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Organization, Business and Basis of Presentation
12 Months Ended
Dec. 31, 2011
Organization, Business and Basis of Presentation [Abstract]  
ORGANIZATION, BUSINESS AND BASIS OF PRESENTATION

NOTE A — ORGANIZATION, BUSINESS AND BASIS OF PRESENTATION

Milestone Scientific Inc. (“Milestone”) or (“the Company”) was incorporated in the State of Delaware in August 1989. Milestone has developed a proprietary, computer-controlled anesthetic delivery instrument, through the use of The Wand, a single use disposable handpiece. The instrument is marketed in dentistry under the trademark CompuDent, Wand Plus and STA (Single Tooth Anesthesia) and in medicine under the trademark CompuMed. CompuDent is suitable for all dental procedures that require local anesthetic. CompuMed and Wand Plus are suitable for many medical procedures regularly performed in Plastic Surgery, Hair Restoration Surgery, Podiatry, Colorectal Surgery, Dermatology, Orthopedics and a number of other disciplines. The instruments are sold in the United States and in over 47 countries abroad. Milestone’s products are manufactured by a third-party contract manufacturer.

The Company had incurred operating losses since its inception. The Company had negative cash flows from operating activities at December 31, 2011 of $570,730 and a negative cash flow from operating activities at December 31, 2010 of $293,777. At December 31, 2011, the Company had cash and cash equivalents and a negative working capital of $96,324 and $$1,310,935, respectively. The negative working capital increase of $1,304,250 in as compared to 2010 is due to the Company’s continued commitment of purchasing parts in anticipation of significant sales to our distributor in China. Such sales have been delayed. As a result of this delay, the advances to contract manufacturer has been allocated between current and long term. Additionally, the accounts payable due to suppliers is presented as short term in 2011 and has been allocated between long term and short term in 2010. And finally, the accounts receivable for the China distributor had been allocated between current and long term, with a reserve of $516,000 provided against the accounts receivable. Additionally, the Company borrowed $450,000 in 2008 from a shareholder, with a due date of January 2009. This additional borrowing was refinanced at December 31, 2008 and June 30, 2011 and the due date was extended to July 31, 2013. The Company is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue based upon management’s assessment of present contracts and current negotiations and reductions in operating expenses. As of December 31, 2011, the Company does not expect to have sufficient cash reserves to meet all of its anticipated obligations for the next twelve months. The Company may require the need for a higher level of marketing and sales efforts that at present it cannot fund. If the Company is unable to generate positive cash flows from its operating activities it will need to raise additional capital. There is no assurance that the Company will be able to achieve positive operating cash flows or that traditional capital can be raised on terms and conditions satisfactory to the Company, if at all. If positive cash flow cannot be achieved or if additional capital is required and it cannot be raised, then the Company would be forced to curtail its development activities, reduce marketing expenses for existing dental products or adopt other cost saving measures, any of which might negatively affect the Company’s operating results.

The Company’s recurring losses raise substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.