Product Sales and Significant Customers and Vendors

12 Months Ended

Dec. 31, 2012

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:

	Year End December 31,
	2012		2011
Instruments	$	2,146,756	$	2,823,669
Handpieces		6,344,021		5,457,196
Other		157,465		97,229
	$	8,648,242	$	8,378,094
United States	$	4,343,807	$	4,658,327
Canada		553,984		468,786
Other foreign		3,750,451		3,250,981
	$	8,648,242	$	8,378,094

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 $444,852 (18%) and $2,049,103 (50%) in 2012 and 2011, respectively. Milestone has a manufacturing agreement with one of the principal manufacturers, which is a related party, of its handpieces pursuant to which they manufacture products under specific purchase orders but without minimum purchase commitments. Purchases of handpieces from this vendor in China were $1,966,077 (82%) and $2,006,885 (40%) in 2012 and 2011, 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 2012 or 2012.

For the year ended December 31, 2012, Milestone had two customers (distributors) that had approximately 36%, (21% and 15%) of its net product sales. Accounts receivable, current and long term, for the three major customers amounted to approximately $421,890, or 38%, (8%, 10% and 20%) of gross accounts receivable. 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 from these three customers amounted to approximately and $917,575, or 65% (28, 12% and 25%) of gross accounts receivable.