Company: MLSS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022276
Chunk: 9

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 an ongoing basis, management evaluates its estimates as there are changes
in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could
differ from those estimates.

4.
Revenue Recognition

The
Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration
which the Company expects to receive in exchange for those goods or services. To achieve revenue recognition, the Company performs the
following five steps:

    i.
    identification
    of the promised goods or services in the contract;
  
    ii.
    determination
    of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract;  
  
    iii.
    measurement
    of the transaction price, including the constraint on variable consideration;
  
    iv.
    allocation
    of the transaction price to the performance obligations based on estimated selling prices; and
  
    v.
    recognition
    of revenue when (or as) the Company satisfies each performance obligation. A performance obligation is a promise in a contract to
    transfer a distinct good or service to the customer and is the unit of account in ASC 606.

     10 

The Company derives its revenues from the sale
of its products, primarily dental and medical instruments, handpieces, and other related products. The Company sells its products
directly to consumers in the United States and through a global distribution network that includes both exclusive and non-exclusive
distribution agreements international. The Company derives its revenues from the sale of its products, primarily dental and medical
instruments, handpieces, and other related products. The Company sells its products directly to consumers in the United States and
through a global distribution network that includes both exclusive and non-exclusive distribution agreements international.

Revenue is recognized at the point of shipment for all sales. The
Company has no obligation to product sales for any installation, set-up, or maintenance, these being the responsibility of the buyer.
Milestone Scientific’s only obligation after sale is the standard commercial warranty against manufacturing defects if the alleged
defective unit is returned within the warranty period.

E-Commerce

The
Company sells its STA Single Tooth Anesthesia Systems® (STA) and handpieces directly to dental offices and dental groups
within the United States via an online portal. The Company’s E-Commerce portal accepts online payments via credit and debit
cards. The cost of delivery is charged to the customer along with appropriate sales