|6 Months Ended|
Jun. 30, 2015
|Related Party Transactions [Abstract]|
NOTE – 12 RELATED PARTY
Milestone Scientific has a manufacturing agreement with a related party. The related party manufactures products under specific purchase orders but without minimum purchase commitments. Milestone Scientific purchased $1,353,632 and $1,397,784 from the supplier for the six months ended June 30, 2015 and 2014, respectively. Milestone Scientific owed $372,939 and $455,574 to this supplier as of June 30, 2015 and December 31, 2014, respectively.
On July 1, 2013, Milestone Scientific and Milestone Medical signed an agreement for the reimbursement of specific expenses incurred by Milestone Scientific specifically for the benefit of Milestone Medical. At June 30, 2015, the expenses due from Milestone Medical are $380,721.
In December 2014, Milestone Scientific entered into a bridge financing to Milestone Medical while waiting approval of the capital raise, Milestone Scientific (49.9% owners) entered into a line of credit agreement which allows Milestone Medical to borrow up to $2 million from Milestone Scientific through January 2016, if needed, to assist in paying for the capital raise. The loan provides for interest charge at a rate of 3.25% per annual, the prime rate at the inception of the line of credit. The agreement terminates at April 15, 2016. $1,000,000 was borrowed by Milestone Medical at June 30, 2015 and is recognized as notes receivable on the condensed consolidated balance sheet.
Milestone Scientific shipped $150,600 handpieces in the six months ended June 30, 2015 to Milestone China. Additionally Milestone Scientific shipped $549,800 instruments at the end of June 2015 that will be recorded in July 2015. Milestone China owes $323,640 to a wholly-owned subsidiary of Milestone Scientific for handpieces and instruments shipped in 2015.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef