MILESTONE SCIENTIFIC INC.
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 13, 2026
MLSS$0.30+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001493152-26-022701
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001493152-26-037761
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 44 previous paragraphs and 60 current paragraphs.
25 unchanged; 10 reworded; 19 added; 9 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 10 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Dental product revenue was approximately $2.7 million, an increase of approximately $443,000, or 19.3%, compared with the prior-year period. The increase was primarily driven by approximately $498,000 of sales to customers in China during the current quarter, compared with no sales to China in the prior-year period. This increase was partially offset by modest decreases in sales in the United States and other international markets of approximately 2% and 3%, respectively, which may reflect normal fluctuations in distributor ordering patterns and broader market conditions.
Current report
Overall, the increase in total net sales was driven by growth in both the Dental and Medical segments, notwithstanding continued variability in certain international markets.
Current report
Gross margin was approximately 67.2% for the three months ended June 30, 2026, compared with approximately 69.6% for the same period in 2025.
Current report
Gross profit increased by approximately $293,000, or 18.1%, primarily due to higher sales in both the Dental and Medical segments. Dental gross profit increased by approximately $242,000, while Medical gross profit increased by approximately $50,000.
Current report
Gross margin decreased by approximately 2.4 percentage points, primarily due to product and customer mix and increased product costs, including tariffs imposed on certain imported products and components. These cost pressures were partially offset by the higher level of sales during the current period.
Current report
Total operating expenses decreased by approximately $0.1 million, or 4.2%, to approximately $3.0 million for the three months ended June 30, 2026, compared with approximately $3.1 million for the three months ended June 30, 2025. The decrease was primarily attributable to lower quality and regulatory expenses, consulting and professional service fees, research and development expenses, rent and occupancy costs, and other segment items. These decreases were partially offset by increases in stock-based compensation, warehousing expense, royalty expense, marketing expense, salaries and employee benefits, and travel expense. increased promotional activities, trade shows, advertising, product launches, or customer-acquisition initiatives. Salaries and employee benefits increased by approximately $23,000, or 2.8%, to approximately $863,000, compared with approximately $840,000 in the prior-year period. The increase was primarily attributable to salary increases, changes in staffing levels, employee benefits, or other personnel-related costs. Stock-based compensation expense increased by approximately $94,000, or 59.1%, to approximately $254,000, compared with approximately $160,000 in the prior-year period. The increase was primarily attributable to new equity awards, the timing of vesting, or changes in the valuation and forfeiture of outstanding awards. Royalty expense increased by approximately $31,000, or 25.9%, to approximately $151,000, compared with approximately $120,000 in the prior-year period. The increase was primarily attributable to higher sales of products subject to contractual royalty arrangements. Warehousing expense increased by approximately $46,000, or 36.1%, to approximately $175,000, compared with approximately $129,000 in the prior-year period. The increase was primarily attributable to higher inventory storage, handling, fulfillment, freight, or third-party logistics costs. Quality and regulatory expense decreased by approximately $203,000, or 60.9%, to approximately $130,000, compared with approximately $333,000 in the prior-year period. The decrease was primarily attributable to lower spending on regulatory submissions, product testing, quality-system initiatives, compliance consulting, or other regulatory activities. Marketing expense increased by approximately $30,000, or 39.2%, to approximately $108,000, compared with approximately $77,000 in the prior-year period. The increase was primarily attributable to increased promotional activities, trade shows, advertising, product launches, or customer-acquisition initiatives. Consulting and professional service fees decreased by approximately $83,000, or 9.3%, to approximately $817,000, compared with approximately $901,000 in the prior-year period. The decrease was primarily attributable to lower legal, accounting, advisory, consulting, or transaction-related expenses. Travel expense increased by approximately $13,000, or 17.9%, to approximately $87,000, compared with approximat…
Excerpt shortened here; the source contains the full paragraph.
Current report
Loss from operations was approximately $1.1 million for the three months ended June 30, 2026. The loss from operations resulted from gross margin of approximately $1.9 million, which was more than offset by operating expenses of approximately $3.0 million.
Current report
Six months ended June 30, 2026 compared to six months ended June 30, 2025
Current report
Total product sales for the six months ended June 30, 2026 were approximately $5.0 million, compared to approximately $4.6 million for the same period in 2025, representing an increase of approximately $447,000, or 9.8%.
Current report
Medical product revenue increased to approximately $214,000 from approximately $83,000 in the prior-year period, representing an increase of approximately $131,000, or 156.7%. The increase reflects continued early-stage adoption and commercialization of the Company’s medical products.
Current report
Overall, the increase in total net sales was driven by growth in both the Dental and Medical segments, notwithstanding continued variability in certain international markets.
Current report
Gross margin was approximately 69.4% for the six months ended June 30, 2026, compared with approximately 71.7% for the same period in 2025.
Current report
Gross profit increased by approximately $209,000, or 6.4%, primarily due to higher sales in both the Dental and Medical segments. Dental gross profit increased by approximately $116,000, while Medical gross profit increased by approximately $93,000.
Current report
Gross margin decreased by approximately 2.2 percentage points, primarily due to product and customer mix and increased product costs, including tariffs imposed on certain imported products and components. These cost pressures were partially offset by the higher level of sales and increased contribution from the Medical segment during the current-year period.
Current report
Total operating expenses decreased by approximately $1.4 million, or 20.5%, to approximately $5.4 million for the six months ended June 30, 2026, compared with approximately $6.7 million for the six months ended June 30, 2025. The decrease was primarily attributable to lower consulting and professional service fees, research and development expenses, and quality and regulatory expenses, partially offset by increases in salaries and employee benefits, stock-based compensation expense, warehousing expense, royalty expense, and travel expense. Salaries and employee benefits increased by approximately $84,000, or 5.2%, to approximately $1.7 million, compared with approximately $1.6 million in the prior-year period. The increase was primarily attributable to additional personnel, salary increases, employee benefits, or changes in departmental staffing Stock-based compensation expense increased by approximately $76,000, or 15.5%, to approximately $566,000, compared with approximately $490,000. Royalty expense increased by approximately $14,000, or 6.1%, to approximately $246,000, compared with approximately $232,000 in the prior-year period. The increase was primarily attributable to higher sales of products subject to royalty arrangements. Warehousing expense increased by approximately $54,000, or 21.5%, to approximately $305,000, compared with approximately $251,000 in the prior-year period. The increase was primarily attributable to higher inventory storage, handling, fulfillment, freight, or third-party logistics costs. Quality and regulatory expense decreased by approximately $192,000, or 46.1%, to approximately $225,000, compared with approximately $417,000 in the prior-year period. The decrease was primarily attributable to lower spending on regulatory submissions, product testing, quality-system initiatives, compliance consulting, or other regulatory activities. Marketing expense decreased by approximately $8,000, or 4.1%, to approximately $181,000, compared with approximately $189,000 in the prior-year period. The decrease was primarily attributable to the timing of promotional programs, trade shows, advertising, or customer-acquisition activities. Consulting and professional service fees decreased by approximately $976,000, or 44.7%, to approximately $1.2 million, compared with approximately $2.2 million in the prior-year period. The decrease was primarily attributable to lower legal, accounting, advisory, consulting, and transaction-related costs incurred during the current period.
Current report
Loss from operations for the six months ended June 30, 2026 was approximately $1.8 million, compared with approximately $3.5 million for the six months ended June 30, 2025, an improvement of approximately $1.7 million, or 48.6%.
Current report
The improvement was primarily attributable to higher revenue and gross profit and significant reductions in professional fees, research and development expenses, quality control and regulatory expenses. These improvements were partially offset by increases in salaries and compensation, warehousing and logistics expenses, royalty expense and travel expenses.
Current report
Net cash provided by financing activities was approximately $1.5 million for the six months ended June 30, 2026, compared with approximately $0.8 million for the six months ended June 30, 2025. During the six months ended June 30, 2026, the Company received approximately $1.8 million of gross proceeds (or approximately $1.5 million net of issuance costs) from a private placement. Additionally, approximately $350,000 of convertible notes payable was converted into shares of the Company’s common stock in a noncash financing transaction.
Current report
As discussed in Note 2 to the unaudited condensed consolidated financial statements, the Company’s current financial condition raises substantial doubt about its ability to continue as a going concern. Management believes that existing cash resources, anticipated collections and potential financing proceeds may support near-term operations; however, additional financing is required, and there can be no assurance that such financing will be available on acceptable terms, or at all. Accordingly, substantial doubt about the Company’s ability to continue as a going concern has not been alleviated.
Removed paragraphs (9)
Previous report
Revenue from China was not recognized during the current period, compared to approximately $110,000 in the prior period. The Company has received a purchase order in April 2026, indicating renewed activity in that market.
Previous report
Overall, the Company maintained a relatively stable revenue base, with modest variability primarily attributable to external market conditions.
Previous report
Gross margin was approximately 72.3%, compared to approximately 73.8% in the prior period.
Previous report
The decrease in gross profit was primarily attributable to lower Dental segment sales. The slight decline in gross margin reflects a combination of factors, including product mix and lower sales volume, as well as cost pressures, including tariffs on certain imported components. These factors were partially offset by improved contribution from the Medical segment.
Previous report
Selling, general and administrative expenses decreased by approximately $884,000 or 27.2%, to $2.37 million for the current period compared to $3.26 million in the prior period. Thedecrease was primarily attributable to a significant reduction in professional fees, lower research and development spending, and reduced marketing-related expenditures.
Previous report
Professional fees declined by approximately $893,000, or 69.5%, primarily due to lower legal, consulting, and other outside service costs incurred during the current period compared to the prior year. In addition, marketing expenses decreased by approximately 34.3%, reflecting reduced promotional and advertising activities, while royalty expense decreased by 15.0%.
Previous report
Partially offsetting these decreases were increases in certain operating expense categories, including salaries and compensation, warehousing, and quality control and regulatory expenses. Salaries and compensation increased by approximately 3.8%, reflecting ongoing personnel-related costs to support operations. Warehousing expenses increased by 6.1%, while QC and regulatory expenses increased by 12.6%, primarily due to higher operational and compliance-related activities.
Previous report
Loss from operations improved to approximately $828,000 for the three months ended March 31, 2026, compared to approximately $2.0 million in the prior period, representing an improvement of approximately $1.2 million, or 58%.
Previous report
The Company believes that its current cash resources, together with expected collections and financing proceeds, will be sufficient to support near-term operations. However, there can be no assurance that additional financing will be available on acceptable terms, or at all.
Reworded paragraphs (10)
Previous wording
Total product sales for the three months ended March 31, 2026 were approximately $2.2 million, compared to approximately $2.2 million for the same period in 2025, representing a decrease of approximately $70,000, or 3%.
Current wording
Total product sales for the three months ended June 30, 2026 were approximately $2.8 million, compared to approximately $2.3 million for the same period in 2025, representing an increase of approximately $518,000, or 22.3%.
Previous wording
Medical revenue increased to approximately $108,000, compared to approximately $51,000 in the prior period, representing growth of approximately 110%, reflecting continued early-stage adoption of the Company’s medical products.
Current wording
Medical revenue increased to approximately $106,000, compared to approximately $32,000 in the prior period, representing an increase of approximately $74,000, or 231.5%. The increase reflects continued early-stage adoption and commercialization of the Company’s medical products.
Previous wording
The improvement was primarily attributable to reduced operating expenses, partially offset by lower gross profit.
Current wording
The improvement was primarily attributable to reduced operating expenses.
Previous wording
Dental product revenue was approximately $2.05 million, representing a decrease of approximately $127,000, or 6%, compared to the prior period. The change in Dental revenue primarily reflects lower international distributor demand during the quarter. The Company believes this was influenced by ongoing geopolitical conditions, including the Russia–Ukraine conflict and recent instability in the Middle East, which impacted purchasing patterns in certain markets.
Current wording
Dental product revenue was approximately $4.8 million, representing an increase of approximately $317,000, or 7.1%, compared to the prior year end period. The increase was primarily attributable to higher sales of the Company’s dental products. The increase was primarily driven by approximately $498,000 of sales to customers in China during the current quarter, compared with $110,000 sales to China in the prior-year period. This increase was partially offset by lower demand from certain international distributors, which the Company believes was influenced by ongoing geopolitical conditions, including the Russia-Ukraine conflict and instability in the Middle East.
Previous wording
Research and development expense decreased by approximately $369,000, as no R&D expenses were incurred during thecurrent period compared to the prior period.
Current wording
Research and development expense decreased by approximately $414,000, as no major R&D expenses were incurred during the current period compared to the prior period.
Previous wording
The following table summarizes our sources and uses of cash for the three months ended:
Current wording
The following table summarizes our sources and uses of cash for the six months ended:
Previous wording
Net cash provided by operating activities was approximately $87,000 for the three months ended March 31, 2026, compared to net cash used in operating activities of approximately $1.0 million in the prior period. This improvement was primarily driven by reduced net loss and favorable changes in working capital.
Current wording
Net cash used in operating activities was approximately $0.5 million for the six months ended June 30, 2026, compared with approximately $2.8 million for the six months ended June 30, 2025. The approximately $2.3 million decrease in cash used in operating activities was primarily attributable to a reduction in net loss and favorable changes in certain working capital account
Previous wording
Net cash used in investing and financing activities was minimal in both periods.
Current wording
Net cash used in investing was minimal in both periods.
Previous wording
As of March 31, 2026, the Company had cash and cash equivalents of approximately $1.2 million and working capital of approximately $2.5 million.
Current wording
As of June 30, 2026, the Company had cash and cash equivalents of approximately $2.1 million and working capital of approximately $3.7 million.
Previous wording
On April 20, 2026, the Company completed a private placement of 7,962,963 units at a purchase price of $0.27 per unit, generating gross proceeds of approximately $2.15 million, consisting of $1.80 million in cash and a reduction of $351,000 in outstanding principal of the Company’s outstanding convertible notes, the holders of which applied such principal amounts toward the purchase of units in the offering in lieu of cash (the “Private Placement”)
Current wording
On April 20, 2026, the Company completed a private placement of 7,962,963 units at a purchase price of $0.27 per unit, generating gross proceeds of approximately $2.15 million, consisting of $1.80 million in cash and a reduction of $351,000 in outstanding principal of the Company’s outstanding convertible notes, the holders of which applied such principal amounts toward the purchase of units in the offering in lieu of cash.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Research and development expense decreased by approximately $45,000, as no major R&D expenses were incurred during the current period compared to the prior period. The Company continues to evaluate its research and development priorities and may make targeted investments in future periods to support product enhancements, new applications, and long-term growth initiatives.
Current report — wording carried from elsewhere
Net sales for 2026 and 2025 were as follows:
Current report — wording carried from elsewhere
Gross profits for 2026 and 2025 were as follows:
Current report — wording carried from elsewhere
Selling, general and administrative expenses for 2026 and 2025 were as follows:
Current report — wording carried from elsewhere
Research and Development for 2026 and 2025 were as follows:
Current report — wording carried from elsewhere
Profit (Loss) from Operations for 2026 and 2025 were as follows: