NOTE 5 — ADVANCES ON CONTRACTS

The advances on contracts represent funding for future Single Tooth Anesthesia System® (STA) devices, epidural instruments, and epidural replacement parts. The balance of the advances as of June 30, 2026 and December 31, 2025, is approximately $1.3 and $1.4 million, respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory.