Note 2 - Liquidity and Uncertainties
|3 Months Ended|
Mar. 31, 2018
|Notes to Financial Statements|
|Substantial Doubt about Going Concern [Text Block]||
2- LIQUIDITY AND UNCERTAINTIES
In accordance with Accounting Standard Codification (“ASC”)
40,“Presentation of Financial Statements – Going Concern”, the Company has evaluated whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within
oneyear after the date that the consolidated financial statements are issued. Milestone Scientific has incurred operating losses and negative cash flows from operating activities in virtually each year since its inception. The capital raised in
January 2017provided Milestone Scientific with working capital to continue to develop its medical devices and obtain regulatory approval for
CompuFlo® Epidural Computer Controlled Anesthesia System (the “
CompuFloEpidural System”), as well as to market its dental devices. 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 devices and disposables business in the United States (following
June 2017FDA approval of its
CompuFloEpidural System) and worldwide, and a reduction in operating expenses.
Management believes that Milestone Scientific will have sufficient cash reserves to meet its anticipated obligations over the next
twelvemonths from the filing date of this quarterly 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
mayalso need to raise additional capital to effectively launch its approved Epidural Device and eventually generate positive cash flow from the medical business.
The Company is subject to several risks like those of development stage companies, including dependence on key individuals and products, the difficulties inherent in the development of a commercial market, the potential need to obtain additional capital necessary to fund the development of its products, and competition from larger companies and other medical device companies that develop similar or substitute products. The Company's sales performance, selling and marketing expenditures to develop sales performance, as well as the status of each of its new product development programs and the resulting operating income (loss), will significantly impact its cash requirements.
The entire disclosure when substantial doubt is raised about the ability to continue as a going concern. Includes, but is not limited to, principal conditions or events that raised substantial doubt about the ability to continue as a going concern, management's evaluation of the significance of those conditions or events in relation to the ability to meet its obligations, and management's plans that alleviated or are intended to mitigate the conditions or events that raise substantial doubt about the ability to continue as a going concern.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef