Company: MLSS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026919
Chunk: 8

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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M uses the reported measures in assessing segment performance and deciding how to allocate resources. For public entities with a single reportable segment, the entity must provide all the disclosures required pursuant to ASU2023-07and all existing segment disclosures under Topic280. The amendments of ASU2023-07are effective for us 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 notyet been issued or made available for issuance. As of January 1, 2024, the Company adopted ASU2023-07on within consolidated financial statements. See Note10for more information.

NOTE 4 - INVENTORIES

Inventories consist of the following:

                                           June 30, 2025                     December 31, 2024                 
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Dental finished goods                    $                  3,677,357      $                      3,640,391  
  Medical finished goods                                        121,815                                     -  
  Component parts and other materials                            97,845                                72,824  
  Total inventories                        $                  3,897,017      $                      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 $1.1million as ofJune 30, 2025, andDecember 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 ofJune 30, 2025andDecember 31, 2024is approximately $1.1million and $1.3million, respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory.

NOTE 6 - CONVERITBLE NOTE PAYABLE, RELATED PARTY

OnApril 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 dueApril 9, 2028, and bear interest at the annual rate of primeless2.50%,