Note 7 - Advances on Contracts
|9 Months Ended|
Sep. 30, 2016
|Notes to Financial Statements|
|Advances to Contract Manufacturer [Text Block]||
– 7 ADVANCES ON CONTRACTS
Milestone Scientific has informal arrangemen
ts with the manufacturer of the STA, CompuDent® and CompuMed® instruments, pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. Milestone Scientific has open purchase orders with a contract manufacturer to manufacture STA instruments. The contract manufacturer bills Wand Dental as the work progresses and it is Wand Dental’s policy to record these payments as advances on contracts. These advances are reclassified into inventory when the contract manufacturer ships the product and title passes to Wand Dental. The advances on contracts represent funding of future STA inventory purchases. The balance of the advances as of September 30, 2016 and December 31, 2015, is $1,268,694 and $1,215,128 respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory.