Note M - Product Sales and Significant Customers and Vendors

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Product Sales and Significant Customers and Vendors Disclosure [Text Block]

NOTE M

— PRODUCT SALES AND SIGNIFICANT CUSTOMERS AND VENDORS

Milestone Scientific

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

	Years Ended December 31,
	2016				2015
DOMESTIC
Instruments	$	852,148	27.5	%	$	623,195	17.8	%
Handpieces		2,102,394	67.9	%		2,799,785	79.8	%
Other		143,762	4.6	%		83,362	2.4	%
Total Domestic	$	3,098,304	100.0	%	$	3,506,342	100.0	%
INTERNATIONAL
Instruments	$	3,264,633	44.2	%	$	2,062,556	34.5	%
Handpieces		4,063,811	55.1	%		3,836,002	64.1	%
Other		55,257	0.7	%		86,669	1.4	%
Total International	$	7,383,701	100.0	%	$	5,985,227	100.0	%
DOMESTIC/INTERNATIONAL ANALYSIS
Domestic	$	3,098,304	29.6	%	$	3,506,342	36.9	%
International	$	7,383,701	70.4	%	$	5,985,227	63.1	%
Total Product Sales	$	10,482,005	100.0	%	$	9,491,569	100.0	%

Milestone Scientific 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. In

March

2016,

Milestone Scientific entered into a new purchase commitment for delivery of

3,000

instruments. An advance an aggregate of

$656,752

was recorded at

December

31,

2016.

Consequently, advances on contracts have been classified as current at

December

31,

2016

and

2015.

For the year ended

December

31,

2016,

Milestone Scientific had

two

customers (distributors,

one

is a related party) that purchased approximately

58%

(31%

and

27%),

of its net product sales. Accounts

receivable for the

two

major customers amounted to approximately

$2,994,686,

or

85%

of gross accounts receivable for the years ended

December

31,

2016.

For the year ended

December

31,

2015,

Milestone Scientific had

two

customers (distributors,

one

is a related party) that purchased approximately

33%

(15%

and

15%),

of its net product sales. Accounts receivable for the

three

major customers amounted to approximately

$1,100,000,

or

69%

of gross accounts receivable for the years ended

December

31,

2015.