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Item 9A. Controls and Procedures

2026-03-31 compared with 2025-04-15 · 1659 added, 1184 removed, 315 unchanged (90% of the section changed)

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Interim Chief Executive Officer and Acting Principal Accounting Officer, which positions are currently carried out by the same person, evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2023.

The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Based on such evaluation, our Interim Chief Executive Officer and Acting Principal Accounting Officer concluded that, As of December 31, 2024, our disclosure controls and procedures were effective at a reasonable assurance level.

Management ’ s Annual Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act.

Our management assessed the effectiveness of our internal control over financial reporting based on the criteria set forth in “Internal Control-Integrated Framework (2013)” issued by the Committee of Sponsoring Organization of the Treadway Commission.

Based on this assessment, management concluded that, As of December 31, 2024, our internal control over financial reporting was effective.

Changes in Internal Control over Financial Reporting

We routinely review our internal control over financial reporting and from time to time make changes intended to enhance the effectiveness of our internal control over financial reporting.

For the year ended December 31, 2024 we made no changes to our internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that we believe materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

of Disclosure Controls and Procedures

Company’s Chief Executive Officer and Vice President of Finance evaluated the effectiveness of the Company’s disclosure controls

and procedures as of December 31, 2025.

term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act

of 1934, as amended (the “Exchange Act”), refers to controls and other procedures designed to ensure that information required

to be disclosed by the Company in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported

within the time periods specified in the SEC’s rules and forms.

Disclosure controls and procedures include, without limitation,

controls and procedures designed to ensure that information required to be disclosed by the Company is accumulated and communicated to

management, including the Chief Executive Officer and Vice President of Finance, as appropriate, to allow timely decisions regarding

required disclosure.

recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving

their objectives.

on this evaluation, the Chief Executive Officer and Vice President of Finance concluded that, as of December 31, 2025, the Company’s

disclosure controls and procedures were effective at the reasonable assurance level.

Management ’ s

Annual Report on Internal Control over Financial Reporting

is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) under

the Exchange Act.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of December

31, 2025, based on the criteria outlined in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring

Organizations of the Treadway Commission (“COSO”).

on this assessment, management concluded that, as of December 31, 2025, the Company’s internal control over financial reporting

was effective.

in Internal Control over Financial Reporting

Company routinely reviews its internal control over financial reporting and may make changes from time to time intended to enhance its

effectiveness.

During the year ended December 31, 2025, there were no changes in the Company’s internal control over financial

reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that materially affected, or are reasonably likely to

affect materially, the Company’s internal control over financial reporting.

Other Information

Disclosure regarding Foreign Jurisdiction that Prevent Inspections.

Note applicable

Directors, Executive Officers, Promoters and Control Persons and Corporate Governance;

Compliance with Section 16 (a) of the Exchange Act

Disclosure regarding Foreign Jurisdiction that Prevents Inspections.

Directors, Executive Officers, and Corporate Governance

DIRECTOR SINCE

Interim Chief Executive Officer, Chairman of the Board

Leonard Osser

Vice Chairman of the Board

Jan Adriaan (Arjan) Haverhals

Benedetta Casamento (1) (2) (3)

Michael McGeehan (1) (2) (3)

Didier Demesmin (1) (2) (3)

Casamento (1) (2) (3)

Vice Chairman

Chief Executive

Officer and Director

Thiyagalingam (1) (2)

Member of the Audit Committee

Goldman ceased to be on the Audit Committee effective January 1, 2025 when he became Interim CEO upon the retirement of Arjan Haverhals effective December 31, 2024.

Demesmin replaced Mr.

Member of the Compensation Committee

Goldman ceased to be on the Compensation Committee effective January 1, 2025 when he became Interim CEO upon the retirement of Arjan Haverhals.

Demesmin replaced Mr.

Member of the Nominating and Corporate Governance Committee

Goldman ceased to be on the Nominating and Corporate Governance Committee effective January 1, 2025 when he became Interim CEO upon the retirement of Arjan Haverhals.

Demesmin replaced Mr.

Neal Goldman, Interim Chief Executive Officer and Chairman of the Board

Neal Goldman has been a director of Milestone Scientific since 2019 and has served as Chairman of the Board since January 2023.

Effective January 1, 2025, he became Interim CEO upon the retirement of Arjan Haverhals effective December 31, 2024.

Goldman is the President and Founder of Goldman Capital Management, Inc., a family office since 2018, which was previously an investment advisory firm founded in 1985.

He was First Vice President of Research at Shearson Lehman Hutton.

He has also held senior positions as a money manager and research analyst with a variety of firms including Neuberger Berman, Moseley Hallgarten Estabrook and Weeden, Bruns Nordeman, and Russ and Company.

Goldman serves as Chairman of Charles & Colvard, Ltd.

since 2016 and served on the board of Imageware Systems, Inc.

until November 2020.

He also serves on the board of Deep-Down Inc.

Prior to their respective acquisitions, he served on the boards of Blyth Industries and IPASS Corporation.

Goldman received his B.A.

degree in Economics from The City University of New York (City College).

Goldman’s professional experience and financial background have given him the expertise needed to serve as one of our directors.

Leonard Osser, Vice Chairman of the Board

Leonard Osser has been a director of Milestone Scientific since 1991 and has served as Milestone Scientific’s Vice Chairman of the Board since May 2021.

Osser had been Interim Chief Executive Officer from December 2017 until May 2021.

From July 2017 to December 2017, he had been Managing Director –China Operations.

Prior to that, he served as Milestone Scientific’s Chairman from 1991 until September 2009, and during that time, from 1991 until 2007, was also Chief Executive Officer of Milestone Scientific.

In September 2009, he resigned as Chairman of Milestone Scientific, but remained director, and assumed the position of Chief Executive Officer.

From 1980 until the consummation of Milestone Scientific’s public offering in November 1995, Mr.

Osser is the Managing Member of U.S.

Asian Consulting Group, LLC, a New Jersey-based provider of consulting services specializing in distressed or turnaround situations in both the public and private markets.

Osser also serves as a special consultant to the board of directors of Nexalin Technology, Inc.

where he is also Managing Director of China Operations.

Osser’s knowledge of our business and background with us since 1980 provides the Board with valuable leadership skills and insight into our business and accordingly, the expertise needed to serve as one of our directors.

Jan Adriaan (Arjan) Haverhals, Director

Arjan Haverhals was Milestone Scientific's President from September 2020 to the end December 2024 and Chief Executive Officer from May 2021 to the end of December 2024 and served as the President and Chief Executive Officer of Milestone Scientific’s Dental Division (Wand Dental Inc.) from June 2020 to the end of December 2024.

Haverhals is currently a consultant to Milestone Scientific.

In January 2023, Mr.

Haverhals was appointed to the Board and continues as a director.

He brings more than 30 years of sales, marketing, product development, and international expansion experience within the medical device, pharmaceutical, and other industries.

Prior to joining Wand Dental and Milestone Scientific, Mr.

Haverhals was senior vice president of sales at Xcentric Mold & Engineering from 2019 until 2020 where he was instrumental in increasing sales productivity and efficiency for the company's prototype injection molding services, which included leading healthcare company clients.

From 2012 until 2018, Mr.

Haverhals worked at Straumann, LLC, a global leader in manufacturing medical and dental devices, where he held a series of senior sales and marketing roles including vice president of customer marketing & education, where he oversaw all product franchises and led the launch of more than 30 products in the North American market.

He also served as senior vice president for the Nordic Region at Straumann AB, senior vice president of global sales digital solutions, which included oversight of the strategic acquisition of Etkon;

and served as vice president of the Prosthetics Business Unit, where he introduced a new implant and prosthetics product line within a new market segment.

He also served as senior vice president for the Nordic Region at Straumann AB, senior vice president of global sales digital solutions, which included oversight of the strategic acquisition of Etkon;

and served as vice president of the Prosthetics Business Unit, where he introduced a new implant and prosthetics product line within a new market segment.

He also served as vice president of global marketing & sales at Elkem AS, one of Norway's largest industrial companies.

Previously, Mr.

Haverhals served as executive vice president of marketing & sales at Cresco Ti Systems Sàrl, a global dental implant company, where he was responsible for turning around and managing global sales, marketing, international business.

Haverhals holds an MS in Pharmacy from the University of Leyden in the Netherlands.

Haverhals’ knowledge of Milestone Scientific’s day-to-day operations gives him the expertise needed to serve as one of our directors.

Casamento, Director

Benedetta Casamento has served as a director of the Company since April 2022.

Casamento, Chairman of the Board

Benedetta Casamento has been a director of Milestone Scientific since 2022

and has served as Chairman of the Board since December 2025.

Since August 2017, Ms.

Casamento has served as a Retail Consultant specializing in finance, business operations, and financial planning and analysis.

Casamento previously served as Chairman and President of Allyke, Inc., an artificial intelligence company creating digital imagery insights for retail and other industries, from June 2016 to August 2017.

From December 2014 to April 2016, she served as Chief Executive Officer of Calypso St.

Barth, a luxury boutique retailer of women’s apparel and accessories.

Prior to her role as CEO at Calypso St.

Casamento served as a consultant to private equity firms with portfolio interests in retail and fashion from July 2012 to December 2014.

Casamento previously served as Executive Vice President, Finance & Operations of The Talbots, Inc.

(“Talbots”), a specialty retailer and direct marketer of women’s apparel, accessories, and shoes, from March 2009 to July 2012.

Prior to joining Talbots, Ms.

Casamento served in various leadership roles within Liz Claiborne Inc.

Casamento has served as a Consultant and a board member

specializing in strategy, finance, and operations.

Casamento previously served as Chairman and President of Allyke, Inc.,

an artificial intelligence company creating digital imagery insights for retail and other industries, from June 2016 to August 2017.

December 2014 to April 2016, she served as Chief Executive Officer of Calypso St.

Barth, a luxury boutique retailer of women’s apparel

and accessories.

Before her role as CEO at Calypso St.

Casamento served as a consultant to private equity firms with portfolio

interests in retail and fashion from July 2012 to December 2014.

Casamento previously served as Executive Vice President, Finance

& Operations of The Talbots, Inc.

(“Talbots”), a specialty retailer and direct marketer of women’s apparel, accessories,

and shoes, from March 2009 to July 2012.

Before joining Talbots, Ms.

Casamento served in various leadership roles within Liz Claiborne

from February 1999 to November 2008, culminating in her position as President of Liz Claiborne Brands.

Casamento started her career at Saks Fifth Avenue.

Casamento started her

career at Saks Fifth Avenue.

Our Board has determined that Ms.

Casamento’s extensive business experience, as well as her background in accounting and finance, qualifies her to serve on the Board.

Michael McGeehan, Director

Michael McGeehan has been a director of Milestone Scientific since October 2017.

McGeehan is a business consultant with 30 years of experience in a variety of business domains, including financial services, medical and healthcare products, consumer package goods and the software technology industry.

McGeehan started his career at Metaphor Computer Systems in 1988 and then went to work at Microsoft Corporation in 1991.

McGeehan left Microsoft and founded Forefront Information Strategies, an information technology consulting firm.

McGeehan returned to Microsoft where he worked until 2017, when he returned to and re-started Forefront.

McGeehan was on the Board of Directors of Wand Dental.

McGeehan has a master’s in business administration from Pace University and a Bachelor of Science in Electrical Engineering and Computer Science from Marquette University.

McGeehan’s professional experience and background have given him the expertise needed to serve as one of our directors.

Didier Demesmin, Director

Demesmin is currently the Chief Executive Officer and Medical Director of University Pain Medicine Center, a position he has held since 2007.

Casamento’s extensive business experience, as well as her background

in accounting and finance, qualify her to serve on the Board.

Hines, President, Chief Executive Officer, and Director

Hines has been President, Chief Executive Officer, and a director of Milestone Scientific since July 31, 2025.

He most recently served

as President of North America at Ex Libris Group (September 2014 - June 2021), a global provider of cloud-based solutions for higher

education and libraries.

From June 2021 to July 2025, Mr.

Hines was involved in providing consulting services for Alethea, a technology

start-up company, and also invested in commercial and personal real estate ventures.

Before his role at Ex Libris Group, Mr.

various roles at NICE Systems (October 2004-June 2014), a multinational company that designs and manufactures smart home security and

automation products.

Hines served as Senior Director of Sales at NICE Systems from October 2004 to November 2005.

Subsequently, he

served as Vice President of several North American divisions of NICE Systems from November 2005 through June 2014.

Prior thereto, Mr.

Hines served as Regional Director of Sales at AMDOCS Clarify CRM (October 2003- October 2004), a provider of customer relationship management

(CRM) solutions to the communications industry.

Hines received a Bachelor of Science in Chemistry from Wake Forest University in

1989 and an MBA in International Business from Xavier University in 1996.

Goldman, Director

Neal Goldman has served as a director of Milestone Scientific since 2019 and served as Chairman of the Board from 2023 until December

Goldman has been the President and Founder of Goldman Capital Management, Inc., a family office, since 2018.

Goldman Capital

Management was previously an investment advisory firm founded in 1985.

Earlier in his career, Mr.

Goldman served as First Vice President

of Research at Shearson Lehman Hutton.

He has also held senior positions as a money manager and research analyst with several firms, including

Neuberger Berman, Moseley Hallgarten Estabrook & Weeden, Bruns Nordeman, and Russ and Company.

Goldman served as Chairman of Charles

& Colvard, Ltd.

from 2016 until October 2025.

He also previously served on the board of ImageWare Systems, Inc.

until November 2020

and currently serves on the board of Koil Energy Solutions, Inc.

(formerly Deep Down, Inc.).

Prior to their respective acquisitions, he

served on the boards of Blyth, Inc.

and iPass Corporation.

Goldman received a B.A.

in Economics from The City University of New York

(City College).

We believe Mr.

Goldman’s extensive experience in investment management and financial analysis qualifies him to serve

on our Board of Directors.

Demesmin, Director

Demesmin is currently the Chief Executive Officer and Medical Director of University Pain and Spine Center, a position he has held

Since March 2006, Dr.

Demesmin has held the position of Director of the Pain Management Department at St.

Peter’s University Hospital.

He is also a physician in the Departments of Pain Medicine at JFK Medical Center (since March 2007), Robert Wood Johnson University Hospital (since January 2008), Somerset Medical Center (since February 2009), Hudson Regional Hospital (since December 2010), and Saint Barnabas Hospital (since November 2013).

Demesmin is also a Clinical Instructor in the Department of Medicine at Rutgers Robert Wood Johnson Medical School (since August 2006), a Clinical Assistant Professor in the Department of Physical Medicine and Rehabilitation at Rutgers Robert Wood Johnson Medical School (since July 2013), the Medical Director in the Physical Medicine and Rehabilitation and Sports Medicine Institute at St.

Peter’s University Hospital (since (December 2013), and an Assistant Fellowship Program Director in the Multidisciplinary Interventional Pain Medicine Fellowship at JFK Johnson Rehabilitation Institute (since November 2013).

Demesmin has been a member of the Board of Trustees of the New Jersey Society of Interventional Pain Physicians, since September 2010, and the Middlesex County Medical Society of New Jersey, since January 2010, where he held the positions of President Elect, from June 2011 to June 2012, and President, from June 2012 to June 2014.

Demesmin received a BA in Psychology from Rutgers University in 1994, a Medical Degree from the University of Medicine and Dentistry of New Jersey in 2000, and an MBA from the Kellogg School of Management of Northwestern University in 2018.

Demesmin’ s medical healthcare background in the field of interventional pain management and business background has given him the expertise needed to serve as one of our directors.

Board Leadership Structure

The Board believes that the segregation of the roles of Board Chairman and the Chief Executive Officer ensures better overall governance of the Company and provides meaningful checks and balances regarding its overall performance.

This structure allows our Chief Executive Officer to focus on developing and implementing the Company’s business plans and supervising the Company’s day-to-day business operations and allows our chairman to lead the Board in its oversight and advisory roles.

Because of the many responsibilities of the Board and the significant time and effort required by each of the Chairman and the Chief Executive Officer to perform their respective duties, the Company believes that having separate persons in these roles enhances the ability of each to discharge those duties effectively and enhances the Company’s prospects for success.

The Company also believes that having separate positions provides a clear delineation of responsibilities for each position and fosters greater accountability of management.

For the foregoing reasons, the Board has determined that its leadership structure is appropriate and in the best interest of stockholders.

The Board ’ s Oversight of Risk Management

The Board recognizes that companies face a variety of risks, including China operation risk, liquidity/capital accessibility risk, medical product acceptance risk, and operational risk.

The Board believes an effective risk management system will (1) timely identify the material risks that we face;

(2) communicate necessary information with respect to material risks to senior executives and, as appropriate, to the Board or relevant Board committee;

(3) implement appropriate and responsive risk management strategies consistent with the Company’s risk profile;

and (4) integrate risk management into the Company’s decision-making.

The Board encourages, and management promotes, a corporate culture that incorporates risk management into the Company’s corporate strategy and day-to-day business operations.

The Board also continually works, with the input of management and executive officers, to assess and analyze the most likely areas of future risk for the Company.

Notwithstanding the foregoing, until the Board has located and approved a new Chief Executive Officer, the positions of Board Chairman and Interim Chief Executive Officer are being held by the same person.

This person, Mr.

Goldman, is also the acting principal accounting officer of the Company.

Committees of the Board

The Board has standing audit, compensation, and nominating and corporate governance committees (respectively, the “Audit Committee,” the “Compensation Committee,” and the “Nominating Committee.”)

Compensation Committee

The Compensation Committee reviews and recommends to the Board the compensation and benefits of all officers of the Company, reviews general policy matters relating to compensation and benefits of employees of the Company and administers the issuance of stock options to the Company’s officers, employees, directors, and consultants.

It also provides recommendations to the Board with respect to non-employee director compensation.

The Compensation Committee may not delegate its authority to any other person, other than to a subcommittee.

The Compensation Committee is comprised of three members, Benedetta Casamento (Chairman), Dr.

Didier Demesmin and Michael McGeehan.

A copy of the Compensation Committee Charter has been posted on our website at www.milestonescientific.com.

For additional discussion of the Compensation Committee executive compensation objectives, see Item 11, “Objective of Executive Compensation Program.”

Audit Committee

The Audit Committee meets with management and the Company’s independent accountants to determine the adequacy of internal controls and other financial reporting matters.

The Audit Committee’s purpose is to:

(A) assist the Board in its oversight of:

(i) the integrity of our financial statements;

(ii) our compliance with legal and regulatory requirements;

(iii) our independent auditors’ qualifications and independence;

(iv) the performance of our internal audit function and independent auditors to decide whether to appoint, retain or terminate our independent auditors;

and (v) the preparation of our Annual Report on Form 10-K For the fiscal year ended December 31, 2024 (the “Annual Report”);

and (B) to pre-approve all audit, audit-related and other services, if any, to be provided by the independent auditors.

The members of the Audit Committee are comprised of Benedetta Casamento (Chairman), Dr.

Didier Demesmin and Michael McGeehan, all of whom are independent as defined in the listing standards of the NYSE American and Section 10A(m)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

A copy of the Audit Committee Charter has been posted on our website at www.milestonescientific.com .

Audit Committee Financial Expert

The Board has determined that Benedetta Casamento is an “audit committee financial expert,” as that term is defined in Item 407(d)(5) of Regulation S-K, and “independent” for purposes of the listing standards of the NYSE American and Section 10A(m)(3) of the Exchange Act.

Nominating Committee

The Nominating Committee identifies potential director nominees and evaluates their suitability to serve on the Board.

Based on its evaluation, it recommends to the Board the director nominees for Board membership.

In addition, the Nominating Committee also evaluates each existing Board member’s suitability for continued service as a director.

The members of the Nominating Committee are Michael McGeehan (Chairman), Benedetta Casamento, and Dr.

Didier Demesmin.

A copy of the Nominating Committee Charter has been posted on our website at www.milestonescientific.com .

The Nominating Committee believes that the minimum qualifications for service as a director of the Company are that a nominee possess an ability, as demonstrated by recognized success in his or her field, to make meaningful contributions to the Board’s oversight of the business and affairs of the Company and an impeccable reputation of integrity and competence in his or her personal or professional activities.

The Nominating Committee’s criteria for evaluating potential candidates include the following:

an understanding of the Company’s business environment;

and the possession of such knowledge, skills, expertise and diversity of experience so as to enhance the Board’s ability to manage and direct the affairs and business of the Company including, when applicable, to enhance the ability of committees of the Board to fulfill their duties and/or satisfy any independence requirements imposed by law, regulation or listing requirements.

The Nominating Committee considers director candidates recommended by stockholders.

In considering candidates submitted by stockholders, the Committee will take into consideration the needs of the Board and the qualifications of the candidate.

The Nominating Committee may also take into consideration the number of shares held by the recommending stockholder and the length of time that such shares have been held.

To have a candidate considered by the Nominating Committee, a stockholder must submit the recommendation in writing and must include the following information:

the name of the stockholder and evidence of the person’s ownership of Company stock, including the number of shares owned and the length of time of ownership;

the name of the candidate, the candidate’s resume or a listing of his or her qualifications to be a director of the Company;

and, the person’s consent to be named as a director if selected by the Nominating Committee and nominated by the Board.

The Nominating Committee may also receive suggestions from current Board members, the Company’s executive officers or other sources, which may be either unsolicited or in response to requests from the Nominating Committee for such candidates.

The Nominating Committee also, from time to time, may engage firms that specialize in identifying director candidates.

Once a person has been identified by the Nominating Committee as a potential candidate, it may collect and review publicly available information regarding the person to assess whether the person should be considered further.

If the Nominating Committee determines that the candidate warrants further consideration, the Chairman or another member of the Nominating Committee may contact the person.

Generally, if the person expresses a willingness to be considered and to serve on the Board, the Nominating Committee may request information from the candidate, review the person’s accomplishments and qualifications and may conduct one or more interviews with the candidate.

The Nominating Committee may consider all such information considering information regarding any other candidates that it might be evaluating for membership on the Board.

In certain instances, Nominating Committee members may contact one or more references provided by the candidate or may contact other members of the business community or other persons that may have greater first-hand knowledge of the candidate’s accomplishments.

The Nominating Committee’s evaluation process does not vary based on whether a candidate is recommended by a stockholder, although, as stated above, the Board may take into consideration the number of shares held by the recommending stockholder and the length of time that such shares have been held.

Director Independence

The Board has determined that Michael McGeehan, Benedetta Casamento, and Dr.

Didier Demesmin (the “Independent Directors”) are independent, as that term is defined in the listing standards of the NYSE American.

In determining director independence, the Board also considered all equity awards, if any, to the Independent Directors for the year ended December 31, 2024, disclosed in “Director Compensation” below, and determined that such awards were compensation for services rendered to the Board and therefore did not impact their ability to continue to serve as Independent Directors.

Stockholder Communication with the Board

The Board has established a process to receive communications from stockholders.

Stockholders and other interested parties may contact any member (or all members) of the Board, or the non-management directors as a group, any Board committee, or any chair of any such committee by mail or electronically.

To communicate with the Board, any individual director or any group or committee of directors, correspondence should be addressed to the Board or any such individual directors or group or committee of directors by either name or title.

All such correspondence should be sent “c/o Corporate Secretary” at 425 Eagle Rock Ave., Suite 403, Roseland, New Jersey 07068.

All communications received as set forth in the preceding paragraph will be opened by the Corporate Secretary of the Company for the sole purpose of determining whether the contents represent a message to our directors.

Any contents that are not in the nature of advertising, promotions of a product or service, patently offensive material or matters deemed inappropriate for the Board will be forwarded promptly to the addressee.

In the case of communications to the Board or any group or committee of directors, the Company’s Corporate Secretary will make sufficient copies of the contents to send to each director who is a member of the group or committee to which the envelope is addressed.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires our officers and directors, and person who own more than ten percent of a registered class of our equity securities, to file reports of ownership and changes in ownership with the SEC.

Officers, directors and greater than ten-percent stockholders are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file.

Based solely on review of the copies of such forms furnish to us, or written representations that no Forms 5 were required, we believe that all Section 16(a) filing requirements applicable to our officers and director were complied with during the fiscal year ended December 31, 2024.

Insider Trading Arrangements and Policies

We have adopted an insider trading compliance policy governing the purchase, sale, and/or other dispositions of our securities by our directors, officers, and employees that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations, and the exchange listing standards applicable to us.

The insider trading policy prohibits the use of material non-public information about the Company when making decisions to purchase, sell, give away or otherwise trade in the Company’s securities or to provide such information to others outside the Company.

We have established black-out periods to which covered persons are subject related to the filing of our regular reports with the Securities and Exchange Commission.

The Company may impose additional black-out periods from time to time as other types of material non-public information occur when material non-public events or disclosures are pending.

Covered persons are permitted to trade in the Company’s securities only when there is no black-out period in effect and such trade has been pre-cleared by the appointed Company officer, or when a qualified 10b5-1 plan has been established in accordance with federal securities laws.

No covered person has adopted or terminated a Rule 10b5-1 trading plan during the last fiscal quarter of the fiscal year to which this report relates.

Code of Ethics

Milestone Scientific has adopted a code of ethics that applies to its directors, principal executive officer, principal financial officer and other people performing similar functions.

This code of ethics is posted on Milestone Scientific’s web site at www.milestonescientific.com .

Milestone Scientific will also provide a copy of the Code of Ethics to any person without charge, upon written request addressed to the Chairman of the Board, Neal Goldman, at the Company’s principal executive office, located at 425 Eagle Rock Avenue Roseland, NJ 07068.

Clawback Policy

Our Board has adopted a written policy to recover “excess” compensation that is granted, earned, or vested based wholly or in part upon the attainment of a financial reporting measure.

The compensation includes both cash-based and equity-based incentives.

The compensation covered includes incentive awards awarded to any individuals (including former employees) who served as an executive officer during the three most recently completed fiscal years preceding the date on which the preparation of an accounting restatement is required, provided that the executive officers were awarded more incentive awards than they would have received if the financial statements had been prepared correctly.

The recovery will include an executive incentive award even if the executive was not involved in preparing the financial statements or did not commit misconduct that led to the restatement.

Restatements attributable to an inadvertent error also will subject executive officers to the recovery of previously received incentive awards.

Peter’s University

He is also a physician in the Departments of Pain Medicine at JFK Medical Center (since March 2007), Robert Wood Johnson University

Hospital (since January 2008), Somerset Medical Center (since February 2009), Hudson Regional Hospital (since December 2010), and Saint

Barnabas Hospital (since November 2013).

Demesmin is also a Clinical Instructor in the Department of Medicine at Rutgers Robert Wood

Johnson Medical School (since August 2006), a Clinical Assistant Professor in the Department of Physical Medicine and Rehabilitation at

Rutgers Robert Wood Johnson Medical School (since July 2013), the Medical Director in the Physical Medicine and Rehabilitation and Sports

Medicine Institute at St.

Peter’s University Hospital (since (December 2013), and an Assistant Fellowship Program Director in the

Multidisciplinary Interventional Pain Medicine Fellowship at JFK Johnson Rehabilitation Institute (since November 2013).

has been a member of the Board of Trustees of the New Jersey Society of Interventional Pain Physicians, since September 2010, and the

Middlesex County Medical Society of New Jersey, since January 2010, where he held the positions of President Elect, from June 2011 to

June 2012, and President, from June 2012 to June 2014.

He also currently serves on the Board of Directors for the Latin American Pain

Society (LAPS) and the World Institute of Regenerative Medicine (WIRM).

Demesmin received a BA in Psychology from Rutgers University

in 1994, a Medical Degree from the University of Medicine and Dentistry of New Jersey in 2000, and an MBA from the Kellogg School of Management

of Northwestern University in 2018.

Demesmin’ s medical healthcare background in the field of interventional pain management

and business background has given him the expertise needed to serve as one of our directors.

Thiyagalingam Director

Thiyagalingam currently serves as Chief Executive Officer of PainTEQ, a disruptive technology serving patients suffering from sacroiliac

joint dysfunction and supporting the interventional pain market.

From 2020 through 2025, he held successive leadership roles at the company—from

Chief Commercial Officer to Chief Operating Officer, and ultimately as CEO.

During his tenure, he led the company’s transformation

from early-stage startup to hyper-growth innovator in the interventional pain space.

He also led M&A initiatives and was instrumental

in securing a Category 1 CPT code for the LinQ procedure—a new therapy in the interventional pain market.

Under his leadership,

PainTEQ was recognized three years in a row by the INC 5000 and named a “Best Place to Work” by the Tampa Bay Business Journal.

Prior to this he worked in senior leadership roles across reputable companies such as Abbott, Nevro and Stryker.

He holds a Bachelor

of Medical Science from the University of Sydney, a master’s in marketing management, and an MBA from Macquarie Graduate School

of Management (MGSM).

He is also a certified Gallup Strengths Coach and is passionate about fostering high-performance cultures and mentoring

emerging leaders in the medtech industry.

Sayed, M.D., Director

Sayed is a Professor of Anesthesiology and Pain Medicine at the University of Kansas Medical Center and currently serves as Division

Chief of Pain Medicine, Director of Interventional Spine Services, and Director of the Center for Neuromodulation.

With a robust clinical,

academic, and policy background, he brings over a decade of leadership in pioneering minimally invasive pain therapies, neuromodulation,

and health system innovation.

Sayed also serves as Vice Chairman and Co-Founder of the American Society of Pain and Neuroscience

(ASPN), where he works closely with key stakeholders, including commercial payers, regulators, and medical device manufacturers, to advance

access to innovative pain relief technologies.

His leadership has earned him multiple honors, including the 2025 Presidential Award from

the North American Neuromodulation Society (NANS).

Sayed has authored over 100 peer-reviewed publications, contributed to national

guidelines in pain medicine, and currently leads multiple clinical trials evaluating neuromodulation and spinal therapies.

He also serves

as a medical advisor to several leading medtech innovators and participates on national AMA CPT® and NANS advocacy committees.

Leadership Structure

Board of Directors believes that the separation of the roles of Chairman of the Board and Chief Executive Officer provides for effective

corporate governance and appropriate checks and balances with respect to the Company’s leadership and oversight.

Under this structure,

the Chief Executive Officer is responsible for developing and implementing the Company’s business strategies and overseeing the

Company’s day-to-day operations.

At the same time, the Chairman of the Board leads the Board in its oversight, governance, and

advisory functions.

The Board believes that separating these roles allows each individual to focus on their respective responsibilities

and devote the appropriate time and attention required to perform those duties effectively.

Board further believes that this leadership structure promotes clear accountability, enhances management oversight, and supports effective

decision-making.

For these reasons, the Board has determined that its current leadership structure is appropriate and in the best interests

of the Company and its stockholders.

Board ’ s Oversight of Risk Management

Board of Directors recognizes that the Company faces a variety of risks, including, among others, risks related to operations in China,

liquidity and access to capital, market acceptance of medical products, regulatory matters, and general operational risks.

Board believes that an effective risk management framework is designed to:

and assess material risks in a timely manner

● Communicate

material risk information to senior management and, as appropriate, to the Board and its

and implement appropriate risk mitigation strategies

risk considerations into the Company’s strategic planning and decision-making processes

Board oversees the Company’s overall risk management processes, while management is responsible for the day-to-day management of

The Chief Executive Officer, together with senior management, identifies, evaluates, and manages the Company’s risk exposures

and implements risk management strategies approved by the Board.

Board receives regular reports from management regarding the Company’s risk profile and engages in periodic discussions concerning

significant risk exposures and mitigation efforts.

The Board believes this structure promotes a culture of risk awareness and supports

the Company’s long-term strategic objectives and the interests of its stockholders.

Board of Directors has three standing committees:

the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance

Each committee operates under a written charter approved by the Board.

Committee – Oversees risks related to financial reporting, internal controls, compliance,

liquidity, and cybersecurity.

● Compensation

Committee – Oversees risks associated with compensation policies and practices,

including whether such programs encourage excessive risk-taking.

and Corporate Governance Committee – Oversees risks related to corporate governance

practices, Board composition, and director independence.

Board believes that its committee structure enhances its ability to effectively oversee the Company’s risk management processes

in accordance with NYSE American corporate governance standards.

Audit Committee meets regularly with management and the Company’s independent registered public accounting firm to review and discuss

matters related to the Company’s financial reporting, internal control over financial reporting, and audit process.

primary purpose of the Audit Committee is to assist the Board of Directors in its oversight of:

integrity of the Company’s financial statements

Company’s compliance with legal and regulatory requirements

qualifications, independence, and performance of the Company’s independent registered

public accounting firm

preparation and filing of the Company’s Annual Report on Form 10-K for the fiscal year

ended December 31, 2025

Audit Committee is directly responsible for the appointment, retention, compensation, evaluation, and oversight of the Company’s

independent registered public accounting firm.

The Committee also pre-approves all audit and permitted non-audit services provided by

the independent auditors.

Audit Committee is currently comprised of Benedetta Casamento (Chair), Neal Goldman, and Shanth Thiyagalingam.

The Board has determined

that each member of the Audit Committee is independent under the listing standards of NYSE American and satisfies the independence requirements

of Section 10A(m)(3) of the Securities Exchange Act of 1934, as amended.

copy of the Audit Committee Charter is available on the Company’s website at www.milestonescientific.com .

Committee Financial Expert

Board of Directors has determined that Benedetta Casamento is an “audit committee financial expert” as defined in Item 407(d)(5)

of Regulation S-K.

In addition, the Board has determined that Ms.

Casamento is independent within the meaning of the listing standards

of NYSE American and the applicable rules of the Securities and Exchange Commission, including Section 10A(m)(3) of the Securities Exchange

Act of 1934, as amended.

Compensation Committee reviews and recommends to the Board of Directors the compensation and benefits of the Company’s executive

The Committee also reviews general policies relating to employee compensation and benefits and administers the Company’s

equity compensation plans, including the grant of stock options and other equity awards to officers, employees, directors, and consultants.

In addition, the Compensation Committee reviews and makes recommendations to the Board regarding compensation for non-employee directors.

The Compensation Committee may not delegate its authority to any other person, except to a subcommittee established in accordance with

applicable law and the Committee’s charter.

Compensation Committee is currently comprised of Neal Goldman (Chair), Benedetta Casamento, and Shanth Thiyagalingam

copy of the Compensation Committee Charter is available on the Company’s website at www.milestonescientific.com.

For additional

discussion of executive compensation objectives, see Item 11, “Executive Compensation.”

and Corporate Governance Committee

Nominating and Corporate Governance Committee identifies, evaluates, and recommends individuals qualified to serve as directors of the

Company and assesses the suitability of incumbent directors for continued service on the Board.

Committee is currently comprised of Benedetta Casamento (Chair) and Neal Goldman.

A copy of the Nominating and Corporate Governance Committee

Charter is available on the Company’s website at www.milestonescientific.com .

evaluating director candidates, the Committee considers a variety of factors, including integrity, professional experience, judgment,

independence, understanding of the Company’s business and industry environment, and the ability to make meaningful contributions

to the Board’s oversight responsibilities.

The Committee also evaluates whether a candidate’s skills, expertise, and experience

complement the existing composition of the Board and its committees and satisfy applicable independence and regulatory requirements.

Committee considers director candidates recommended by stockholders.

Stockholders wishing to recommend a candidate for consideration

must submit a written recommendation that includes:

stockholder’s name and evidence of stock ownership, including the number of shares

held and the duration of ownership

candidate’s name and a résumé or summary of qualifications

candidate’s written consent to be named as a nominee and to serve as a director if

Committee may also consider candidates suggested by current directors, executive officers, or other sources and may retain third-party

search firms to assist in identifying qualified candidates.

The evaluation process does not vary based on the source of the nomination.

Board of Directors has determined that Neal Goldman, Benedetta Casamento, Shanth Thiyagalingam, and Dawood Sayed, M.D.

(collectively,

the “Independent Directors”) are independent within the meaning of Section 803A of the NYSE American Company Guide.

making its independence determinations, the Board considered all relevant facts and circumstances, including any equity compensation

awards granted to the Independent Directors during the year ended December 31, 2025, as disclosed under “Director Compensation”

The Board determined that such awards were granted as compensation for services rendered in their capacity as directors and do

not constitute a material relationship with the Company that would impair their independence under the NYSE American listing standards.

Communication with the Board

Board of Directors has established a process for stockholders and other interested parties to communicate with the Board.

and other interested parties may communicate with any member of the Board, the non-management directors as a group, any Board committee,

or the chair of any such committee by directing correspondence to the intended recipient by name or title.

All correspondence should

be sent “c/o Corporate Secretary” at:

425 Eagle Rock Avenue, Suite 403, Roseland, New Jersey 07068.

Company’s Corporate Secretary will review all communications for the sole purpose of determining whether the correspondence is

appropriate for delivery to the directors.

Communications that are unrelated to the duties and responsibilities of the Board, including

advertisements, solicitations, or patently offensive material, will not be forwarded.

appropriate communications will be promptly forwarded to the intended director or directors.

In the case of communications addressed

to the Board or to a committee or group of directors, the Corporate Secretary will distribute copies to each applicable member.

Section 16(a)

Beneficial Ownership Reporting Compliance

16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), requires the Company’s directors and

executive officers, and persons who beneficially own more than ten percent of a registered class of the Company’s equity securities,

to file reports of ownership and changes in ownership of such securities with the Securities and Exchange Commission (the “SEC”).

Such directors, executive officers, and greater-than-ten-percent beneficial owners are required by SEC regulations to furnish the Company

with copies of all Section 16(a) reports they file.

solely upon a review of the copies of such reports furnished to the Company and written representations from certain reporting persons

that no Form 5 reports were required, the Company believes that all filing requirements applicable to its directors and executive officers

under Section 16(a) were timely satisfied during the fiscal year ended December 31, 2025.

Trading Arrangements and Policies

Company has adopted an insider trading policy governing the purchase, sale, and other dispositions of the Company’s securities

by its directors, officers, and employees.

The Company believes this policy is reasonably designed to promote compliance with applicable

insider trading laws, rules, regulations, and exchange listing standards.

policy prohibits trading in the Company’s securities while in possession of material nonpublic information and prohibits the disclosure

of such information to others who may trade on the basis of that information.

Company has established regular blackout periods in connection with the preparation and filing of its periodic reports.

The Company may also impose special blackout periods from time to time when material

nonpublic developments or events are pending.

persons may trade in the Company’s securities only when no blackout period is in effect, they are not in possession of material non-public information and the transaction has been pre-cleared

by the Company’s designated compliance officer, or pursuant to a Rule 10b5-1 trading plan adopted in compliance with applicable

the last fiscal quarter of the fiscal year covered by this report, no director or officer adopted or terminated a Rule 10b5-1 trading

Company has adopted a Code of Ethics, as defined in Item 406 of Regulation S-K, that applies to its principal executive officer, principal

financial officer, principal accounting officer or controller, or persons performing similar functions, as well as its directors.

Code of Ethics is publicly available on the Company’s website at www.milestonescientific.com .

The Company will provide a

copy of the Code of Ethics, without charge, upon a written request to:

Benedetta Casamento, Chairman of the Board, Milestone Scientific

Inc, 425 Eagle Rock Avenue, Roseland, New Jersey 07068.

Company intends to disclose any amendments to, or waivers (including any implicit waiver), from a provision of the Code of Ethics granted

to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar

functions, on its website or in a Current Report on Form 8-K, as required by applicable SEC rules.

Board of Directors has adopted a written compensation recovery policy (the “Clawback Policy”) in accordance with Section

10D of the Securities Exchange Act of 1934, as amended, and the applicable listing standards of NYSE American.

Clawback Policy provides for the recovery of certain incentive-based compensation that was erroneously awarded, earned, or vested based

wholly or in part upon the attainment of a financial reporting measure, in the event the Company is required to prepare an accounting

restatement due to material noncompliance with any financial reporting requirement under the federal securities laws.

policy applies to current and former executive officers who received incentive-based compensation during the three completed fiscal years

immediately preceding the date on which the Company is required to prepare an accounting restatement.

Recovery is required to the extent

that the incentive-based compensation received exceeds the amount that would have been received had it been determined based on the restated

financial results.

under the Clawback Policy is required regardless of whether the executive officer engaged in misconduct or was responsible for the error

that resulted in the restatement and applies to restatements resulting from both misconduct and inadvertent errors.

Executive Compensation

SUMMARY COMPENSATION TABLE

The following Summary Compensation Table sets forth all compensation earned, in all capacities, during the fiscal years ended December 31, 2024 and 2023 by Milestone Scientific’s (i) chief executive officer and (ii) two most highly compensated executive officers, other than the chief executive officer, who were serving as executive officers at the end of the 2023 fiscal year and whose salary as determined by Regulation S-K, Item 402, exceeded $100,000 (the individuals falling within categories (i) and (ii) are collectively referred to as the “Named Executive Officers”).

Name and Principal Position

COMPENSATION TABLE

The following Summary Compensation Table sets forth

information concerning all compensation earned by Milestone Scientific’s (i) principal executive officer during the last completed

fiscal year, (ii) principal financial officer during the last completed fiscal year, and (ii) the three most highly compensated executive

officers other than the principal executive officer and principal financial officer who were serving as executive officers at the end

of the fiscal year ended December 31, 2025.

following table provides information regarding unexercised stock options held by the Named Executive Officers as of December 31, 2025

Option Awards ($)

Other Compensation

All Other Compensation ($)

Eric Hines (1)

Jan Adriaan (Arjan) Haverhals (2)

Chief Executive Officer - Wand Dental Inc

President of Milestone Scientific Inc.

Peter Milligan (2)

Chief Financial Officer

During 2024 he was awarded $478,000 in a discretionary performance bonus for the year ended December 31, 2024.

Other compensation represents payments made for health insurance coverage of approximately $39,000 and car allowance of approximately $14,000.

Arjan Haverhals was awarded $281,000 in a discretionary performance bonus for the year ended December 31, 2023.

Other compensation represents payments made for health insurance coverage of approximately $34,000 and car allowance of approximately $14,000.

Peter Milligan was appointed as the Chief Financial Officer of the Company February 1, 2023.

He was awarded a $100,000 bonus for joining the company to be paid in shares of stock.

On August 24, 2023 the Company announced that Peter Milligan resigned from the Company effective September 1, 2023.

Haverhals resigned as the Chief Executive Officer of the Company as of December 31, 2024.

Pay versus Performance Table

As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive compensation actually paid (as defined by SEC rules) and certain financial performance metrics of the Company.

For further information concerning the Company’s compensation philosophy and how the Company aligns executive compensation with the Company’s performance, refer to “—Compensation Philosophy and Objectives” and “—Compensation Elements”.

Value of Initial Fixed $100 Investment Based on:

Summary Compensation Table Total for PEO($)

Compensation Actually Paid to PEO($)

Average Summary Compensation Table Total for Non-PEO NEO's($)

Average Compensation Actually Paid to Non-PEO NEO's($)

Total Shareholder Return ($)

Net Income ($)

Jason Papes (3)

Senior VP of Global Sales and Marketing

Vice President of Finance

Hines was appointed Chief Executive Officer and a member of the Board of Directors effective

August 1, 2025.

Pursuant to his employment agreement, Mr.

Hines was granted an option to

purchase 2,000,000 shares of the Company’s common stock on August 1, 2025, at an exercise

price of $0.50 per share.

The option expires on August 1, 2035 and vests in equal annual

installments, subject to continued service.

The grant date fair value of this option award,

computed in accordance with ASC 718, is reflected in the “Option Awards” column

of the Summary Compensation Table for 2025.

Haverhals was awarded a discretionary performance bonus of $478,000 for the year

ended December 31, 2024.

“All Other Compensation” for 2024 includes approximately

$39,000 in Company-paid health insurance premiums and approximately $14,000 for a car allowance.

Haverhals resigned as Chief Executive Officer effective December 31, 2024.

Papes was hired as Senior Vice President of Global Sales and Marketing effective August 6,

Pursuant to his employment agreement, he was granted an option to purchase 2,000,000

shares of the Company’s common stock on August 6, 2025, at an exercise price of $0.45

The option expires on August 6, 2035 and vests in equal annual installments, subject

to continued service.

The grant date fair value of this option award, computed in accordance

with ASC 718, is reflected in the “Option Awards” column of the Summary Compensation

Table for 2025.

During 2025 and 2024, Ms.

Harcum was awarded performance bonuses of $50,000

and $25,000 respectively.

versus Performance Table

required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(v) of Regulation S-K, the Company

provides the following information regarding the relationship between executive compensation actually paid (“CAP”) and certain

financial performance measures of the Company for the two most recently completed fiscal years.

additional information regarding the Company’s compensation philosophy and alignment of executive compensation with performance,

see “Compensation Philosophy and Objectives” and “Compensation Elements.”

SCT Total PEO ($)

SCT Total Non-PEO ($)

CAP Non-PEO ($)

TSR ($100 Base)

Calculation of Compensation Actually Paid to PEO (Column (b))

Total Summary Compensation Paid Table (SCT) - column (a)

value reported under stock awards in the SCT

FV of unvested equity awards at year end 2021

FV of vested awards as of the vesting date

Total Summary Compensation Table (SCT)

Grant Date Fair Value of Option Awards

Fair Value of Unvested Option Awards as of 12/31/2025

Compensation Actually Paid

The amounts reported in this column are the amounts of total compensation reported for Mr.

Haverhals, Chief Executive Officer, for each corresponding year in the "Total" column of the Summary Compensation Table (“SCT’) on page 12 of this proxy statement.

The amounts reported in this column represent the amount of compensation actually paid (“CAP”) Mr.

Haverhals as computed in accordance with Item 402(v) of Regulation S-K, but do not reflect the actual amount of compensation earned by or paid to Mr.

Haverhals during the applicable year.

The determination of CAP begins with the total compensation reported in the SCT, which is then adjusted by equity-based and other compensation as set forth in the following table.

For equity-based awards made during the year, the recorded grant date value is replaced with the estimated year-end value.

For equity-based awards made in prior years that remain unvested at year-end, the estimated change in value from the beginning to the end of the year is included.

For equity-based awards made in prior years, but vested during the year, the estimated change in value from the beginning of the year to the date of vesting is included:

The amounts reported in this column represent the average of the amounts reported for the Company's Non-CEO named executive officer’s (“NEOs”) as a group in the "Total" column of the SCT in each applicable year.

There were no NEO’s at the company during 2024 and 2023, respectively.

The amounts reported in this column represent the average amount of CAP to the Non-CEO NEOs as a group, as computed in accordance with Item 402(v) of Regulation S-K.

Since there were no adjustments to be made for these NEO’s, the amounts actually paid are equal to the SCT amounts calculated in the previous column.

This represents the year-end value of an initial $100 investment made at the beginning of the period.

Employment and Consulting Contracts

On March 2, 2021, the Company entered into a Royalty Sharing Agreement with Leonard Osser, pursuant to which Mr.

Osser sold, transferred and assigned to the Company all of his rights in and to a certain patent application as to which he is a co-inventor with Mark Hochman, a consultant to the Company, and the Company agreed to pay to Mr.

Osser, beginning May 9, 2027, half of the royalty (2.5%) on net sales that would otherwise be payable to Mark and Claudia Hochman under their existing Technology Sale Agreement, dated January 1, 2005 and amended from time to time, with the Company.

In connection with the Royalty Sharing Agreement, the Hochman's agreed with the Company, pursuant to an addendum to such Technology Sale Agreement dated February 25, 2021, to reduce from 5% to 2.5% the payments due to them under their Technology Sale Agreement beginning on May 9, 2027, and thereafter with respect to dental products embodying the invention.

As part of the Succession Plan of the Company, Mr.

Osser agreed, pursuant to an agreement dated April 6, 2021 (the “Succession Agreement”), to restructure certain of his existing agreements with the Company, which provide for additional and broader executive support, and at such time as he elects to step down as Interim Chief Executive Officer of the Company, to become the Vice Chairman of the Board of the Company.

With respect to Mr.

Osser’s July 2017 Employment Agreement and July 2017 Consulting Agreement (each as previously disclosed), the compensation under the Employment Agreement was modified to reduce the overall compensation by $100,000 to $200,000, split equally between a cash amount and an amount in shares, and the compensation under the Consulting Agreement was increased by $100,000 to $200,000, equally split between a cash amount and an amount in shares, which shares were formerly payable under the Employment Agreement.

If the Company terminates Mr.

Osser’s employment “Without Cause,” other than due to his death or disability, or if Mr.

Osser terminates his employment for “Good Reason” (both as defined in the agreement), Mr.

Osser is entitled to be paid in one lump sum payment as soon as practicable following such termination:

an amount equal to the aggregate present value (as determined in accordance with Section 280G(d)(4) of the Code) of all compensation pursuant to this agreement from the effective date of termination hereunder through the remainder of the Employment Term.

In connection with his acceptance of the Vice Chairman position and in consideration of his services as a member of the Board and agreement to provide certain additional general consulting services, Mr.

Osser was granted options to purchase 2,000,000 shares of common stock, exercisable at the fair market value of the common stock on the date of grant, vesting over the five-year period after he steps down as Interim Chief Executive Officer of the Company or ten years from the date of grant, whichever shall end first.

The Company believes that the effect of such existing agreements and the Succession Agreement, all of which relate to the period after such time Mr.

Osser steps down as Interim Chief Executive Officer of the Company, collectively expand Mr.

Osser’s consulting to and support of the Company beyond its Chinese operations to also include its medical and other products, while enhancing the retention aspects of the Company’s relationship with Mr.

On May 19, 2021, Mr.

Osser resigned as Interim Chief Executive Officer of the Company and assumed the role of Vice Chairman of the Board.

Compensation under the Employment Agreement and the Consulting Agreement is payable for 9.5 years from May 19, 2021.

The Company recorded expenses of $200,000 related to the Employment Agreement for each of the years ended December 31, 2024 and 2023, respectively .

The Company recorded expenses of $200,000 and $200,000 related to the Consulting Agreement for each of the years ended December 31, 2024 and 2023, respectively.Mr.

Osser also owns 2,717,765 of the Company's stock, and 2,481,048 shares to be issued at the termination of his employment agreement

Arjan Haverhals retired as the Chief Executive Officer and other officer positions with the Company on December 31, 2024.

The Company entered into a consulting agreement with Mr.

Arjan Haverhals that commenced on January 1, 2025, and continues for an indefinite period, subject to the Company having the right to terminate the Consulting Agreement on 30 days advance notice in the event of his disability to provide services and either party having the right to terminate the Consulting Agreement on 90 days’ advance notice.

Haverhals will be paid an annual fee at the rate of $350,000, at the at the rate of $150,000 in respect of the first calendar quarter of 2025, and at the rate of $66,666, in respect of each subsequent calendar quarter of 2025, payable monthly in arrears, in each case in equal monthly installments on the last day of each month of such quarter.

The Company will reimburse Mr.

Haverhals for reasonable expenses in providing the services.

Haverhals will be an independent contractor and will not be provided with health and accident insurance, life insurance, paid sick leave and/or paid vacation time.

In connection with the Consulting Agreement, he has also entered into a Company-standard form of non-disclosure, non-solicitation, non-competition and invention agreement Mr.

Haverhals continues as a director of Milestone Scientific.

Haverhals will be issued 638,023 shares of the Company's stock ninety days after his resignation as CEO.

Objective of Executive Compensation Program

The primary objective of the executive compensation program is to attract and retain qualified, energetic managers who are enthusiastic about the mission and culture of Milestone Scientific.

A further objective of the compensation program is to provide incentives and reward each manager for their contribution.

In addition, Milestone Scientific strives to promote an ownership mentality among key leadership and the Board of Directors.

The Compensation Committee reviews and approves, or in some cases recommends for the approval of the full Board, the annual compensation procedures for the Named Executive Officers.

The compensation program is designed to reward teamwork, as well as each manager’s individual contribution.

In measuring the Named Executive Officers’ contribution, the Compensation Committee considers numerous factors including the growth strategic business relationships and financial performance.

Regarding most compensation matters, including executive and director compensation, management provides recommendations to the Compensation Committee;

however, the Compensation Committee does not delegate any of its functions to others in setting compensation.

Milestone Scientific does not currently engage any consultant to advise on executive and/or director compensation matters.

Stock price performance has not been a factor in determining annual compensation because the price of Milestone Scientific’s common stock is subject to a variety of factors outside of Milestone Scientific’s control.

Milestone Scientific does not have an exact formula for allocating between cash and non-cash compensation.

Annual CEO compensation consists of a base salary component, a bonus component (payable in a mix of cash and stock) and periodic stock option grants.

It is the Compensation Committee’s intention to set totals for the CEO for cash compensation sufficiently high enough to attract and retain a strong motivated leadership team, but not so high that it creates a negative perception with the other stakeholders.

The CEO receives stock option grants under the stock option plan.

The number of stock options granted to the executive officer is made on a discretionary rather than a formula basis by the Compensation Committee.

The CEO’s current and prior compensation is considered in setting future compensation.

To some extent, the compensation plan is based on the market and the companies that compete for executive management.

The elements of the plan (e.g., base salary, bonus, and stock options) are like the elements used by many companies.

The exact base pay, stock option grant, and bonus amounts are chosen to balance the competing objectives of fairness to all stakeholders and attracting and retaining executive managers.

Outstanding Equity Awards on December 31, 2024

The amounts reported in this column represent the total compensation reported for the Company’s principal executive officer (“PEO”)

in the “Total” column of the Summary Compensation Table for each applicable fiscal year.

The amounts reported in this column represent compensation actually paid (“CAP”) to the PEO, as computed in accordance with

Item 402(v) of Regulation S-K.

CAP does not reflect the actual amount of compensation earned by or paid to the PEO during the applicable

In accordance with SEC rules, the calculation of CAP begins with the total compensation reported in the Summary Compensation Table

and includes adjustments for equity awards as described below.

For the fiscal year 2025, CAP reflects the following adjustments:

● Subtraction

of the aggregate grant date fair value of stock option awards granted during 2025, as reported

in the Summary Compensation Table;

of the fair value of unvested stock option awards outstanding as of December 31, 2025.

fair value of unvested stock option awards as of December 31, 2025 was determined using the Black-Scholes option pricing model with the

following assumptions:

● Volatility:

interest rate:

fiscal years 2024, no equity awards were granted or outstanding that required adjustment under Item 402(v), and therefore, CAP equals

the total compensation reported in the Summary Compensation Table for those years.

the Company’s stock price declined during fiscal year 2025, the year-end fair value of outstanding stock option awards was lower

than their grant date fair value, resulting in CAP being lower than total compensation reported in the Summary Compensation Table

The amounts reported in this column represent the average of the amounts reported for the Company’s Non-PEO Named Executive Officers

(“Non-PEO NEOs”) in the “Total” column of the Summary Compensation Table for each applicable year.

no Non-PEO NEOs during fiscal year 2024.

The amounts reported in this column represent the average compensation actually paid (“CAP”) to the Company’s Non-PEO

NEOs as computed in accordance with Item 402(v) of Regulation S-K.

For fiscal year 2025, CAP for each Non-PEO NEO reflects the same equity

award adjustments described in footnote (b), as applicable.

For fiscal year 2024, no adjustments were required.

Total Shareholder Return (“TSR”) represents the cumulative value of an initial $100 investment in the Company’s common

stock beginning of the period.

and Consulting Contracts

Agreement and Related Compensation Arrangements

part of the Company’s succession planning, on April 6, 2021, Mr.

Osser entered into an agreement with the Company (the “Succession

Agreement”) pursuant to which he agreed to restructure certain of his existing arrangements with the Company to provide broader

executive support beyond the Company’s Chinese operations and, upon stepping down as Interim Chief Executive Officer, to assume

the role of Vice Chairman of the Board.

connection with the Succession Agreement:

● Compensation

Osser’s July 2017 Employment Agreement was reduced by $100,000 to $200,000,

with the reduction split equally between cash compensation and equity compensation.

● Compensation

under his July 2017 Consulting Agreement was increased by $100,000 to $200,000, also split

equally between cash and equity compensation.

The equity component shifted from the Employment

Agreement to the Consulting Agreement.

under the Employment Agreement and Consulting Agreement is payable for 9.5 years from May 19, 2021.

each of the years ended December 31, 2025 and 2024, the Company recorded:

of expenses related to the Employment Agreement;

of expenses related to the Consulting Agreement.

the Company terminates Mr.

Osser’s employment without cause (other than due to death or disability), or if Mr.

Osser terminates

his employment for good reason (each as defined in the applicable agreement), he is entitled to receive, in a lump sum, an amount equal

to the aggregate present value (determined in accordance with Section 280G(d)(4) of the Internal Revenue Code) of all compensation payable

from the termination date through the remainder of the employment term.

Chairman Appointment and Option Grant

stepping down as Interim Chief Executive Officer on May 19, 2021, Mr.

Osser assumed the role of Vice Chairman of the Board.

In connection

with his acceptance of the Vice Chairman position and his agreement to provide additional consulting services, Mr.

Osser was granted

options to purchase 2,000,000 shares of the Company’s common stock at an exercise price equal to the fair market value on the date

The options vest over the five-year period following his resignation as Interim Chief Executive Officer ten years from the

date of grant, whichever period ends first.

On November 7, 2025, Mr.

Osser resigned as a director of the Company.

Osser beneficially owns 2,844,028 shares of the Company’s common stock.

In addition, 3,221,786 shares are issuable to him upon

termination of his employment agreement, subject to the terms thereof.

Adriaan (Arjan) Haverhals

Company entered into a consulting agreement with Jan Adriaan (Arjan) Haverhals (the “Consulting Agreement”), effective January

The Consulting Agreement continues for an indefinite term unless terminated in accordance with its terms.

Either party may terminate

the Consulting Agreement upon 90 days’ prior written notice.

The Company may terminate the Consulting Agreement upon 30 days’

prior written notice in the event of Mr.

Haverhals’ inability to provide services.

Under the Consulting Agreement, Mr.

is entitled to receive consulting fees at an annual rate of $350,000, payable monthly in arrears.

For 2025, compensation was structured

for the first calendar quarter of 2025;

for each subsequent calendar quarter of 2025.

Company recorded consulting expense of approximately $350,000 for the year ended December 31, 2025 related to the Consulting Agreement.

Haverhals is entitled to reimbursement of reasonable expenses incurred in providing services.

He serves as an independent contractor

and is not eligible for Company-provided health or accident insurance, life insurance, paid sick leave, or paid vacation benefits.

connection with the Consulting Agreement, Mr.

Haverhals entered into the Company’s standard form of non-disclosure, non-solicitation,

non-competition, and invention assignment agreement.

As of December 31, 2025, the Company owed Mr.

Haverhals approximately $89,000 under

the Consulting Agreement, which is included in accounts payable — related party in the Company’s consolidated balance sheets.

to December 31, 2025, Mr.

Haverhals agreed to waive $66,000 of amounts payable to him, which had been included in accounts payable

— related party.

Pursuant to the Consulting Agreement, Mr.

Haverhals is entitled to receive 912,736 shares of the

Company’s common stock six months following his resignation as Chief Executive Officer, subject to the terms of the Consulting

As of December 31, 2025, such shares had not been issued.

Haverhals did not stand for re-election as a director at Company’s Annual Meeting of Stockholders held on December 18,

Haverhals was not re-elected to the Board of Directors.

and his term as a director expired at the conclusion of

the Annual Meeting.

2025 Financing

April 9, 2025, the Company issued a series of promissory notes in the aggregate amount of $800,000 to Mr.

Neal Goldman, Ms.

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 in cash and/or shares

of common stock at the sole discretion of the Company.

The notes are convertible into shares of common stock by the holder at any time

and by the Company at maturity.

If the Company sells equity securities for gross proceeds in excess of $4,000,000, the holders may request

repayment of their note in either cash, shares of common stock or a combination of cash and shares;

provided, that the holders would

then be entitled to receive only so much cash as the net proceeds to the Company in such sale of equity securities, after payment of

other indebtedness and other uses (other than working capital) specified as a use of the proceeds in the relevant offering or disclosure

documentation, shall be in excess of $4,000,000.

Upon a liquidation event of the Company, as defined in the notes which includes a sale

of the Company or assets, a merger, reorganization or combination transaction where the shareholders before the transaction own less

than 50% of the Company after the transaction and a liquidation, dissolution or winding-up of the Company, the notes will be repaid in

cash or its portion of any non-cash consideration.

The conversion rate for any issuance of shares of common stock will be at the then

fair value of a share of common stock, with the fair value being determined with reference to the public market price of a share of common

stock, but not less than $0.50.

The notes are unsecured and have typical default terms.

of Executive Compensation Program

primary objectives of the Company’s executive compensation program are to attract, retain and motivate qualified and energetic

executive officers who are committed to advancing Milestone Scientific’s mission and long-term strategic goals.

The program is

also designed to reward individual performance, encourage teamwork, and align management’s interests with those of stockholders

by promoting an ownership-oriented culture.

Compensation Committee of the Board of Directors is responsible for reviewing and approving, or where appropriate recommending to the

full Board for approval, the annual compensation of the Company’s Named Executive Officers (“NEOs”).

Company’s compensation program seeks to balance:

● Competitive

base compensation sufficient to attract and retain strong leadership;

● Performance-based

incentives that reward individual and Company performance;

● Equity-based

compensation designed to align executive interests with stockholders and promote long-term

value creation.

evaluating executive performance and determining compensation levels, the Compensation Committee considers a range of qualitative and

quantitative factors, including:

toward strategic objectives;

● Development

of strategic business relationships;

effectiveness and organizational development;

contributions to Company performance.

management may provide recommendations to the Compensation Committee regarding executive compensation matters, the Compensation Committee

retains full authority and does not delegate its compensation-setting responsibilities.

Company does not currently engage a compensation consultant to advise on executive or director compensation matters.

compensation for the Chief Executive Officer generally consists of:

● Performance-based

bonus (which may be payable in cash and/or equity);

grants of stock options under the Company’s equity incentive plan.

option awards are granted on a discretionary basis, rather than pursuant to a formula, taking into account individual performance, role,

market conditions and long-term retention considerations.

Compensation Committee considers both current and prior compensation when determining future compensation adjustments.

The Company also

considers market practices among companies that compete for executive talent, recognizing that compensation elements such as base salary,

bonus and equity awards are commonly used in the marketplace.

Compensation Committee has not historically based annual compensation decisions solely on short-term stock price performance, recognizing

that the Company’s stock price may be influenced by external factors beyond management’s direct control.

However, equity-based

compensation is intended to align executive interests with long-term stockholder value.

The Company does not employ a fixed formula to

determine the allocation between cash and non-cash compensation.

Instead, compensation decisions are made based on the Compensation Committee’s

judgment, taking into account the Company’s financial condition, market conditions, competitive positioning, and retention objectives.

Equity Awards on December 31, 2025

Number of Securities Underlying Unexercised Options (#) Exercisable (1)

2 unchanged sentences

Option Expiration Date

Number of Shares or Units of Stock that have not vested (#) (2)

Number of Shares or Units of Stock

that have not vested (#) (2)

Market Value of Number of Shares or Units of Stock that have not vested (#) (3)

Jan Adriaan (Arjan ) Haverhals

Leonard Osser

The following table includes certain information with respect to all unexercised stock options and unvested shares of common stock of Milestone Scientific outstanding owned by the Named Executive Officers on December 31, 2024.

Represents stock option grants at fair market value on the date of grant.

Issuance of the shares of common stock have been deferred until the termination of employment with Milestone Scientific in accordance with the terms of respective employment arrangements.

Based on the closing price per share of $0.96 as reported on the NYSE American on December 31, 2024

Director Compensation

Fees Earned paid in cash$

following table includes certain information with respect to all unexercised stock options and unvested shares of common stock of Milestone

Scientific outstanding owned by the Named Executive Officers on December 31, 2025.

stock option grants at fair market value on the date of grant.

of the shares of common stock has been deferred until the termination of employment with

Milestone Scientific in accordance with the terms of the respective employment arrangements.

on the closing price per share of $0.27 as reported on the NYSE American on December 31,

paid in cash$

Stock Awards $

Options Award $

Non-Equity Incentive Plan Compensation $

Change in pension value and nonqualified deferred compensation earnings $

All other Compensation

Fees Earned paid in cash$

Benedetta Casamento

Leonard Osser

Didier Demesmin

Michael McGeehan

Gian Domenico Trombetta (1)

(1) Resigned as of January 12, 2025.

Shanth Thiyagalingam

Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters

The following table, together with the accompanying footnotes, sets forth information, as March 15, 2025 regarding stock ownership of all persons known by Milestone Scientific to own beneficially more than 5% of Milestone Scientific’s outstanding common stock, Named Executives, all directors, and all directors and executive officers of Milestone Scientific as a group:

following table, together with the accompanying footnotes, sets forth information, as of March 15, 2026, regarding stock ownership

of all persons known by Milestone Scientific to own beneficially more than 5% of Milestone Scientific’s outstanding common

stock, Named Executives, all directors, and all directors and executive officers of Milestone Scientific as a group:

Names of Beneficial Owner (1)

Shares of Common Stock Beneficially Owned (2)

Shares of Common Stock Beneficially

Executive Officers and Directors

Jan Adriaan (Arjan) Haverhals (3)

Neal Goldman (4)

Eric Hines (3)

Benedetta Casamento (4)

Michael McGeehan (6)

Leonard Osser (7)

Neal Goldman (5)

Didier Demesmin (6)

Shanth Thiyagalingam (7)

Dawood Sayed, M.D (8)

All directors & executive officers as group (6 persons)

5% and Greater Shareholders

BP4 S.R.L (9)

The addresses of the persons named in this table are as follows:

Leonard Osser, Jan Adriaan (Arjan) Haverhals, Neal Goldman, Michael McGeehan, Benedetta Casamento and Dr.

Didier Demesmin are at 425 Eagle Rock Avenue, Roseland, New Jersey 07068.

A person is deemed to be a beneficial owner of securities that can be acquired by such person within 60 days from March 15, 2025 as applicable, upon the exercise of options and warrants or conversion of convertible securities.

Each beneficial owner's percentage ownership is determined by assuming that options, warrants and convertible securities that are held by such person (but not held by any other person) and that are exercisable or convertible within 60 days from March 15,2025, have been exercised or converted.

Except as otherwise indicated, and subject to applicable community property and similar laws, each of the persons named has sole voting and investment power with respect to the shares shown as beneficially owned.

The percentages for each beneficial owner are determined based on dividing the number of shares of common stock beneficially owned by the sum of the outstanding shares of common stock on March 15, 2025 and the number of shares underlying options exercisable and convertible securities convertible within 60 days from March 15, 2025 held by the beneficial owner.

Includes 638,023 shares to be issued at the termination of Mr.

Haverhals' employment agreement, and 119,676 vested stock options to purchase common stock of the Company.

Includes 2,325,856 shares held by Mr.

Includes 404,490 shares held by Mrs.

5% Ownership and Related Party

Jan Adriaan (Arjan) Haverhals (10)

Michael McGeehan (11)

addresses of the persons named in this table are as follows:

Eric Hines, Neal Goldman, Michael

McGeehan, Benedetta Casamento, Shanth Thiyagalingam, Dawood Sayed, M.D and Dr.

Didier Demesmin

are at 425 Eagle Rock Avenue, Roseland, New Jersey 07068.

person is deemed to be a beneficial owner of securities that can be acquired by such person

within 60 days from March 15, 2025, as applicable, upon the exercise of options and warrants

or conversion of convertible securities.

Each beneficial owner’s percentage ownership is

determined by assuming that options, warrants, and convertible securities that are held by

such person (but not held by any other person) and that are exercisable or convertible within

60 days from March 15, 2026, have been exercised or converted.

Except as otherwise indicated,

and subject to applicable community property and similar laws, each of the persons named

has sole voting and investment power with respect to the shares shown as beneficially owned.

The percentages for each beneficial owner are determined based on dividing the number of

shares of common stock beneficially owned by the sum of the outstanding shares of common

stock on March 15, 2026, and the number of shares underlying options exercisable and convertible

securities convertible within 60 days from March 15, 2025, held by the beneficial owner.

Includes 325,000 shares held by Mr.

Hines prior to joining the Company

571,157 shares held by Mrs.

2,492,523 shares held by Mr.

263,871 shares held by Dr.

202,020 shares held by Mr.

Thiyagalingam

101,010 shares held by Dr.

8,896,765 shares held by BP4 S.R.L.

Pedro Palau, Liquidator, with

an address at Corso Venezia 44, Milan, Italy 20121, is deemed to have voting and investment

power over the securities held by BP4.

Based on information in the Form filed by

Includes 260,210 shares held by Mr.

Osser or his family, 2,481,048 shares to be issued at the termination of his employment agreement, and 1,993,279 vested stock options to purchase common stock of the Company.

Includes 112,356 shares held by Dr.

Includes 9,672,192 shares held by BP4 S.R.L.

Pedro Palau, Liquidator, with an address at Corso Venezia 44, Milan, Italy 20121, is deemed to have voting and investment power over the securities held by BP4.

Based on information in the Schedule 13D filed by BP4 on February 7, 2025.

Securities Authorized for Issuance under Equity Compensation Plans

Equity Compensation Plan Information (as of December 31, 2024)

734,364 shares held by Mr.

Authorized for Issuance under Equity Compensation Plans

Compensation Plan Information (as of December 31, 2025)

Equity compensation plan approved by stockholders

3 unchanged sentences

Grants under our 2021 Stock Option Plan

The 2020 plan, as amended and restated in 2021 and amended during 2024, provides for awards of restricted common stock and options to purchase up to a maximum of 11,500,000 shares of common stock and expires in December 2030.

Options may be granted to employees, directors, and consultants of Milestone Scientific for the purchase of shares of common stock at a price not less than the fair market value of common stock on the date of grant.

In general, options become exercisable over a three-year period from the grant date and expire five years after the date of grant.

2020 plan, as amended and restated in 2021 and amended during 2024, provides for awards of restricted common stock and options to purchase

up to a maximum of 11,500,000 shares of common stock and expires in December 2030.

Options may be granted to employees, directors, and

consultants of Milestone Scientific for the purchase of shares of common stock at a price not less than the fair market value of common

stock on the date of grant.

In general, options become exercisable over three years from the grant date and expire five years after the

date of grant.

During the year ended December 31, 2025, 4,516,257 options and shares were issued.

Certain Relationships and Related Transactions, and Director Independence

United Systems

Milestone Scientific has a supply agreement with United Systems the principal supplier of its handpieces, pursuant to which it procures manufactured products under specific purchase orders, but without minimum purchase commitments.

Purchases from this supplier were approximately $1.7 million and $2.3 million for the twelve months ended December 31, 2024, and 2023, respectively.

As December 31, 2024, and December 31, 2023, Milestone Scientific owed this supplier approximately $664,000 and $402,000, respectively, which is included in accounts payable and accrued expenses related party on the consolidated balance sheets.

In June 2021, the Company signed a ten-year agreement with United Systems for supplier of the handpieces.

For the year ended December 31, 2023, the Company had approximately $270,000 sales to Milestone China or agents of Milestone China, an entity in which the Company formerly had an ownership interest terminating in 2021.

The Company reported no sales to Milestone China or agents of Milestone China during the year ended December 31,2024.

Tucker Andersen, a significant stockholder of Milestone Scientific, has an agreement with Milestone Scientific to provide financial and business strategic services.

Expenses recognized on this agreement were $100,000 for year ended December 31, 2023.

The agreement was not renewed for the year ending December 31, 2024.

Director of Clinical Affairs

The Director of Clinical Affairs’ royalty fee was approximately $442,000 and $485,000 for the years ended December 31, 2024 and 2023, respectively.

Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of $156,000 for the year ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, and 2023, Milestone Scientific owed the Director Clinical Affairs for royalties of approximately $110,000 and $114,000, respectively, which is included in accounts payable, related party and accrued expense, related party, in the consolidated balance sheet.

Employment and Consulting Contracts

On March 2, 2021, the Company entered into a Royalty Sharing Agreement with Leonard Osser, pursuant to which Mr.

As part of the Succession Plan of the Company, Mr.

With respect to Mr.

If the Company terminates Mr.

Osser’s employment “Without Cause,” other than due to his death or disability, or if Mr.

Osser terminates his employment for “Good Reason” (both as defined in the agreement), Mr.

Osser is entitled to be paid in one lump sum payment as soon as practicable following such termination:

The Company believes that the effect of such existing agreements and the Succession Agreement, all of which relate to the period after such time Mr.

Osser steps down as Interim Chief Executive Officer of the Company, collectively expand Mr.

On May 19, 2021, Mr.

Osser resigned as Interim Chief Executive Officer of the Company and assumed the role of Vice Chairman of the Board.

Compensation under the Employment Agreement and the Consulting Agreement is payable for 9.5 years from May 19, 2021.

The Company recorded expenses of $200,000 related to the Employment Agreement for each of the years ended December 31, 2024 and 2023, respectively .

The Company recorded expenses of $200,000 related to the Consulting Agreement for each of the years ended December 31, 2024 and 2023, respectively.

Osser also owns 2,717,765 of the Company's stock, and 2,481,048 shares to be issued at the termination of his employment agreement.

As of February 2024, the University Pain Medicine Center (STEMMEE), of which Dr.

Demesmin, a Company board member is the CEO agreed to purchases products from the Company under the same terms and conditions applying to other medical pain clinics in the United States.

STEMMEE purchased medical products in the amount of $21,000 for the year ended December 31, 2024

The Company entered into a consulting agreement with Mr.

Arjan Haverhals, which commenced on January 1, 2025, and continues for an indefinite period, subject to the Company having the right to terminate the Consulting Agreement on 30 days advance notice in the event of his disability to provide services and either party having the right to terminate the Consulting Agreement on 90 days’ advance notice.

The Company will reimburse Mr.

Haverhals for reasonable expenses in providing the services.

Haverhals will be an independent contractor and will not be provided with health and accident insurance, life insurance, paid sick leave and/or paid vacation time.

In connection with the Consulting Agreement, he has also entered into a Company-standard form of non-disclosure, non-solicitation, non-competition and invention agreement.

Haverhals continues as a director of the Company.

Haverhals continues as a director of Milestone Scientific.

Haverhals will be issued 638,023 shares of the Company's stock ninety days after his resignation as CEO.

April 2025 Financing

On April 9, 2025, the Company issued a series of promissory notes in the aggregate amount of $800,000, to Mr.

Scientific has a supply agreement with United Systems, the principal supplier of the Company’s handpieces.

Pursuant to the agreement,

the Company purchases manufactured products from United Systems under individual purchase orders.

The agreement does not require minimum

purchase commitments.

June 2021, the Company entered into a ten-year supply agreement with United Systems for the manufacture and supply of handpieces.

from United Systems totaled approximately $1.9 million and $1.7 million for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and December 31, 2024, amounts owed to United Systems were approximately $1,100,000 and $664,000, respectively.

These amounts are included in accounts payable related party in the Company’s consolidated balance sheets.

of Clinical Affairs

Company pays royalties to its Director of Clinical Affairs pursuant to existing royalty arrangements related to certain Company products.

Royalty expense paid to the Director of Clinical Affairs totaled approximately $445,000 and $442,000 for the years ended December 31,

2025 and 2024, respectively.

In addition, the Company paid consulting fees to the Director of Clinical Affairs totaling approximately

$128,000 and $156,000 for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and 2024, accrued but unpaid

royalties owed to the Director of Clinical Affairs were approximately $289,000 and $110,000, respectively.

These amounts are included

in accounts payable related party and accrued expenses related party in the Company’s consolidated balance sheets.

Employment and

Consulting Contracts

Agreement and Related Compensation Arrangements

part of the Company’s succession planning, on April 6, 2021, Mr.

Osser entered into an agreement with the Company (the “Succession

Agreement”) pursuant to which he agreed to restructure certain of his existing arrangements with the Company to provide broader

executive support beyond the Company’s Chinese operations and, upon stepping down as Interim Chief Executive Officer, to assume

the role of Vice Chairman of the Board.

In connection with the Succession Agreement:

Compensation under Mr.

Osser’s July 2017 Employment Agreement was reduced by $100,000 to $200,000, with the reduction split equally between cash compensation and equity compensation.

Compensation under his July 2017 Consulting Agreement was increased by $100,000 to $200,000, also split equally between cash and equity compensation.

The equity component shifted from the Employment Agreement to the Consulting Agreement.

Compensation under the Employment Agreement and Consulting

Agreement is payable for 9.5 years from May 19, 2021.

For each of the years ended December 31, 2025 and

2024, the Company recorded:

$200,000 of expenses related to the Employment Agreement;

$200,000 of expenses related to the Consulting Agreement.

the Company terminates Mr.

Osser’s employment without cause (other than due to death or disability), or if Mr.

Osser terminates

his employment for good reason (each as defined in the applicable agreement), he is entitled to receive, in a lump sum, an amount equal

to the aggregate present value (determined in accordance with Section 280G(d)(4) of the Internal Revenue Code) of all compensation payable

from the termination date through the remainder of the employment term.

Chairman Appointment and Option Grant

Upon stepping down as Interim Chief Executive Officer on May 19, 2021,

Osser assumed the role of Vice Chairman of the Board.

In connection with his acceptance of the Vice Chairman position and his agreement

to provide additional consulting services, Mr.

Osser was granted options to purchase 2,000,000 shares of the Company’s common stock

at an exercise price equal to the fair market value on the date of grant.

The options vest over the five-year period following his resignation

as Interim Chief Executive Officer ten years from the date of grant, whichever period ends first.

On November 7, 2025, Mr.

Osser resigned

as a director of the Company.

Osser beneficially owns 2,844,028 shares of the Company’s common stock.

In addition, 3,221,786 shares are issuable to him upon

termination of his employment agreement, subject to the terms thereof.

As of February 2024, the University Pain Medicine

Center (STEMMEE), of which Dr.

Demesmin, a Company board member, is the CEO, agreed to purchase products from the Company under the

same terms and conditions applying to other medical pain clinics in the United States.

STEMMEE purchased medical products of $54,000 and

$21,000 for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 the Company was owed approximately $25,500

which regard in related party accounts receivable.

Adriaan (Arjan) Haverhals

Company entered into a consulting agreement with Jan Adriaan (Arjan) Haverhals (the “Consulting Agreement”), effective January

The Consulting Agreement continues for an indefinite term unless terminated in accordance with its terms.

Either party may terminate

the Consulting Agreement upon 90 days’ prior written notice.

The Company may terminate the Consulting Agreement upon 30 days’

prior written notice in the event of Mr.

Haverhals’ inability to provide services.

Under the Consulting Agreement, Mr.

is entitled to receive consulting fees at an annual rate of $350,000, payable monthly in arrears.

For 2025, compensation was structured

for the first calendar quarter of 2025;

for each subsequent calendar quarter of 2025.

Company recorded consulting expense of approximately $350,000 for the year ended December 31, 2025 related to the Consulting Agreement.

Haverhals is entitled to reimbursement of reasonable expenses incurred in providing services.

He serves as an independent contractor

and is not eligible for Company-provided health or accident insurance, life insurance, paid sick leave, or paid vacation benefits.

connection with the Consulting Agreement, Mr.

Haverhals entered into the Company’s standard form of non-disclosure, non-solicitation,

non-competition, and invention assignment agreement.

As of December 31, 2025, the Company owed Mr.

Haverhals approximately $89,000 under

the Consulting Agreement, which is included in accounts payable — related party in the Company’s consolidated balance sheets.

to December 31, 2025, Mr.

Haverhals agreed to waive $66,000 of amounts payable to him, which had been included in accounts payable —

related party.

to the Consulting Agreement, Mr.

Haverhals is entitled to receive 912,736 shares of the Company’s common stock six months following

his resignation as Chief Executive Officer, subject to the terms of the Consulting Agreement.

As of December 31, 2025, such shares had

not been issued.

At the Company’s Annual Meeting of Stockholders held on December

18, 2025, Mr.

Haverhals was not re-elected to the Board of Directors.

Accordingly, his term as a director expired at the conclusion of

the Annual Meeting.

2025 Financing

April 9, 2025, the Company issued a series of promissory notes in the aggregate amount of $800,000 to Mr.

Neal Goldman, Ms.

Benedetta Casamento, and Dr.

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 in cash and/or shares of common stock at the sole discretion of the Company.

The notes are convertible into shares of common stock by the holder at any time and by the Company at maturity.

If the Company sells equity securities for gross proceeds in excess of $4,000,000, the holders may request repayment of their note in either cash, shares of common stock or a combination of cash and shares;

provided, that the holders would then be entitled to receive only so much cash as the net proceeds to the Company in such sale of equity securities, after payment of other indebtedness and other uses (other than working capital) specified as a use of the proceeds in the relevant offering or disclosure documentation, shall be in excess of $4,000,000.

Upon a liquidation event of the Company, as defined in the notes which includes a sale of the Company or assets, a merger, reorganization or combination transaction where the shareholders before the transaction own less than 50% of the Company after the transaction and a liquidation, dissolution or winding-up of the Company, the notes will be repaid in cash or its portion of any non-cash consideration.

The conversion rate for any issuance of shares of common stock will be at the then fair value of a share of common stock, with the fair value being determined with reference to the public market price of a share of common stock, but not less than $0.50.

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 in cash and/or shares

of common stock at the sole discretion of the Company.

The notes are convertible into shares of common stock by the holder at any time

and by the Company at maturity.

If the Company sells equity securities for gross proceeds in excess of $4,000,000, the holders may request

repayment of their note in either cash, shares of common stock or a combination of cash and shares;

provided, that the holders would

then be entitled to receive only so much cash as the net proceeds to the Company in such sale of equity securities, after payment of

other indebtedness and other uses (other than working capital) specified as a use of the proceeds in the relevant offering or disclosure

documentation, shall be in excess of $4,000,000.

Upon a liquidation event of the Company, as defined in the notes which includes a sale

of the Company or assets, a merger, reorganization or combination transaction where the shareholders before the transaction own less

than 50% of the Company after the transaction and a liquidation, dissolution or winding-up of the Company, the notes will be repaid in

cash or its portion of any non-cash consideration.

The conversion rate for any issuance of shares of common stock will be at the then

fair value of a share of common stock, with the fair value being determined with reference to the public market price of a share of common

stock, but not less than $0.50.

The notes are unsecured and have typical default terms.

Principal Accountant Fees and Services

Milestone Scientific incurred aggregate audit and financial statement review fees of approximately $220,000 from Marcum for 2024.

Milestone Scientific incurred aggregate audit and financial statement review fees of approximately $295,200 from Marcum for 2023 These fees include fees for professional services rendered for the audit of our annual financial statements and the review of financial statements included in our report on Form 10-Q's or services that are normally provided in connection with statutory and regulatory filings and fees related to registration statements.

Milestone Scientific incurred aggregate tax fees of approximately $33,000 from Marcum for 2024.

Milestone Scientific incurred aggregate audit and financial statement review

fees of approximately $228,000 from CBIZ CPAs P.C.

Milestone Scientific incurred aggregate audit and financial statement

review fees of approximately $220,000 from Marcum for 2024.

These fees include fees for professional services rendered for the audit of

our annual financial statements and the review of financial statements included in our report on Form 10-Q’s or services that are

normally provided in connection with statutory and regulatory filings and fees related to registration statements.

Milestone Scientific incurred aggregate tax fees of approximately $42,000

from CBIZ CPAs P.C.

Milestone Scientific incurred tax fees of approximately $33,000 from Marcum for 2024.

Audit Related Fees

Milestone Scientific did not incur audit related fees from Marcum in either 2024 or 2023.

All Other Fees

Milestone Scientific did not incur other accounting fees from Marcum in either 2024 or 2023.

Audit Committee Administration of the Engagement

The engagements with Marcum as the Company’s principal accountants and tax compliance services were approved in advance by the Board and the Audit Committee.

No non-audit or non-audit related services were approved by the Audit Committee in either 2024 or 2023.

Audit Committee Pre-Approval Policies and Procedures

The Audit Committee charter provides that the Audit Committee will pre-approve audit services and non-audit services to be provided by the independent auditors before the accountant is engaged to render these services.

The Audit Committee may consult with management in the decision-making process but may not delegate this authority to management.

The Audit Committee may delegate its authority to preapprove services to one or more committee members, provided that the designers present the pre-approvals to the full committee at the next committee meeting.

All audit and non-audit services performed by the independent accountants have been pre-approved by the Audit Committee to assure that such services do not impair the auditors’ independence from us.

Milestone Scientific did not incur audit-related fees from Marcum

or CBIZ CPAs P.C.

in either 2025 and 2024.

Scientific did not incur other accounting fees from Marcum or CBIZ CPAs P.C.

in either 2025 and 2024.

Committee Administration of the Engagement

engagements with Marcum as the Company’s principal accountants and tax compliance services were approved in advance by the Board

and the Audit Committee.

The Audit Committee approved no non-audit or non-audit-related services in either 2025 or 2024.

Committee Pre-Approval Policies and Procedures

Audit Committee charter provides that the Audit Committee will pre-approve audit services and non-audit services to be provided by the

independent auditors before the accountant is engaged to render these services.

The Audit Committee may consult with management in the

decision-making process but may not delegate this authority to management.

The Audit Committee may delegate its authority to preapprove

services to one or more committee members, provided that the designers present the pre-approvals to the full committee at the next committee

All audit and non-audit services performed by the independent accountants have been pre-approved by the Audit Committee to ensure

that such services do not impair the auditors’ independence.

Exhibits and Financial Statement Schedules

The following documents are filed as part of this Report:

Financial Statements.

following documents are filed as part of this Report:

See Index to Financial Statements on page F-1.

Financial Statement Schedule

Certain of the following exhibits were filed as Exhibits to previous filings filed by Milestone Scientific under the Securities Act of 1933, as amended, or reports filed under the Securities and Exchange Act of 1934, as amended, and are hereby incorporated by reference.

The following documents are filed as exhibits to this Report:

Certificate of Incorporation of Milestone as restated and amended as of March 25, 2025.

Amended and Restated By-laws filed April 1, 2019 (1)

Specimen stock certificate (2)

Statement Schedule

of the following exhibits were filed as Exhibits to previous filings filed by Milestone Scientific under the Securities Act of 1933,

as amended, or reports filed under the Securities and Exchange Act of 1934, as amended, and are hereby incorporated by reference.

following documents are filed as exhibits to this Report:

Restated Certificate of Incorporation of Milestone, as amended as of March 10 2025.

stock certificate (1)

Description of Registrant’s Securities (2),

Form of Promissory Note, dated April 8,2025*

Lease dated November 25, 1996 between Livingston Corporate Park Associates, L.L.C.

and Milestone (4)

Lease amendment dated April 28, 2004 between Livingston Corporate Park Associates, L.L.C.

And Milestone (5)

2011 Equity Compensation Plan (5)

3 unchanged sentences

Employment Agreement, dated and effective as of January 1, 2022, between Arjan Haverhals and Milestone Scientific Inc.+ (9)

Underwriting Agreement, dated as of December 10, 2023, between the Company and Maxim Group LLC (11)

Amended Employment agreement dated and effective July 5, 2023 between Arjan Haverhals and Milestone Scientific Inc.

3 unchanged sentences

List of Subsidiaries *

of CBIZ CPAs P.C.

Consent of Marcum LLP *

2 unchanged sentences

Clawback Policy, dated 2023 (14)

Inline XBRL Instance Document*

Inline XBRL Taxonomy Extension Schema Document*

Inline XBRL Taxonomy Extension Calculation Linkbase Document*

Inline XBRL Taxonomy Extension Label Linkbase Document*

Inline XBRL Taxonomy Extension Presentation Linkbase Document*

Inline XBRL Taxonomy Extension Definition Linkbase Document*

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Filed herewith.

Indicates management contract or compensatory plan or arrangement.

XBRL Instance Document*

XBRL Taxonomy Extension Schema Document*

XBRL Taxonomy Extension Calculation Linkbase Document*

XBRL Taxonomy Extension Label Linkbase Document*

XBRL Taxonomy Extension Presentation Linkbase Document*

XBRL Taxonomy Extension Definition Linkbase Document*

Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

management contract or compensatory plan or arrangement.

Furnished, not filed, in accordance with item 601(32) (ii) of Regulations-S-K.

Incorporated by reference to Milestone Scientific’s For 10-K filed with SEC on April 1, 2019.

Incorporated by reference to Amendment No1 to Milestone Scientific’s Registration Statement on Form 10-KSB for the year ended May 15, 1995.

Incorporated by reference to Amendment No1 to Milestone Scientific’s Registration Statement on Form 10-KSB for

the year ended May 15, 1995.

Incorporated by reference to Milestone Scientific’s Form 10-K filed with the SEC on March 31, 2022, Exhibit

Incorporated by reference to Milestone’s Form 10-KSB for the year ended December 31, 1996.

Incorporated by reference to Milestone Scientific’s Form 10-KSB filed with the SEC on April 4, 2005, Exhibit 10.37.

Filed as Appendix A to Milestone Scientific’s Proxy Statement filed with the SEC on May 2, 2011 and incorporated herein by reference.

Incorporated by reference to Milestone Scientific’s Form 10-K for the year ended December 31, 2015, Exhibit 10.11.

Incorporated by reference to Milestone Scientific’s Form 8-K filed with the SEC on April 7, 2021, Exhibit 10.1

Incorporated by reference to Milestone Scientific’s Proxy Statement on Schedule 14A filed with the SEC on April 30, 2021, Appendix A

Incorporated by reference to Milestone Scientific’s Form 10-Q filed with the SEC on August 15, 2022, Exhibit 10.1.

Incorporated by reference to Milestone Scientific’s Form 8-K filed with the SEC on December 12, 2023, Exhibit 1.1.

Incorporated by reference to Milestone Scientific’s Form 10Q filed with the SEC on August 15, 2022, Exhibit 10.1.

Incorporated by reference to Milestone Scientific Form 8K filed with SEC on December 20, 2024.

Exhibit 10.1.

Filed as Appendix A to Milestone Scientific’s Proxy Statement filed with the SEC on May 2, 2011 and incorporated

herein by reference.

Incorporated by reference to Milestone Scientific’s Form 10-K for the year ended December 31, 2015, Exhibit

Incorporated by reference to Milestone Scientific’s Form 8-K filed with the SEC on April 7, 2021, Exhibit 10.1.

Incorporated by reference to Milestone Scientific’s Form 10-K for the year ended December 31, 2023, Exhibit 10.10

Incorporated by reference to Milestone Scientific’s Form 10-K for the year ended December 31, 2023, Exhibit 10.1.

Incorporated by reference to Milestone Scientific’s Form 10-K for the year ended December 31, 2023, Exhibit 19.1.

Incorporated by reference to Milestone Scientific’s Form 10-K for the year ended December 31, 2023, Exhibit 10.10.

Incorporated by reference to Milestone Scientific’s Form 10-K for the year ended December 31, 2023, Exhibit

Incorporated by reference to Milestone Scientific’s Form 8-K filed with the SEC on November 13, 2025, Exhibit 1.1.

Incorporated by reference to Milestone Scientific’s Proxy Statement on Schedule 14A filed with the SEC on November 14, 2025

Incorporated by reference to Milestone Scientific’s Form 8-K filed with the SEC on January 20, 2026, Exhibit 1.1.

Incorporated by reference to Milestone Scientific’s Form 8-K filed with the SEC on February 4, 2026, Exhibit 1.1 Amendment and Restated

Incorporated by reference to Milestone Scientific Form 8K filed with SEC on December 20, 2024.

Exhibit 10.1.

Form 10-K Summary

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Milestone Scientific Inc.

/s/Neil Goldman

Chairman of the Board, Interim Chief Executive Officer, and Acting Chief Accounting Officer (Principal Executive and Accounting Officer)

April 15, 2025

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ Neal Goldman

April 15, 2025

Chairman of the Board, Interim Chief Executive Officer and Acting Chief Accounting Officer (Principal Executive and Accounting Officer)

/s/ Leonard Osser

April 15, 2025

Vice Chairman and Director

Leonard Osser

/s/ Benedetta Casamento

April 15, 2025

In accordance with

Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by

the undersigned, thereunto duly authorized.

Scientific Inc.

Chief Executive Officer and Principal Executive Officer

Keisha Harcum

Vice President of Finance and Principal Accounting Officer

Pursuant to the requirements of the Securities

Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and

on the dates indicated.

Executive Officer, Principal Executive Officer and Director

Benedetta Casamento

/s/ Michael McGeehan

April 15, 2025

Michael McGeehan

March 31, 2026

Chairman of the Board

Benedetta Casamento

March 31, 2026

Shanth Thiyagalingam

March 31, 2026

Shanth Thiyagalingam

Didier Demesmin

April 15, 2025

March 31, 2026

Didier Demesmin

April 15, 2025

REPORT INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

For the Years Ended December 31, 2024 and 2023

March 31, 2026

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

the Years Ended December 31, 2025 and 2024

Report of Independent Registered Public Accounting Firm (PCAOB ID Number

Consolidated Financial Statements:

Report of Independent Registered Public Accounting Firm (PCAOB ID Number 688 )

Financial Statements:

Consolidated Balance Sheets

3 unchanged sentences

Notes to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

Milestone Scientific, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Milestone Scientific, Inc.

(the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.

of Independent Registered Public Accounting Firm

the Shareholders and Board of Directors of Milestone Scientific, Inc.

on the Financial Statements

have audited the accompanying consolidated balance sheet of Milestone Scientific, Inc.

(the “Company”) as of December 31,

2025, the related consolidated statements of operations, stockholders’ equity and cash flows for the year ended December 31, 2025,

and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements

present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations

and its cash flows for the year ended December 31, 2025, in conformity with accounting principles generally accepted in the United States

Paragraph – Going Concern

accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.

fully described in Note B, the Company has a significant working capital deficiency, has incurred significant losses and needs to raise

additional funds to meet its obligations and sustain its operations.

These conditions raise substantial doubt about the Company’s

ability to continue as a going concern.

Management’s plans in regard to these matters are also described in Note B.

The consolidated

financial statements do not include any adjustments that might result from the outcome of this uncertainty.

financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s

financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board

(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S.

securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audit

we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion

on the effectiveness of the Company’s internal control over financial reporting.

Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

Critical Audit Matter Description

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Management ’ s Assessment over Going Concern – Refer to Note B to the financial statements

Critical Audit Matter Description

During the course of our audit, we identified conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.

These conditions include, but are not limited to, losses from operations, negative cash flows from operating activities, and an accumulated deficit.

The Company's financial statements disclose information about these conditions and management's plans to alleviate them, which include increasing revenues and reduction of expenses to improve the Company's operational efficiency and receipt of financings subsequent to the balance sheet date.

We devoted significant audit attention to the aforementioned conditions, management’s plans to alleviate substantial doubt and the adequacy of the related disclosures in the financial statements.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the going concern assessment included the following, among others:

We obtained management’s budget for the going concern assessment period and evaluated the reliability of the underlying data used to prepare the assessment.

We evaluated the reasonableness of management’s plans including their intent and ability to execute the plans to alleviate substantial doubt about the Company’s ability to continue as a going concern.

Our procedures included analyzing and sensitizing forecasted revenue by comparing to historical trends and evaluating the reasonableness of significant expense categories.

We performed subsequent event procedures which included examining related party loan agreements and to determine if any contradictory evidence existed subsequent to December 31, 2024.

We evaluated the adequacy of the Company’s disclosures in Note B in relation to the going concern uncertainty matter.

/s/ Marcum LLP

We have served as the Company’s auditor since 2016

Morristown, New Jersey

April 15, 2025

MILESTONE SCIENTIFIC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or

fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding

the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant

estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides

a reasonable basis for our opinion.

Audit Matters

audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be

communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and

(2) involved our especially challenging, subjective, or complex judgments.

We determined that there are no critical audit matters.

CBIZ CPAs P.C .

have served as the Company’s auditor since 2016 (such date takes into account the acquisition of the attest business of Marcum LLP

by CBIZ CPAs P.C.

effective November 1, 2024).

Report of Independent Registered Public

Accounting Firm

the Shareholders and Board of Directors of

Scientific Inc.

on the Financial Statements

have audited the accompanying consolidated balance sheet of Milestone Scientific Inc.

(the “Company”) as of December 31,

2024, the related consolidated statements of operations, stockholders’ equity and cash flows for year ended December 31, 2024,

and the related notes (collectively referred to as the “financial statements”).

In our opinion, based on our audit, the financial

statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of

its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in

the United States of America .

financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s

financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board

(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S.

securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audit

we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion

on the effectiveness of the Company’s internal control over financial reporting.

Accordingly, we express no such opinion.

audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or

fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding

the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant

estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides

a reasonable basis for our opinion.

have served as the Company’s auditor from 2016 to 2025.

SCIENTIFIC AND SUBSIDIARIES

BALANCE SHEETS

December 31, 2025

2 unchanged sentences

Cash and cash equivalents

$ 3,258,058 $ 2,977,713

Marketable securities

Accounts receivable, net of allowance for credit losses of $ 10,000 , respectively

475,376 312,664

Accounts receivable, related party

Accounts receivable

Prepaid expenses and other current assets

564,645 517,785

3,713,215 2,638,186

Advances on contracts

1,275,260 1,371,548

Total current assets

9,286,554 10,794,469

Furniture, fixtures and equipment, net

12,921 10,024

Intangibles, net

148,404 178,636

Right of use assets finance lease

Right of use assets operating lease

257,842 355,235

24,150 24,150

$ 9,797,072 $ 11,371,512

LIABILITIES AND STOCKHOLDERS’ EQUITY

1 unchanged sentence

Accounts payable

$ 1,021,393 $ 689,604

Accounts payable, related party

493,313 410,512

Accounts payable

Accrued expenses and other payables

1,796,319 1,511,717

Accrued expenses, related party

304,293 137,189

Accrued liabilities noncontrolling interest

Accrued expenses

Current portion of finance lease liabilities

12,530 10,264

Current portion of operating lease liabilities

116,279 103,427

Total current liabilities

3,744,127 3,076,713

Non-current portion of finance lease liabilities

Non-current portion of operating lease liabilities

165,573 281,853

Convertible notes payable, related parties

Total liabilities

$ 3,964,372 $ 3,359,000

Commitments and contingencies

1 unchanged sentence

Common stock, par value $ 0.001 ;

authorized 100,000,000 shares;

78,047,798 shares issued and 78,014,465 shares outstanding as of December 31, 2024;

75,881,840 shares issued and 75,848,507 shares outstanding as of December 31, 2023;

78,048 75,881

authorized 125,000,000

shares issued and 80,453,116

shares outstanding as of December 31, 2025;

shares issued and 78,014,465

shares outstanding as of December 31, 2024;

Additional paid in capital

134,719,274 132,187,656

Accumulated deficit

( 133,775,322 )

Treasury stock, at cost, 33,333 shares

( 128,053,106 )

Treasury stock, at cost, 33,333 shares

Total Milestone Scientific, Inc.

stockholders’ equity

5,832,700 8,012,512

Total liabilities and stockholders’ equity

$ 9,797,072 $ 11,371,512

See notes to Consolidated Financial Statements

MILESTONE SCIENTIFIC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

YEARS ENDED DECEMBER 31,

notes to Consolidated Financial Statements

SCIENTIFIC AND SUBSIDIARIES

STATEMENTS OF OPERATIONS

ENDED DECEMBER 31,

Product sales, net

$ 8,629,928 $ 9,827,444

Cost of products sold

2,195,340 3,034,832

6,434,588 6,792,612

Selling, general and administrative expenses

12,295,330 13,135,796

Research and development expenses

858,767 701,378

Depreciation and amortization expense

37,448 61,912

Total operating expenses

13,191,545 13,899,086

Loss from operations

( 5,696,617 )

Interest income

( 6,756,957 )

Interest (expense) income, net

Gain on sale of net operating losses

2 unchanged sentences

( 4,713,597 )

Net loss attributable to noncontrolling interests

Net loss attributable to Milestone Scientific Inc.

Provision for income taxes

$ ( 5,722,216 )

$ ( 4,713,597 )

Net loss per share applicable to common stockholders—

Basic and Diluted

( 0.06 ) ( 0.10 )

Weighted average shares outstanding and to be issued—

Basic and diluted

79,791,188 72,775,781

See notes to Consolidated Financial Statements

MILESTONE SCIENTIFIC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

YEARS ENDED DECEMBER 31 2024 AND 2023

Common Stock Shares

Common Stock Amount

Additional Paid in Capital

Accumulated Deficit

Noncontrolling Interest

Treasury Stock

Total Stockholder Equity

Balance at January 1, 2023

69,306,497 $ 69,306 $ 127,478,325 $ ( 116,410,405 ) $ ( 219,276 ) $ ( 911,516 ) $ 10,006,434

Stock based compensation

- - 1,467,425 - - - 1,467,425

Common stock issued in public offering net of issuance cost of $ 431,849

4,765,000 4,765 2,565,336 - - - 2,570,101

Common stock issued for payment of consulting services

1,051,660 1,051 744,948 - - - 745,999

Common stock to be issued to employees for compensation

- - 417,500 - - - 417,500

Common stock issued to board of directors for services

758,683 759 ( 759 ) - - - -

Repurchase of noncontrolling interest

- - ( 485,119 ) - 271,119 - ( 214,000 )

notes to Consolidated Financial Statements

SCIENTIFIC AND SUBSIDIARIES

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

ENDED DECEMBER 31 2025 AND 2024

Paid in Capital

Noncontrolling

Stockholders’ Equity

at January 1, 2024

$ 132,187,656

Balance at December 31, 2023

$ ( 123,339,509 )

Stock based compensation

$ ( 911,516 )

Common Stock issued in public offering

based compensation

Stock issued in public offering

Stock issued exercised warrants

stock issued for payment of consulting services

stock to be issued to employees for bonuses

stock issued to board of directors for services

stock issued to employees

stock to be issued for payment of consulting services

stock to be issued to employees for compensation

( 4,713,597 )

Common Stock issued exercised warrants

( 4,713,597 )

Common stock issued for payment of consulting services

at December 31,2024

$ 134,719,274

Common stock issued to employees for bonuses

$ ( 128,053,106 )

Common stock issued to board of directors for services

$ ( 911,516 )

Restricted stock issued to employees

based compensation

stock issued for payment of consulting services

stock issued to board of directors or services

stock to be issued to employees for compensation

stock to be issued to consultants for compensation

( 5,722,216 )

Common stock to be issued for payment of consulting services

( 5,722,216 )

Common stock to be issued to employees for compensation

at December 31,2025

$ 137,418,974

$ ( 133,775,322 )

Balance at December 31, 2024

$ ( 911,516 )

See notes to Consolidated Financial Statements

MILESTONE SCIENTIFIC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31,

notes to Consolidated Financial Statements

SCIENTIFIC AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS

ENDED DECEMBER 31,

Cash flows from operating activities:

$ ( 5,722,216 )

$ ( 4,713,597 )

Adjustments to reconcile net loss to net cash used in operating activities:

1 unchanged sentence

Amortization of intangibles

30,232 49,320

Stock based compensation

1,345,125 1,467,426

Inventory reserve

Bad debt expense

Employees paid in stock

364,953 417,500

Expense paid in stock

579,801 745,999

Unrealized gain on marketable securities

Bad debt expense

Amortization of right-of-use asset

97,393 88,450

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable

( 162,712 ) 356,188

(Increase) in accounts receivable

Increase in accounts receivable, related parties

Increase in inventories

( 1,075,029 )

Decrease (increase) in advances on contracts

96,288 ( 46,246 )

Increase in prepaid expenses and other current assets

( 46,860 ) ( 73,912 )

Increase (decrease) in accounts payable

331,789 ( 413,125 )

Increase (decrease) in accounts payable, related party

82,801 ( 392,981 )

Increase in accrued expenses

70,610 386,882

Increase (decrease) in accrued expenses, related party

167,104 ( 30,361 )

(Increase ) decrease in advances on contracts

Decrease (increase) in prepaid expenses and other current assets

Increase in accounts payable

Increase in accounts payable, related party

(Decrease) increase in accrued expenses

(Decrease) increase in accrued expenses, related party

Decrease operating right of use lease asset

( 94,991 ) ( 83,054 )

Net cash used in operating activities

$ ( 2,916,627 )

$ ( 2,919,875 )

Cash flows from investing activities:

Purchase of furniture, fixtures, and equipment

( 10,124 ) ( 4,881 )

Sale of marketable securities

2,976,573 4,966,213

Purchase of marketable securities

- ( 7,933,504 )

Net cash provided by (used in) investing activities

$ 2,966,449 $ ( 2,972,172 )

Net cash (used in) provided by investing activities

Cash flows from financing activities:

Net proceeds from public placement offering

192,156 2,570,101

Proceeds from issuance of convertible notes, related parties

Net Proceeds exercise of warrants

Payments finance lease obligations

( 10,136 ) ( 9,366 )

Net cash provided by financing activities

$ 233,771 $ 2,560,735

Net increase (decrease) in cash and cash equivalents

1 unchanged sentence

Cash and cash equivalents at beginning of period

2,977,713 8,715,279

Cash and cash equivalents at end of period

$ 3,258,058 $ 2,977,713

Supplemental non-cash disclosure of cash flow information:

Declared repurchase of noncontrolling interest

Initial recognition of finance lease-right of use asset

Initial recognition of finance lease-right of use liabilities

See notes to Consolidated Financial Statements

MILESTONE SCIENTIFIC INC.

notes to Consolidated Financial Statements

NOTE A — ORGANIZATION AND BUSINESS

All references in this report to “Milestone Scientific,” “us,” “our,” “we,” the “Company” or “Milestone” refer to Milestone Scientific Inc., and its consolidated subsidiaries, Wand Dental, Inc., and Milestone Innovations Inc.

SCIENTIFIC INC.

TO CONSOLIDATED FINANCIAL STATEMENTS

A — ORGANIZATION AND BUSINESS

references in this report to “Milestone Scientific,” “us,” “our,” “we,” the “Company”

or “Milestone” refer to Milestone Scientific Inc., and its consolidated subsidiaries, Wand Dental, Inc., and Milestone Innovations

and Milestone Education LLC (all described below), unless the context otherwise indicates.

Milestone Scientific is the owner of the following registered U.S.

Milestone Scientific is the owner of

the following registered U.S.

C ompuDent ® ;

DPS Dynamic Pressure Sensing technology ® ;

DPS Dynamic Pressure

Sensing technology ® ;

Milestone Scientific ® ;

1 unchanged sentence

SafetyWand ® ;

STA Single Tooth Anesthesia System ® ;

Tooth Anesthesia System ® ;

and The Wand ® .

Milestone Scientific was incorporated in the State of Delaware in August 1989.

Milestone Scientific has developed a proprietary, computer-controlled anesthetic delivery device, using The Wand ®, a single use disposable handpiece.

The device is marketed in dentistry under the trademark CompuDent ® , and STA Single Tooth Anesthesia System ® and in medicine under the trademark CompuMed ® .

CompuDent ® is suitable for all dental procedures that require local anesthetic.

CompuMed ® is suitable for many medical procedures regularly performed in plastic surgery, hair restoration surgery, podiatry, colorectal surgery, dermatology, orthopedics, and many other disciplines.

Scientific was incorporated in the State of Delaware in August 1989.

Milestone Scientific has developed a proprietary, computer-controlled

delivery device, using The Wand ®, a single-use disposable handpiece.

The device is marketed in dentistry under the trademark

CompuDent ® , and STA Single Tooth Anesthesia System ®, and in medicine under the trademark CompuMed ® .

CompuDent ® is suitable for all dental procedures that require a local anesthetic.

CompuMed ® is suitable for many medical

procedures regularly performed in plastic surgery, hair restoration surgery, podiatry, colorectal surgery, dermatology, orthopedics,

and many other disciplines.

The dental devices are sold in the United States, Canada and in 33 other countries.

Certain medical devices have obtained CE mark approval and can be marketed and sold in most European countries.

In June 2017, Milestone Scientific received 510 (k) marketing clearance from the U.S.

Food and Drug Administration (FDA) on the CompuFlo ® Epidural Computer Controlled Anesthesia System (“Epidural”).

NOTE B--GOING CONCERN AND LIQUIDITY

Our financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company on a going concern basis.

The going concern basis assumes that assets are realized, and liabilities are extinguished in the ordinary course of business at amounts disclosed in the financial statements.

The Company has incurred total losses since inception of $ 128.1 million.

The Company’s operating losses were $ 6.8 million and $ 7.1 million, for the years ended December 31, 2024, and 2023, respectively .

On December 31, 2024, Milestone Scientific had cash and cash equivalents of approximately $ 3.3 million and working capital of approximately $ 5.5 million.

For the years ended December 31, 2024 and 2023, we had cash flows used in operating activities of approximately $ 2.9 million and $ 5.3 million, respectively.

These conditions raise substantial doubt about the company ability to continue as a going concern.

Management has developed and is implementing plans to increase revenues and decrease professional and consulting fees over the next twelve months.

The Company has also decided to delay all research and development on the Single Tooth Anesthesia System next generation instrument.

The Company believes that the existing cash and cash equivalents along with management plans, and the $ 800,000 in related party note financing received in April 2025 ( See Note P) will be sufficient to enable the Company to fund operations for the twelve months from the issuance of these financial statements and alleviates substantial doubt about the Company’s ability to continue as a going concern.

The Company is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business worldwide, the generation of revenue from its medical devices and disposables business in the United States and worldwide, and a reduction in operating expenses.

However, the Company’s continued operations will depend on its ability to raise additional capital through various potential sources until it achieves profitability, if ever.

NOTE C — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Certain medical devices

have obtained CE mark approval and can be marketed and sold in most European countries.

In June 2017, Milestone Scientific received

510 (k) marketing clearance from the U.S.

Food and Drug Administration (FDA) on the CompuFlo ® Epidural Computer Controlled

Anesthesia System (“Epidural”).

B— GOING CONCERN AND LIQUIDITY

financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of

the Company on a going concern basis.

The going concern basis assumes that assets are realized, and liabilities are extinguished in the

ordinary course of business at amounts disclosed in the financial statements.

Company has incurred total losses since its inception of $ 133.8 million.

The Company’s operating losses were $ 5.7 million and $ 6.8

million, for the years ended December 31, 2025 and 2024 , respectively.

On December 31, 2025, Milestone Scientific had

cash and cash equivalents of approximately $ 1.1 million and working capital of approximately $ 3.3 million.

For the years ended December

31, 2025 and 2024, we had cash flows used in operating activities of approximately $ 2.9 million respectively.

These conditions raise

substantial doubt about the company’s ability to continue as a going concern.

Company is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its

dental business worldwide, the generation of revenue from its medical devices and disposables business in the United States and worldwide,

and a reduction in operating expenses.

However, the Company’s continued operations will depend on its ability to raise additional

capital through various potential sources until it achieves profitability, if ever.

C — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), and the applicable rules and regulations of the Securities and Exchange Commission (SEC) include the accounts of Milestone Scientific and its wholly owned and majority owned subsidiaries, including, Wand Dental (wholly owned), and Milestone Innovations Inc.

accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the

United States (“GAAP”), and the applicable rules and regulations of the Securities and Exchange Commission (SEC) include

the accounts of Milestone Scientific and its wholly owned and majority owned subsidiaries, including, Wand Dental (wholly owned), and

Milestone Innovations Inc.

(wholly owned).

All significant, intra-entity transactions and balances have been eliminated in the consolidation.

Ownership interests in consolidated entities that are held by entities other than us are reported as noncontrolling interests in our consolidated balance sheets.

Losses attributed to noncontrolling interests are reported separately in our consolidated statements of operations.

During the year ended December 31, 2023, the Board of Directors of the Company approved the merger of Milestone Medical, Inc., a 98% -owned subsidiary of the Company (“MMD”), with and into Milestone Innovation, Inc, a newly form wholly-owned subsidiary of the Company and being the surviving corporation .

As a result, all of the assets of MMD automatically became assets of Milestone Innovations, Inc.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.

The most significant estimates relate to inventory valuation and cash flow assumptions regarding evaluations of going concern considerations.

The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances.

On 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.

preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions in determining

the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported

amounts of revenues and expenses during the reporting period.

The most significant estimates relate to inventory valuation and cash flow

assumptions regarding evaluations of going concern considerations.

The Company bases its estimates on historical experience, known trends

and other market-specific or relevant factors that it believes to be reasonable under the circumstances.

On 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

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 perform revenue recognition, the Company performs the following five steps:

identification of the promised goods or services in the contract;

determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract;

measurement of the transaction price, including the constraint on variable consideration;

allocation of the transaction price to the performance obligations based on estimated selling prices;

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.

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 normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period.

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.

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 perform revenue recognition, the Company performs the

following five steps:

identification

of the promised goods or services in the contract;

determination

of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract;

of the transaction price, including the constraint on variable consideration;

of the transaction price to the performance obligations based on estimated selling prices;

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.

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.

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 normal commercial

warranty against manufacturing defects if the alleged defective unit is returned within the warranty period.

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 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 and 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.

of delivery is charged to the customer along with appropriate sales tax.

The Company recognizes revenue from product sales at the time

the product ships to a customer via a third party carrier.

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 and 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 via a third -party.

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

via 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:

Disaggregation

Company operates in two operating segments:

Dental, and Medical.

The Company evaluates each of two segments based on performance, using segment financial information compiled utilizing the accounting policies listed in Note B of this Form 10 -K.

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 K for revenues by geographical market, based on the customer’s location, and product category for the years ended December 31, 2024 and 2023 respectively.

The Company evaluates each of two segments based on performance, using

segment financial information compiled utilizing the accounting policies listed in Note C of this Form 10 -K.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

See Note L for revenues by geographical market, based on the customer’s location, and product category for the years

ended December 31, 2025 and 2024 respectively.

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 December 31, 2024 and 2023 Milestone Scientific has approximately $ 3.3 million and $ 3.0 million, respectively, in cash.

As of December 31, 2024 and, 2023 Milestone Scientific had cash that exceeded the Federal Deposit Insurance Corporation insurance limit of $250,000.

Marketable Securities

The Company’s marketable securities are comprised of treasury bills with an original maturity greater than three months from date of purchase.

The Company’s marketable securities are measured at fair value and are accounted for in accordance with Accounting Standards Codification (“ASC”) 825, “Financial Instruments – Overall”.

Unrealized holding gains and losses on treasury bills are recorded in interest income on the consolidated statements of operations.

Dividend and interest income are recognized when earned.

Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of the marketable securities.

The appropriate classification of marketable securities is determined at the time of purchase and evaluated as of each reporting balance sheet date.

Investments in marketable debt and equity securities classified as available-for-sale are reported at fair value.

Fair value is determined using quoted market prices in active markets for identical assets or liabilities or quoted prices for similar assets or liabilities or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Declines in the fair values of equity securities that are considered other-than-temporary, are charged to other income (expense), net.

The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost.

As of December 31, 2023 the Company held approximately $ 3.0 million in U.S.

treasury securities, with maturity dates within 3 and 6 months.

The Company did not own any marketable securities as of December 31, 2024.

Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash

As of December 31, 2025 and 2024 Milestone Scientific has approximately $ 1.1

million and $ 3.3

million, respectively, in cash.

As of December 31, 2025 and, 2024 Milestone Scientific had cash that exce eded

the Federal Deposit Insurance Corporation insurance limit of $ 250,000 .

Accounts Receivable

Milestone Scientific sells a significant amount of its product on credit terms to its major distributors.

Milestone Scientific estimates losses from the ability or inability of its customers to make payments on amounts billed.

Most credit sales are due within 90 days from invoicing.

Scientific sells a significant amount of its product on credit terms to its major distributors.

Milestone Scientific estimates losses

from the ability or inability of its customers to make payments on amounts billed.

Most credit sales are due within 90 days from

There have not been any significant credit losses incurred to date.

As of December 31, 2024 and 2023, accounts receivable was recorded, net of allowance for doubtful accounts of $ 10,000 .

Inventories principally consist of finished goods and component parts stated at the lower of cost ( first -in, first -out method) or net realizable value.

Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess, slow moving, defective, and obsolete inventory is recorded if required based on past and expected future sales, potential technological obsolescence, and product expiration requirements.

The valuation allowance creates a new cost basis for the inventory, and it is not subsequently marked up through a reduction in the valuation allowance based on any changes in the underlying facts and circumstances.

When the valuation allowance is initially recorded, the increase to the allowance is recognized as an increase in cost of sales.

The valuation allowance is only reduced if or when the underlying inventory is sold or destroyed, at which time cost of sales recognized would include the previous adjusted cost basis.

As of December 31, 2025 and 2024,

accounts receivable was recorded, net of allowance for doubtful accounts of $ 10,000 .

principally consist of finished goods and component parts stated at the lower of cost ( first -in, first -out method) or net

realizable value.

Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess, slow moving, defective,

and obsolete inventory is recorded if required based on past and expected future sales, potential technological obsolescence, and product

expiration requirements.

valuation allowance creates a new cost basis for the inventory, and it is not subsequently marked up through a reduction in the

valuation allowance based on any changes in the underlying facts and circumstances.

When the valuation allowance is initially recorded,

the increase to the allowance is recognized as an increase in cost of sales.

The valuation allowance is only reduced if or when the underlying

inventory is sold or destroyed, at which time cost of sales recognized would include the previous adjusted cost basis.

Furniture, Fixture and Equipment

Equipment is recorded at cost, less accumulated depreciation.

Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, which range from three to seven years.

The costs of maintenance and repairs are charged to operations as incurred.

is recorded at cost, less accumulated depreciation.

Depreciation expense is computed using the straight-line method over the estimated

useful lives of the assets, which range from 3 three

The costs of maintenance and repairs are

charged to operations as incurred.

Intangible Assets - Patents and Developed Technology

Patents are recorded at cost to prepare and file the applicable documents with the United States Patent Office, or internationally with the applicable governmental office in the respective country.

The costs related to these patents are being amortized using the straight-line method over the estimated useful life of the patent.

Patents and other developed technology acquired from another business entity are recorded at acquisition cost and be amortized at the estimated useful life.

are recorded at cost to prepare and file the applicable documents with the United States Patent Office, or internationally with the applicable

governmental office in the respective country.

The costs related to these patents are being amortized using the straight-line method

over the estimated useful life of the patent.

Patents and other developed technology acquired from another business entity are recorded

at acquisition cost and be amortized at the estimated useful life.

Patent defense costs, to the extent applicable, are expensed as incurred.

Impairment of Long-Lived Assets

Long-lived assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

The Company’s impairment review process is based upon an estimate of future undiscounted cash flow.

assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an

asset may not be recoverable.

The Company’s impairment review process is based upon an estimate of future undiscounted cash

Factors the Company considers that could trigger an impairment review include the following:

significant under performance relative to expected historical or projected future operating results;

significant changes in the manner of our use of the acquired assets or the strategy for our overall business;

significant negative industry or economic trends;

significant technological changes, which would render the technology obsolete.

Recoverability of assets that will continue to be used in the Company's operations is measured by comparing the carrying value to the future net undiscounted cash flows expected to be generated by the asset or asset group.

Future undiscounted cash flows include estimates of future revenues, driven by market growth rates, and estimated future costs.

under performance relative to expected historical or projected future operating results;

changes in the manner of our use of the acquired assets or the strategy for our overall business;

negative industry or economic trends;

technological changes, which would render the technology obsolete.

Recoverability

of assets that will continue to be used in the Company’s operations is measured by comparing the carrying value to the future net

undiscounted cash flows expected to be generated by the asset or asset group.

Future undiscounted cash flows include estimates of future

revenues, driven by market growth rates, and estimated future costs.

Research and Development

Research and development costs, which consist principally of new product development costs payable to third parties, are expensed as incurred.

Milestone Scientific accounts for income taxes under the asset and liability method which requires deferred tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.

and development costs, which consist principally of new product development costs payable to third parties, are expensed as incurred.

Scientific accounts for income taxes under the asset and liability method which requires deferred tax assets and liabilities to be computed

for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible

amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable

Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

At December 31, 2024 and 2023, we had no uncertain tax positions that required recognition in the consolidated financial statements.

Milestone Scientific's policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations.

December 31, 2025 and 2024, we had no uncertain tax positions that required recognition in the consolidated financial statements.

Scientific’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements

of Operations.

No interest and penalties are present for periods open.

Tax returns for the 2021, 2022, and 2023 years are subject to audit by federal and state jurisdictions.

In April 2024, we received approximately $ 2.0 million, net of expenses, from the sale of New Jersey net operating losses (“NOL”), that were eligible for sale under the State of New Jersey’s Economic Development Authority’s New Jersey Technology Business Tax Certificate Transfer Program (”NJEDA Program”).

The Company recorded this amount within Gain on sale of net operating losses within the consolidated statement of operations.

Pursuant to the NJEDA program, the Company must retain a physical presence in the state of New Jersey for a period of 5 years after the sale of the of the NOLs.

If the Company does not retain a physical presence during the 5 years after the sale of the NOLs, the Company can be liable to pay the state of New Jersey up to $ 2.2 million of the surrendered NOLs.

April 2024, we received approximately $ 2.0 million, net of expenses, from the sale of New Jersey net operating losses (“NOL”),

that were eligible for sale under the State of New Jersey’s Economic Development Authority’s New Jersey Technology Business

Tax Certificate Transfer Program (“NJEDA Program”).

The Company recorded this amount within Gain on sale of net operating

losses within the consolidated statement of operations.

to the NJEDA program, the Company must retain a physical presence in the state of New Jersey for a period of 5 years after the sale of

the of the NOLs.

If the Company does not retain a physical presence during the 5 years after the sale of the NOLs, the

Company can be liable to pay the state of New Jersey up to $ 2.2 million of the surrendered NOLs.

Basic and Diluted Net Loss Per Common Share

Milestone Scientific presents “basic” loss per common share applicable to common stockholders and, if applicable, “diluted” loss per common share applicable to common stockholders pursuant to the provisions of ASC 260, “Earnings per Share”.

Basic loss per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued common shares of 79,791,188 and 72,775,781 during the years ended December 31, 2024 and 2023, respectively.

The calculation of diluted earnings per common share is like that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options and warrants were issued during the period.

Since Milestone Scientific had net losses in the years ended December 31, 2024 and 2023, the assumed effects of the exercise of potentially dilutive outstanding stock options, unissued restricted stock awards (“RSA”) and warrants, were not included in the calculation as their effect would have been anti-dilutive.

Such outstanding options, RSA and warrants 3,417,154 and 3,771,151 on December 31, 2024 and 2023, respectively.

Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market at the measurement date (exit price).

The Company required us to classify fair value measurements in one of the following categories.

Level 1 inputs which are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2 inputs which are defined as inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.

Level 3 inputs are defined as unobservable inputs for the assets or liabilities.

Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement.

Our assessment of the significance of an input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

As of December 31, 2023, the Company has the following assets that were measured at fair value on a recurring basis.

Marketable Securities December 31, 2023

2,976,573 - - 2,976,573

Marketable Securities included US Treasury securities totaling $ 2,976,573 that are considered to be highly liquid and easily transferable at December 31, 2023.

US Treasury securities are valued using inputs observable in active markets for identical securities and are therefore classified at Level 1 within the Company fair value hierarchy.

The Company had no assets or liabilities that were measured at fair value on a recurring basis as of December 31, 2024.

Scientific presents “basic” loss per common share applicable to common stockholders and, if applicable, “diluted”

loss per common share applicable to common stockholders pursuant to the provisions of ASC 260, “Earnings per Share”.

Basic loss per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number

of common shares outstanding and to be issued common shares of 82,064,109 and 79,791,188 during the years ended December 31, 2025 and

2024, respectively.

The calculation of diluted earnings per common share is like that of basic earnings per common share, except that

the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive

common shares, such as those issuable upon the exercise of stock options and warrants were issued during the period.

Milestone Scientific had net losses in the years ended December 31, 2025 and 2024, the assumed effects of the exercise of potentially

dilutive outstanding stock options, unissued restricted stock awards (“RSA”) and warrants, were not included in the

calculation as their effect would have been anti-dilutive.

Such outstanding options, RSA and warrants 7,715,506 and 3,417,154 on December

31, 2025 and 2024, respectively.

Stock-Based Compensation

Milestone Scientific accounts for stock-based compensation under ASC 718, “Share-Based Payment” (“ASC 718” ).

ASC 718 requires all share-based payments to employees, non-employees, directors, and officers, including grants of employee stock options, to be recognized in the consolidated statements of operations over the service period, as an operating expense, based on the grant-date fair values.

Scientific accounts for stock-based compensation under ASC 718, “Share-Based Payment” (“ASC 718” ).

ASC 718 requires all share-based payments to employees, non-employees, directors, and officers, including grants of employee stock

options, to be recognized in the consolidated statements of operations over the service period, as an operating expense, based on the

grant-date fair values.

The Company accounts for forfeitures as they occur.

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) ASC 480, “Distinguishing Liabilities from Equity” (“ASC 480” ) and ASC 815, “Derivatives and Hedging” (“ASC 815” ).

The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, whether they meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification.

This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance.

For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter.

Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

Management concluded that its warrants qualify for equity accounting treatment.

Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s

specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) ASC 480, “Distinguishing

Liabilities from Equity” (“ASC 480” ) and ASC 815, “Derivatives and Hedging” (“ASC 815” ).

assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, whether they meet the definition

of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC

815, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could

potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions

for equity classification.

This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance

and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all

of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance.

For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded

as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter.

Changes in the estimated

fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

Management concluded that its warrants

qualify for equity accounting treatment.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncement

In November 2024, the Financial Accounting Standards Board, “FASB”, issued Accounting Standards Update “ASU” 2024 - 03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220 - 40 ) , to improve the disaggregation of expenses within the consolidated statement of operations.

The amendments in ASU 2024 - 03 require disclosures, in the notes to the consolidated financial statements, specified information about certain costs and expenses.

The amendments require that at each interim and annual reporting period an entity disclose (a) employee compensation, (b) depreciation, and (c) intangible asset amortization included in each relevant expense caption;

include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements;

and disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

The amendments in ASU 2024 - 03 are effective January 1, 2027, and effective for interim periods beginning January 1, 2028.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

The Company will evaluate the impact of ASU 2024 - 03 on its financial statements.

In December 2023, FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures , to enhance the transparency and decision usefulness of income tax disclosures.

The amendments in ASU 2023 - 09 provide improvements primarily related to the rate reconciliation and income taxes paid information included in income tax disclosures.

The Company would be required to disclose additional information regarding reconciling items equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory tax rate.

Similarly, the Company would be required to disclose income taxes paid (net of refunds received) equal to or greater than five percent of total income taxes paid (net of refunds received).

Additionally, the Company would be required to disclose income (loss) from continuing operations before income tax expense disaggregated by foreign and domestic jurisdictions, as well as income tax expense disaggregated by federal, state, and foreign jurisdictions.

The amendments in ASU 2023 - 09 are effective January 1, 2025, including interim periods.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

The Company will evaluate the impact of ASU 2023 - 09 on our financial statements.

Issued Accounting Pronouncement

November 2024, the Financial Accounting Standards Board, “FASB”, issued Accounting Standards Update “ASU” 2024-03,

Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) ,

to improve the disaggregation of expenses within the consolidated statement of operations.

The amendments in ASU 2024-03 require disclosures, in the notes to the consolidated financial statements, specified

information about certain costs and expenses.

The amendments require that at each interim and annual reporting period an entity disclose

(a) employee compensation, (b) depreciation, and (c) intangible asset amortization included in each relevant expense caption;

specific amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure

as the other disaggregation requirements;

and disclose a qualitative description of the amounts remaining in relevant expense captions

that are not separately disaggregated quantitatively.

The amendments in ASU 2024-03 are effective January 1, 2027, and effective for interim

periods beginning January 1, 2028.

Early adoption is permitted for annual financial statements that have not yet been issued or made available

for issuance.

The Company will evaluate the impact of ASU 2024-03 on its consolidated financial statements.

Recently Adopted Accounting Pronouncement

In November 2023, FASB issued ASU 2023 - 07, Segment Reporting (Topic 280 ), Improvements to Reportable Segment Disclosures , which provides improvements to reportable segment disclosure requirements, primarily through enhanced disclosures around segment expenses.

ASU 2023 - 07 requires us to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss.

ASU 2023 - 07 also requires that the Company disclose an amount for other segment items by reportable segment, a description of their composition and provide all annual disclosures about a reportable segment’s profit or loss and assets pursuant to Topic 280 during interim periods.

The Company must also disclose the CODM’s title and position, as well as certain information around the measures used by the CODM and an explanation of how the CODM 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 ASU 2023 - 07 and all existing segment disclosures under Topic 280.

The amendments of ASU 2023 - 07 are 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 not yet been issued or made available for issuance.

As of January 1, 2024, the Company adopted ASU 2023 - 07 on within consolidated financial statements.

See Note K for more information.

NOTE D — INVENTORIES

December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which focuses on

the rate reconciliation and income taxes paid.

2023-09 requires a public business entity (PBE) to disclose, on an annual

basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain

reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold.

all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign

and by jurisdiction if the amount is at least 5 %

of total income tax payments, net of refunds received.

For PBEs, the new standard is effective for annual periods beginning after

December 15, 2024, with early adoption permitted.

For entities other than PBEs, the requirements will be effective for annual

periods beginning after December 15, 2025.

An entity may apply the amendments in this ASU prospectively by providing the revised

disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods or may

apply the amendments retrospectively by providing the revised disclosures for all period presented.

As of December 31, 2025, the

Company adopted this new ASU prospectively.

The adoption impacts only the Company’s income tax disclosures and has no effect on its

operations, cash flows, or financial condition.

D — INVENTORIES

SCHEDULE OF INVENTORIES

December 31, 2025

1 unchanged sentence

Dental finished goods

$ 3,640,391 $ 2,404,970

Medical finished goods

Inventories finished goods

Component parts and other materials

72,824 218,486

Total inventories

$ 3,713,215 $ 2,638,186

The Company has recorded an allowance on slow moving Medical finished goods due to the slow adoption of the epidural instruments and handpieces for approximately zero and $ 258,000 as of December 31, 2024 and 2023, respectively.

NOTE E — ADVANCES ON CONTRACTS

The advances on contracts represent funding of future dental STA "Single Tooth Anesthesia System" and epidural inventory purchases and epidural replacements parts.

The balance of the advances as of December 31, 2024 and 2023 was approximately $ 1.3 million and $ 1.4 million respectively .

NOTE F — FURNITURE, FIXTURES AND EQUIPMENT

E — ADVANCES ON CONTRACTS

advances on contracts represent funding of future dental STA “Single Tooth Anesthesia System” and epidural inventory purchases

and epidural replacements parts.

The balance of the advances as of December 31, 2025 and 2024 was approximately $ 1.4

million and $ 1.3

million respectively.

F — FURNITURE, FIXTURES AND EQUIPMENT

SCHEDULE OF FURNITURE AND EQUIPMENT

December 31, 2025

1 unchanged sentence

Leasehold improvements

$ 24,734 $ 24,734

Office furniture and equipment

178,700 181,745

Trade show displays

151,464 151,462

Computers and software

294,416 281,256

Tooling Safety Wand

125,022 125,022

Tooling equipment-STA & Wand

11,100 11,100

EPI and IA Instruments

82,363 82,363

STA Trials Instruments

63,752 63,752

938,751 928,634

Less accumulated depreciation

( 925,830 ) ( 918,610 )

$ 12,921 $ 10,024

Depreciation expense was $ 7,218 and $ 12,999 for the year ended December 31, 2024, and 2023, respectively.

NOTE G — INTANGIBLES, NET

expense was $ 8,853 and $ 7,218 for the year ended December 31, 2025 and 2024, respectively.

G — INTANGIBLES, NET

OF FINITE-LIVED INTANGIBLE ASSETS

December 31, 2025

1 unchanged sentence

Patents-foundation intellectual property at cost

$ 1,377,863 $ 1,377,863

Accumulated Amortization

1 unchanged sentence

( 1,229,459 )

Patents are amortized utilizing the straight-line method over estimated useful lives ranging from 3 to 20 years.

Amortization expense was approximately $ 30,000 and $ 49,000 for the years ended December 31, 2024 and 2023, respectively .

The annual amortization expense expected to be recorded for existing intangibles assets for the years 2025 through 2027 is approximately $ 69,000 , $ 62,000 and $ 17,000 , respectively.

NOTE H — STOCKHOLDERS ’ EQUITY

PUBLIC OFFERING

On December 10, 2023, the Company completed a public offering for sale of 4,765,000 common stock, at $ 0.63 per share which generated net proceeds of approximately $ 2.6 million.

In addition, the Company granted the Underwriter a 45 -day option to purchase up to an additional 714,750 shares of Common Stock at the same price to cover over-allotments.

On January 12, 2024 the underwriter exercised its over-allotment option as to 372,110 shares of common stock for net proceeds after discounts and commission of $ 192,156 .

NONCONTROLLING INTEREST

During December 2023, the Board of Directors of the Company approved a resolution to merge Milestone Medical, Inc.

with and into a newly created, wholly owned subsidiary, Milestone Innovations, Inc., a Delaware corporation, with Milestone Innovations, Inc.

as the surviving entity.

As a result of such merger, the public stockholders are entitled to receive for their shares traded on the Warsaw Stock Exchange an aggregate of approximately $ 205,000 , and Milestone Medical, Inc.

has been de-listed, no longer requiring reports and other filings in Poland.

The Company accounted for the transaction as a transfer between entities under common control pursuant to ASC 805, Business Combinations ("ASC 805" ).

Due to the nature of the transaction, the Company did not remeasure the transferred assets at fair value but recorded them at their carrying basis at the time of transfer pursuant to ASC 805.

As the Company acquired an additional interest in Milestone Medical, the Company accounted for the transaction as a capital transaction pursuant to ASC 810, Consolidation , as the Company retained control of both Milestone Medical, Inc.

and Milestone, Innovations, Inc prior to and subsequent to the transaction.

As of December 31, 2023, the Company recorded a liability due to the minority shareholder of Milestone Medical for $ 214,000 .

During the year ended December 31, 2023, the Company recorded a charge to additional paid in capital of approximately $ 485,000 which includes the reclassification of accumulated deficit attributed to the non-controlling interest on the date.

Subsequent to December 31, 2023, the Company satisfied its liabilities to the non-controlling shareholders.

The following table summarizes information about shares issuable under warrants outstanding on December 31, 2024:

are amortized utilizing the straight-line method over estimated useful lives ranging from 3

Amortization expense was approximately $ 69,000 and $ 30,000

for the years ended December 31, 2025 and 2024, respectively.

The annual amortization expense expected to be recorded for existing intangibles assets for the years 2026 through 2027 is

approximately $ 62,000 ,

respectively.

H — CONVERTIBLE NOTE RELATED PARTY

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 in cash

and/or shares of common stock at the sole discretion of the Company.

Notes are convertible into shares of common stock by the holder at any time and by the Company at maturity.

If the Company sells

equity securities for gross proceeds in excess of $ 4,000,000 ,

the holders may request repayment of their note in either cash, shares of common stock or a combination of cash and shares;

provided, that the holders would then be entitled to receive only so much cash as the net proceeds to the Company in such sale of

equity securities, after payment of other indebtedness and other uses (other than working capital) specified as a use of the

proceeds in the relevant offering or disclosure documentation, shall be in excess of $ 4,000,000 .

Upon a liquidation event of the Company, as defined in the Notes which includes a sale of the Company or assets, a merger,

reorganization or combination transaction where the shareholders before the transaction own less than 50 %

of the Company after the transaction and a liquidation, dissolution or winding-up of the Company, the Notes will be repaid in cash

or its portion of any non-cash consideration.

The conversion rate for any issuance of shares of common stock will be at the then

fair value of a share of common stock, with the fair value being determined with reference to the public market price of a share of

common stock based on the average of the 15 most recent trading days, but not less than $ 0.50 .

The Notes are unsecured and have typical default terms.

As of December 31, 2025, the Notes were convertible into 1,600,000

shares of common stock based on the floor of $ 0.50

As of December 31, 2025 the Company recognized approximately $ 29,200

of interest expenses related to convertible note related party respectively.

I — STOCKHOLDERS ’ EQUITY

December 2025 at the annual shareholder meeting the Company received approval to increase its authorized shares of common stock from

100,000,000 to 125,000,000 .

December 10, 2023, the Company completed a public offering for sale of 4,765,000

common stock, at $ 0.63

per share which generated net proceeds of approximately $ 2.6

In addition, the Company granted the Underwriter a

45-day option to purchase up to an additional 714,750

shares of Common Stock at the same price to cover over-allotments.

January 12, 2024 the underwriter exercised its over-allotment option as to 372,110

shares of common stock for net proceeds after discounts and

commission of $ 192,156 .

following table summarizes information about shares issuable under warrants outstanding on December 31, 2024:

OF INFORMATION ABOUT SHARES ISSUABLE UNDER WARRANTS OUTSTANDING

Warrant shares outstanding

Weighted Average exercise price $

Weighted Average exercise

Weighted Average remaining life

Intrinsic value $

Outstanding at January 1, 2024

314,572 0.50 0.10 $ 59,737

( 103,500 ) 0.50 - -

Expired or cancelled

( 211,072 ) 0.50 - -

Outstanding and exercisable at December 31, 2024

During the year ended December 31, 2024, the Company issued 103,500 shares of common stock for warrants issued in 2019.

The warrants were exercised at $ 0.50 for proceeds of $ 51,751 .

SHARES TO BE ISSUED

As of December 31, 2024 and 2023, there were 2,761,225 and 2,571,292 , respectively shares to be issued whose issuance has been deferred under the terms of an employment agreements with Executive Officer, and other employees of Milestone Scientific.

Such shares will be issued to each party upon termination of their employment.

As of December 31, 2024 and 2023, there were 631,792 and 527,625 respectively shares to be issued to non-employees, that will be issued to non-employees for services rendered.

The number of shares was fixed at the date of grant and were fully vested upon grant date.

The following table summarizes information about shares to be issued through December 31, 2024 and 2023.

the year ended December 31, 2024, the Company issued 103,500

shares of common stock for warrants issued in 2019.

The warrants were exercised at $ 0.50

for proceeds of $ 51,751 .

There were no warrants issued or exercised in 2025.

of December 31, 2025 and 2024, there were 3,447,241 and 2,761,225 ,

respectively shares to be issued whose issuance has been deferred under the terms of employment and consulting agreements with officers and directors, and other

employees of Milestone Scientific.

Such shares will

be issued to each party upon termination of their employment or other relationship with the Company.

of December 31, 2025 and 2024, there were 1,002,162 and 631,792 respectively

shares to be issued to non-employees, that will be issued to non-employees for services rendered.

The number of shares was fixed by

contract prior to the date of grant, subject to performance, and were fully earned upon the grant date.

at the date of grant and

were fully vested upon grant date.

following table summarizes information about shares to be issued through December 31, 2025 and 2024.

OF SHARES TO BE ISSUED

December 31, 2025

1 unchanged sentence

Shares-to-be-issued, outstanding January 1, 2025 and 2024, respectively

3,098,917 2,440,673

Shares-to-be-issued, outstanding beginning balance

Granted in current period

647,202 658,244

Issued in current period

( 353,102 ) -

Shares-to be issued outstanding December 31, 2025 and 2024, respectively

3,393,017 3,098,917

NOTE I — STOCK OPTION PLANS

The Milestone Scientific Inc., Amended and Restated 2020 Equity Incentive Plan, provides for awards of restricted common, stock restricted stock units, options to purchase and other awards.

On June 28, 2023 the plan was amended and restated (the "2020 Plan") to increase the maximum shares that can be issued thereunder to 11,500,000 shares of common stock.

Shares-to be issued outstanding ending balance

J — STOCK OPTION PLANS

Milestone Scientific Inc., Amended and Restated 2020 Equity Incentive Plan, provides for awards of restricted common, stock restricted

stock units, options to purchase and other awards.

On June 28, 2023 the plan was amended and restated (the “2020

Plan”) to increase the maximum shares that can be issued thereunder to 11,500,000

shares of common stock.

The plan expires in June 2031.

Generally, options become exercisable over a three -year period from the grant date and expire five years after the date of grant.

As of December 31, 2024 and 2023, the Company had 7,579,778 and 9,174,520 , respectively, remaining options available for grants under the Plan.

Milestone Scientific recognizes compensation expenses over the requisite service period and in the case of performance-based options over the period of the expected performance.

For the years ended December 31, 2024 and 2023, Milestone Scientific recognized approximately $ 0.7 million and $ 0.9 million of total employee compensation cost, respectively, recorded in general and administrative expenses on the statement of operations.

As of December 31, 2024, there was $ 0.9 million of total unrecognized compensation cost related to non-vested options.

Milestone Scientific expects to recognize these costs over a weighted average period of 1.3 years.

A summary of option activity for employees under the plans and changes the year ended December 31, 2024 is presented below:

may be granted to employees, directors, and consultants of Milestone Scientific for the purchase of shares of common stock at

a price not less than the fair market value of common stock on the date of grant.

Generally, options become exercisable over a

3 three-year period from the grant date and expire five years after the date of grant.

As of December 31, 2025 and 2024,

the Company had 1,021,220 and 7,579,778 , respectively, remaining options available for grants under the Plan.

Scientific recognizes compensation expenses over the requisite service period and in the case of performance-based options over the period

of the expected performance.

summary of option activity for employees under the plans and changes the year ended December 31, 2025 is presented below:

OF STOCK OPTION ACTIVITY

Number of Options

Weighted Averaged Exercise Price $

Weighted Averaged Exercise

Weighted Average Remaining Contractual Life (Years)

1 unchanged sentence

Options outstanding at January 1, 2025

3,036,989 2.29 5.41 -

Granted during 2024

Issued during 2025

Exercised during 2025

Forfeited or expired during 2025

( 85,000 ) - - -

Options outstanding December 31, 2025

2,951,989 2.29 4.54 -

Exercisable, December 31, 2025

2,103,433 2.24 3.96 -

There were no options granted to employees during the year ended December 31, 2024.

A summary of option activity for non-employees under the plans and changes during the year ended December 31, 2024 is presented below:

For the years ended December 31, 2025 and 2024,

the Company recognized approximately $ 0.9 million and $ 0.7 million, respectively, of stock-based compensation expense, which was recorded

in general and administrative expenses in the consolidated statements of operations.

The Company estimated the fair

value of stock option grants on the grant date using the Black-Scholes option pricing model with the following assumptions:

interest rate of 1.75 %, expected volatility of 86.6 % (based on the Company’s historical volatility over the expected term), an expected

term of 5 years, a dividend yield of 0 %, and a stock price ranging from $ 0.45 to $ 0.50 .

As of December 31, 2025, there was approximately $ 1.3 million of total unrecognized stock-based compensation cost

related to non-vested stock options, which is expected to be recognized over a weighted-average period of approximately 2.2 years.

summary of option for non-employees under the plans and changes during the year ended December 31, 2025 is presented

OF STOCK OPTION ACTIVITY

Number of Options

Weighted Averaged Exercise Price $

Weighted Averaged Exercise

Weighted Average Remaining Contractual Life (Years)

Aggregate Intrinsic Options Value $

Options outstanding at January 1, 2024

91,663 1.76 2.25 2,833

Granted during 2024

24,999 0.84 4.71 -

Exercised during 2024

Forfeited or expired during 2024

( 16,666 ) 0.55 - -

Options outstanding December 31, 2024

99,996 1.74 2.12 5,750

Aggregate Intrinsic Options

Outstanding at January 1, 2025

Expired or cancelled

Outstanding and exercisable at December 31, 2025

Exercisable, December 31, 2025

80,551 1.95 1.60 3,389

The fair value of the non-employee options was estimated on the date of grant using the Black Scholes option-pricing model at the date of grant.

For the years ended December 31, 2024 and 2023, Milestone Scientific recognized approximately $ 9,800 and $ 19,700 expense related to non-employee options, respectively.

A summary of restricted stock under the plans and changes during the year ended December 31, 2024 is presented below:

fair value of the non-employee options was estimated on the date of grant using the Black Scholes option-pricing model at the date

For the years ended December 31, 2025 and 2024, Milestone Scientific recognized approximately $ 10,400

expense related to non-employee options, respectively.

The Company used the following assumptions to calculate the fair value of the stock option grants using the Black-Scholes option

pricing model for the year ended December 31, 2025 risk free interest rate of 1 %

Volatility of 85.79 %- 86.29 %

(which is based on the Company’s historical volatility over the expected term), expected term of 5

dividend rate and closing price of the stock of $ 0.93 -$ 0.94 .

summary of restricted stock under the plans and changes during the year ended December 31, 2025 is presented below:

OF RESTRICTED STOCK

Number of Shares

3 unchanged sentences

Non-vested as December 31, 2025

As of December 31, 2024, all restricted shares granted and deferred under the terms of employment agreements with each Territory Manager of Milestone Scientific are fully vested.

Such shares will be issued to each party upon completion of 2 years of employment.

For the years ended December 31, 2024 and 2023, the Company recognized stock compensation expense of approximately $ 0 and $( 15,000 ), respectively.

As of December 31, 2024, there was no unrecognized compensation expense.

As of December 31, 2024, the Company entered into restricted stock agreements with members of the Board of Directors of the Company.

The Company granted 730,340 restricted stock awards with a fair market value of $ 0.89 per share.

Such restricted stock vests as follows:

December 18, 2025, the Company entered into restricted stock agreements with members of its Board of Directors and granted 1,333,444

restricted stock awards with a fair value of $ 0.34 per share.

These awards vested immediately.

For the year ended December 31, 2025 the

Company recognized approximately $ 625,000 for restricted stock expenses recorded in general and administrative expenses on the

statement of operation.

For the year ended December 31, 2025 there was no unrecognized stock compensation expense.

of December 31, 2024, the Company entered into restricted stock agreements with members of the Board of Directors of the Company.

The Company granted 730,340 restricted

stock awards with a fair market value of $ 0.89 per

restricted stock vests as follows:

25% on the grant date in June 2024, and 25% quarterly, on the first day of the following months:

October 2024, January 2025, and April 2025.

2024, January 2025, and April 2025 .

These awards vest immediately upon a change of control as defined in the agreements.

For the year ended December 31, 2024 and 2023, the Company recognized approximately $ 638,000 and $ 576,000 for restricted stock expenses recorded in general and administrative expenses on the statement of operation.

As of December 31, 2024, the total unrecognized stock compensation expense was approximately $ 171,000 related to non-vested restricted stock awards with the members of the Board of Directors, which the Company expects to recognize over an estimated weighted average period of 0.25 years.

NOTE J — INCOME TAXES

Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

At December 31, 2024 and 2023, we had no uncertain tax positions that required recognition in the consolidated financial statements.

Milestone Scientific's policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations.

No Interest and penalties are present for periods open.

Tax returns for the 2021, 2022, and 2023 years are subject to audit by federal and state jurisdictions.

Due to Milestone Scientific's history of operating losses, a full valuation allowances have been provided for all of Milestone Scientific's deferred tax assets.

At December 31, 2024 and 2023, no recognition was given to the utilization of the remaining net operating loss carry forwards in each of these periods.

Deferred tax attributes resulting from differences between financial accounting amounts and tax bases of assets and liabilities at December 31, 2024 and 2023 are as follows (amounts rounded to nearest thousand):

December 31, 2024

December 31, 2023

year ended December 31, 2024 the Company recognized approximately $ 638,000

for restricted stock expenses recorded in general and administrative

expenses on the statement of operation.

K — INCOME TAXES

Milestone Scientific accounts for income taxes under the asset and

liability method which requires deferred tax assets and liabilities to be computed for temporary differences between the financial statement

and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and

rates applicable to the periods in which the differences are expected to affect taxable income.

Valuation allowances are established when

necessary to reduce deferred tax assets to the amount expected to be realized.

At December 31, 2025 and 2024, we had no uncertain tax positions that

required recognition in the consolidated financial statements.

Milestone Scientific’s policy is to recognize interest and penalties on

unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations.

No Interest and penalties are present for

periods open.

The statute of limitations remains open on the Company’s federal tax returns for calendar year 2022 and subsequent

years, and on the Company’s state tax returns for calendar year 2021 and subsequent years.

Due to Milestone Scientific’s history of operating losses, a full valuation

allowances have been provided for all of Milestone Scientific’s deferred tax assets.

At December 31, 2025 and 2024, no recognition was

given to the utilization of the remaining net operating loss carry forwards in each of these periods.

Deferred tax attributes resulting from differences between financial

accounting amounts and tax bases of assets and liabilities at December 31, 2025 and 2024 are as follows:

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

Allowance for Doubtful Accounts

2,000 $ 2,000

Capitalized Sec.

413,000 346,000

Inventory Reserve

253,000 300,000

Deferred Officer’s Compensation

688,000 689,000

Depreciation and Amortization

( 35,000 ) ( 44,000 )

Right of Use Asset

( 72,000 ) ( 86,000 )

Lease Liability

78,000 93,000

Net Operating Loss Carryforwards

15,416,000 19,920,000

Valuation Allowance

( 17,362,000 )

( 17,728,000 )

Non-Current Deferred Tax Asset

of December 31, 2025 and 2024, federal net operating loss carry-forwards are approximately $ 64,100,000

and $ 65,000,000 ,

respectively.

As of December 31, 2025, Milestone Scientific has approximately $ 21,800,000

of net operating losses generated before December 31, 2017

that will be available to offset future income, if any, through December 2037.

Additionally, as of December 31, 2025, Milestone Scientific

has approximately $ 42,400,000

of net operating losses generated in 2018 or after that can

be carried forward indefinitely.

net operating losses were approximately $ 30,500,000

and $ 29,400,000

for the periods ended December 31, 2025 and 2024 , respectively.

As of December 31, 2025, $ 700,000

of the Company’s state net operating losses can be carried

forward indefinitely to offset future income, and the remaining $ 29,800,000

of state net operating losses begin to expire in 2031 .

The utilization of Milestone Scientific’s net operating losses may

be subject to a substantial limitation due to the “change of ownership provisions” under Section 382 of the Internal Revenue

Code and similar state provisions.

Such limitation may result in the expiration of the net operating loss carry forwards before their

Milestone Scientific has established a 100 %

valuation allowance for all of its deferred tax assets due to uncertainty

as to their future realization.

taxable losses for years ended December 31, 2025 and 2024 were generated domestically.

reconciliation of the Company’s statutory tax rate and effective tax rate is as follows December 31, 2025 and 2024:

OF RECONCILIATION OF STATUTORY TAX RATE

Year Ended December 31,

Pretax (Loss)

$ ( 5,722,216 )

Valuation allowance

US Federal Statutory Tax Rate

( 1,201,665 )

Non-current deferred tax asset

As of December 31, 2024 and 2023, federal net operating loss carry-forwards are approximately $ 65,000,000 and $ 74,500,000 , respectively.

As of December 31, 2024, Milestone Scientific has approximately $ 26,000,000 net operating losses generated before December 31, 2017 that will be available to offset future income, if any, through December 2037.

Additionally, as of December 31, 2024, Milestone Scientific has approximately $ 39,000,000 of net operating losses generated in 2018 or after that can be carried forward indefinitely.

State net operating losses were approximately $ 29,400,000 and $ 63,300,000 for the periods ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, $ 600,000 of the Company's state net operating losses can be carried forward indefinitely to offset future income, and the remaining $ 28,800,000 of state net operating losses begin to expire in 2031.

The utilization of Milestone Scientific's net operating losses may be subject to a substantial limitation due to the "change of ownership provisions" under Section 382 of the Internal Revenue Code and similar state provisions.

Such limitation may result in the expiration of the net operating loss carry forwards before their utilization.

Milestone Scientific has established a 100 % valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization.

Accounting for uncertainties in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure, and transition.

No interest and penalties are present for periods open.

Tax returns for the 2021, 2022, and 2023 years are subject to audit by federal and state jurisdictions.

A reconciliation of the statutory tax rates for the years ended December 31, is as follows:

State and Local Income Taxes, net of Fed Benefit

Change in Valuation Allowance

Non- T axable or Non-Deductible

Stock-Based Compensation

Other Permanent Differences

Return to Provision

Other Adjustme nts

Federal NOL Expirations

NOL Expiration

Statutory Rate

21.00 % 21.00 %

State Income Tax - All States

- 55.10 % 0.88 %

Stock Compensation

- 2.51 % 0.58 %

NOL Expiration

- 54.08 % - 5.05 %

Return to Provision

- 1.98 % - 2.21 %

0.00 % 0.03 %

- 92.67 % 15.23 %

Valuation Allowance

92.67 % - 15.23 %

NOTE K — SEGMENT AND GEOGRAPHIC DATA

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer (the “CODM”).

The Company’s effective tax rate includes the effects of state and local income taxes, net of the federal income

tax benefit, which are primarily attributable to California, Florida, Illinois, and New Jersey, where the Company has significant business

These states have higher tax rates compared to other jurisdictions where the Company operates, and together, they account

for more than half of the Company’s total state tax expense.

For the year ended December 31, 2025, the Company paid state and local income taxes of approximately $ 12,000 , net

of refunds received.

No federal or foreign income taxes were paid during 2025.

The following jurisdictions each individually represented

more than 5% of total income taxes paid:

California $ 3,000 , Massachusetts $ 3,000 , New Jersey $ 3,000 , Georgia $ 1,640 , and Texas $ 1,315 .

L — SEGMENT AND GEOGRAPHIC DATA

segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The chief operating

decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified

as the Chief Executive Officer (the “CODM”).

The Company conducts its business through two reportable segments:

Dental and Medical.

These segments offer different products and services to different customer base.

The CODM assesses the financial performance of the segment and decides how to allocate resources based on Product sales, net, and Operating income (loss).

The Company provides general corporate services to its segments;

however, these services are not considered when making operating decisions and assessing segment performance.

These services are reported under “Corporate Services” below and these include costs associated with executive management, investor relations, patents, trademarks, licensing agreements, new instruments developments, financing activities and public company compliance.

The following tables present information about our reportable and operating segments:

The CODM assesses the financial performance

of the segment and decides how to allocate resources based on Product sales, net, and Operating income (loss).

The Company provides general

corporate services to its segments;

however, these services are not considered when making operating decisions and assessing segment

These services are reported under “Corporate Services” below and these include costs associated with executive

management, investor relations, patents, trademarks, licensing agreements, new instruments developments, financing activities and public

company compliance.

Certain reclassifications have been made to the 2025 consolidated financial statements to conform

to the 2024 consolidated financial statement presentation.

These reclassifications had no effect on net loss or cash

flows as previously reported.

following tables present information about our reportable and operating segments:

SCHEDULE OF REPORTABLE AND OPERATING SEGMENTS

Product sales, net

$ 8,527,108 $ 102,820 $ - $ 8,629,928

Product sales, net

Cost of products sold

2,186,142 9,198 - 2,195,340

6,340,966 93,622 - 6,434,588

Salaries & employee benefits

1,559,933 828,269 1,353,193 3,741,395

Stock-based compensation expense

- 2,078 1,343,044 1,345,122

Stock Compensation

Royalty expense

436,828 5,231 - 442,059

439,830 89,539 31,526 560,895

Quality and Regulatory

Rent & occupancy costs

48,973 30,608 74,847 154,428

Consultants and professional services fees

252,136 818,052 2,284,403 3,354,591

203,648 189,343 178,185 571,176

Warehousing expense

448,190 34,058 14,589 496,837

Regulatory expense

24,614 16,359 441,892 482,865

Travel Expense

98,334 95,348 65,773 259,455

Research and development expense

835,851 22,916 - 858,767

Depreciation and amortization expense

- - 37,448 37,448

Research and development expense

Other segment items

416,587 19,571 450,349 886,507

Total operating expenses

4,764,924 2,151,372 6,275,249 13,191,545

Operating income (loss)

( 6,188,009 )

Product sales, net

( 1,431,873 )

Cost of products sold

( 5,696,617 )

7,030,018 ( 237,406 ) - 6,792,612

Product sales, net

Cost of products sold

Salaries & employee benefits

1,790,678 1,161,886 1,320,900 4,273,464

Stock-based compensation expense

15,723 7,158 1,444,545 1,467,426

Stock Compensation

Royalty expense

482,034 3,300 - 485,334

505,428 145,974 103,768 755,170

Quality and Regulatory

Rent & occupancy costs

65,793 61,093 29,763 156,649

Consultants and professional services fees

169,366 1,199,221 1,741,528 3,110,115

287,253 266,735 129,948 683,936

Warehousing expense

470,079 52,107 14,055 536,241

Regulatory expense

68,338 33,286 321,244 422,868

Travel Expense

127,787 119,976 58,263 306,026

Research and development expense

614,952 86,426 - 701,378

Depreciation and amortization expense

4,243 2,787 54,882 61,912

Research and development expense

Other segment items

347,740 330,816 260,011 938,567

Total operating expenses

4,949,414 3,470,765 5,478,907 13,899,086

Operating income (loss)

( 6,275,249 )

December 31,2024

( 2,055,950 )

1 unchanged sentence

December 31, 2025

$ 4,866,786 $ 345,194 $ 6,159,532 $ 11,371,512

4,866,786 345,194 6,159,532 11,371,512

The following table presents information about our operations by geographic area As of December 31, 2024 and 2023.

Net sales by geographic area are based on the respective locations of our subsidiaries.

December 31, 2024

following table presents information about our operations by geographic area as of December 31, 2025 and 2024.

by geographic area are based on the respective locations of our subsidiaries.

SCHEDULE OF SALES BY PRODUCT AND BY GEOGRAPHICAL REGION

Year Ended December 31, 2025

Year Ended December 31, 2024

$ 806,885 $ 4,000 $ 810,885 $ 1,002,697 $ 1,000 $ 1,003,697

4,284,952 55,900 4,340,852 4,270,898 12,000 4,282,898

49,112 - 49,112 75,285 75,285

$ 5,140,949 $ 59,900 $ 5,200,849 $ 5,348,880 $ 13,000 $ 5,361,880

International:

Rest of World

$ 868,169 $ 39,000 $ 907,169 $ 1,251,354 $ 25,000 $ 1,276,354

2,476,988 3,920 2,480,908 2,845,734 28,000 2,873,734

41,002 41,002 45,476 45,476

$ 3,386,159 $ 42,920 $ 3,429,079 $ 4,142,564 $ 53,000 $ 4,195,564

International:

$ - $ - $ - $ 270,000 $ - $ 270,000

International Rest of World

International China

Total Product Sales

$ 8,527,108 $ 102,820 $ 8,629,928 $ 9,761,444 $ 66,000 $ 9,827,444

NOTE L — CONCENTRATION

Milestone Scientific has informal arrangements with third -party U.S.

manufacturers of the STA devices, and epidural instruments pursuant to which they manufacture these products under specific purchase orders which contains advance payments for long lead items for production.

Product Platform

M — CONCENTRATION

Scientific has informal arrangements with third -party U.S.

manufacturers of the STA devices, and epidural instruments pursuant

to which they manufacture these products under specific purchase orders which contains advance payments for long lead items for production.

Advances on contracts have been classified as current at December 31, 2025 and 2024.

The termination of the manufacturing relationship with any of these manufacturers could have a material adverse effect on Milestone Scientific’s ability to produce and sell its products.

Although alternate sources of supply exist, and new manufacturing relationships could be established, Milestone Scientific would need to recover its existing tools or have new tools produced.

Establishment of new manufacturing relationships could involve significant expense and delay.

Any curtailment or interruption of the supply, because of termination of such a relationship, would have a material adverse effect on Milestone Scientific’s financial condition, business, and results of operations.

On January 3, 2023, the Company launched an E-Commerce platform selling and shipping STA Single Tooth Anesthesia System® (STA) and handpieces directly to dental offices and dental groups within the U.S.

For the year ended December 31, 2024, E-Commerce accounted for 60 % of net product sales.

The termination of the manufacturing

relationship with any of these manufacturers could have a material adverse effect on Milestone Scientific’s ability to produce

and sell its products.

Although alternate sources of supply exist, and new manufacturing relationships could be established, Milestone

Scientific would need to recover its existing tools or have new tools produced.

Establishment of new manufacturing relationships could

involve significant expense and delay.

Any curtailment or interruption of the supply, because of termination of such a relationship,

would have a material adverse effect on Milestone Scientific’s financial condition, business, and results of operations.

January 3, 2023, the Company launched an E-Commerce platform selling and shipping STA Single Tooth Anesthesia System® (STA)

and handpieces directly to dental offices and dental groups within the U.S.

For the year ended December 31, 2025, E-Commerce accounted

for 49 % of net product sales.

For the year ended December 31, 2024, E-Commerce accounted for 60 % of net product sales.

The Company had three distributors that accounted for 22 %, 13 % and 11 % of accounts receivable, respectively, as of December 31, 2024.

The Company had three distributors that accounted for 39 %, 38 %, and 15 % of accounts receivable, respectively as of December 31, 2023.

As of December 31, 2024, the Company had two suppliers that accounted for 31 % and 30 %, respectively, of accounts payable and accounts payable, related party.

The Company had three vendors that accounted for 37 %, 17 % and 12 %, respectively of accounts payable and accounts payable, related party as of December 31, 2023.

NOTE M — RELATED PARTY TRANSACTIONS

United Systems

Purchases from this supplier were approximately $ 1.7 million and $ 2.3 million for the twelve months ended December 31, 2024, and 2023, respectively.

As December 31, 2024, and December 31, 2023, Milestone Scientific owed this supplier approximately $ 663,000 and $ 402,000 , respectively, which is included in accounts payable and accrued expenses related party on the consolidated balance sheets.

In June 2021, the Company signed a ten -year agreement with United Systems for supplier of the handpieces.

In December 31, 2023 the Company had approximately $ 270,000 sales to Milestone China or agents of Milestone China, an entity in which the Company formerly had an ownership interest terminating in 2021.

The Company reported no sales to Milestone China or agents of Milestone China during the year ended December 31, 2024.

Tucker Andersen, has an agreement with Milestone Scientific to provide financial and business strategic services.

Expenses recognized on this agreement were $ 100,000 for year ended December 31, 2023.

The agreement was not renewed for the year ended December 31, 2024.

Director of Clinical Affairs

The Director of Clinical Affairs’ royalty fee was approximately $ 442,000 and $ 485,000 for the years ended December 31, 2024 and 2023, respectively .

Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of $ 156,000 for the year ended December 31, 2024 and 2023, respective ly.

As of December 31, 2024, and 2023, Milestone Scientific owed the Director Clinical Affairs for royalties of approximately $ 110,000 and $ 114,000 , respectively, which is included in accounts payable, related party and accrued expense, related party, in the consolidated balance sheet.

Leonard Osser

On March 2, 2021, the Company entered into a Royalty Sharing Agreement with Leonard Osser, pursuant to which Mr.

Osser, beginning May 9, 2027, half of the royalty ( 2.5 %) on net sales that would otherwise be payable to Mark and Claudia Hochman under their existing Technology Sale Agreement, dated January 1, 2005 and amended from time to time, with the Company.

In connection with the Royalty Sharing Agreement, the Hochman's agreed with the Company, pursuant to an addendum to such Technology Sale Agreement dated February 25, 2021, to reduce from 5 % to 2.5 % the payments due to them under their Technology Sale Agreement beginning on May 9, 2027, and thereafter with respect to dental products embodying the invention.

As part of the Succession Plan of the Company, Mr.

Osser agreed, pursuant to an agreement dated April 6, 2021 ( the “Succession Agreement”), to restructure certain of his existing agreements with the Company, which provide for additional and broader executive support, and at such time as he elects to step down as Interim Chief Executive Officer of the Company, to become the Vice Chairman of the Board of the Company.

With respect to Mr.

Osser’s July 2017 Employment Agreement and July 2017 Consulting Agreement (each as previously disclosed), the compensation under the Employment Agreement was modified to reduce the overall compensation by $ 100,000 to $ 200,000 , split equally between a cash amount and an amount in shares, and the compensation under the Consulting Agreement was increased by $ 100,000 to $ 200,000 , equally split between a cash amount and an amount in shares, which shares were formerly payable under the Employment Agreement.

If the Company terminates Mr.

Osser’s employment “Without Cause,” other than due to his death or disability, or if Mr.

Osser terminates his employment for “Good Reason” (both as defined in the agreement), Mr.

Osser is entitled to be paid in one lump sum payment as soon as practicable following such termination:

an amount equal to the aggregate present value (as determined in accordance with Section 280G (d)( 4 ) of the Code) of all compensation pursuant to this agreement from the effective date of termination hereunder through the remainder of the Employment Term.

Osser was granted options to purchase 2,000,000 shares of common stock, exercisable at the fair market value of the common stock on the date of grant, vesting over the five -year period after he steps down as Interim Chief Executive Officer of the Company or ten years from the date of grant, whichever shall end first.

The Company believes that the effect of such existing agreements and the Succession Agreement, all of which relate to the period after such time Mr.

Osser steps down as Interim Chief Executive Officer of the Company, collectively expand Mr.

On May 19, 2021, Mr.

Osser resigned as Interim Chief Executive Officer of the Company and assumed the role of Vice Chairman of the Board.

Compensation under the Employment Agreement and the Consulting Agreement is payable for 9.5 years from May 19, 2021.

The Company recorded expenses of $ 200,000 related to the Employment Agreement for each of the years ended December 31, 2024 and 2023, respectively.

The Company recorded expenses of $ 200,000 related to the Consulting Agreement for each of the years ended December 31, 2024 and 2023, respectively.

Osser also owns 2,717,765 of the Company's stock, and 2,481,048 shares to be issued at the termination of his employment agreement

Demesmin, Director

As of February 2024, the University Pain Medicine Center (STEMMEE), of which Dr.

Demesmin, a Company board member is the CEO agreed to purchases products from the Company under the same terms and conditions applying to other medical pain clinics in the United States.

STEMMEE purchased medical products in the amount of $ 21,000 for the year ended December 31, 2024.

Haverhals, Director

The Company entered into a consulting agreement with Mr.

Haverhals will be paid an annual fee at the rate of $ 350,000 , at the at the rate of $ 150,000 in respect of the first calendar quarter of 2025, and at the rate of $ 66,666 , in respect of each subsequent calendar quarter of 2025, payable monthly in arrears, in each case in equal monthly installments on the last day of each month of such quarter.

The Company will reimburse Mr.

Haverhals for reasonable expenses in providing the services.

Haverhals will be an independent contractor and will not be provided with health and accident insurance, life insurance, paid sick leave and/or paid vacation time.

In connection with the Consulting Agreement, he has also entered into a Company-standard form of non-disclosure, non-solicitation, non-competition and invention agreement.

Haverhals continues as a director of the Company.

Haverhals continues as a director of Milestone Scientific.

Haverhals will be issued 638,023 shares of the Company's stock ninety days after his resignation as CEO.

April 2025 Financing

On April 9, 2025, the Company issued a series of promissory 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 in cash and/or shares of common stock at the sole discretion of the Company.

The notes are convertible into shares of common stock by the holder at any time and by the Company at maturity.

If the Company sells equity securities for gross proceeds in excess of $ 4,000,000 , the holders may request repayment of their note in either cash, shares of common stock or a combination of cash and shares;

Upon a liquidation event of the Company, as defined in the notes which includes a sale of the Company or assets, a merger, reorganization or combination transaction where the shareholders before the transaction own less than 50 % of the Company after the transaction and a liquidation, dissolution or winding-up of the Company, the notes will be repaid in cash or its portion of any non-cash consideration.

The notes are unsecured and have typical default terms.

NOTE N — COMMITMENTS

Company had three

distributors that accounted for 32 %, 21 %

of accounts receivable, respectively, as of December 31, 2025.

The Company had three

distributors that accounted for 22 %,

13 % and 11 % of accounts receivable, respectively as of December 31, 2024.

of December 31, 2025, the Company had three suppliers that accounted for 38 %, 22 % and 10 %, respectively, of accounts payable and accounts

payable, related party.

The Company had two suppliers that accounted for 31 % and 30 %, respectively, of accounts payable and accounts

payable, related party as of December 31, 2024.

N - RELATED PARTY TRANSACTIONS

Scientific has a supply agreement with United Systems, the principal supplier of the Company’s handpieces.

Pursuant to the agreement,

the Company purchases manufactured products from United Systems under individual purchase orders.

The agreement does not require minimum

purchase commitments.

June 2021, the Company entered into a ten-year supply agreement with United Systems for the manufacture and supply of handpieces.

from United Systems totaled approximately $ 1.9 million and $ 1.7 million for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and December 31, 2024, amounts owed to United Systems were approximately $ 1,100,000 and $ 664,000 , respectively.

These amounts are included in accounts payable related party in the Company’s consolidated balance sheets.

of Clinical Affairs

Company pays royalties to its Director of Clinical Affairs pursuant to existing royalty arrangements related to certain Company products.

Royalty expense paid to the Director of Clinical Affairs totaled approximately $ 445,000 and $ 442,000 for the years ended December 31,

2025 and 2024, respectively.

In addition, the Company paid consulting fees to the Director of Clinical Affairs totaling approximately

$ 128,000 and $ 156,000 for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and 2024, accrued but unpaid

royalties owed to the Director of Clinical Affairs were approximately $ 289,000 and $ 110,000 , respectively.

These amounts are included

in accounts payable related party and accrued expenses related party in the Company’s consolidated balance sheets.

and Consulting Contracts

Agreement and Related Compensation Arrangements

part of the Company’s succession planning, on April 6, 2021, Mr.

Osser entered into an agreement with the Company (the “Succession

Agreement”) pursuant to which he agreed to restructure certain of his existing arrangements with the Company to provide broader

executive support beyond the Company’s Chinese operations and, upon stepping down as Interim Chief Executive Officer, to assume

the role of Vice Chairman of the Board.

connection with the Succession Agreement:

Osser’s July 2017 Employment Agreement was reduced by $ 100,000 to $ 200,000 , with the reduction split equally between

cash compensation and equity compensation.

under his July 2017 Consulting Agreement was increased by $ 100,000 to $ 200,000 , also split equally between cash and equity compensation.

The equity component shifted from the Employment Agreement to the Consulting Agreement.

under the Employment Agreement and Consulting Agreement is payable for 9.5 years from May 19, 2021.

each of the years ended December 31, 2025 and 2024, the Company recorded:

of expenses related to the Employment Agreement;

of expenses related to the Consulting Agreement.

the Company terminates Mr.

Osser’s employment without cause (other than due to death or disability), or if Mr.

Osser terminates

his employment for good reason (each as defined in the applicable agreement), he is entitled to receive, in a lump sum, an amount equal

to the aggregate present value (determined in accordance with Section 280G(d)(4) of the Internal Revenue Code) of all compensation payable

from the termination date through the remainder of the employment term.

Chairman Appointment and Option Grant

stepping down as Interim Chief Executive Officer on May 19, 2021, Mr.

Osser assumed the role of Vice Chairman of the Board.

connection with his acceptance of the Vice Chairman position and his agreement to provide additional consulting services, Mr.

was granted options to purchase 2,000,000

shares of the Company’s common stock at an exercise price equal to the fair market value on the date of grant.

vest over the 5 five-year period following his resignation as Interim Chief Executive Officer ten

years from the date of grant, whichever period ends first.

On November 7, 2025, Mr.

Osser resigned as a director of the

Osser beneficially owns 2,844,028

shares of the Company’s common stock.

In addition, 3,221,786

shares are issuable to him upon termination of his employment agreement, subject to the terms thereof.

are issuable to him

upon termination of his employment agreement, subject to the terms thereof.

of February 2024, the University Pain Medicine Center (STEMMEE), of which Dr.

Demesmin, a Company board member, is the CEO,

agreed to purchase products from the Company under the same terms and conditions applying to other medical pain clinics in the

United States.

STEMMEE purchased medical products of $ 54,000

for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 the Company was owed approximately $ 25,500

which regard in related party accounts receivable.

Adriaan (Arjan) Haverhals

Company entered into a consulting agreement with Jan Adriaan (Arjan) Haverhals (the “Consulting Agreement”), effective January

The Consulting Agreement continues for an indefinite term unless terminated in accordance with its terms.

Either party may terminate

the Consulting Agreement upon 90 days’ prior written notice.

The Company may terminate the Consulting Agreement upon 30 days’

prior written notice in the event of Mr.

Haverhals’ inability to provide services.

Under the Consulting Agreement, Mr.

is entitled to receive consulting fees at an annual rate of $ 350,000 , payable monthly in arrears.

For 2025, compensation was structured

for the first calendar quarter of 2025;

for each subsequent calendar quarter of 2025.

Company recorded consulting expense of approximately $ 350,000 for the year ended December 31, 2025 related to the Consulting Agreement.

Haverhals is entitled to reimbursement of reasonable expenses incurred in providing services.

He serves as an independent contractor

and is not eligible for Company-provided health or accident insurance, life insurance, paid sick leave, or paid vacation benefits.

connection with the Consulting Agreement, Mr.

Haverhals entered into the Company’s standard form of non-disclosure, non-solicitation,

non-competition, and invention assignment agreement.

As of December 31, 2025, the Company owed Mr.

Haverhals approximately $ 89,000 under

the Consulting Agreement, which is included in accounts payable — related party in the Company’s consolidated balance sheets.

to December 31, 2025, Mr.

Haverhals agreed to waive $ 66,000 of amounts payable to him, which had been included in accounts payable —

related party.

to the Consulting Agreement, Mr.

Haverhals is entitled to receive 912,736 shares of the Company’s common stock six months following

his resignation as Chief Executive Officer, subject to the terms of the Consulting Agreement.

As of December 31, 2025, such shares had

no t been issued.

the Company’s Annual Meeting of Stockholders held on December 18, 2025, Mr.

Haverhals was not re-elected to the Board of Directors.

Accordingly, his term as a director expired at the conclusion of the Annual Meeting.

O — COMMITMENTS

Contract Manufacturing Agreement

Milestone Scientific has informal arrangements with third -party manufacturers of the STA, CompuDent® and CompuMed® devices, pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment.

The company entered into a new purchase commitment for the delivery of 2,700 STA CompuDent® instruments.

As of December 31, 2024, the purchase order commitment was approximately $ 3.2 million, and approximately $ 1.3 million was paid and reported in advance on contracts in the consolidated balance sheet.As of December 31, 2023, the purchase order commitment was approximately $ 2.3 million, and approximately $ 1.3 million was paid and reported in advance on contracts in the consolidated balance sheet.

As of December 31, 2024 and 2023 the company also has advances on an open purchase order for long lead items for a future purchase order for the manufacturing of Epidural instrument of approximately $ 168,000 and $ 76,000 , respectively.

Operating Leases

The Company signed a seven -year lease in a new facility located in Roseland, New Jersey (the “Roseland Facility”), which commenced of January 8, 2021.

Under the Roseland Facility lease, rent payments commence on April 1, 2021, and the monthly lease payments escalate annually on January 1 of each year, and range from $ 9,275 to $ 10,898 per month over the lease term.

The Company is also required to pay a fixed electric charge equal to $ 2.00 per square foot which is paid in equal monthly installments over the lease term or $ 11,130 annually.

These fixed monthly payments have been included in the measurement of the operating lease liability and related operating lease right-of-use asset as the Company has elected the practical expedient to not separate lease and non-lease components for all leases.

The Company is also required to pay its proportionate share of certain operating costs and property taxes applicable to the leased premises more than new base year amounts, which are accounted for as variable lease expenses.

As of December 31, 2024, total finance right-of-use assets were $ 67,201 and total finance liabilities were $ 67,202 of which $ 12,530 and $ 54,672 were classified as current and non-current, respectively.

As of December 31, 2024 total operating right-of use assets were $ 257,842 and total operating lease liabilities were $ 281,852 , of which $ 116,279 and $ 165,573 were classified as current and non-current, respectively.

As of December 31, 2023, total finance right-of-use assets were $ 8,998 and total finance liabilities were $ 10,698 of which $ 10,264 and $ 434 were classified as current and non-current, respectively.

As of December 31, 2023, total operating right-of use assets were $ 355,235 and total operating lease liabilities were $ 385,280 , of which $ 103,427 and $ 281,853 were classified as current and non-current, respectively.

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:

Twelve months ended

December 31, 2024

December 31, 2023

Cash paid for operating lease liabilities

$ 127,526 $ 127,526

Cash paid for finance lease liabilities

11,172 10,740

Weighted Average Remaining Lease Term

Finance leases (years)

Operating leases (years)

Weighted-average discount rate – operating leases

Weighted-average discount rate – finance leases

Maturity of lease liabilities as December 31, 2024

Operating Lease

Finance Lease

136,343 13,668

139,125 13,668

35,477 13,668

310,945 68,340

Present Value of lease liabilities

( 29,093 ) ( 1,138 )

281,852 67,202

NOTE O — BENEFIT PLAN

Milestone Scientific has a Defined Contribution Plan that allows eligible employees to contribute part of their salary through payroll deductions.

Milestone Scientific does not contribute to this plan, but does pay the administrative costs of the plan, which were not significant.

NOTE P — SUBSEQUENT EVENT

On April 9, 2025, the Company issued a series of promissory 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 in cash and/or shares of common stock at the sole discretion of the Company.

The notes are convertible into shares of common stock by the holder at any time and by the Company at maturity.

If the Company sells equity securities for gross proceeds in excess of $ 4,000,000 , the holders may request repayment of their note in either cash, shares of common stock or a combination of cash and shares;

Upon a liquidation event of the Company, as defined in the notes which includes a sale of the Company or assets, a merger, reorganization or combination transaction where the shareholders before the transaction own less than 50 % of the Company after the transaction and a liquidation, dissolution or winding-up of the Company, the notes will be repaid in cash or its portion of any non-cash consideration.

The notes are unsecured and have typical default terms.

Scientific has informal arrangements with third -party manufacturers of the STA, CompuDent® and CompuMed® devices, pursuant

to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment.

company entered into a new purchase commitment for the delivery of 1,900 STA CompuDent® instruments.

As of December 31, 2025, the

purchase order commitment was approximately $ 2.3 million, and approximately $ 1.4 million was paid and reported in advance on contracts

in the consolidated balance sheet.

As of December 31, 2024, the purchase order commitment was approximately $ 3.2 million, and

approximately $ 1.3 million was paid and reported in advance on contracts in the consolidated balance sheet.

As of December 31, 2025

and 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 instrument of approximately $ 34,000 and $ 168,000 , respectively.

Company signed a seven-year 7 lease in a new facility located in Roseland, New Jersey (the “Roseland Facility”), which commenced

of January 8, 2021.

Under the Roseland Facility lease, rent payments commence on April 1, 2021, and the monthly lease payments

escalate annually on January 1 of each year, and range from $ 9,275 to $ 10,898 per month over the lease term.

The Company is also

required to pay a fixed electric charge equal to $ 2.00 per square foot which is paid in equal monthly installments over the lease term

or $ 11,130 annually.

These fixed monthly payments have been included in the measurement of the operating lease liability and related

operating lease right-of-use asset as the Company has elected the practical expedient to not separate lease and non-lease components

for all leases.

The Company is also required to pay its proportionate share of certain operating costs and property taxes applicable

to the leased premises more than new base year amounts, which are accounted for as variable lease expenses.

of December 31, 2025, total finance right-of-use assets were $ 55,811 and total finance liabilities were $ 54,683 of which $ 27,347 and

$ 27,336 were classified as current and non-current, respectively.

As of December 31, 2025 total operating right-of use assets

were $ 150,378 and total operating lease liabilities were $ 165,563 , of which $ 130,355 and $ 35,208 were classified as current and non-current,

respectively.

As of December 31, 2024, total finance right-of-use assets were $ 67,201 and total finance liabilities were $ 67,202 of which

$ 12,530 and $ 54,672 were classified as current and non-current, respectively.

As of December 31, 2024 total operating right-of

use assets were $ 257,842 and total operating lease liabilities were $ 281,852 , of which $ 116,279 and $ 165,573 were classified as current

and non-current, respectively

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

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.

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.

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.

components of lease expense were as follows:

SCHEDULE OF COMPONENTS OF LEASE EXPENSE

paid for operating lease liabilities

paid for finance lease liabilities

Average Remaining Lease Term

leases (years)

Weighted-average

discount rate – operating leases

Weighted-average

discount rate – finance leases

OF LEASE LIABILITIES

of lease liabilities as of December 31, 2025

Value of lease liabilities

P — BENEFIT PLAN

Scientific has a Defined Contribution Plan that allows eligible employees to contribute part of their salary through payroll deductions.

Milestone Scientific does not contribute to this plan, but does pay the administrative costs of the plan, which were not

Q — SUBSEQUENT EVENT

On January 15, 2026, the Company entered into an

Amended and Restated Memorandum of Understanding (the “MOU”) with Innovest S.p.A., as the holder of certain consent and blockage

rights with respect to BP4 S.r.l.

BP4 is a significant shareholder of the Company and is considered a related party.

Pursuant to the MOU, and subject to certain conditions, BP4 agreed to enter into a lock-up agreement with the Company pursuant to which

it will not distribute or sell any of its shares of capital stock of the Company for 12 months following consummation of a $2.5 million

offering by the Company.

The BP4 lock-up, in addition to customary underwriter exceptions, provides for early release of the lock-up

restrictions if the Company’s stock price exceeds specified thresholds for a defined period, permitting partial distributions of

shares to BP4’s quotaholders.

Unless waived or further amended, the period for the capital raise has expired.

The Company has paid

to BP4 $32,000 in respect of additional disbursements accumulated in connection with the transaction contemplated by the MOU, which payments

are subject to an aggregate cap of $100,000 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures