Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 14

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
 for annual periods
beginning January 1, 2024, and effective for interim periods beginning January 1, 2025. Early adoption is permitted for annual financial
statements that have not yet been issued or made available for issuance. As of January 1, 2024, the Company adopted ASU 2023-07 within
its consolidated financial statements. See Note 10 for more information.

NOTE
4 — INVENTORIES 

Inventories
consist of the following:

 SCHEDULE OF INVENTORIES

    September 30, 2025  
    December 31, 2024 

    Dental finished goods 
    $3,921,747  
    $3,640,391 
  
    Medical finished goods 
     120,721  
     - 
  
    Inventories finished goods 
     120,721  
     - 

    Component parts and other materials 
     84,520  
     72,824 
  
    Total inventories 
    $4,126,988  
    $3,713,215 

The
Company had an allowance on slow moving Medical finished goods due to the slow adoption of the epidural instruments and handpieces
for approximately $1.1 million as of September 30, 2025, and December 31, 2024, respectively. 

NOTE
5 — ADVANCES ON CONTRACTS 

The
advances on contracts represent funding of future STA devices, epidural instruments, and epidural replacements parts. The balance of
advances as of September 30, 2025 and December 31, 2024 is approximately $1.4 million and $1.3 million, respectively.
The advance is classified as current based on the estimated annual usage of the underlying inventory.  

NOTE
6 — CONVERITBLE NOTE PAYABLE, RELATED PARTY

On
April 9, 2025, the Company issued a series of promissory notes (the “Notes”) in the aggregate amount of $800,000, to Mr.
Neal Goldman, Ms. Benedetta Casamento, and Dr. Didier Demesmin, each of whom is a director of the Company.  The Notes are due April
9, 2028, and bear interest at the annual rate of prime less 2.50%, payable annually. All principal and interest shall be payable