Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Concentrations & Geographical Information

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Note 9 - Concentrations & Geographical Information
9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Product Sales and Significant Customers and Vendors Disclosure [Text Block]
NOTE
– 9 CONCENTRATIONS & GEOGRAPHICAL INFORMATION
 
Milestone Scientific has a manufacturing agreement with one of the principal manufacturers, which is a
related party, of its handpieces pursuant to which they manufacture products under specific purchase orders but without minimum purchase commitments. A five percent shareholder of Milestone Scientific is also a shareholder of this vendor. Purchases from this supplier were $2,088,229 and $1,801,449 during nine months ended September 30, 2016 and 2015, respectively. Milestone Scientific owed $984,286 and $716,520 to this supplier as of September 30, 2016 and December 31, 2015, respectively.
 
For the nine months ended September 30, 2016 and 2015 (i) two customers (distributors), one of
which is a related party, accounted for approximately 70% (62% and 8%), and approximately 33% (15% and 18%), of Milestone Scientific’s net product sales, respectively; and (ii) two customers accounted for approximately $1,995,000 ($1,850,000 and $145,000) representing approximately 78% (72% and 6%), and three customers accounted for approximately $1,572,000 ($1,089,000, $306,000 and $177,000) representing 69% (47%, 13% and 9%), of accounts receivable, respectively
.
 
Milestone Scientific
’s sales by product category and by geographical region are as follows: 
 
   
Three Months Ended September 30,
 
Nine Months Ended September 30,
   
2016
 
2015
 
2016
 
2015
DOMESTIC
 
 
 
 
 
 
 
 
 
 
 
 
Instruments
  $ -   $ 9,555   $ 852,149   $ 611,845
Handpieces
    106,908     672,425     1,860,593     1,777,548
Other
    12,508     18,899     46,634     20,661
Total Domestic
  $ 119,416   $ 700,879   $ 2,759,376   $ 2,410,054
INTERNATIONAL
 
 
 
 
 
 
 
 
 
 
 
 
Instruments
  $ 1,909,030   $ 891,657   $ 3,468,080   $ 1,705,703
Handpieces
    1,070,166     861,512     2,558,224     2,833,043
Other
    87,984     5,910     188,046     48,121
Total International
  $ 3,067,180   $ 1,759,079   $ 6,214,350   $ 4,586,867
Total Product Sales
  $ 3,186,596   $ 2,459,958   $ 8,973,726   $ 6,996,921