Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Concentrations

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Note 11 - Concentrations
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE
11
 – CONCENTRATIONS
 
Milestone Scientific has informal arrangements with
third
-party manufacturers of the STA,
CompuDent
 ,
CompuMed
devices and handpieces, 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
June 30, 2019  
and
December 31, 2018. 
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
and
six
months ended
June 30, 2019 
an aggregate of approximately
52%
 and
50%
,
respectively, of Wand Dental’s net product sales were to
one
customer/distributor. For the
three
and
six
months ended
June 30, 2018 
an aggregate of approximately
44%
 and
43%,
respectively, of Wand Dental’s net product sales were to
one
customer/distributor. Accounts receivable for
two
customer/distributor amounted to approximately
$2,850,461
or
82%,
or
52%
 and
30%
of Milestone Scientific's gross accounts receivable as of
June 30, 2019. 
Accounts receivable, including related party accounts receivable, for the major customer/distributor (i.e., Milestone China, a related party), amounted to approximately
$2,555,000,
or
78%
of Milestone Scientific's accounts receivable, as of
December 31, 2018.
As of  
June 30, 2019 ,  
Milestone China owed
$1,817,990
to Milestone Scientific. Due to the delinquent nature of the scheduled payments and Milestone China’s further liquidity constraints, Milestone Scientific reduced accounts receivable, related party and deferred revenue, related party by
$1,817,990
in
2018,
this allowance remains recorded as of
June 30, 2019 .
Additionally, Milestone Scientific has a reserve of
$1,250,928
at
June 30, 2019
and
December 31, 2018,
against the associated deferred cost, related party which was recorded in
2018.