Note - ORGANIZATION and

Milestone Scientific,” “us,” “our,” “we,” “the Company” or “Milestone” refer to Milestone Scientific Inc., and its consolidated subsidiaries, Wand Dental, Milestone Advanced Cosmetic, Milestone Medical, and Milestone Education (all described below), unless the context otherwise indicates. Milestone Scientific is the owner of the following registered U.S. trademarks: C

August 1989.

ment, through the use of , a single use disposable handpiece. The instrument is marketed in dentistry under the trademark and and in medicine under the trademark is suitable for all dental procedures that require local anesthetic. is suitable for many medical procedures regularly performed in Plastic Surgery, Hair Restoration Surgery, Podiatry, Colorectal Surgery, Dermatology, Orthopedics and a number of other disciplines. The dental instruments are sold in the United States and in other countries. To date there have been medical instruments sold in the United States and limited amounts sold internationally, although certain medical instruments have obtained CE mark approval and can be marketed and sold in most European countries. In Milestone Scientific received (k) marketing clearance from the U.S. Food and Drug Administration (FDA) on the® Epidural Computer Controlled Anesthesia System.

uring our common stock was listed on the NYSE MKT under the ticker symbol “MLSS”.

During Milestone Scientific filed for (k) marketing clearance with the FDA for both intra-articular and epidural injections with theCompuFlo® Computer Controlled Anesthesia System.  In the FDA approved the® Epidural Computer Controlled Anesthesia System for epidural injections.  Milestone Scientific is in the process of introductory meetings with medical device distributors within the United States and foreign markets. Milestone Scientific’s immediate focus is on marketing its epidural instrument throughout the United States and Europe.

December 2016,

510

for intra- articular injections, we did adequately document that the device met the equivalency standard required for (k) clearance. Following consultation with the FDA Office of Device Evaluation, we intend to provide additional data, which could include a new Human Factor Validation study (HFV Study) in support of a new (k) application for the device. An HFV Study demonstrates the ease of use of a product.

December 2016,

2,000,000

ommon stock and warrants to purchase up to  shares of common stock. The public offering price for each share and related warrant was The gross proceeds from this offering were approximately before deducting underwriting discounts and commissions and other offering expenses.

January 2017,

 and purchased an additional shares of common stock at the public offering price of per share. The gross proceeds were approximately before deducting underwriting discounts and commissions and other offering expenses.

June 2017,

forty

40%

Milestone China Shares”) to an unaffiliated United States domiciled purchaser and a -year option agreement to repurchase the Milestone China Shares. The purchase price for the Milestone China Shares was of which was paid in cash and was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of  and is secured by the Milestone China Shares until full repayment.  In addition, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The -year option agreement provides Milestone Scientific an option to repurchase the Milestone China Shares at within the years and at fair market value (as defined in such agreement) for the remainder of the -year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Company’s balance sheet, along with a deferral from financing transaction (). The carrying value of the () percent investment at the transaction date was (see Note ).

July 13, 2017,

Agreement”) with APAD Octrooi B.V. and APAD B.V. (each, a “Seller” and collectively, the “Sellers”) pursuant to which Milestone Scientific acquired certain patent rights and other intellectual property rights related to the Sellers’ computer controlled injection instrument (the “Purchased Assets”) and has been accounted for as an asset acquisition. On the closing date, Milestone Scientific issued to the Sellers an aggregate of shares of its common stock, valued at for the Purchased Assets which shares are subject to certain post-closing upward or downward adjustments to exceed percent of the initial shares as of the purchase date or Euros, as defined in the agreement. As of Milestone Scientific has recorded a  liability relating to the estimated additional shares that would have to be issued according this provision in the Agreement. Milestone Scientific paid approximately in legal fees on behalf of the Seller as stipulated based on the terms of the Agreement. The patents purchased in the amount of have been capitalized and will amortized over their year estimated useful life and tested for impairment as a finite lived intangible asset.

July 2017,

400,000

tor of Milestone Scientific and a director of Innovest S.p.A., an Italian investor ( options at an exercise price of per share were issued on and options having an exercise price at the higher of or the market price of the stock on the date of the Annual Stockholder meeting, subject to approval of a new or amended equity incentive plan at such meeting.)

ually each year since its inception. Milestone Scientific is actively pursuing the generation of revenue, positive operating income and net income. The capital raised in and provided Milestone Scientific with working capital to continue to develop its medical instruments and obtain regulatory approval for of its medical instruments ( the FDA approval of the epidural instrument), as well as to aggressively market its dental instruments. Milestone Scientific 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 instruments and disposables business in the United States (following FDA approval of its ® Computer Controlled Anesthesia System ) and worldwide, and a reductions in operating expenses. Management believes that Milestone Scientific will have sufficient cash reserves to meet its anticipated obligations over the next month period following the date of this report. However, Milestone Scientific will likely  need to raise additional capital prior to the  expected generation of sustainable positive cash flow from operating activities and also need to raise additional capital to effectively launch its approved medical instrument and eventually generate positive cash flow from the anticipated medical business.