NOTE 10 – CONCENTRATIONS

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 that contain advance payments for long lead items for production. Advances on contracts have been classified as current at June 30, 2026 and December 31, 2025. 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 the 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 instruments and handpieces directly to dental offices and dental groups within the U.S. For the three months ended June 30, 2026, E-Commerce accounted for 41% of net product sales, and no international distributors accounted for over 10% of net product sales. For the three months ended June 30, 2025, E-commerce accounted for 53% of net product sales, and one international distributor accounted for 10% of net product sales. For the six months ended June 30, 2026, E-Commerce accounted for 45% of net product sales, and no international distributors accounted for over 10% of net product sales. For the six months ended June 30, 2025, E-commerce accounted for 50% of net product sales, and no international distributor accounted for 10% of net product sales.

The Company had three distributors that accounted for 20%, 13%, 11% of accounts receivable, respectively, as of June 30, 2026. The Company had three distributors that accounted for 32%, 21% and 11% of accounts receivable, respectively as of December 31, 2025.

As of June 30, 2026, the Company had three suppliers that accounted for 22%, 20%, and 12% respectively, of accounts payable and accounts payable, related party. The Company had three suppliers that accounted for 38%, 22%, and 10%, respectively of accounts payable and accounts payable, related to the party as of December 31, 2025.