Note 7 - Concentration of Credit Risk
|6 Months Ended|
Jun. 30, 2017
|Notes to Financial Statements|
|Concentration Risk Disclosure [Text Block]||
7CONCENTRATION OF CREDIT RISK
Milestone Scientific's consolidated financial instruments that are exposed to concentrations of credit risk consist primarily of cash, trade accounts receivable, and advances on contracts. Milestone Scientific places its cash and cash equivalents with large financial institutions. At times, such investments
maybe in excess of the Federal Deposit Insurance Corporation insurance limit. Milestone Scientific has
notexperienced any losses in such accounts and believes it is
notexposed to any significant credit risks. Financial instruments which potentially subject Milestone Scientific to credit risk consist principally of trade accounts receivable, as Milestone Scientific does
notrequire collateral or other security to support customer receivables, and advances on contracts.
Milestone Scientific closely monitors the extension of credit to its customers while maintaining allowances, if necessary, for potential credit losses. On a periodic basis, Milestone Scientific evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://www.xbrl.org/2003/role/presentationRef