Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Related Parties

v3.8.0.1
Note 12 - Related Parties
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
NOTE –
12
RELATED PARTIES
 
Milestone Scientific has a manufacturing agreement with United Systems (a significant stockholder of Milestone), the principal manufacturers of its handpieces, pursuant to which
 it manufactures products under specific purchase orders, but without minimum purchase commitments. Purchases from this manufacturer were
$721,225
and
$1,690,582
for the
three
and
nine
months ended
September 30, 2017, 
respectively. Purchases of handpieces from this manufacturer were
$967,003
and
$2,088,229
for the
three
and
nine
months ended
September 30, 2016,
respectively. Milestone Scientific owed
$902,341
and
$984,286
to this manufacturer as of
September 30, 2017
and
December 31, 2016,
respectively.
 
Milestone Scientific had
$356,400
and
$712,800
of related party sales of handpieces to Milestone China and Milestone China
’s agent during the
three
and
nine
months ended
September 30, 2017
respectively. Milestone Scientific had
$1,977,862
and
$3,203,466
of related party sales of handpieces and instruments to Milestone China during the
three
and
nine
months ended
September 30, 2016,
respectively. As of
September 30, 2017
and
December 31, 2016,
Milestone Scientific recorded deferred revenues and deferred costs associated with sales to Milestone China of
$362,718
and
$712,800,
and
$1,001,800
and
$620,041,
respectively.  As of
September 30, 2017
and
December 31, 2016,
Milestone China’s agent owed
$$712,800
and
$2,714,600,
respectively, to Milestone Scientific which is included in related party accounts receivable on the condensed consolidated balance sheets. 
 
In
August 2016,
a stockholder of Milestone Scientific entered a
three
-year agreement with Milestone Scientific to provide financial and business strategic services. Expenses
recognized on this agreement were
$25,000
and
$75,000
for the
three
and
nine
months ended
September 30, 2017,
respectively. Expenses recognized on this agreement were
$25,000
and
$75,000
for the
three
and
nine
months ended
September 30, 2016,
respectively.
 
In
January 2017,
Milestone Scientific entered into a
12
month
 agreement with Innovest S.p.A. to provide consulting services (see Note
13
).