Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Significant Concentrations and Geographical Information

v3.7.0.1
Note 10 - Significant Concentrations and Geographical Information
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Product Sales and Significant Customers and Vendors Disclosure [Text Block]
NOTE
10
SIGNIFICANT
CONCENTRATIONS 
& GEOGRAPHICAL INFORMATION
 
Milestone Scientific
’s consolidated dental sales by product and by geographical region are as follows:
 
   
Three months Ended June 30,
   
Six months Ended June 30,
 
   
2017
   
2016
   
2017
   
2016
 
DOMESTIC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Instruments
  $
219,648
    $
190,504
    $
405,293
    $
852,149
 
Handpieces
   
1,182,985
     
695,761
     
2,693,471
     
1,753,685
 
Other
   
21,509
     
20,652
     
40,449
     
34,126
 
Total Domestic
  $
1,424,142
    $
906,917
    $
3,139,213
    $
2,639,960
 
INTERNATIONAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Instruments
  $
353,805
    $
535,335
    $
1,712,475
    $
1,559,050
 
Handpieces
   
718,837
     
882,135
     
1,302,186
     
1,537,124
 
Other
   
26,966
     
47,323
     
58,864
     
100,062
 
Total International
  $
1,099,608
    $
1,464,793
    $
3,073,525
    $
3,196,236
 
DOMESTIC/INTERNATIONAL ANALYSIS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
  $
1,424,142
    $
906,917
    $
3,139,213
    $
2,639,960
 
International
  $
1,099,608
    $
1,464,793
    $
3,073,525
    $
3,196,236
 
Total Product Sales
  $
2,523,750
    $
2,371,710
    $
6,212,738
    $
5,836,196
 
 
Milestone Scientific has informal arrangements with a
third
party manufacturer of the STA,
CompuDent®
and
CompuMed®
instruments,  pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. In
March 2016,
Milestone Scientific entered into a purchase commitment for delivery of
3,000
instruments. There are
200
instruments remaining on this purchase order as of
June 30, 2017.
An advance of an aggregate of
$85,480
remained at
June 30, 2017.
In
January 2017,
Milestone Scientific entered into a purchase commitment for the delivery of
2,000
instruments beginning in the
4
th
quarter of
2017.
An advance of
$717,938
was recorded at
June 30, 2017.
Consequently, advances on contracts have been classified as current at
June 30, 2017
and 
December 31, 
2016.
 
For the
three
months ended
June 30, 2017,
an aggregate of approximately
69%
of Milestone Scientific's net product sales were to
two
customers/ distributors (
one
of which was a related party),
55%,
and
14%,
respectively. For the
six
months ended
June 30, 2017,
an aggregate of approximately
75%
of Milestone Scientific's net product sales were to
two
customers/distributors (
one
of which was a related party),
53%,
and
22%,
respectively. Accounts receivable for the
two
major customers/distributors amounted to an a
ggregate of approximately
$1,345,021,
or
75%
of Milestone Scientific's accounts receivable for
six
months ended
June 30, 2017.
For the
three
months ended
June 30, 2016,
an aggregate of
61%
of Milestone Scientific's net product sales were to
two
customers/distributors (
one
of which was a related party),
44%,
  and
17%,
respectively
. For the
six
months ended
June 30, 2016,
an aggregate of approximately
72%
of Milestone Scientific's net product sales were to
three
customers/distributors (
one
of which was a related party),
38%,
22%
, and
12%,
respectivel
y.