 unaudited condensed consolidated financial statements to conform
to the 2024 unaudited condensed consolidated financial statement presentation. These reclassifications had no effect on
net loss or cash flows as previously reported.

The
Company provides general corporate services to its segments; however, these services are not considered when making operating decisions
and assessing segment performance. These services are reported under “Corporate Services” below and these include costs associated
with executive management, investor relations, patents, trademarks, licensing