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

Company: MILESTONE SCIENTIFIC INC.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 tax. The Company recognizes revenue from product
sales at the time the product ships to a customer via a third-party carrier. 

Sales
Returns

The
Company records allowances for product returns as a reduction of revenue at the time product sales are recorded. Several factors are
considered in determining whether an allowance for product returns is required, including the customers’ return rights, the Company’s
historical experience with returns, and the amount of product in the distribution channel not consumed by end users and subject to return.
The Company relies on historical return rates to estimate returns.

Financing
and Payment

The
Company’s payment terms differ by geography and customer, but payments from distributors are required within 90 days or less from the
date of shipment. The E-Commerce portal sells directly to end users and accepts online payments via credit and debit cards
through a third-party. These payments from the third party are typically settled within two business days.

Disaggregation
of Revenue

The
Company operates in two operating segments: Dental and Medical. The Company evaluates each of the two segments based
on performance, using segment financial information compiled in Note 10.

The
profitability of the segment helps the Company evaluate staffing levels, assess available cash for allocation to projects and resources,
and make informed decisions on whether the segment’s activities should be modified to align with the Company’s overall near- and
long-term strategies. See Note 10 for revenues by geographical market, based on the customer’s location, and product category
for the three and nine months ended September 30, 2025, and 2024 respectively.

5.
Cash and Cash Equivalents

Milestone
Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
As of September 30, 2025 and December 31, 2024, Milestone Scientific has approximately $1.3 million and $3.3 million, respectively
of cash and cash equivalents. As of September 30, 2025, Milestone Scientific had cash in accounts that exceeded the Federal
Deposit Insurance Corporation insurance limit of $250,000.

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6. Accounts Receivable

The E-commerce portal sells directly to end users
and accepts online payments via credit and debit cards via a third-party credit card processor. These payments are settled
within two business days of the transaction. Sales