Product Sales and Significant Customers and Vendors

12 Months Ended

Dec. 31, 2011

Product Sales and Significant Customers and Vendors [Abstract]

PRODUCT SALES AND SIGNIFICANT CUSTOMERS AND VENDORS

NOTE N — PRODUCT SALES AND SIGNIFICANT CUSTOMERS AND VENDORS

Milestone’s sales by product and by geographical region are as follows:

		September 30,		September 30,
	Year End December 31,
	2011		2010
Instruments	$	2,823,669	$	3,690,456
Handpieces		5,457,196		5,962,965
Other		97,229		96,547
	$	8,378,094	$	9,749,968
United States	$	4,658,327	$	4,529,420
Canada		468,786		601,034
Other foreign		3,250,981		4,619,514
	$	8,378,094	$	9,749,968

The Company 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. Purchases from this supplier were $2,049,103 (50%) and $3,541,806 (60.8%) in 2011 and 2010, respectively. The Company has a manufacturing agreement with one of the principal manufacturers of the handpieces pursuant to which they manufacture products under specific purchase orders but without minimum purchase commitments. Purchases from this supplier for handpieces were $56,231 (1%) and $270,517 (4.6%) in 2011 and 2010, respectively. The Company has established an alternate source of supply for the handpieces from a vendor in China and other alternate sources of supply exist. Purchases of handpieces from this vendor in China were $2,006,885 (40%) and $2,016,212 (34.6%) in 2011 and 2010, respectively. As further described in Note B, a five percent shareholder of the Company is also a shareholder of this vendor. All other purchases from other suppliers were not significant in either 2011 or 2010.

For the year ended December 31, 2011, Milestone had two customers (distributors) that had approximately 43%, (30% and 13%) of its net product sales. Accounts receivable, current and long term, for the three customers amounted to approximately $917,575, or 65%, (28%, 12% and 25%) of gross accounts receivable. For the year ended December 31, 2010, Milestone had three customers (distributors) that had approximately 60%, (30%, 11%, and 19%) of its net product sales. Accounts receivable from these three customers amounted to approximately and $1,346,966, or 73% (5%, 7% and 61%) of gross accounts receivable.