Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Significant Concentrations and Geographical Information

v3.8.0.1
Note 10 - Significant Concentrations and Geographical Information
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Product Sales and Significant Customers and Vendors Disclosure [Text Block]
NOTE
10
SIGNIFICANT CONCENTRATIONS & GEOGRAPHICAL INFORMATION
 
Milestone Scientific
’s consolidated dental sales by product and by geographical region are as follows:  Revenue from the medical segment is
not
material as of
September 2017.
 
   
Three months Ended September
30,
 
Nine months Ended September 30,
   
2017
 
2016
 
2017
 
2016
DOMESTIC
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
Instruments
  $
452,232
 
 
  $
-
 
 
  $
857,525
 
 
  $
852,149
 
 
Handpieces
   
893,496
 
 
   
106,908
 
 
   
3,230,567
 
 
   
1,860,593
 
 
Other
   
12,338
 
 
   
12,508
 
 
   
53,037
 
 
   
46,634
 
 
Total Domestic
  $
1,358,066
 
 
  $
119,416
 
 
  $
4,141,129
 
 
  $
2,759,376
 
 
INTERNATIONAL-Europe
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
Instruments
  $
340,575
 
 
  $
1,416,030
 
 
  $
1,053,050
 
 
  $
1,974,280
 
 
Handpieces
   
765,821
 
 
   
713,766
 
 
   
2,068,007
 
 
   
1,845,424
 
 
Other
   
32,951
 
 
   
87,984
 
 
   
89,764
 
 
   
188,046
 
 
Total International -Europe
  $
1,139,347
 
 
  $
2,217,780
 
 
  $
3,210,821
 
 
  $
4,007,750
 
 
INTERNATIONAL-China
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
Instruments
  $
-
 
 
  $
493,000
 
 
  $
1,000,000
 
 
  $
1,493,800
 
 
Handpieces
   
356,400
 
 
   
356,400
 
 
   
712,800
 
 
   
712,800
 
 
Other
   
-
 
 
   
-
 
 
   
1,800
 
 
   
-
 
 
Total International-China
  $
356,400
 
 
  $
849,400
 
 
  $
1,714,600
 
 
  $
2,206,600
 
 
                                         
Domestic
  $
1,358,066
 
 
  $
119,416
 
 
  $
4,141,129
 
 
  $
2,759,376
 
 
International -Europe
   
1,139,347
 
 
   
2,217,780
 
 
   
3,210,821
 
 
   
4,007,750
 
 
International -China
   
356,400
 
 
   
849,400
 
 
   
1,714,600
 
 
   
2,206,600
 
 
    $
2,853,813
 
 
  $
3,186,596
 
 
  $
9,066,550
 
 
  $
8,973,726
 
 
 
Milestone Scientific has informal arrangements with a
third
party 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. In
March 2016,
Milestone Scientific entered into a purchase commitment for delivery of
3,000
instruments, as of
September 30, 2017
all instruments have been received. 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
$948,094
was recorded at
September 30, 2017.
At
September 30, 2017,
Milestone Scientific
’s purchase commitment for this purchase order was
$431,619.
Consequently, advances on contracts have been classified as current at
September 30, 2017
and
December 31, 2016.
 
              
 
             
For the
three
months ended
September 30, 2017 ,
an aggregate of approximately
67%
of Milestone Scientific's net product sales were to
two
customers/ distributors (
one
of which,
 Milestone China, is  a related party),
54%,
and
13%,
respectively. For the
nine
months ended
September 30, 2017,
an aggregate of approximately
72%
of Milestone Scientific's net product sales were to
two
customers/distributors (
one
of which, Milestone China, is a related party),
53%,
and
19%,
respectively. Accounts receivable for the major customer/distributors amounted to an aggregate of approximately
$1,403,148,
or
70%
of Milestone Scientific's accounts receivable for
nine
months ended
September 30, 2017.
For the
three
months ended
September 30, 2016,
an aggregate of
61%
of Milestone Scientific's net product sales were to
two
customers/distributors (
one
of which ,Milestone China, is a related party),
44%,
  and
17%,
respectively. For the
nine
months ended
September 30, 2016,
an aggregate of approximately
70%
of Milestone Scientific's net product sales were to
two
customers/distributors (
one
of which, Milestone China, is a related party),
62%,
and
8%,
respectively.