Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Significant Customers and Geographical Information

v3.7.0.1
Note 10 - Significant Customers and Geographical Information
3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Product Sales and Significant Customers and Vendors Disclosure [Text Block]
NOTE
10
SIGNIFICANT CUSTOMERS & GEOGRAPHICAL INFORMATION
 
Milestone Scientific
’s consolidated dental sales by product and by geographical region are as follows:
 
   
Three months Ended March 31
 
   
2017
   
2016
 
DOMESTIC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Instruments
  $
185,645
     
10.8
%   $
661,645
     
39.3
%
Handpieces
   
1,510,486
     
88.1
%    
988,143
     
58.7
%
Other
   
18,941
     
1.1
%    
34,379
     
2.0
%
Total Domestic
  $
1,715,071
     
100.0
%   $
1,684,167
     
100.0
%
INTERNATIONAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Instruments
  $
1,358,670
     
68.8
%   $
1,268,156
     
67.3
%
Handpieces
   
583,349
     
29.6
%    
584,708
     
31.0
%
Other
   
31,898
     
1.6
%    
32,342
     
1.7
%
Total International
  $
1,973,917
     
100.0
%   $
1,885,206
     
100.0
%
DOMESTIC/INTERNATIONAL ANALYSIS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
  $
1,715,071
     
46.5
%   $
1,684,167
     
47.2
%
International
  $
1,973,917
     
53.5
%   $
1,885,206
     
52.8
%
Total Product Sales
  $
3,688,988
     
100.0
%   $
3,569,373
     
100.0
%
 
Milestone Scientific has informal arrangements with the manufacturer of the STA, CompuDent® and CompuMed® instruments,
one
of the principal manufacturers for those instruments pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. In
March
2016,
Milestone Scientific entered into a purchase commitment for delivery of
3,000
instruments. There are
700
instruments remaining on this purchase order as of
March
31,
2017.
An advance an aggregate of
$299,180
was remaining at
March
31,
2017.
In
January
2017,
Milestone Scientific entered into a purchase commitment for the delivery of
2,000
instruments beginning in the
4
th
quarter of
2017.
An advance of
$514,748
was recorded at
March
31,
2017.Consequently,
advances on contracts have been classified as current at
March
31,
2017
and 
December
31,
 
2016.
 
For the
three
months ended
March
31,
2017,
an aggregate of approximately
79%
of Milestone Scientific's net product sales were to
two
customers/ distributors
(one
of which was a related party),
52%
and
27%,
respectively. Accounts receivable for the
two
major customers/distributors amounted to an aggregate of approximately
$2,481,055,
or
83%
of Milestone Scientific's accounts receivable for
three
months ended
March
31,
2017.
For the
three
months
March
31,
2016,
an aggregate of approximately
82%
of Milestone Scientific's net product sales were to
three
customers/distributors
(one
of which was a related party),
35%,
26%
and
21%,
 respectively. Accounts receivable for the
two
major customers /distributors amounted to approximately
$2,994,686
, or
85%
of gross accounts receivable, for the year ended
December
31,
2016.