Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Concentration

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Note 13 - Concentration
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE
13
 -- CONCENTRATION
 
Milestone Scientific has informal arrangements with a
third
-party manufacturer 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. In
January 2017,
Milestone Scientific entered into a purchase commitment for the delivery of
2,000
instruments beginning in the
4th
quarter of
2017.
At
March 31, 2018,
Milestone Scientific’s purchase commitment for this purchase order was
$186,965.
In
January 2018,
Wand Dental entered into a new purchase commitment for the delivery of
2,000
devices beginning in the
third
quarter of
2018,
Milestone Scientific’s purchase commitment for this purchase order was
$1,397,440.
An advance of $
984,408
and
$697,192
was recorded at
March 31, 2018
and
December 31, 2017,
respectively. Consequently, advances on contracts have been classified as current at
March 31, 2018
and
December 31, 2017.  
The termination of the manufacturing relationship with any of the above manufacturer 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, whether 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
March 31, 2018,
an aggregate of approximately
54%
of Milestone Scientific's net product sales were to
one
customer/distributor. For the
three
months ended
March 31, 2017,
an aggregate of approximately
79%
of Milestone Scientific's net product sales were to
two
customer/distributors (
one
of which, Milestone China, is a related party),
52%,
and
27%,
respectively. Accounts receivable for the major customer/distributors amounted to an aggregate of approximately
$1,923,950,
or
76%
of Milestone Scientific's accounts receivable, as of
March 31, 2018. 
Accounts receivable for the major customer/distributors amounted to an aggregate of approximately
$2,555,476,
or
78%
of Milestone Scientific's accounts receivable, as of
December 31, 2017.