Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Concentration

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Note 13 - Concentration
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE
13
 -- CONCENTRATION

Milestone Scientific has informal arrangements with
third
-party manufacturers of the STA,
CompuDent
® and
CompuMed
® devices, pursuant to which they manufacture these products under specific purchase orders but without any long-
term contract or minimum purchase commitment. Consequently, advances on contracts have been classified as current at
September 30, 2018
and
December 31, 2017,
respectively.  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 termination of such a relationship, would have a material adverse effect on Milestone Scientific’s financial condition, business and results of operations.
             
For the
three
months ended
September 30, 2018,
an aggregate of approximately
35%
of Milestone Scientific's net product sales were to
one
customer/distributor. For the
nine
months ended
September 30, 2018,
an aggregate of approximately
48%
of Milestone Scientific's net product sales were to
one
customer/distributor. For the
three
months ended
September 30, 2017 ,
an aggregate of approximately
67%
of Milestone Scientific's net product sales were to
two
customers/ distributors (
one
of which, Milestone China, is  a related party),
54%,
and
13%,
respectively. For the
nine
months ended
September 30, 2017,
an aggregate of approximately
72%
of Milestone Scientific's net product sales were to
two
customers/distributors (
one
of which, Milestone China, is a related party),
53%,
and
19%,
respectively.
 
Accounts receivable, including related party accounts receivable for the major customer/distributors, (
one
of which, Milestone China, is a related party), amounted to approximately
$1,695,967
(net of allowance for doubtful accounts) , or
55%
 and
19%
of Milestone Scientific's accounts receivable as of
September 30, 2018. 
Accounts receivable, including related party accounts receivable, for the major customer/distributors (
one
of which, Milestone China, is a related party), amounted to approximately
$2,555,476,
or
53%
and
25%
of Milestone Scientific's accounts receivable, as of
December 31, 2017.