Annual report pursuant to Section 13 and 15(d)

Note D - Notes Receivable

Note D - Notes Receivable
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Financing Receivables [Text Block]
June 2017,
Milestone Scientific entered into an agreement for the sale of its
percent (
) interest in Milestone China (the “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 was payable in quarterly installments of
 and was secured by the Milestone China Shares until full repayment.  In addition, the purchaser was precluded from selling all or substantially all 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 was accounted for as a secured financing and Milestone Scientific continued to account for its relationship with Milestone China under the equity method of accounting. A note receivable was presented on the Company’s  consolidated balance sheet along with a deferred gain from financing transaction of
The carrying value of the
) percent investment in Milestone China at the transaction date was zero.
As of
March 2, 2018,
the promissory note was in default. In
April 2018,
Milestone Scientific entered into a Release, Assignment and Termination Agreement (the “Termination Agreement”) with the issuer of the promissory note, pursuant to which, Milestone Scientific repaid the
payment made by the issuer and the issuer returned the Milestone China Shares to Milestone Scientific and cancelled the promissory note. Because of the Termination Agreement and related repayment made by Milestone Scientific, the Company derecognized the outstanding note receivable balance of
and the related deferred gain from financing transaction of
gain or loss was recognized on the transaction.