Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 32

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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, 2025, the purchase
order commitment was approximately $2.3 million, and approximately $1.1 million was paid and reported in advance on contracts
in the unaudited consolidated balance sheet. As of September 30, 2025 the Company recorded approximately $306,000 for
the development of the next generation instrument in advances on contracts in the unaudited consolidated balance sheet. As of December
31, 2024, the purchase order commitment was approximately $3.2 million, and approximately $932,000 was paid and reported in
advance on contracts in the consolidated balance sheet. The advances in contracts represent funding for future epidural instruments
and epidural replacement parts. As of September 30, 2025, and December 31, 2024, the company also has advances on an open purchase
order for long lead items for a future purchase order for the manufacturing of Epidural instruments of approximately $34,000 and $168,000,
respectively.

(2)
Operating Leases

The
Company identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease
liabilities:

    ●
    As
    the Company’s leases do not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the
    present value of the lease payments. The Company has utilized its incremental borrowing rate based on the long-term borrowing costs
    of comparable companies in the Medical Device industry.
  
    ●
    Since
    the Company elected to account for each lease component and its associated non-lease components as a single combined lease component,
    all contract consideration was allocated to the combined lease component.
  
    ●
    The
    expected lease terms include non-cancellable lease periods. Renewal option periods are not included in the determination of
    the lease terms as they were not reasonably certain to be exercised.

The
components of lease expense were as follows: 

 SCHEDULE OF COMPONENTS OF LEASE EXPENSE 

    September 30, 2025  
    September 30, 2024  
    September 30, 2025  
    September 30, 2024 

    Three Months  
    Nine Months 

    September 30, 2025  
    September 30, 2024  
    September 30, 2025  
    September 30, 2024