mlss20170630

0001437749-17-014710.txt : 20170814 0001437749-17-014710.hdr.sgml : 20170814 20170814160850 ACCESSION NUMBER: 0001437749-17-014710 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 55 CONFORMED PERIOD OF REPORT: 20170630 FILED AS OF DATE: 20170814 DATE AS OF CHANGE: 20170814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MILESTONE SCIENTIFIC INC. CENTRAL INDEX KEY: 0000855683 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 133545623 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-14053 FILM NUMBER: 171030190 BUSINESS ADDRESS: STREET 1: 220 SOUTH ORANGE AVENUE CITY: LIVINGSTON STATE: NJ ZIP: 07039 BUSINESS PHONE: (973) 535-2717 MAIL ADDRESS: STREET 1: 220 SOUTH ORANGE AVENUE CITY: LIVINGSTON STATE: NJ ZIP: 07039 FORMER COMPANY: FORMER CONFORMED NAME: MILESTONE SCIENTIFIC INC/NJ DATE OF NAME CHANGE: 19970409 FORMER COMPANY: FORMER CONFORMED NAME: U S OPPORTUNITY SEARCH INC DATE OF NAME CHANGE: 19920703 10-Q 1 mlss20170630_10q.htm FORM 10-Q mlss20170630_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-14053

MILESTONE SCIENTIFIC INC.

(Exact name of registrant as specified in its charter)

Delaware		13-3545623
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

220 South Orange Avenue, Livingston, New Jersey 07039

(Address of principal executive offices)

(973) 535-2717

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Name of each exchange on which registered

Common Stock, par value $.001 per share		NYSE MKT LLC

Securities registered pursuant to section 12(g) of the Act: NONE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company)	Smaller reporting company ☑
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

As August 14, 2017, the registrant had a total of 32,989,724 shares of Common Stock, $.001 par value, outstanding.

MILESTONE SCIENTIFIC INC.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets June 30, 2017 (Unaudited) and December 31, 2016 (Audited)

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 (Unaudited)

Condensed Consolidated Statement of Changes in Stockholders’ Equity for the six months ended June 30, 2017 (Unaudited)

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II—OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

Item 5.

Other Information

Item 6.

Exhibits

Signatures

FORWARD-LOOKING STATEMENTS

When used in this Quarterly Report on Form 10-Q, the words “may”, “will”, “should”, “expect”, “believe”, “anticipate”, “continue”, “estimate”, “project”, “intend” and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) regarding events, conditions and financial trends that may affect Milestone Scientific’s future plans of operations, business strategy, results of operations and financial condition. Milestone Scientific wishes to ensure that such statements are accompanied by meaningful cautionary statements pursuant to the safe harbor established in the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and the actual results may differ materially from those included within the forward-looking statements as a result of various factors. Such forward-looking statements should, therefore, be considered in light of various important factors, including those set forth herein and others set forth from time to time in Milestone Scientific’s reports, including without limitations, Milestone Scientific's Annual Report on Form 10-K for the year ended December 31, 2016, and registration statements filed with the Securities and Exchange Commission (the “SEC”). Milestone Scientific disclaims any intent or obligation to update such forward-looking statements.

Milestone Scientific is the owner of the following registered U.S. trademarks: CompuDent®; CompuMed®; CompuFlo®; DPS Dynamic Pressure Sensing Technology®; Milestone Scientific ®; the Milestone logo ®; SafetyWand®; STA Single Tooth Anesthesia System®; and The Wand ®.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

	June 30, 2017			December 31, 2016
ASSETS
Current Assets:
Cash and cash equivalents	$	2,945,631		$	3,602,229
Accounts receivable, net of allowance for doubtful accounts of $10,000 as of June 30, 2017 and $5,000 as of December 31, 2016		1,419,731			802,384
Accounts receivable from related party		356,400			2,714,600
Other receivable		-			10,000
Notes receivable, financing transaction short term		500,000			-
Inventories		4,498,371			4,602,719
Advances on contracts		851,504			700,900
Deferred cost		181,116			620,041
Prepaid expenses and other current assets		746,491			291,929
Total current assets		11,499,244			13,344,802
Furniture, fixtures & equipment net of accumulated depreciation of $707,167 as of June 30, 2017 and $659,144 as of December 31, 2016		170,552			159,026
Patents, net of accumulated amortization of $809,332 as of June 30,2017 and $717,086 as of December 31, 2016		625,092			660,457
Notes receivable, financing transaction long term		775,000			-
Other assets		26,878			17,355
Total assets	$	13,096,766		$	14,181,640

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	985,736		$	1,341,207
Accounts payable related party		381,432			1,235,052
Accrued expenses and other payables		1,652,144			1,436,262
Deferred profit, related party		659,931			630,990
Deferred revenue		356,400			1,001,800
Total current liabilities		4,035,643			5,645,311
Deferral from financing transaction		1,400,000			-
Total liabilities		5,435,643			5,645,311
Commitments and Contingencies
Stockholders’ Equity
Series A convertible preferred stock, par value $.001, authorized 5,000,000 shares, 33,333 shares held in the treasury, and 7,000 shares issued and outstanding as June 30, 2017 and December 31, 2016		7			7
Common stock, par value $.001; authorized 50,000,000 shares; 31,376,699 shares issued, 1,361,071 shares to be issued and 31,343,366 shares outstanding as of June 30, 2017; 30,457,224 shares issued, 1,270,481 shares to be issued and 30,423,891 shares outstanding as of December 31, 2016		32,736			31,720
Additional paid-in capital		83,600,384			82,761,503
Accumulated deficit		(75,365,184	)		(73,381,491	)
Treasury stock, at cost, 33,333 shares		(911,516	)		(911,516	)
Total Milestone Scientific Inc. stockholders' equity		7,356,427			8,500,223
Noncontrolling interest		304,696			36,106
Total Equity		7,661,123			8,536,329
Total liabilities and stockholders’ equity	$	13,096,766		$	14,181,640

See Notes to Condensed Consolidated Financial Statements

MILESTONE SCIENTIFIC INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Revenue
Product sales, net	$	2,523,750		$	2,371,710		$	6,212,738		$	5,836,196
Cost of products sold		873,586			789,801			2,275,871			2,157,990
Gross profit		1,650,164			1,581,909			3,936,867			3,678,206
Selling, general and administrative expenses		3,082,534			3,290,998			5,790,161			6,292,109
Research and development expenses		120,065			309,335			225,080			452,780
Total operating expenses		3,202,599			3,600,333			6,015,241			6,744,889
Loss from operations		(1,552,435	)		(2,018,424	)		(2,078,374	)		(3,066,683	)
Other (expenses)		(1,024	)		(1,004	)		(1,763	)		(1,936	)
Interest income		2,154			-			2,442			-
Loss before provision for income tax and equity in net earnings of equity investments		(1,551,305	)		(2,019,428	)		(2,077,695	)		(3,068,619	)
Provision for income tax		(4,664	)		(16,791	)		(11,865	)		(63,624	)
Loss before equity in net earnings of equity investments		(1,555,969	)		(2,036,219	)		(2,089,560	)		(3,132,243	)
Profit or (loss) on equity investment in China Joint Venture		15,460			(57,882	)		(28,941	)		(222,719	)
Profit or (loss)in equity investments		15,460			(57,882	)		(28,941	)		(222,719	)
Net loss		(1,540,509	)		(2,094,101	)		(2,118,501	)		(3,354,962	)
Net loss attributable to noncontrolling interests		(61,684	)		(507,262	)		(134,808	)		(976,308	)
Net loss attributable to Milestone Scientific Inc.	$	(1,478,825	)	$	(1,586,839	)	$	(1,983,693	)	$	(2,378,654	)

Net loss per share applicable to common stockholders—
Basic	$	(0.05	)	$	(0.06	)	$	(0.06	)	$	(0.10	)
Diluted	$	(0.05	)	$	(0.06	)	$	(0.06	)	$	(0.10	)

Weighted average shares outstanding and to be issued—
Basic		32,399,997			25,989,857			32,122,482			24,362,441
Diluted		32,399,997			25,989,857			32,122,482			24,362,441

See Notes to Condensed Consolidated Financial Statements

MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)

	Preferred Stock		Common Stock
	Shares	Amount	Shares	Amount		Additional Paid-in Capital			Accumulated Deficit		Noncontrolling interest			Treasury Stock			Total
Balance, January 1, 2017	7,000	$ 7	31,727,705	$	31,720	$	82,761,503		(73,381,491	)	$	36,106		$	(911,516	)	$	8,536,329
Stock based compensation	-	-					237,858		-			-			-			237,858
Common stock to be issued to employee for compensation			10,913		11		14,989		-			-			-			15,000
Common stock issued to employee for exercise of stock options			83,333		83		62,417		-			-			-			62,500
Common stock issued for payment of consulting services			245,373		260		422,249		-			-			-			422,509
Common stock to be issued to employee for bonuses			114,748		107		194,885		-			-			-			194,992
Common Stock exchanged for MMD			311,998		311		(403,709	)	-			403,398			-			-
Common stock issued to directors for bonuses			120,000		120		159,480		-			-			-			159,600
Sale of Common Stock - Public Offering			123,700		124		150,712		-			-			-			150,836
Net loss	-	-					-		(1,983,693	)		(134,808	)		-			(2,118,501	)
Balance, June 30, 2017	7,000	$ 7	32,737,770	$	32,736	$	83,600,384		(75,365,184	)	$	304,696		$	(911,516	)	$	7,661,123

See Notes to Condensed Consolidated Financial Statements

MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six Months Ended June 30,
	2017			2016
Cash flows from operating activities:
Net loss	$	(2,118,501	)	$	(3,354,962	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		31,023			46,177
Amortization of patents		35,364			35,707
Common stock and options for compensation, consulting and vendor services		237,858			784,480
Equity method loss China joint venture		28,941			222,719
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(617,347	)		366.982
Decrease (increase) in accounts receivable related party		2,358,200			(1,156,400	)
Decrease (increase) in other receivable		10,000			(8,975	)
Decrease (increase) in inventories		104,348			(233,393	)
(Increase) decrease to advances on contracts		(150,604	)		117
Increase to prepaid expenses and other current assets		(454,562	)		(71,240	)
(Increase) decrease in other assets		(9,523	)		5,975
Decrease in accounts payable		(355,471	)		(272,696	)
(Decrease) increase in accounts payable related party		(853,620	)		680,232
Increase in deferred profit, related party		438,925			-
Increase (decrease) in accrued expenses and other payables		1,007,983			(67,367	)
Decrease in deferred revenue		(645,400	)		-
Net cash used in operating activities		(952,386	)		(3,022,644	)
Cash flows from investing activities:
Purchase of intangible assets		(39,199	)		(15,616	)
Purchase of property and equipment		(3,349	)		(15,668	)
Consolidation of variable interest entity		-			26,925
Net cash used in investing activities		(42,548	)		(4,359	)
Cash flows from financing activities:
Capital contribution from noncontrolling interest		-			16,346
Proceeds from exercise of stock options		62,500			-
Net proceeds on Private Placement Offering		150,836			2,000,000
Proceeds from financing transaction		125,000			-
Net cash provided by investing activities		338,336			2,016,346
Net decrease in cash and cash equivalents		(656,598	)		(1,010,657	)
Cash and cash equivalents at beginning of period		3,602,229			4,194,384
Cash and cash equivalents at end of period	$	2,945,631		$	3,183,727


Supplemental disclosure of cash flow information:
Net assets acquired from variable entity	$	-		$	6,307
Sale of Milestone China shares, financing transaction	$	1,400,000		$	-
Shares issued to employees for bonus	$	194,885		$	339,549
Shares issued to consultants in lieu of cash payment	$	422,249		$	75,000

See Notes to Condensed Consolidated Financial Statements

MILESTONE SCIENTIFIC INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1- ORGANIZATION and BUSINESS

All references in this report to “Milestone Scientific,” “us,” “our,” “we,” or “Milestone” refer to Milestone Scientific Inc., and its consolidated subsidiaries, Wand Dental, Milestone Advanced Cosmetic, Milestone Medical, and Milestone Education (all described below), unless the context otherwise indicates. Milestone Scientific is the owner of the following registered U.S. trademarks: CompuDent®; CompuMed®; CompuFlo®; DPS Dynamic Pressure Sensing Technology®; Milestone Scientific ®; the Milestone logo ®; SafetyWand®; STA Single Tooth Anesthesia System®; and The Wand ®.

Milestone Scientific was incorporated in the State of Delaware in August 1989. Milestone Scientific 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®, and STA Single Tooth Anesthesia System® and in medicine under the trademark CompuMed®. CompuDent® is suitable for all dental procedures that require local anesthetic. CompuMed® is 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 dental instruments are sold in the United States and in over 47 countries abroad. To date there have been no medical instruments sold in the United States and limited amounts sold internationally, although certain medical instruments have obtained CE mark approval and can be marketed and sold in most European countries. In June 2017, Milestone Scientific received 510(k) marketing clearance from the U.S. Food and Drug Administration (FDA) on the CompuFlo® Epidural Computer Controlled Anesthesia System.

During 2015, our common stock was listed on the NYSE MKT LLC (“NYSE MKT”) under the ticker symbol “MLSS”.

In June 2016, we raised $2.0 million of gross proceeds in a private placement of one million shares of common stock, at a price of $2.00 per share.

In the second quarter of 2016, Milestone Scientific initiated a share exchange program pursuant to which we exchanged one share of common stock for every two outstanding shares of Milestone Medical, Inc. (described below) common stock, a previously consolidated variable interest entity. As a result of the exchange program, at June 30, 2017, Milestone Scientific owned approximately 98% of Milestone Medical.

In July 2016, Milestone Scientific raised gross proceeds of $250,000 in a registered direct offering of 104,200 shares of common stock at $2.40 per share.

In July 2016, Milestone Scientific filed for 510(k) marketing clearance with the FDA for the for the CompuFlo® Computer Controlled Anesthesia System for both intra-articular and epidural injections. In June 2017, the FDA approved the CompuFlo® Epidural Computer Controlled Anesthesia System for epidural injections. Milestone Scientific is in the process of introductory meetings with medical device distributors within the United States and foreign markets. Milestone Scientific’s immediate focus is on marketing its epidural instrument throughout the world.

In December 2016, we received notification from the FDA that based upon the 510(k) application submitted for the CompuFlo® Intra Articular Computer Controlled Injection System, we did not adequately document that the device met the equivalency standard required for 510(k) clearance. Following consultation with the FDA Office of Device Evaluation, we intend to provide additional data, which could include a new Human Factor Validation study (HFV Study) in support of a new 510(k) application for the device. An HFV Study demonstrates the ease of use of a product.

In December 2016, we completed an underwritten public offering of 2,000,000 shares of common stock and warrants to purchase up to 1,592,775 shares of common stock, including 92,775 additional warrants pursuant to a partial exercise of the over-allotment option granted to the underwriters. The public offering price for each share and related warrant was $1.50. The warrants have a three-year term and an exercise price of $2.55 per share. The gross proceeds from this offering were approximately $3,000,000, before deducting underwriting discounts and commissions and other offering expenses.

In January 2017, in connection with Milestone Scientific public offering of shares in December 2016, the underwriter of the offering exercised a portion of its over-allotment option and purchased an additional 123,700 shares of common stock at the public offering price of $1.499 per share. The gross proceeds to Milestone Scientific from this exercise was approximately $186,000 before deducting underwriting discounts and commissions and other offering expenses.

In June 2017, Milestone Scientific entered into an agreement for the sale of its interest in Milestone China (a forty (40%) percent interest) (the “Milestone China Shares”) to an unaffiliated United States domiciled purchaser and a 10-year option agreement to repurchase the Milestone China Shares. The purchase price for the Milestone China Shares was $1,400,000 of which $125,000 was paid in cash and $1,275,000 was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of $125,000 until paid in full and is secured by the Milestone China Shares until full repayment. In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The 10-year option agreement provides Milestone Scientific an option to repurchase the 40% equity interest at $1,400,000 within the first two years and at fair value (as defined in such agreement) for the remainder of the 10-year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction ($1,400,000). The carrying value of the forty (40%) percent investment at the transaction date was zero. (See Note 5).

Milestone Scientific has incurred operating losses and negative cash flows from operating activities in each year since its inception, except for 2013. Milestone Scientific is actively pursuing the generation of revenue, positive operating income and net income. The capital raised in December 2016 and January 2017 provided Milestone Scientific with working capital to continue to develop and commercialize additional medical instruments and aggressively market its dental instruments throughout the world. Milestone Scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business worldwide, the generation of medical instruments and disposables revenue in the United States (from epidural instruments following June 2017 FDA approval) and worldwide, and a reductions in operating expenses. Management believes that Milestone Scientific will have sufficient cash reserves to meet its anticipated obligations over the next twelve month period following the issuance date of these financial statements. However, Milestone Scientific may need to raise additional capital prior to management's expected generation of sustainable positive cash flow from operating activities including the dental business expected growth and the medical business launch to support medical instrument revenue.

NOTE - 2 SUMMARY OF ACCOUNTING POLICIES

1. Basis of Consolidation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of Milestone Scientific and its wholly owned and majority owned subsidiaries, including, Wand Dental (wholly owned), Milestone Advanced Cosmetic (majority owned) and Milestone Medical (majority owned). Milestone Education is a variable interest entity of which Milestone Scientific is the primary beneficiary and is consolidated into Milestone Scientific's financial statements. All significant, intra-entity transactions and balances have been eliminated in the consolidation.

2. Basis of Presentation

The unaudited condensed consolidated financial statements of Milestone Scientific have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information with the instructions for Form 10Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring entries) necessary to fairly present such interim results. Interim results are not necessarily indicative of the results of operations which may be expected for a full year or any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2016, included in Milestone Scientific's Annual Report on Form 10-K.

3. Reclassifications

Certain reclassifications have been made to the 2016 financial statements to conform to the consolidated 2017 financial statement presentation. These reclassifications had no effect on net loss or cash flows as previously reported.

4. Variable Interest Entities

A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE.

If Milestone Scientific determines that it has operating power and the obligation to absorb losses or receive benefits, Milestone Scientific consolidates the VIE as the primary beneficiary. Milestone Scientific’s involvement constitutes power that is most significant to the entity when it has unconstrained decision making ability over key operational functions within the entity.

Milestone Scientific is the primary beneficiary of Milestone Education as of January 2016 (see Note 4). Accordingly, the assets and liabilities of Milestone Education are included in the accompanying condensed consolidated financial statements.

Because Milestone Scientific had an increasing variable interest in Milestone China, it further considered the guidance in Accounting Standard Codification ("ASC") 810 as it relates to determining whether Milestone China is a VIE and, if so, identifying the primary beneficiary. As Milestone China’s equity at risk and voting rights were not proportional to their economic interest, Milestone China was determined to be a VIE. Milestone Scientific would be considered the primary beneficiary of the VIE if it has both of the following characteristics:

● Power Criterion: The power to direct the activities that most significantly impact the entity’s economic performance; and

● Losses/Benefits Criterion: The obligation to absorb losses that could potentially be significant or the right to receive benefits that could potentially be significant to the VIE.

Milestone management does not have the ability to control the activities that most significantly impact Milestone China's economics and, therefore, the power criterion has not been met. Management placed the most weight on the relationship and significance of activities of Milestone China to the majority shareholder/CEO of Milestone China. As majority shareholder, majority holder of voting rights, and the active CEO, the 53% investor has the power to direct the activities that most significantly impact the economic performance of Milestone China. Management has concluded that Milestone Scientific is not the primary beneficiary under ASC 810. Accordingly, Milestone China has not been consolidated into the financial statements of Milestone Scientific and continues to be accounted for under the equity method (see Note 5).

5. Cash and Cash Equivalents

Milestone Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

6. Accounts Receivable

Milestone Scientific sells a significant amount of its product on credit terms to its major distributors. Milestone Scientific estimates losses from the inability of its customers to make payments on amounts billed. A majority of credit sales are due within ninety days from invoicing. There have not been any significant credit losses incurred to date.

7. Note Receivable

In June 2017, Milestone Scientific entered into an agreement for the sale of the Milestone China Shares to an unaffiliated United States domiciled purchaser and a 10-year option agreement to repurchase the Milestone China Shares. The purchase price for the Milestone China Shares was $1,400,000 of which $125,000 was paid in cash and $1,275,000 was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of $125,000 until paid in full and is secured by the Milestone China Shares until full repayment. In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The 10-year option agreement provides Milestone Scientific an option to repurchase the 40% equity interest at $1,400,000 within the first two years and at fair value (as defined in such agreement) for the remainder of the 10-year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction ($1,400,000). The carrying value of the forty (40%) percent investment at the transaction date was zero. (See Note 5).

8. Product Return and Warranty

Milestone Scientific generally does not accept non-defective returns from its customers. Product returns under warranty are accepted, evaluated and repaired or replaced in accordance with the Warranty Policy. Returns not within the Warranty Policy are evaluated and the customer is charged for the repair.

9. Inventories

Inventories principally consist of finished goods and component parts stated at the lower of cost (first-in, first-out method) or market. Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess and obsolete inventory is recorded if required based on past and expected future sales, potential technological obsolescence and product expiration requirements.

10. Equity Method Investments

Investments in which Milestone Scientific has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long term assets on the condensed consolidated balance sheets. Under this method of accounting, Milestone Scientific's share of the net earnings or losses of the investee is presented below the income tax line on the condensed consolidated statements of operations.

Milestone Scientific evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period.

11. Furniture, Fixture and Equipment

Equipment is recorded at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. The costs of maintenance and repairs are charged to operations as incurred.

12. Intangible Assets - Patents

Patents are recorded at cost to prepare and file the applicable documents with the US Patent Office, or internationally with the applicable governmental office in the respective country. Although certain patents have not yet been approved, the costs related to these patents are being amortized using the straight-line method over the estimated useful life of the patent. If the applicable patent application is ultimately rejected, the remaining unamortized balance will be expensed in the period in which Milestone Scientific receives notice of such rejection.

13. Impairment of Long-Lived Assets

Milestone Scientific reviews long-lived assets for impairment whenever events or circumstances (i.e. a triggering event) indicate that the carrying amounts may not be recoverable. The carrying value of the assets is evaluated in relation to the operating performance and future undiscounted cash flows of the underlying assets. Milestone Scientific adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. There have been no impairment indicators or triggering events and therefore, no impairment reviews have been performed in the period ending June 30, 2017.

14. Revenue Recognition

Revenue from product sales is recognized, net of discounts and allowances to domestic distributors, on the date of shipment for substantially all shipments, since the shipment terms are FOB warehouse. Milestone Scientific recognizes revenue on date of arrival of the goods at the customer's location, where shipments are FOB destination. In all cases the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone Scientific has no obligation on these sales for any post installation, set-up or maintenance, these being the responsibility of the buyer. Milestone Scientific's only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period. Instrument and hand pieces are not bundled but rather sold separately and, as such, there are no multiple element determinations in connection with the revenue recognition.

15. Shipping and Handling Costs

Milestone Scientific includes shipping and handling costs in cost of goods sold. These costs are billed to customers at the time of shipment for domestic shipments. International shipments are FOB warehouse, therefore no costs are incurred by Milestone Scientific.

16. Research and Development

Research and development costs, which consist principally of new product development costs payable to third parties, are expensed as incurred. Advance payments for the research are amortized to expense either as services are performed or over the relevant service period using the straight line method.

17. Income Taxes

Milestone Scientific accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

18. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the allowance for doubtful accounts, inventory valuation, and cash flow assumptions regarding evaluations for impairment of long-lived assets and going concern considerations, and valuation allowances on deferred tax assets. Actual results could differ from those estimates.

19. Fair Value of Financial Instruments

Fair Value Measurements: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market at the measurement date (exit price). We are required to classify fair value measurements in one of the following categories:

● Level 1 inputs which are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

● Level 2 inputs which are defined as inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.

● Level 3 inputs are defined as unobservable inputs for the assets or liabilities.

Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

20. Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017. The FASB continues to release guidance clarifying certain aspects of the revenue guidance. We do not believe that this new accounting pronouncement will have a material impact on our financial statements.

In November 2015, the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. The Company has adopted this pronouncement as of January 1, 2017, and applied retrospectively, for its provision for income taxes disclosure. The adoption did not have an impact on the presentation of the balance sheet, as the Company assigns a full valuation allowance to its net deferred tax asset.

In February 2016, the FASB issued a new standard Accounting Standards Update ("ASU ") No.2016-02, "Leases"(Topic 842). The new standard is intended to increase transparency and comparability among organizations to recognize lease assets and liabilities on the balance sheet and disclose key information about leasing arrangements. It will be effective for fiscal years beginning after December 15, 2018. Milestone Scientific is in the process of determining what impact, the adoption of this ASU will have on its financial position, results of operations and cash flows.

In March 2016, the FASB issued a new standard ASU No.2016-07, “Investments - Equity Method and Joint Ventures” (Topic 323): The new standard is intended to eliminate the requirement that when an investment qualifies for the use of the equity method as a result of an in increase in the level of ownership or degree of influence, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect all of the previous periods that the investment was held. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2016. The Company has adopted the standard, effective January 1, 2017, and has determined the adoption of this standard will not have an impact on its financial reporting.

In March 2016, the FASB issued a new standard ASU No.2016-09, “Compensation – Stock Compensation” (Topic 718): The new standard is intended, under FASB’s Simplification Initiative, to address certain diversity of application within previous guidance. The new standard primarily addresses certain tax aspects in connection with the stock compensation held. It will be effective for fiscal years and interim periods, beginning after December 15, 2016. The Company has adopted the standard, effective January 1, 2017, and the adoption did not have a material effect on its financial reporting.

In June 2016, the FASB issued a new standard ASU No.2016-13, “Financial Instruments – Credit Losses” (Topic 326).: The new standard is intended to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2018. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows.

In August 2016, the FASB issued a new standard ASU No.2016-15, "Statement Cash Flows “Classification of Certain Cash Receipts and Cash Disbursements" Topic 230). The new standard provides guidance as to the conformity of presentation of certain cash receipts and disbursements. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.

In October 2016, the FASB issued a new standard ASU No.2016-17, "Consolidation Interests Held through Related Parties That Are under Common Control"(Topic 810). The new standard provides guidance as to consideration of consolidation requirements of a primary beneficiary and variable interest entity that are part of related party group under common control. It will be effective for fiscal years and interim periods, beginning after December 15, 2016. Milestone Scientific has adopted the standard, effective January 1, 2017, which did not have an impact on its financial reporting.

In November 2016, the FASB issued a new standard ASU No.2016-18, “Statement of Cash Flows – Restricted Cash” (Topic 230). The new standard provides guidance as to address the diversity of treatment of restricted cash on the statement of cash flows. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017 and interim periods therein. Milestone Scientific does not expect the adoption of this ASU to have a material effect on its presentation within the statement of cash flows.

In January 2017, the FASB issued a new standard ASU No.2017-01, “Business Combinations” (Topic 805). The new standard provides guidance to clarify the definition of a ‘business’, and assist entities in evaluation whether a transaction should be accounted for as an acquisition/disposal of assets or a business. It will be effective for public entities for fiscal years and interim periods, beginning after December 15, 2017, with limited early application. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.

In May 2017, the FASB issued a new standard ASU No.2017-09, “Compensation – Stock Compensation” (Topic 718). The new standard provides guidance and clarity for modification to equity based compensation programs. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.

NOTE - 3 Basic and Diluted Net INCOME (Loss) Per Common Share

Milestone Scientific presents "basic" earnings (loss) per common share applicable to common stockholders and, if applicable, "diluted" earnings (loss) per common share applicable to common stockholders pursuant to the provisions of Statement of Financial Accounting Standards ASC Topic 260. Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued during each period. The calculation of diluted earnings per common share is similar to that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options, warrants, and the conversion of debt were issued during the period.

Since Milestone Scientific had net losses for three months and six months ended June 30, 2017 and 2016, the assumed effects of the exercise of potentially dilutive outstanding stock options and warrants were not included in the calculation as their effect would have been anti-dilutive. Such outstanding options and warrants totaled 3,364,840 and 1,976,677 at June 30, 2017 and 2016, respectively.

NOTE - 4 CONSOLIDATION OF VARIABLE INTEREST ENTITY

Milestone Education is a 50% owned subsidiary of Milestone Scientific which began operations in 2013 to provide training and education to dentists throughout the world. Milestone Scientific accounted for its investment in Milestone Education using the equity method of accounting through December 31, 2015. Approximately 81% of the revenue earned by Milestone Education is from services performed for Milestone Scientific as of June 30, 2017. As a result of this relationship, we determined that we had the power to direct the activities that most significantly impact Milestone Education's economic performance, and that it was a VIE and would be consolidated in the financial statements of Milestone Scientific effective January 2016.

NOTE - 5 INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

Advance Ocular Science SA

Advanced Ocular Sciences SA ("Advanced Ocular") is an entity organized to develop an instrument to deliver injections into the eyes. Advanced Ocular is a shell company as of June 30, 2017, Milestone Scientific owns 25% of this entity. During 2015, Milestone Scientific advanced $78,798 for marketing and strategy planning to Advanced Ocular and it, or its organizers, are obligated to repay this advance once a public offering of Advanced Ocular equity is approved and funded in Poland during 2016. No public offering was completed in Poland as of June 30, 2017. As a result, Milestone Scientific wrote-off the $78,798 advanced to Advanced Ocular as of December 31, 2016. Advance Ocular was not included in the condensed consolidated financial statements at June 30, 2017 as no further investment has been made by Milestone Scientific.

Milestone China Ltd.

In June 2014, Milestone Scientific invested $1 million in Milestone China Ltd. (“Milestone China”) by contributing 772 STA Instruments to Milestone China for a 40% ownership interest. Milestone Scientific recorded this investment under the equity method of accounting. Milestone Scientific recorded a loss on its investment in Milestone China of $0 and $164,837, as of June 30, 2017 and 2016, respectively. Milestone Scientific's investment in Milestone China was $0 as of June 30, 2017 and December 31, 2016, respectively. Milestone Scientific incurred cumulative losses on its investment in Milestone China of $1,654,477 and $1,124,350 as of June 30, 2017 and December 31, 2016, respectively, which have been suspended.

Milestone Scientific had $356,400 and $1,714,600 of related party sales of handpieces and instruments to Milestone China and Milestone China’s agent during the three and six months ended June 30, 2017. Milestone Scientific had $356,400 and $1,356,000 of related party sales of handpieces and instruments to Milestone China during the three and six months ended June 30, 2016, respectively. As of June 30, 2017 and December 31, 2016, Milestone Scientific recorded deferred revenues and deferred costs associated with sales to Milestone China of $356,400 and $181,116, and $1,001,800 and $620,041, respectively. As of June 30, 2017 and December 31, 2016, Milestone China owed $356,400 and $2,714,600, respectively, to Milestone Scientific for handpieces and STA instruments which is included in related party accounts receivable on the condensed consolidated balance sheets. Milestone China made payments in April 2017 to satisfy the outstanding instruments receivable from 2016 and therefore the deferred revenue of $1,001,800 at December 31, 2016 has been recorded in revenue for the six months ended June 30, 2017.

Milestone Scientific defers the total revenue and costs of goods sold when instruments and handpieces are shipped to Milestone China and Milestone China’s agent due to market conditions and Milestone China liquidity concerns. However, due to timing differences of when the inventory is sold to Milestone China and when Milestone China sells the acquired inventory to third parties, elimination of the intra-entity profit is required as of the balance sheet date. In accordance with ASC 323 Equity Method and Joint Ventures, Milestone Scientific has deferred the gross profit associated with inventory shipped to Milestone China that has not been sold to third parties. At June 30, 2017 and December 31, 2016, the deferred profit was $659,931 and $630,990, respectively, which is included in the condensed consolidated balance sheets. For the six months ended June 30, 2017 and 2016, the loss on equity investment was $28,941 and $222,719, respectively, which is included in the condensed consolidated statements of operation. For the three months ended June 30, 2017 and 2016, Milestone had a profit on equity investment of $15,460 and loss on equity investment $57,882, respectively, which is included in the condensed consolidated statements of operation.

The following table includes summarized financial information (unaudited) of Milestone China:

	June 30, 2017		December 31, 2016

Assets:
Current Assets	$	9,940,116	$	9,362,198
Non-Current Assets		2,841,127		2,467,547
Total Assets:		12,781,243		11,829,745

Liabilities:
Current Liabilities		12,110,291		9,900,611
Stockholders' equity		670,952		1,929,134
Total liabilities and stockholders’ equity	$	12,781,243	$	11,829,745

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Net Sales	$	322,226		$	57,102		$	1,165,552		$	329,322
Cost of Goods Sold		422,789			74,464			889,204			283,864
Gross Profit		(100,563	)		(17,362	)		276,348			45,458
Other Expenses		(643,570	)		(263,540	)		(1,601,666	)		(643,313	)
Net Losses	$	(744,133	)	$	(280,902	)	$	(1,325,318	)	$	(597,855	)

NOTE – 6 Stock Option Plans

Milestone Scientific recognizes compensation expense on a straight line basis over the requisite service period and in the case of performance based options over the period of the expected performance. For the three and six months ended June 30, 2017 Milestone Scientific recognized $110,305 and $244,115 of total employee stock based compensation cost, respectively. For the three and six months ended June 30, 2016, Milestone Scientific recognized $133,330 and $266,601 of total employee stock based compensation cost, respectively. As of June 30, 2017 and 2016, there was $619,173 and $884,183 of total unrecognized compensation cost related to nonvested options, respectively, which Milestone Scientific expects to recognize these cost over a weighted average period of 2.5 years and 2.74 years as of June 30, 2017 and 2016, respectively.

A summary of option activity for employees under the plans and changes during the six month ended June 30, 2017, is presented below:

	Number of Options			Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2017		1,511,995			1.74		2.97		17,921
Granted		211,179			1.64		4.52
Exercised during 2017		(83,333	)		0.75
Forfeited or expired
Options outstanding June 30, 2017		1,639,841			1.87		2.89
Exercisable, June 30, 2017		1,130,958			1.88		2.46

A summary of option activity for non-employees under the plans as of June 30, 2017 and changes during the six month ended is presented below:

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2017		224,999		2.53		5.32		-
Granted		-
Exercised during 2017		-
Forfeited or expired		-
Options outstanding June 30, 2017		224,999		2.53		4.82		-
Exercisable, June 30, 2017		10,183		2.33		3.86		-

The fair value of the non-employee options was estimated on the date of grant using the Black Scholes option-pricing model at the date of grant. In accordance with the provisions of FASB ASC 505, Milestone Scientific re-measures the value of the grant at each presentation date unless there is a significant disincentive for non-performance or until performance has been. For the three and six months ended June 30, 2017, Milestone Scientific recognized expense of $10,835 and income $6,257, respectively related to non-employee options. For the three and six months ended June 30, 2016, Milestone Scientific recognized expense of $8,421 and $9,596 respectively related to non-employee options.

NOTE – 7 CONCENTRATION OF CREDIT RISK

Milestone Scientific's consolidated financial instruments that are exposed to concentrations of credit risk consist primarily of cash, trade accounts receivable, and advances on contracts. Milestone Scientific places its cash and cash equivalents with large financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. Milestone Scientific has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks. Financial instruments which potentially subject Milestone Scientific to credit risk consist principally of trade accounts receivable, as Milestone Scientific does not require collateral or other security to support customer receivables, and advances on contracts.

Milestone Scientific closely monitors the extension of credit to its customers while maintaining allowances, if necessary, for potential credit losses. On a periodic basis, Milestone Scientific evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions.

NOTE – 8 ADVANCES ON CONTRACTS

The advances on contracts represent funding of future STA inventory purchases. The balance of the advances as of June 30, 2017 and December 31, 2016 is $851,504 and $700,900, respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory.

NOTE – 9 INCOME TAXES

Due to Milestone Scientific's history of operating losses, a full valuation allowances has been provided for all of Milestone Scientific's deferred tax assets at June 30, 2017 and December 31, 2016, no recognition was given to the utilization of the remaining net operating loss carryforwards in each of these periods.

The utilization of Milestone Scientific's net operating losses may be subject to a substantial limitation due to the "change of ownership provisions" under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carry forwards before their utilization. Milestone Scientific has established a 100% valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization.

As of June 30, 2017 and December 31, 2016, state tax liability was approximately $11,865 and $63,000, respectively. Such expense was recognized in the accompanying condensed consolidated financial statements.

NOTE – 10 SIGNIFICANT CONCENTRATIONS & GEOGRAPHICAL INFORMATION

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

	Three months Ended June 30,				Six months Ended June 30,
	2017		2016		2017		2016
DOMESTIC
Instruments	$	219,648	$	190,504	$	405,293	$	852,149
Handpieces		1,182,985		695,761		2,693,471		1,753,685
Other		21,509		20,652		40,449		34,126
Total Domestic	$	1,424,142	$	906,917	$	3,139,213	$	2,639,960
INTERNATIONAL
Instruments	$	353,805	$	535,335	$	1,712,475	$	1,559,050
Handpieces		718,837		882,135		1,302,186		1,537,124
Other		26,966		47,323		58,864		100,062
Total International	$	1,099,608	$	1,464,793	$	3,073,525	$	3,196,236
DOMESTIC/INTERNATIONAL ANALYSIS
Domestic	$	1,424,142	$	906,917	$	3,139,213	$	2,639,960
International	$	1,099,608	$	1,464,793	$	3,073,525	$	3,196,236
Total Product Sales	$	2,523,750	$	2,371,710	$	6,212,738	$	5,836,196

Milestone Scientific has informal arrangements with a third party manufacturer of the STA, CompuDent® and CompuMed® 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 purchase commitment for delivery of 3,000 instruments. There are 200 instruments remaining on this purchase order as of June 30, 2017. An advance of an aggregate of $85,480 remained at June 30, 2017. In January 2017, Milestone Scientific entered into a purchase commitment for the delivery of 2,000 instruments beginning in the 4^th quarter of 2017. An advance of $717,938 was recorded at June 30, 2017. Consequently, advances on contracts have been classified as current at June 30, 2017 and December 31, 2016.

For the three months ended June 30, 2017, an aggregate of approximately 69% of Milestone Scientific's net product sales were to two customers/ distributors (one of which was a related party), 55%, and 14%, respectively. For the six months ended June 30, 2017, an aggregate of approximately 75% of Milestone Scientific's net product sales were to two customers/distributors (one of which was a related party), 53%, and 22%, respectively. Accounts receivable for the two major customers/distributors amounted to an aggregate of approximately $1,345,021, or 75% of Milestone Scientific's accounts receivable for six months ended June 30, 2017. For the three months ended June 30, 2016, an aggregate of 61% of Milestone Scientific's net product sales were to two customers/distributors (one of which was a related party), 44%, and 17%, respectively. For the six months ended June 30, 2016, an aggregate of approximately 72% of Milestone Scientific's net product sales were to three customers/distributors (one of which was a related party), 38%, 22%, and 12%, respectively.

NOTE – 11 RELATED PARTIES

Milestone Scientific has a manufacturing agreement with one of its principal manufacturers of its handpieces, which is a related party, pursuant to which it manufactures products under specific purchase orders, but without minimum purchase commitments. Purchases from this manufacturer $584,792 and $1,037,144 for the three and six months ended June 30, 2017, respectively. Purchases of handpieces from this manufacturer were $485,167 and $1,121,226 for the three and six months ended June 30, 2016, respectively. Milestone Scientific Inc. owed $381,432 and $687,522 to this manufacturer as of June 30, 2017 and December 31, 2016, respectively.

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 $50,000 for the three and six months ended June 30, 2017, respectively. Expenses recognized on this agreement were $35,000 and $70,000 for the three and six months ended June 30, 2016, respectively.

In January 2017, Milestone Scientific entered into a 12 month agreement with Innovest S.p.A. to provide consulting services. This agreement will renew for successive 12 month terms unless terminated by Innovest S.p.A or Milestone Scientific. Expenses recognized on this agreement were $20,000 and $40,000 for the three and six months ended June 30, 2017, respectively.

NOTE – 12 COMMITMENTS AND OTHER

(1) Lease Commitments

The headquarters for Milestone Scientific is located at 220 South Orange Ave, Livingston, New Jersey. Milestone Scientific leases approximately 7,625 square feet of office space. The lease term expires January 31, 2020 and provides for a monthly lease payment of $12,522. Additionally, Milestone Scientific has other smaller insignificant leases ending through 2017. Further, a third party distribution and logistics center in Pennsylvania handles shipping and order fulfillment on a month-to-month basis. For the three and six months ended June 30, 2017, rent expense amounted to $34,833, and $69,349 respectively. For the three and six months ended June 30, 2016 rent expense amounted to $34,749, and $69,987, respectively.

(2) Other Commitments

Milestone Scientific's employment agreement (the “2009 Agreement”) with Leonard Osser, its former Chief Executive Officer, provides for payments of $203,111 per year for five years to the executive or as he directs such payments, to a third party, to fund his acquisition of, or contribution to, an annuity, pension, or deferred distribution plan; or for an investment for the benefit of the executive and his family. Milestone Scientific expensed approximately $51,000 and $102,000 for the three and six months ended June 30, 2017, and 2016 respectively to fund this obligation. In July 2017, Milestone Scientific entered into a new employment agreement with Mr. Osser, which superseded the 2009 Agreement pursuant to which he stepped down from his position as Chief Executive Officer and became Managing Director – China Operations (See Note 13). Pursuant to the new agreement, Milestone Scientific agreed to fund the last installment of $203,111 in January 2018 as provided for in the 2009 Agreement.

The technology underlying the SafetyWand® and CompuFlo®, and an improvement to the controls for CompuDent® were developed by the Director of Clinical Affairs and assigned to Milestone Scientific. Milestone Scientific purchased this technology pursuant to an agreement dated January 1, 2005. The Director of Clinical Affairs will receive additional payments of 2.5% of the total sales of products using certain of these technologies, and 5% of the total sales of products using certain other of the technologies until the expiration of the last patent. The Director of Clinical Affairs was granted, pursuant to the agreement, an option to purchase, at fair market value on the date of the grant 8,333 shares of common stock upon the issuance of each additional patent relating to these technologies. If products produced by third parties use any of these technologies (under license from us) then the Director of Clinical Affairs will receive the corresponding percentage of the consideration received by Milestone Scientific for such sale or license.

The Director of Clinical Affairs’ royalty fee was $123,764 and $305,672 for the three and six months ended June 30, 2017, respectively. Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of $68,751 and $137,502 for the three and six months ended June 30, 2017, and 2016 respectively. The Director of Clinical Affairs’ royalty fee was $110,764 and $300,643 for the three and six months ended June 30, 2016, respectively.

In May 2017 Milestone Scientific entered an agreement with Innovest a stockholder of Milestone Scientific to provide consulting services. Expenses recognized on this agreement were $20,000 and $40,000 for the three and six months ended June 30, 2017, respectively.

Note 13- Subsequent Events

On July 10, 2017 (the “Effective Date”), Milestone Scientific entered into a three-year employment agreement with Daniel Goldberger to serve as President and Chief Executive Officer of Milestone Scientific. Under the agreement, Mr. Goldberger will receive base compensation of $300,000 per annum and may additionally earn annual bonuses of up to an aggregate of $400,000, payable one half in cash and one half in Milestone Scientific common stock (“Bonus Shares”) contingent upon achieving performance benchmarks periodically set for each year by the compensation committee of the Board. In addition to any such shares of common stock, Mr. Goldberger is entitled to receive stock options (“Bonus Options”) to acquire twice the number of any Bonus Shares earned, pursuant to a non-qualified stock option grant agreement under Milestone Scientific’s then existing equity compensation plan. The Bonus Options shall have a five-year term and shall vest in equal annual installments on each of the first, second and third anniversary of the grant date, subject to continued employment on such vesting date and accelerated vesting upon the occurrence of certain events. The exercise price of the Bonus Options will be based on the fair market value of per share of common stock, on the date of grant (or 110% of such value if at the time of grant Mr. Goldberger beneficially own ten (10%) or more of the common stock).

In addition, on the Effective Date, Milestone Scientific granted to Mr. Goldberger non-qualified stock options to purchase 921,942 shares of common stock at an exercise price of $2.00 per share. Those options have a five-year term and shall vest in equal annual installments on each of the first, second and third anniversaries of the grant date, subject to his continued employment on the vesting date and accelerated vesting upon the occurrence of certain events.

On the Effective Date, Milestone Scientific entered into a ten-year new employment agreement with Mr. Osser, who previously served as President and Chief Executive Officer. This new agreement provides for annual compensation of $300,000 consisting of $100,000 in cash and $200,000 in the Company’s common stock valued at the average closing price of the Company’s common stock on the NYSE or such other market or exchange on which its shares are then traded during the first fifteen (15) trading days of the last full calendar month of each year during the Employment Term. This agreement supersedes all prior employment agreements between Mr. Osser and Milestone Scientific. If the Milestone Scientific terminates Mr. Osser’s employment hereunder “Without Cause,” other than due to his death or disability, or if Mr. Osser terminates his employment for “Good Reason” (both as defined in the agreement), Mr. Osser is entitled to be paid in one lump sum payment as soon as practicable following such termination: an amount equal to the aggregate present value (as determined in accordance with Section 280G(d)(4) of the Code) of all compensation pursuant to this agreement from the effective date of termination hereunder through the remainder of the Employment Term.

On the Effective Date, Mr. Osser also resigned from his positions of Chairman of the Board, Chief Executive Office and President of Milestone Medical. Upon his resignation, Milestone Medical entered in a consulting agreement with U.S. Asian Consulting Group LLC, an entity controlled by Mr. Osser, pursuant to which he will provide specific services to Milestone Medical for a ten- year term. Pursuant to the consulting agreement, U.S. Asian Consulting Group, LLC, is entitled to receive $100,000 per year for Mr. Osser's services.

On July 13, 2017 (the “Closing Date”), Milestone Scientific consummated an Asset Purchase Agreement (the “Agreement”) with APAD Octrooi B.V. and APAD B.V. (each, a “Seller”, and collectively, the “Sellers”) pursuant to which Milestone Scientific acquired certain patent rights and other intellectual property rights related to the Sellers’ computer controlled injection instrument (the “Purchased Assets”). Entry into the Agreement was previously disclosed by Milestone Scientific in a Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 2, 2017. On the Closing Date, Milestone Scientific issued to the Sellers an aggregate of 1,646,358 shares of its common stock, valued at $2,486,000 for the Purchased Assets which shares are subject to certain post-closing upward or downward adjustments. No registration rights have been granted with respect to these shares of common stock. The issuance of these shares of stock is exempt from registration under the Securities Act of 1933, as amended (the “Act”), as each of the Sellers is an accredited investor (as defined in Rule 501(a) of Regulation D, as promulgated under the Act), and has agreed to hold such shares for investment and without a view to distribution.

On July 7, 2017, Milestone Scientific's compensation committee approved the issuance of 400,000 stock options to Gian Domenico Trombetta, CEO of Wand Dental and a Director of Milestone Scientific (250,000 option at $2.55 per share to be issued on July 7, 2017 and 150,000 options at the higher of $2.55 or the market price of the stock on the date of the 2018 Annual Stockholder meeting, subject to approval of a new or amended equity incentive plan at such meeting.)

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussions of our financial condition and results of operations should be read in conjunction with the financial statements and the notes to those statements included elsewhere in this Form 10-Q. Certain statements in this discussion and elsewhere in this report constitute forward-looking statements, within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements.

OVERVIEW

Our common stock was listed on the NYSE MKT on June 1, 2015 and trades under the symbol “MLSS”. We have 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®, and STA Single Tooth Anesthesia System® and in medicine under the trademark CompuMed®. CompuDent® is suitable for all dental procedures that require local anesthetic. CompuMed® is 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 dental instruments are sold in the United States and in over 47 countries abroad. There have been no medical instruments sold in the United States and limited amounts sold internationally as of the reporting date. Certain of our medical instruments have obtained European CE mark approval and can be marketed and sold in most European countries. In June 2017, the FDA approved our 510(k) application for marketing clearance in the United States of our CompuFlo® Epidural Computer Controlled Anesthesia System. We are in the process of introductory meetings with medical device distributors within the United States and foreign markets. Our focus will be on marketing The Wand® and the CompuFlo® Epidural Computer Controlled Anesthesia System throughout the world. Our products are manufactured by a third-party contract manufacturer.

In 2017, we remained focused on advancing efforts to achieve our three primary objectives; those being:

●

Obtaining the 510(k) marketing clearance with the FDA for the intra articular instruments and identify distributors in the USA for the Epidural instruments, now that FDA clearance has been received.

●

Enhancing our global reach by partnering with distribution companies in the medical sector; and

●

Optimizing our tactical approach to product sales and marketing in order to materially increase penetration of the global dental and medical markets with our proprietary, patented Computer-Controlled Local Anesthesia Delivery (C-CLAD) solution, the STA Single Tooth Anesthesia System® Instrument (STA Instrument).

STA Instrument Growth

Since its market introduction in early 2007, the STA Instrument and prior C-CLAD products have been used to deliver over 66 million safe, effective and comfortable injections. The instrument has also been favorably evaluated in numerous peer-reviewed, published clinical studies and associated articles. Moreover, there appears to be a growing consensus among users that the STA Instrument is proving to be a valuable and beneficial instrument that is positively impacting the practice of dentistry worldwide.

Global Distribution Network

United States and Canadian Market

Beginning January 1, 2016, Milestone Scientific entered into a non-exclusive distribution agreement with Henry Schein, Inc. (“Henry Schein”). In June 2016, that agreement was replaced with an exclusive distribution arrangement for our dental products for the United States and Canada with Henry Schein. Under this arrangement we, for the first time, have a semi-dedicated independent sales force visiting dentists. We believe that this arrangement will be more effective than previous arrangements which primarily relied upon appearances at dental shows and catalog sales.

To date, Henry Schein has endeavored to accomplish the goals set forth in the exclusive distribution agreement for The Wand® STA instrument and handpieces, including training of its exclusive products sales specialists. Specifically, 25 exclusive product sales specialists have now been fully trained as experts in the features, advantages and benefits of The Wand® STA instrument and handpieces and all 25 are currently in the field selling the instrument.

Henry Schein also plans to train an additional two to three dedicated customer service representatives to support dentists across North America through its exclusive product sales customer call center, as business volume increases.

Henry Schein’s exclusive products sales specialist team, which is comprised of 25 products sales specialists and supported by over 1,000 field service representatives, will exclusively market and distribute The Wand® STA instrument and handpieces, together with a select group of other devices in the United States and Canada. Our agreement with Henry Schein has minimum purchase order requirements to maintain exclusivity in the third through tenth year of the term of the agreement.

International Market

On the global front, we also have granted exclusive marketing and distribution rights for the STA Instrument to select dental suppliers in various international regions in Asia, Africa, South America and Europe. They include Istrodent (Pty) Ltd. in South Africa and Unident AB in the Scandinavian countries of Denmark, Sweden, Norway and Iceland.

In October 2012, the State Food and Drug Administration (CFDA) of the People’s Republic of China approved our STA Single Tooth Anesthesia System® (STA System). In May 2014, the CFDA also approved the STA handpieces for sale in China.

In September 2014, Milestone Medical received CE clearance to distribute their epidural and intra-articular instruments in European Community (EU). Milestone Medical is actively pursuing distributors for the instrument in the EU community. Milestone Medical signed a distribution agreement in March 2015 with a medical distributor in Poland for the distribution of the epidural instrument. This distribution agreement was terminated in late 2016 due to the distributor’s inadequate performance under the distribution agreement.

The sale of the Milestone China Shares allows Milestone Scientific to continue to expand in the China market by supplying Milestone China with the STA Single Tooth Anesthesia System® and related hand pieces while eliminating the burden on Milestone Scientific's management as a 40% minority owner. Milestone Scientific believes that the sale will provide Milestone China with a new partner that may accelerate its penetration of the China market.

In China, where the dental market lags behind other health care services and has largely been neglected in the past, a CS Market Research report indicates that 50% of adults and 70% of children out of China’s estimated 1.3 billion plus population have tooth decay problems and over 90% have periodontal disease. (See Shuyu Sun & Seth Pierrepont. The Dental Equipment Market Over in China, CS Market Research (Sept. 20, 2005) and Opportunities Abound for Dental Care in China, CHINA BRIEFING (February 27, 2015)). With increasing affluence and increasing attention towards personal care, the provision of dental services has been growing rapidly. We expect this will lead to both increased sales of dental instruments and our single-use handpieces.

The following table shows a breakdown of Milestone Scientific’s product sales (net), domestically and internationally, by product category, and the percentage of product sales (net) by each product category:

	Three months Ended June 30,								Six months Ended June 30,
	2017				2016				2017				2016
DOMESTIC
Instruments	$	219,648	15.4	%	$	190,504	21.0	%	$	405,293	12.9	%	$	852,149	32.3	%
Handpieces		1,182,985	83.1	%		695,761	76.7	%	$	2,693,471	85.8	%		1,753,685	66.4	%
Other		21,509	1.5	%		20,652	2.3	%	$	40,449	1.3	%		34,126	1.3	%
Total Domestic	$	1,424,142	100.0	%	$	906,917	100.0	%	$	3,139,213	100.0	%	$	2,639,960	100.0	%
INTERNATIONAL
Instruments	$	353,805	32.2	%	$	535,335	36.5	%	$	1,712,475	55.7	%	$	1,559,050	48.8	%
Handpieces		718,837	65.4	%		882,135	60.2	%	$	1,302,186	42.4	%		1,537,124	48.1	%
Other		26,966	2.5	%		47,323	3.2	%	$	58,864	1.9	%		100,062	3.1	%
Total International	$	1,099,608	100.0	%	$	1,464,793	100.0	%	$	3,073,525	100.0	%	$	3,196,236	100.0	%
DOMESTIC/INTERNATIONAL ANALYSIS
Domestic	$	1,424,142	56.4	%	$	906,917	38.2	%	$	3,139,213	50.5	%	$	2,639,960	45.2	%
International	$	1,099,608	43.6	%	$	1,464,793	61.8	%	$	3,073,525	49.5	%	$	3,196,236	54.8	%
Total Product Sales	$	2,523,750	100.0	%	$	2,371,710	100.0	%	$	6,212,738	100.0	%	$	5,836,196	100.0	%

Milestone Scientific earned gross profit of approximately $1.7 million and $3.9 million in the three and six months ended June 30, 2017. Milestone Scientific earned gross profit of approximately $1.6 million and $3.7 million in the three and six months ended June 30, 2016. However, the revenues and related gross profits have not been sufficient to support overhead, new product introduction and research and development expenses. At June 30, 2017, Milestone Scientific has sufficient cash reserves to meet all of its anticipated obligations for at least the next twelve months. Although Milestone Scientific anticipates expending funds for research and development in 2017, these amounts will vary based on the operating results for each quarter.

In 2017, Milestone Scientific plans to support increased sales and marketing activity through our current distributors and through newly appointed distributors of the STA instruments and handpieces in the international market. In the United States and Canada, Milestone Scientific will continue the utilization of independent hygienists for training individual practitioners and group practices domestically, refined and directed advertising to dental professionals, continue to develop Key Opinion Leaders (KOL) and support and broaden our global distribution network. Additionally with the recent FDA marketing clearance for the epidural instrument, Milestone Scientific is initiating marketing and sales efforts in the US to establish medical sector distributors for the sale of this instrument. Milestone Scientific expects this medical instrument marketing clearance to generate revenues in the future.

Results of Operations

The following table sets forth for the consolidated results of operations for the three and six months ended June 30, 2017, respectively, as a percentage of revenues. The trends suggested by this table may not be indicative of future operating results:

		Three months Ended June 30,				Six months Ended June 30,
		2017		2016		2017		2016
Revenue
	Product sales, net	$ 2,523,750	100%	$ 2,371,710	100%	$ 6,212,738	100%	$ 5,836,196	100%
	Cost of products sold	873,586	35%	789,801	33%	2,275,871	37%	2,157,990	37%
Gross profit		1,650,164	65%	1,581,909	67%	3,936,867	63%	3,678,206	63%
	Selling, general and administrative expenses	3,082,534	122%	3,290,998	139%	5,790,161	93%	6,292,109	108%
	Research and development expenses	120,065	5%	309,335	13%	225,080	4%	452,780	8%
Total operating expenses		3,202,599	127%	3,600,333	152%	6,015,241	97%	6,744,889	116%
Loss from operations		(1,552,435)	(62)%	(2,018,424)	(85)%	(2,078,374)	(33)%	(3,066,683)	(53)%
	Other (expenses)	(1,024)	(0)%	(1,004)	(0)%	(1,763)	(0)%	(1,936)	( 0)%
	Interest expense	2,154	0%	-	0%	2,442	0%	-	0%
Loss before provision for income tax and equity in net earnings of equity investments		(1,551,305)	(61)%	(2,019,428)	(85)%	(2,077,695)	(33)%	(3,068,619)	(53)%
	Provision for income tax	(4,664)	(0)%	(16,791)	(1)%	(11,865)	(0)%	(63,624)	(1)%
Loss before equity in net earnings of equity investments		(1,555,969)	(62)%	(2,036,219)	(86)%	(2,089,560)	(34)%	(3,132,243)	(54)%
	Earning or loss on equity investment in China Joint Venture	15,460	(1)%	(57,882)	(2)%	(28,941)	(0)%	(222,719)	(4)%
Earning or Loss on equity investments		15,460	(1)%	(57,882)	(2)%	(28,941)	(0)%	(222,719)	(4)%
Net Loss		(1,540,509)	(61)%	(2,094,101)	(88)%	(2,118,501)	(34)%	(3,354,962)	(57)%
	Net loss attributable to noncontrolling interests	(61,684)	(2)%	(507,262)	(21)%	(134,808)	(2)%	(976,308)	(17)%
Net loss attributable to Milestone Scientific Inc.		$ (1,478,825)	(59)%	$ (1,586,839)	(67)%	$ (1,983,693)	(32)%	$ (2,378,654)	(41)%

The three months ended June 30, 2017 compared to the three months ended June 30, 2016

Total revenues for the three months ended June 30, 2017 and 2016, dental revenues, were approximately $2.5 million and $2.4 million, respectively. Total revenues increased by approximately 6% which was principally related to the increase in domestic sales of approximately $517,000 in 2017. International sales in 2017 decreased by approximately $365,000 over the same period in 2016 due to a reduction in shipments of handpieces to Milestone China. The decrease in Milestone China revenue is due to Milestone China working through its current inventories and adjusting its business model. However, we believe that the June 2016 exclusive distribution agreement with Henry Schein will continue to lead to increased domestic sales in 2017 as the product and sales force training has been substantially completed as of June 30, 2017.

Gross margin for the three months ended June 30, 2017 was 65%, which decreased from 67% for the three months ended June 30, 2016. This decrease in gross margin is due to a special price reduction given to a distributors in a key market for instruments in an effort to stimulate growth in the 2017 sales volume.

Selling, general and administrative expenses for the three months ended June 30, 2017 and 2016 were approximately $3.1 million versus $3.3 million in the 2016 period. The decrease of approximately $208,000 is predominantly due to the reduction in selling, general and administrative expenses resulting from the completion of the clinical studies relating to Milestone Medical's epidural and intra articular instruments in 2016.

Research and development expenses for the three months ended June 30, 2017 and 2016 were approximately $120,000 and $309,000, respectively. The decrease is due to the phasing out of additional development cost associated with epidural and intraarticular instruments.

The loss from operations for the three months ended June 30, 2017 and 2016 was approximately $1.6 million and $2 million, respectively, a decrease of approximately $466,000. This decrease is primarily attributable to the completion of the clinical studies relating to Milestone Medical's epidural and intra articular instruments in 2017.

The gain and loss on earnings from the China Joint Venture was approximately $16,000 and $58,000 for the three months ended June 30, 2017 and 2016, respectively, an increase of approximately127% or $74,000.

Six months ended June 30, 2017 compared to six months ended June 30, 2016

Total revenues for the six months ended June 30, 2017 and 2016, principally dental revenues, were approximately $6.2 million and $5.8 million, respectively. Total revenues increased by approximately 6% which was principally related to increased handpiece sales in the United States domestic sales by approximately $500,000 in 2017 to 2016. International sales in 2017 decreased by approximately $123,000 over the same period in 2016 due to a reduction in shipments to Milestone China. The reductions in shipments to Milestone China is due to Milestone China working through inventory purchases from late 2016. However, we believe that the June 2016 exclusive distribution agreement with Henry Schein will continue to increase domestic sales in 2017 as the product and sales force training has been substantially completed as of June 30, 2017.

Gross margin for the six months ended June 30, 2017 and 2016 was 63%, respectively. Although the gross margin percentage remained at 63%, gross profit dollars in 2017 increased to approximately $3.9 million from approximately $3.7 million in 2016, or by approximately $258,000 over the same period year over year.

Selling, general and administrative expenses for the six months ended June 30, 2017 and 2016 were approximately $5.8 million versus $6.3 million in the 2016 period. The decrease of approximately $502,000 is predominantly due to the reduction in selling, general and administrative expenses resulting from the completion of the clinical studies relating to Milestone Medical's epidural and intra articular instruments in 2017.

Research and development expenses for the six months ended June 30, 2017 and 2016 were approximately $225,000 and $453,000, respectively. The decrease is due to reduction in development cost associated with epidural and intra articular instruments.

The loss from operations for the six months ended June 30, 2017 and 2016 was approximately $2.1 million and $3.1 million, respectively, a decrease of approximately $1.0 million. This decrease is primarily attributable to the completion of the clinical studies and reduced research and development expenses relating to our epidural and intra articular instruments in 2017 and increase in revenue and the related gross profit.

The loss on earnings from the China Joint Venture was approximately $29,000 and $223,000 for the six months ended June 30, 2017, and 2016 respectively, a decrease of approximately 87% or $194,000. The decrease is due to Milestone China working through its current inventories and adjusting its business model.

Liquidity and Capital Resources

At June 30, 2017, Milestone Scientific had cash and cash equivalents of approximately $2.9 million, total current assets of approximately $11.5 million and working capital of approximately $7.5 million. We believe that our cash on hand, accounts receivable and the anticipated revenues from the dental business will be sufficient to fund our business operations for at least the next 12 months from the filing date of this Form 10-Q.

Milestone Scientific continues to take positive steps to maintain adequate inventory levels and advances on contracts to maintain available inventory to meet our domestic and international sales requirements. For the six months ended June 30, 2017 and 2016, our net cash used in operating activities was approximately $1.0 million and $3.0 million, respectively, which represents a decrease of approximately $2.0 million year over year.

Milestone Scientific has incurred annual operating losses and negative cash flows from operating activities since its inception, except for the year ended December 31, 2013. Milestone Scientific is actively pursuing the generation of positive cash flows from operating activities through increases in revenues based upon management's assessment of present contracts, and current negotiations and reductions in operating expenses. Milestone Scientific believes that the FDA clearance of its 510(k) application with respect to the CompuFlo® Epidural Computer Controlled Anesthesia will provide Milestone Scientific with the opportunity to enter the US medical device market and generate revenues in the future. Milestone Scientific believes that it has sufficient inventory of the epidural instruments to satisfy the near term marketing opportunities.

Our condensed consolidated balance sheets included in this Report reflects a decrease of approximately $1.8 million in current assets from December 31, 2016 to June 30, 2017. This decrease in current assets was primarily due to a reduction in cash, accounts receivable from related party, deferred cost, other receivables and inventory of approximately $3.5 million. This was offset by an increase in accounts receivable, advances on contracts, note receivable and prepaid expenses and other current assets of an aggregate of approximately $1.7 million.

Current liabilities decrease by approximately $1.6 million, from approximately $5.6 million to approximately $4 million. The decrease is primarily due to a decrease in accounts payable of approximately $355,000, accounts payable related party of approximately $854,000, deferred revenue approximately $645,000 offset by an increase in deferred profit China of approximately $30,000, and an increase in accrued expenses of approximately $216,000.

Subsequent Events

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Milestone Scientific is a “smaller reporting company” as defined by Regulation S-K and, as such, is not required to provide the information required by this item.

Item 4. Controls and Procedures

Milestone Scientific’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the design and operation of Milestone Scientific’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this report. Based upon that evaluation, Milestone Scientific’s Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures as of June 30, 2017 are effective to ensure that information required to be disclosed in the reports Milestone Scientific files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to Milestone Scientific's management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in Milestone Scientific’s internal control over financial reporting identified in connection with the evaluation that occurred during Milestone Scientific’s last fiscal quarter ended June 30, 2017 that have materially affected, or that are reasonably likely to materially affect, Milestone Scientific’s internal controls over financial reporting.

PART II – OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

None.

ITEM 1A.

RISK FACTORS

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities

In the quarter ended June 30, 2017, Milestone Scientific issued a total of 350,015 shares of its common stock as follows:

●

120,000 shares to the Board of Directors with a total value of $159,480;

●

10,913 shares to an employee for compensation with a total value of $15,000; and

●

an aggregate of 221,102 shares to consultants for services rendered with a total value of $378,530.

In addition, as of July 13, 2017, pursuant to the Asset Purchase Agreement with APAD Octrooi B.V. and APAD B.V. (collectively, the “Sellers”), Milestone Scientific issued an aggregate of 1,646,358 shares of its common stock to the Sellers in consideration for certain patent rights and other intellectual property rights related to the Sellers’ computer controlled injection instrument.

The foregoing shares were issued in reliance upon the exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Act"), pursuant to Sections 4(a)(2) and/or 4(a)(5) thereunder. A legend restricting resale, transfer, or other disposition of these shares other than in compliance with the Act was imprinted on the stock certificates evidencing such shares.

ITEM 3.

DEFAULT UPON SENIOR SECURITIES

None.

ITEM 4.

MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.

OTHER INFORMATION

None.

ITEM 6.	EXHIBITS

10.1	Final Form of Asset Purchase Agreement, dated June 2, 2017, among APAD Octrooi B.V., APAD B.V., and Milestone Scientific Inc. (1)

10.2	Final form of the Memorandum of Agreement, dated June 6, 2017, between Solee Science & Technology U.S.A. Ltd. and Milestone Scientific Inc. (2)

10.3	Final form of the Promissory Note, dated June 6, 2017, in the principal amount of $1,275,000 made by Solee Science & Technology U.S.A. Ltd. to Milestone Scientific Ltd. (2)

10.4	Final form of the Stock Option Agreement, dated June 6, 2017, Solee Science & Technology U.S.A. Ltd. and Milestone Scientific Inc. (2)

10.5	New Employment Agreement between Milestone Scientific Inc. and Leonard Osser dated as of July 10, 2017. (3)

10.6	Employment Agreement between Milestone Scientific Inc. and Daniel Goldberger dated as of July 10, 2017. (3)

10.7	Covenant Agreement between Milestone Scientific Inc. and Daniel Goldberger dated and effective as of July 10, 2017. (3)

10.8	Consultant Agreement between Milestone Medical Inc. and U.S. Asian Consulting Group, LLC dated as of July 10, 2017*

31.1	Chief Executive Officer Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002.*

31.2	Chief Operating Officer Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002.*

32.1	Chief Executive Officer Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002.**

32.2	Chief Operating Officer Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002.**

101.INS	XBRL Instance Document.*

101.SCH	XBRL Taxonomy Extension Schema Document.*

101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.*

101.LAB	XBRL Taxonomy Extension Label Linkbase Document.*

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.*

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.*

*	Filed herewith.

**	Furnished, not filed, in accordance with Item 601(32)(ii) of Regulation S-K.

(1)	Incorporated herein by reference to the Current Report on Form 8-K filed with the Securities and Commission on June 2, 2017.

(2)	Incorporated herein by reference to the Current Report on Form 8-K filed with the Securities and Commission on June 7, 2017.

(3)	Incorporated herein by reference to the Current Report on Form 8-K filed with the Securities and Commission on July 11, 2017.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MILESTONE SCIENTIFIC INC.

	/s/ Daniel S. Goldberger
	Daniel S. Goldberger
	Chief Executive Officer
	(Principal Executive Officer)

	/s/ Joseph D’Agostino
	Joseph D’Agostino
	Chief Operating Officer
	Chief Financial Officer
	(Principal Financial Officer)

Date: August 14, 2017

EX-31.1 2 ex31-1.htm EXHIBIT 31.1 ex31-1.htm

Exhibit 31.1

Rule 13a-14(a)/15d-14(a) Certification

I, Daniel S. Goldberger, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Milestone Scientific Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under the supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under the supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report the conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on the most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2017

		/s/ Daniel S. Goldberger
		Daniel S .Goldberger
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2 3 ex31-2.htm EXHIBIT 31.2 ex31-2.htm

Exhibit 31.2

Rule 13a-14(a)/15d-14(a) Certification

I, Joseph D'Agostino, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Milestone Scientific Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2017

		/s/ Joseph D'Agostino
		Joseph D'Agostino
		Chief Financial Officer and Chief Operating Officer
		(Principal Financial Officer)

EX-32.1 4 ex32-1.htm EXHIBIT 32.1 ex32-1.htm

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Milestone Scientific Inc. (“Milestone”) on Form 10-Q for the period ending June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel S. Goldberger, Chief Executive Officer of Milestone, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Milestone.

Date August 14, 2017

/s/ Daniel S. Goldberger

Daniel S. Goldberger

Chief Executive Officer

(Principal Executive Officer)

A signed original of this certification has been provided to Milestone and will be retained by Milestone and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2 5 ex32-2.htm EXHIBIT 32.2 ex32-2.htm

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Milestone Scientific Inc. (“Milestone”) on Form 10-Q for the period ending June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Leonard Osser, Chief Executive Officer of Milestone, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Milestone.

Date August 14, 2017

/s/ Joseph D’Agostino

Joseph D’Agostino

Chief Operating Officer

Chief Financial Officer

(Principal Financial Officer)

A signed original of this certification has been provided to Milestone and will be retained by Milestone and furnished to the Securities and Exchange Commission or its staff upon request.

EX-10.8 6 ex10-8.htm EXHIBIT 10.8 ex10-1.htm

Exhibit 10.8

CONSULTING AGREEMENT

CONSULTING AGREEMENT (the “Agreement”) dated as of July 10, 2017 between Milestone Medical Inc., a Delaware corporation (the “Company”) and U.S. Asian Consulting Group, LLC, a Delaware limited liability company (the “Consultant”).

WHEREAS, Leonard Osser (“Osser”) is the sole member of Consultant; and

WHEREAS, Osser is currently the Chief Executive Officer of the Company; and

WHEREAS, the Board of Directors of the Company (the “Board”) desires to provide for a succession plan upon Osser stepping down as the Company’s Chief Executive Officer; and

WHEREAS, since Osser possesses unique knowledge and information with respect to the Company’s technology, business and operations, including its vendors, suppliers and affiliates, the Company desires to retain the services of the Consultant to provide for Osser to perform consulting services to the Company to insure that it retains his uninterrupted service.

NOW, THEREFORE, in consideration of the premises and covenants herein contained, the parties hereto agree as follows:

ENGAGEMENT. Subject to the terms of this Agreement, the Company hereby engages the Consultant to perform those Services as are set forth on Exhibit A hereto (the “Services”). Consultant shall cause such Services to be performed by Osser. Consultant shall perform such Services at such time as shall be mutually agreed to by Consultant and the Company.

ACKNOWLEDGMENT. The Company acknowledges that, subject to the limitations set forth in this Agreement, the Consultant is free to engage in other business related activities as an employee or otherwise for other persons or entities.

LOCATION. The Consultant will primarily perform the Services at its own premises and at such other locations as shall be agreed to by the Consultant and the Company.

TERM OF AGREEMENT. The term of this Agreement (the “Term”) will be for a ten-year period commencing on July 1, 2017, unless sooner terminated as provided in Section 9 hereof.

COMPENSATION.

The Company will compensate the Consultant at the rate of $100,000 per year, payable monthly in arrears, on the last day of each month. No other amounts shall be paid or reimbursed by the Company to the Consultant. All payments made by the Company to the Consultant will be made without deduction whether for federal, state or local income taxes, or other taxes.

The Consultant agrees that all Services will be rendered by him as an independent contractor. The Consultant is not and shall not be considered as an employee or partner of the Company. The Consultant shall have no right to receive any benefits including but not limited to, health and accident insurance, life insurance, paid sick leave and/or paid vacation time. The Consultant agrees to pay all taxes and other financial obligations resulting from the consideration paid by the Company to the Consultant under this Agreement, including but not limited to self-employment taxes. The Consultant shall indemnify the Company in the event the Company is required to pay any such taxes on behalf of the Consultant. In the event any law, rule, regulations or other legal obligation requires the Company to withhold and pay to a governmental entity any portion of the compensation payable by the Company to the Consultant, then the Company shall be permitted to deduct and withhold such amount from the compensation payable to the Consultant under this Agreement and thereafter the Company shall pay such withheld amount to the proper governmental entity in a timely manner.

NONDISCLOSURE; NONCOMPETITION.

Each of the Consultant and Osser agree not to use or disclose, either during the Term or at any time thereafter, except with the prior written consent of the Board of Directors, any trade secrets, proprietary information, or other information that the Company reasonably considers confidential relating to processes, suppliers (including but not limited to a list or lists of suppliers), customers (including but not limited to a list or lists of customers), compositions, improvements, inventions, operations, processing, marketing, distributing, selling, cost and pricing data, or master files utilized by the Company, not presently generally known to the public, and which is, obtained or acquired by the Consultant and Osser while affiliated with the Company.

During the Term and for a period of two years thereafter, neither Consultant nor Osser shall, directly or indirectly; (i) in any manner, engage in any business which competes with any business conducted by the Company (including any subsidiary) and will not directly or indirectly own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be employed by or connected in any manner with any corporation, firm or business that is so engaged (provided, however, that nothing herein shall prohibit the Executive from owning not more than three percent (3%) of the outstanding stock of any publicly held corporation), (ii) persuade or attempt to persuade any employee of the Company to leave the employ of the Company or to become employed by any other entity, or (iii) persuade or attempt to persuade any current client or former client with leaving, or to reduce the amount of business it does or intends or anticipates doing with the Company.

During the Term and for two years thereafter, neither the Consultant nor Osser shall not take any action which might divert from the Company any opportunity learned about by it or him during its or his affiliation with the Company which would be within the scope of any of the businesses then engaged in or planned to be engaged in by the Company. The parties acknowledge that currently the Company’s business is the delivery of anesthetics and other medicaments through computer controlled systems.

In the event that this Agreement shall be terminated, then notwithstanding such termination, the obligations of the Consultant and Osser pursuant to this Section 6 of this Agreement shall survive such termination.

LEGAL AND EQUITABLE REMEDIES.

In the event of a breach or threatened breach of any of the covenants under Section 7 of this Agreement, the Consultant and Osser acknowledge that the Company will not have an adequate remedy at law. Accordingly, in the event of any such breach or threatened breach, the Company will be entitled to such equitable and injunctive relief as may be available to restrain the Consultant and/or Osser from the violation of the provisions thereof.

Nothing herein shall be construed as prohibiting the Company, on the one hand, and the Consultant and/or Osser, on the other hand, from pursuing any remedies available at law or in equity for any breach or threatened breach of the provisions of this Agreement by the other party, including the recovery of damages.

MODIFICATION OF AGREEMENT. This Agreement may be modified by the parties hereto only by a writing executed by both parties.

TERMINATION. Notwithstanding, anything contained herein to the contrary the Company and the Consultant agree that (a) this Agreement will terminate upon the death of Osser, and (b) the Consultant may terminate this Agreement at any time for any reason upon sixty (60) days prior written notice. The Company may terminate this Agreement for Cause. The Company shall have no right of termination of this Agreement other than for “Cause.” As used herein, the term "Cause" shall mean: (i) the failure of Consultant substantially to perform Consultant’s reasonably agreed upon Services pursuant to Paragraph 1 hereof, which failure (if capable of being cured) is not cured by Consultant within thirty (30) days following written notice thereof from the Company; (ii) the Consultant or Osser becoming the subject of felony criminal charges in the United States or violating such rules and regulations of the Securities and Exchange Commission as may result in criminal action or material fines against the Company; (iii) any act or failure to act by Consultant in bad faith which is materially harmful to the Company; (iv) the commission by the Consultant or Osser of an act involving moral turpitude or dishonesty related to the Company’s business, theft or unethical business conduct, or (v) the disability of Osser wherein he is unable to perform the Services for a period of 180 consecutive days.

10.

NOTICE. Any notice, request, instruction or other document to be given hereunder by any party to the other party shall be in writing and shall be deemed to have been duly given when delivered personally or five (5) days after dispatch by registered or certified mail, postage prepaid, return receipt requested, to the party to whom the same is so given or made:

If to the Company:

addressed to: Milestone Scientific Inc.

220 South Orange Avenue

Livingston Corporate Park

Livingston, New Jersey 07039

Attn: Chief Financial Officer

with a copy to: Morse, Zelnick, Rose & Lander, LLP

825 Third Avenue, 16^th Floor

New York, New York 10022

Attn: Kenneth S. Rose, Esq.

If to the Consultant or

Osser addressed to: Leonard Osser

32 Camlet Court

Roseland, NJ 07068

or to such other address as the one party shall specify to the other party in writing.

11.

AMENDMENT; WAIVER; ASSIGNMENT. No provisions of this Agreement may be modified, supplemented, waived or discharged unless such waiver, modification or discharge is agreed to in a writing signed by the Consultant and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or in compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The Consultant may not assign this Agreement.

12.

SEVERABILITY. The Company and the Consultant (and Osser) agree that if any of the provisions or a part of any provision of this Agreement are deemed illegal or unenforceable, such provision or part of a provision shall be considered separate and several from this Agreement, and the remaining provisions or part of a provision of this Agreement shall continue in force (with such modifications as may be necessary to preserve the intent of the parties at the time of contracting) and be binding upon the parties as though such provision or part of a provision had never been included.

13.

ENTIRE AGREEMENT; HEADINGS. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto; and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and canceled. Headings and subheadings are for ease of reference only and shall not be considered to be a part of this Agreement.

14.

GOVERNING LAW. Any dispute as to the validity, interpretation or performance of this agreement shall be determined in accordance with the laws and by the courts of the State of New Jersey without regard to conflict of law rules or principles.

15.

COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall comprise an original and all of which shall be considered a single agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day, month and year first above written.

MILESTONE MEDICAL INC.

By:/s/ Joseph D’Agostino

Joseph D’Agostino,

Chief Operating Officer and

Chief Financial Officer

U.S. ASIAN CONSULTING GROUP, LLC

By: /s/ Leonard Osser

Leonard Osser

EX-101.INS 7 mlss-20170630.xml XBRL INSTANCE DOCUMENT false --12-31 Q2 2017 2017-06-30 10-Q 0000855683 32989724 Yes Smaller Reporting Company MILESTONE SCIENTIFIC INC. No No mlss 0.025 0.05 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div> ADVANCES ON CONTRACTS </div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">The advances on contracts represent funding of future STA inventory purchases. The balance of the advances as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$851,504</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$700,900,</div> respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory. <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">  </div></div></div> 7625 P3Y 237858 784480 26925 100000 P10Y P1Y P1Y 1400000 659931 630990 P5Y 300000 300000 100000 200000 1.1 P5Y 400000 P3Y P10Y 659931 630990 659931 630990 -1555969 -2036219 -2089560 -3132243 438925 150604 -117 85480 200 125000 2 2 2 3 P10Y P10Y P2Y 1400000 0.81 1 1400000 125000 125000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> SIGNIFICANT </div></div><div style="display: inline; font-weight: bold;">CONCENTRATIONS </div><div style="display: inline; font-weight: bold;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">& GEOGRAPHICAL INFORMATION</div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">’s consolidated dental sales by product and by geographical region are as follows:</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">Three months Ended June 30,</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">Six months Ended June 30,</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2017</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2016</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2017</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2016</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 52%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">DOMESTIC</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Instruments</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">219,648</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">190,504</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">405,293</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">852,149</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Handpieces</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,182,985</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">695,761</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,693,471</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,753,685</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Other</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">21,509</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,652</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,449</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">34,126</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total Domestic</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,424,142</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">906,917</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,139,213</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,639,960</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">INTERNATIONAL</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Instruments<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">353,805</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">535,335</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,712,475</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,559,050</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Handpieces</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718,837</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">882,135</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,302,186</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,537,124</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Other</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">26,966</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">47,323</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">58,864</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,062</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total International</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,099,608</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,464,793</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,073,525</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,196,236</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">DOMESTIC/INTERNATIONAL ANALYSIS</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Domestic</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,424,142</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">906,917</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,139,213</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,639,960</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">International<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,099,608</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,464,793</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,073,525</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,196,236</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total Product Sales</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,523,750</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,371,710</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,212,738</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,836,196</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific has informal arrangements with a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party manufacturer of the STA, <div style="display: inline; font-style: italic;">CompuDent®</div> and <div style="display: inline; font-style: italic;">CompuMed®</div> instruments,  pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>Milestone Scientific entered into a purchase commitment for delivery of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,000</div> instruments. There are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">200</div> instruments remaining on this purchase order as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div>An advance of an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$85,480</div> remained at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div>In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>Milestone Scientific entered into a purchase commitment for the delivery of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,000</div> instruments beginning in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">th</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> An advance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$717,938</div> was recorded at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div>Consequently, advances on contracts have been classified as current at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>an aggregate of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">69%</div> of Milestone Scientific's net product sales were to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> customers/ distributors (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of which was a related party), <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55%,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14%,</div> respectively. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>an aggregate of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> of Milestone Scientific's net product sales were to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> customers/distributors (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of which was a related party), <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53%,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22%,</div> respectively. Accounts receivable for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> major customers/distributors amounted to an a<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ggregate of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,345,021,</div> or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> of Milestone Scientific's accounts receivable for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div></div>For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">61%</div> of Milestone Scientific's net product sales were to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> customers/distributors (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of which was a related party), <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44%,</div>  and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17%,</div> respectively<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>an aggregate of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">72%</div> of Milestone Scientific's net product sales were to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> customers/distributors (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of which was a related party), <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38%,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22%</div></div>, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12%,</div> respectivel<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">y.</div></div></div> 1400000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">Three months Ended June 30,</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">Six months Ended June 30,</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2017</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2016</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2017</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">2016</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 52%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">DOMESTIC</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Instruments</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">219,648</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">190,504</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">405,293</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">852,149</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Handpieces</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,182,985</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">695,761</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,693,471</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,753,685</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Other</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">21,509</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,652</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,449</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">34,126</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total Domestic</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,424,142</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">906,917</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,139,213</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,639,960</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">INTERNATIONAL</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Instruments<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">353,805</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">535,335</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,712,475</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,559,050</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Handpieces</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718,837</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">882,135</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,302,186</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,537,124</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Other</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">26,966</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">47,323</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">58,864</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,062</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total International</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,099,608</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,464,793</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,073,525</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,196,236</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">DOMESTIC/INTERNATIONAL ANALYSIS</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Domestic</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,424,142</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">906,917</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,139,213</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,639,960</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">International<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,099,608</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,464,793</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,073,525</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,196,236</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total Product Sales</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,523,750</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,371,710</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,212,738</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,836,196</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div> P4Y189D 2 120000 114748 311998 8333 120 159480 159600 107 194885 194992 311 -403709 403398 422249 75000 194885 339549 0.53 0.4 78798

985736

1341207

381432

1235052

1345021

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> COMMITMENTS AND OTHER </div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) Lease Commitments </div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">The headquarters for Milestone Scientific is located at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">220</div> South Orange Ave, Livingston, New Jersey. Milestone Scientific leases approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,625</div> square feet of office space. The lease term expires <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 31, 2020 </div>and provides for a monthly lease payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$12,522.</div> Additionally, Milestone Scientific has other smaller insignificant leases ending through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> Further, a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party distribution and logistics center in Pennsylvania handles shipping and order fulfillment on a month-to-month basis. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>rent expense amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$34,833,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$69,349</div> respectively. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016 </div>rent expense amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$34,749,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$69,987,</div> respectively.<div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  Other Commitments </div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific's employment agreement (the “<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2009</div> Agreement”) with Leonard Osser, its former Chief Executive Officer, provides for payments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$203,111</div> per year for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years to the executive or as he directs such payments, to a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party, to fund his acquisition of, or contribution to, an annuity, pension, or deferred distribution plan; or for an investment for the benefit of the executive and his family. Milestone Scientific expensed approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$51,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$102,000</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> respectively to fund this obligation. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2017, </div>Milestone Scientific entered into a new employment agreement with Mr. Osser, which superseded the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2009</div> Agreement pursuant to which he stepped down from his position as Chief Executive Officer and became Managing Director – China Operations (See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div>).  Pursuant to the new agreement, Milestone Scientific agreed to fund the last installment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$203,111</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018 </div>as provided for in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2009</div> Agreement. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">The technology underlying the <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">SafetyWand®</div> and <div style="display: inline; font-style: italic;">CompuFlo®</div>, and an improvement to the controls for <div style="display: inline; font-style: italic;">CompuDent®</div> were developed by the Director of Clinical Affairs and assigned to Milestone Scientific. Milestone Scientific purchased this technology pursuant to an agreement dated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2005. </div>The Director of Clinical Affairs will receive additional payments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.5%</div> of the total sales of products using certain of these technologies, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%</div> of the total sales of products using certain other of the technologies until the expiration of the last patent. The Director of Clinical Affairs was granted, pursuant to the agreement, an option to purchase, at fair market value on the date of the grant <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,333</div> shares of common stock upon the issuance of each additional patent relating to these technologies. If products produced by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties use any of these technologies (under license from us) then the Director of Clinical Affairs will receive the corresponding percentage of the consideration received by Milestone Scientific for such sale or license.  </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">The Director of Clinical Affairs’ royalty fee was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$123,764</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$305,672</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>respectively. Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$68,751</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$137,502</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> respectively.</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">The Director of Clinical Affairs’ royalty fee was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$110,764</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$300,643</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>respectively. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017 </div>Milestone Scientific entered an agreement with Innovest a stockholder of Milestone Scientific to provide consulting services. Expenses recognized on this agreement were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$20,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$40,000</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>resp<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ectively. </div></div></div>

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31720

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> CONCENTRATION OF CREDIT RISK </div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 36pt; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific's consolidated financial instruments that are exposed to concentrations of credit risk consist primarily of cash, trade accounts receivable, and advances on contracts. Milestone Scientific places its cash and cash equivalents with large financial institutions. At times, such investments <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be in excess of the Federal Deposit Insurance Corporation insurance limit. Milestone Scientific has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> experienced any losses in such accounts and believes it is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> exposed to any significant credit risks. Financial instruments which potentially subject Milestone Scientific to credit risk consist principally of trade accounts receivable, as Milestone Scientific does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> require collateral or other security to support customer receivables, and advances on contracts. <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">  </div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 36pt; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific closely monitors the extension of credit to its customers while maintaining allowances, if necessary, for potential credit losses. On a periodic basis, Milestone Scientific evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. </div></div></div>

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE – <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div> </div><div style="display: inline; text-transform: uppercase;"><div style="display: inline; font-weight: bold;">Stock Option Plans</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific recognizes compensation expense on a straight line basis over the requisite service period and in the case of performance based options over the period of the expected performance. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>Milestone Scientific recognized <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$110,305</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$244,115</div> of total employee stock based<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> compensation cost, respectively. </div>For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>Milestone Scientific recognized <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$133,330</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$266,601</div> of total employee stock based<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> compensation cost, respectively. </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> there was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$619,173</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$884,183</div> of total unrecognized compensation cost related to nonvested options, respectively, which Milestone Scientific expects to recognize these cost over a weighted average period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.5</div> years and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.74</div> years as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">A summary of option activity for employees under the plans and changes during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> month ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>is presented below:</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="border: 1px solid rgb(0, 0, 0); border-image: none; width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Number of </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Averaged </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Exercise Price $</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted Average </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Remaining </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Contractual Life</div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">(Years)</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Aggregate Intrinsic</div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options Value $</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Options outstanding January 1, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,511,995</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.74</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.97</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,921</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Granted</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">211,179</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.64</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.52</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Exercised during 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(83,333</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.75</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Forfeited or expired</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Options outstanding June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639,841</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.87</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.89</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercisable, June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,130,958</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.88</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.46</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> </tr> </table> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">A summary of option activity for non-employees under the plans as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and changes during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> month ended is presented below:</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom; border-top-color: rgb(0, 0, 0); border-top-width: 1px; border-top-style: solid;"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Number of</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Averaged </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Exercise</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Price $</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Average </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Remaining </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Contractual</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Life (Years)</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Aggregate </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Intrinsic </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Value $</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 40%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Options outstanding January 1, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">224,999</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.53</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.32</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Granted</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Exercised during 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Forfeited or expired</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 40%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Options outstanding June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">224,999</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.53</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.82</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 40%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Exercisable, June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,183</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.33</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.86</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 36pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">The fair value of the non-employee options was estimated on the date of grant using the Black Scholes option-pricing model at the date of grant. In accordance with the provisions of FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">505,</div> Milestone Scientific re-measures the value of the grant at each presentation date unless there is a significant disincentive for non-performance or until performance has been. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>Milestone Scientific recognized expense of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,835</div> and income <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6,257,</div> respectively related to non-employee options. </div>For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>Milestone Scientific recognized expense of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,421</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9,596</div> respectively related to non-employee options.</div></div>

381432

687522

-0.05

-0.06

-0.10

-0.05

-0.06

-0.10

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> - <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> </div></div><div style="display: inline; text-transform: uppercase; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Basic and Diluted Net INCOME (Loss) Per Common Share</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific presents "basic" earnings (loss) per common share applicable to common stockholders and, if applicable, "diluted" earnings (loss) per common share applicable to common stockholders pursuant to the provisions of Statement of Financial Accounting Standards ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">260.</div> Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued during each period. The calculation of diluted earnings per common share is similar to that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options, warrants, and the conversion of debt were issued during the period.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Since Milestone Scientific had net losses for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the assumed effects of the exercise of potentially dilutive outstanding stock options and warrants were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> included in the calculation as their effect would have been anti-dilutive. Such outstanding options and warrants totaled <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,364,840</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,976,677</div> at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively.</div></div></div>

110305

244115

133330

266601

10835

6257

8421

9596

619173

884183

P2Y182D

P2Y270D

1400000

0.4

0.25

0.4

-28941

-222719

15460

-57882

28941

222719

15460

-57882

1000000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> - <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> INVESTMENTS IN </div></div><div style="display: inline; text-transform: uppercase; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">UNCONSOLIDATED SUBSIDIARIES</div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Advance Ocular Science SA </div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Advanced Ocular Sciences SA ("Advanced Ocular") is an entity organized to develop an instrument to deliver injections into the eyes. Advanced Ocular is a shell company as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>Milestone Scientific owns <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25%</div> of this entity. During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> Milestone Scientific advanced <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$78,798</div> for marketing and strategy planning to Advanced Ocular and it, or its organizers, are obligated to repay this advance once a public offering of Advanced Ocular equity is approved and funded in Poland during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> public offering was completed in Poland as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">As a result, Milestone Scientific wrote-off the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$78,798</div> advanced to Advanced Ocular as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016. </div>Advance Ocular was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> included in the condensed consolidated financial statements at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> further investment has been made by Milestone Scientific. </div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Milestone China Ltd.</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">          </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2014, </div>Milestone Scientific invested <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1</div> million in Milestone China Ltd. (“Milestone China”) by contributing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">772</div> STA Instruments to Milestone China for a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> ownership interest. Milestone Scientific recorded this investment under the equity method of accounting. Milestone Scientific recorded a loss on its investment in Milestone China of<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$164,837,</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively. Milestone Scientific's investment in Milestone China was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>respectively. Milestone Scientific incurred </div>cumulative <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">losses on its investment in Milestone China of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,654,477</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,124,350</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>respectively, which have been suspended.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">       </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017, </div>Milestone Scientific entered into an agreement for the sale of the Milestone China Shares to an unaffiliated United States domiciled purchaser and a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year option agreement to repurchase the Milestone China Shares. The purchase price for th<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">e Milestone China Shares was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div> of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> was paid in cash and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,275,000</div> was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> until paid in full and is secured by the Milestone China Shares until full repayment.  In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year option agreement provides Milestone Scientific an option to repurchase the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> equity interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div> within the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> years and at fair value (as defined in such agreement) for the remainder of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div>). The carrying value of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">forty</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div>) percent investment at the transaction date was zero. (See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>). </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,714,600</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> of related party sales of handpieces and instruments to Milestone China and Milestone China’s agent during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div>Milestone Scientific had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,356,000</div> of related party sales of handpieces and instruments to Milestone China during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>respectively. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>Milestone Scientific recorded deferred revenues and deferred costs associates with sales to Milestone China of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$181,116,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,001,800</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$620,041,</div> respectively.  As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>Milestone China owed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,714,600,</div> respectively, to Milestone Scientific for handpieces and STA instruments which is included in related party accounts receivable on the condensed consolidated balance sheets.  Milestone China made payments in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2017 </div>to satisfy the outstanding instruments receivable from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and therefore the deferred revenue of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,001,800</div> at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>has been recorded in revenue for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017.</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific defers the total revenue and costs of goods sold when instruments and handpieces are shipped to Milestone China and<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Milestone China’s agent due to market conditions and Milestone China liquidity concerns. However, due to timing differences of when the inventory is sold to Milestone China and when Milestone China sells the acquired inventory to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties, elimination of the intra-entity profit is required as of the balance sheet date. In accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">323</div> Equity Method and Joint Ventures, Milestone Scientific has deferred the gross profit associated with inventory shipped to Milestone China that has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been sold to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the deferred profit was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$659,931</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$630,990</div>,</div> respectively, which is included in the condensed consolidated balance sheets. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the loss on equity investment was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$28,941</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$222,719,</div> respectively, which is included in the condensed consolidated statements of operation. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> Milestone had a profit on equity investment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,460</div> and loss on equity investment <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$57,882,</div> respectively, which is included in the condensed consolidated statements of operation.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">The following table includes summarized financial information (unaudited) of Milestone China:</div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">June 30, 2017</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">December 31, 2016</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 62%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Assets:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Current Assets</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,940,116</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,362,198</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Non-Current Assets</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,841,127</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,467,547</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total Assets:</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,781,243</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,829,745</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Liabilities:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Current Liabilities</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,110,291</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,900,611</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Stockholders' equity</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">670,952</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,929,134</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total liabilities and stockholders<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">’ equity</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,781,243</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,829,745</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt;"> </div> <div> <table style="; text-indent: 0px; font-family: Times New Roman,Times,serif; font-size: 10pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="6" style="width: 188px; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">Three Months Ended June 30,</div> </td> <td style="width: 6px; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">Six Months Ended June 30,</div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2017</div> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="width: 85px; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2016</div> </td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2017</div> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2016</div> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="width: 76px;"> </td> <td style="width: 6px;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 52%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Sales</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">322,226</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">57,102</div></td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,165,552</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">329,322</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Cost of Goods Sold</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">422,789</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,464</div></td> <td style="width: 6px; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">889,204</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">283,864</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Gross Profit</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(100,563</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(17,362</div></td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">276,348</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45,458</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Other Expenses</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(643,570</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(263,540</div></td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,601,666</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(643,313</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Losses</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(744,133</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(280,902</div></td> <td style="width: 6px; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,325,318</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(597,855</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> </tr> </table> </div></div>

809332

717086

625092

660457

1650164

1581909

3936867

3678206

-100563

-17362

276348

45458

-1551305

-2019428

-2077695

-3068619

-164837

15460

-57882

15460

-57882

-28941

-222719

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div> INCOME TAXES</div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Due to Milestone Scientific's history of operating losses, a full valuation allowances has been provided for all of Milestone Scientific's deferred tax assets at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div></div> recognition was given to the utilization of the remaining net operating loss carryforwards in each of these periods.</div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">The utilization of Milestone Scientific's net operating losses <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be subject to a substantial limitation due to the "change of ownership provisions" under Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">382</div> of the Internal Revenue Code and similar state provisions. Such limitation <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>result in the expiration of the net operating loss carry forwards before their utilization. Milestone Scientific has established a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>state tax liability was approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,865</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$63,000,</div> respectively. Such expense was recognized in the accompanying condensed consolidated financial statements. </div></div></div>

4664

16791

11865

63624

11865

63000

355471

272696

853620

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617347

-366.982

-2358200

1156400

-645400

-104348

233393

1007983

-67367

9523

-5975

-10000

8975

454562

71240

4498371

4602719

2154

2442

34833

69349

34749

69987

12110291

9900611

5435643

5645311

12781243

11829745

13096766

14181640

4035643

5645311

717938

3000

2000

304696

36106

338336

2016346

-42548

-4359

-952386

-3022644

-1478825

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20.</div> Recent Accounting Pronouncements</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> steps: <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) identify the contract, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) identify performance obligations, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) determine the transaction price, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) allocate the transaction price, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2015, </div>the FASB issued guidance approving a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-year deferral, making the standard effective for reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>The FASB continues to release guidance clarifying certain aspects of the revenue guidance. We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe that this new accounting pronouncement will have a material impact on our financial statements.</div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 18pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2015, </div>the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. The Company has adopted this pronouncement as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>and applied retrospectively, for its provision for income taxes disclosure. The adoption did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have an impact on the presentation of the balance sheet, as the Company assigns a full valuation allowance to its net deferred tax asset. </div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;">In Februa<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">ry <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued a new standard Accounting Standards Update ("ASU ") <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> "Leases"(Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842</div>). The new standard is intended to increase transparency and comparability among organizations to recognize lease assets and liabilities on the balance sheet and disclose key information about leasing arrangements. It will be effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018. </div>Milestone Scientific is in the process of determining what impact, the adoption of this ASU will have on its financial position, results of operations and cash flows. </div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">07,</div> “Investments - Equity Method and Joint Ventures” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">323</div>): The new standard is intended to eliminate the requirement that when an investment qualifies for the use of the equity method as a result of an in increase in the level of ownership or degree of influence, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect all of the previous periods that the investment was held. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div></div>The Company has adopted the standard, effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>and has determined the adoption of this standard will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have an impact on its financial reporting.</div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Compensation – Stock Compensation” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>): The new standard is intended, under FASB’s Simplification Initiative, to address certain diversity of application within previous guidance. The new standard primarily addresses certain tax aspects in connection with the stock compensation held. It will be effective for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>The Company has adopted the standard, effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>and the adoption did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a </div>material effect <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">on its financial reporting.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,</div> “Financial Instruments – Credit Losses” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">326</div>).: The new standard is intended to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018. </div>Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued a new standa<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">rd ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> "Statement Cash Flows “Classification of Certain Cash Receipts and Cash Disbursements" Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>). The new standard provides guidance as to the conformity of presentation of certain cash receipts and disbursements. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> "Consolidation Interests Held through Related Parties That Are under Common Control"(Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">810</div>). The new standard provides guidance as to consideration of consolidation requirements of a primary beneficiary and variable interest entity that are part of related party group under common control.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">It will be effective for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Milestone Scientific has adopted the standard, effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>which did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have an impact on its financial reporting. </div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,</div> “Statement of Cash Flows – Restricted Cash” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>). The new standard provides guidance as to address the diversity of treatment of restricted cash on the statement of cash flows. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017 </div>and interim periods therein. Milestone Scientific does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of this ASU </div>to have a material effect<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">on its presentation within the statement of cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> “Business Combinations” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">805</div>). The new standard provides guidance to clarify the definition of a <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">‘business’, and assist entities in evaluation whether a transaction should be accounted for as an acquisition/disposal of assets or a business. It will be effective for public entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>with limited early application. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “Compensation – Stock Compensation” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>). The new standard provides guidance and clarity for modification to equity based compensation programs. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.</div></div></div></div></div></div>

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>- ORGANIZATION and BUSINESS </div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">All references in this report to “Milestone Scientific,” “us,” “our,” “we,” or “Milestone” refer to Milestone Scientific Inc., and its consolidated subsidiaries, Wand Dental, Milestone Advanced Cosmetic, Milestone Medical, and Milestone Education (all described below), unless the context otherwise indicates. Milestone Scientific is the owner of the following registered U.S. trademarks: C<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">ompuDent®; CompuMed®; CompuFlo®; DPS Dynamic Pressure Sensing Technology®; Milestone Scientific ®; the Milestone logo ®; SafetyWand®; STA Single Tooth Anesthesia System®; and The Wand ®.</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific was incorporated in the State of Delaware in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 1989. </div>Milestone Scientific has developed a proprietary, computer-controlled anesthetic delivery instrument, through the use of <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">The Wand®</div>, a single use disposable handpiece. The instrument is marketed in dentistry under the trademark <div style="display: inline; font-style: italic;">CompuDent®, </div>and <div style="display: inline; font-style: italic;">STA Single Tooth Anesthesia System®</div> and in medicine under the trademark <div style="display: inline; font-style: italic;">CompuMed®. CompuDent®</div> is suitable for all dental procedures that require local anesthetic. <div style="display: inline; font-style: italic;">CompuMed®</div> is 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 dental instruments are sold in the United States and in over <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">47</div> countries abroad. To date there have been <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> medical instruments sold in the United States and limited amounts sold internationally, although certain medical instruments have obtained CE mark approval and can be marketed and sold in most European countries. </div>In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017,</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Milestone Scientific received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510</div>(k) marketing clearance from the U.S. Food and Drug Administration (FDA) on the<div style="display: inline; font-style: italic;"> CompuFlo</div>® Epidural Computer Controlled Anesthesia System. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> our common stock was listed on the NYSE MKT LLC (“NYSE MKT”) under the ticker symbol “MLSS”.</div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>we raised <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.0</div> million of gross proceeds in a private placement of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one million</div> shares of common stock, at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.00</div> per share.</div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> quarter of<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> Milestone Scientific initiated a share exchange program pursuant to which we exchanged <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of common stock for every <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> outstanding shares of Milestone Medical, Inc. (described below) common stock, a previously consolidated variable interest entity. As a result of the exchange program, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>Milestone Scientific owned approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">98%</div> of Milestone Medical.</div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2016, </div>Milestone Scientific raised gross proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000</div> in a registered direct offering of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">104,200</div> shares of common stock at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.40</div> per share.</div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2016, </div>Milestone Scientific filed for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510</div>(k) marketing clearance with the FDA for the for the <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">CompuFlo</div>® Computer Controlled Anesthesia System for both intra-articular and epidural injections.  In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017, </div>the FDA approved the<div style="display: inline; font-style: italic;"> CompuFlo</div>® Epidural Computer Controlled Anesthesia System for epidural injections.  Milestone Scientific is in the process of introductory meetings with medical device distributors within the United States and foreign markets. </div>Milestone Scientific<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s immediate </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">focus is on marketing its epidural instrument throughout the world. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016, </div>we received notification from the FDA that based upon the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510</div>(k) application submitted for the <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">CompuFlo</div>® </div>Intra Articular Computer Controlled Injection System,<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> we did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> adequately document that the device met the equivalency standard required for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510</div>(k) clearance. Following consultation with the FDA Office of Device Evaluation, we intend to provide additional data, which could include a new Human Factor Validation study (HFV Study) in support of a new <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510</div>(k) application for the device. An HFV Study demonstrates the ease of use of a product. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016, </div>we completed an underwritten public offering of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,000,000</div> shares of common stock and warrants to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,592,775</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> shares of common stock, including <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">92,775</div> additional warrants pursuant to a partial exercise of the over-allotment option granted to the underwriters. The public offering price for each share and related warrant was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.50.</div> The warrants have a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-year term and an exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.55</div> per share. The gross proceeds from this offering were approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,000,000,</div> before deducting underwriting discounts and commissions and other offering expenses. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>in connection with Milestone Scientific public offering of shares in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016, </div>the underwriter of the offering exercised a portion of its over-allotment option and purchased an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">123,700</div> shares of common stock at the public offering price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.499</div> per share. The gross proceeds to Milestone Scientific from this exercise was approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$186,000</div> before deducting underwriting discounts and commissions and other offering expenses.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017, </div>Milestone Scientific entered into an agreement for the sale of its interest in Milestone China (a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">forty</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div>) percent interest) (the “<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Milestone China Shares”) to an unaffiliated United States domiciled purchaser and a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year option agreement to repurchase the Milestone China Shares. The purchase price for the Milestone China Shares was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div> of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> was paid in cash and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,275,000</div> was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> until paid in full and is secured by the Milestone China Shares until full repayment.  In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year option agreement provides Milestone Scientific an option to repurchase the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> equity interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div> within the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> years and at fair value (as defined in such agreement) for the remainder of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div>). The carrying value of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">forty</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div>) percent investment at the transaction date was zero. (See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>).</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt 7.5pt; text-align: justify; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific has incurred operating losses and negative cash flows from operating activities in each year<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> since its inception, except for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013.</div> Milestone Scientific is actively pursuing the generation of revenue, positive operating income and net income. The capital raised in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017 </div>provided Milestone Scientific with working capital to continue to develop and commercialize additional medical instruments and aggressively market its dental instruments throughout the world. Milestone Scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business worldwide, the generation of medical instruments and disposables revenue in the United States (from epidural instruments following <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017 </div>FDA approval) and worldwide, and a reductions in operating expenses. Management believes that Milestone Scientific will have sufficient cash reserves to meet its anticipated obligations over the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> month period following the issuance date of these financial statements.  However, Milestone Scientific <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>need to raise additional capital prior to management's expected generation of sustainable positive cash flow from operating activities including the dental business expected growth and the medical business launch to support medical instrument revenue.     </div></div></div>

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> RELATED PARTIES </div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific has a manufacturing agreement with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of its principal manufacturers of its handpieces, which is a related party, pursuant to which<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> it manufactures products under specific purchase orders, but without minimum purchase commitments. Purchases from this manufacturer </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$584,792</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,037,144</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>respectively. Purchases of handpieces from this manufacturer were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$485,167</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,121,226</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>respectively<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">. Milestone Scientific Inc. owed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$381,432</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$687,522</div> to this manufacturer as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>respectively.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,714,600</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> of related party sales of handpieces and instruments to Milestone China and Milestone China’s agent during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div>Milestone Scientific had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,356,000</div> of related party sales of handpieces and instruments to Milestone China during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>respectively. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>Milestone Scientific recorded deferred revenues and deferred costs associates with sales to Milestone China of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$181,116,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,001,800</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$620,041,</div> respectively.  As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>Milestone China owed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$356,400</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,714,600,</div> respectively, to Milestone Scientific for handpieces and STA instruments which is included in related party accounts receivable on the condensed consolidated balance sheets.  Milestone China made payments in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2017 </div>to satisfy the outstanding instruments receivable from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and therefore the deferred revenue of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,001,800</div> at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>has been recorded in revenue for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017.</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific defers the total revenue and costs of goods sold when instruments and handpieces are shipped to Milestone China and<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Milestone China’s agent due to market conditions and Milestone China liquidity concerns. However, due to timing differences of when the inventory is sold to Milestone China and when Milestone China sells the acquired inventory to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties, elimination of the intra-entity profit is required as of the balance sheet date. In accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">323</div> Equity Method and Joint Ventures, Milestone Scientific has deferred the gross profit associated with inventory shipped to Milestone China that has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been sold to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the deferred profit was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$659,931</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$630,990</div>,</div> respectively, which is included in the condensed consolidated balance sheets. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the loss on equity investment was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$28,941</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$222,719,</div> respectively, which is included in the condensed consolidated statements of operation. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> Milestone had a profit on equity investment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,460</div> and loss on equity investment <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$57,882,</div> respectively, which is included in the condensed consolidated statements of operations.</div></div> <div style=" margin: 0pt; text-indent: 27pt;"> </div> <div style=" margin: 0pt; text-indent: 27pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>a stockholder of Milestone Scientific entered a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-year agreement with Milestone Scientific to provide financial and business strategic services. Expenses recognized on this agreement were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>respectively. Expenses recognized on this agreement were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$35,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$70,000</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>respectively. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>Milestone Scientific entered into a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> month agreement with Innovest S.p.A. to provide consulting services. This agreement will renew for successive <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> month terms unless terminated by Innovest S.p.A or Milestone Scientific. Expenses recognized on this agreement were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$20,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$40,000</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>respectively.</div></div>

120065

309335

225080

452780

-75365184

-73381491

123764

305672

110764

300643

356400

1714600

356400

1356000

356400

1714600

356400

1356000

2523750

2371710

6212738

5836196

219648

190504

405293

852149

1182985

695761

2693471

1753685

21509

20652

40449

34126

1424142

906917

3139213

2639960

353805

535335

1712475

1559050

718837

882135

1302186

1537124

26966

47323

58864

100062

1099608

1464793

3073525

3196236

1424142

906917

3139213

2639960

1099608

1464793

3073525

3196236

2523750

2371710

6212738

5836196

322226

57102

1165552

329322

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">June 30, 2017</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;">December 31, 2016</div> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 62%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Assets:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Current Assets</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,940,116</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,362,198</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Non-Current Assets</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,841,127</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,467,547</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total Assets:</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,781,243</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,829,745</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Liabilities:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Current Liabilities</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,110,291</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,900,611</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Stockholders' equity</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">670,952</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,929,134</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total liabilities and stockholders<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">’ equity</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,781,243</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,829,745</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="; text-indent: 0px; font-family: Times New Roman,Times,serif; font-size: 10pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="6" style="width: 188px; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">Three Months Ended June 30,</div> </td> <td style="width: 6px; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">Six Months Ended June 30,</div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2017</div> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="width: 85px; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2016</div> </td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2017</div> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" margin: 0pt; text-align: center; font-family: Times New Roman,Times,serif; font-size: 10pt;">2016</div> </td> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="width: 76px;"> </td> <td style="width: 6px;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 52%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Sales</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">322,226</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">57,102</div></td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,165,552</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">329,322</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Cost of Goods Sold</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">422,789</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,464</div></td> <td style="width: 6px; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">889,204</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">283,864</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Gross Profit</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(100,563</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(17,362</div></td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">276,348</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45,458</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Other Expenses</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(643,570</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(263,540</div></td> <td style="width: 6px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,601,666</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(643,313</div></td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style=" font-family: Times New Roman,Times,serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Losses</div> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(744,133</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 76px; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(280,902</div></td> <td style="width: 6px; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,325,318</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 9%; text-align: right; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(597,855</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman,Times,serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> </tr> </table></div>

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <tr style="vertical-align: bottom;"> <td style="border: 1px solid rgb(0, 0, 0); border-image: none; width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Number of </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Averaged </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Exercise Price $</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted Average </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Remaining </div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Contractual Life</div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">(Years)</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Aggregate Intrinsic</div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options Value $</div></div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Options outstanding January 1, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,511,995</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.74</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.97</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,921</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Granted</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">211,179</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.64</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.52</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Exercised during 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(83,333</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.75</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Forfeited or expired</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Options outstanding June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639,841</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.87</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.89</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercisable, June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,130,958</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.88</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.46</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-collapse: collapse;"> <tr style="vertical-align: bottom; border-top-color: rgb(0, 0, 0); border-top-width: 1px; border-top-style: solid;"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Number of</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Averaged </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Exercise</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Price $</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Average </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Remaining </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Contractual</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Life (Years)</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td colspan="2" style="width: 1%; text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Aggregate </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Intrinsic </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options </div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Value $</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 40%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Options outstanding January 1, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">224,999</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.53</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.32</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Granted</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Exercised during 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 40%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Forfeited or expired</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 40%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: none; border-left-style: solid;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Options outstanding June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">224,999</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.53</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.82</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: none;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: none;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 40%; text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Exercisable, June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,183</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.33</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.86</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;"> </td> </tr> </table></div>

3082534

3290998

5790161

6292109

25000

50000

35000

70000

1130958

10183

1.88

2.33

921942

400000

250000

150000

211179

17921

1511995

1639841

224999

1.74

1.87

2.53

0.75

2.55

1.64

P5Y

P2Y167D

P3Y313D

P2Y354D

P2Y324D

P5Y116D

P4Y299D

7000

31727705

7000

32737770

2.40

1.50

1.499

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> - <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> SUMMARY OF ACCOUNTING POLICIES </div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div> Basis of Consolidation</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of Milestone Scientific and its wholly owned and majority owned subsidiaries, including, Wand Dental </div>(wholly owned),  <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Advanced Cosmetic </div>(majority owned)<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> and Milestone Medical </div>(majority owned). <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Education is a variable interest entity of which Milestone Scientific is the primary beneficiary and is consolidated into Milestone Scientific's financial statements. All significant, intra-entity transactions and balances have been eliminated in the consolidation.    </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> Basis of Presentation</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">The unaudited condensed consolidated financial statements of Milestone Scientific have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information with the instructions for Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10Q</div> and Article <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> of Regulation S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">X.</div> Accordingly, they do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring entries) necessary to fairly present such interim results. Interim results are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results of operations which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be expected for a full year or any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>included in Milestone Scientific's Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div> <div style="display: inline; font-weight: bold;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Reclassifications</div></div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Certain reclassifications have been made to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> financial statements to conform to the consolidated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> financial statement presentation. These reclassifications had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> effect on net loss or cash flows as previously reported.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.</div> Variable Interest Entities</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">If Milestone Scientific determines that it has operating power and the obligation to absorb losses or receive benefits, Milestone Scientific consolidates the VIE as the primary beneficiary. Milestone Scientific<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s involvement constitutes power that is most significant to the entity when it has unconstrained decision making ability over key operational functions within the entity.                   </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific is the primary beneficiary of Milestone Education as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2016 (</div>see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>). Accordingly, the assets and liabilities of Milestone Education are included in the accompanying<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> condensed consolidated financial statements. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Because<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  Milestone Scientific had an increasing  variable interest in  Milestone China, it further considered the guidance in Accounting Standard Codification ("ASC") <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">810</div> as it relates to determining whether Milestone China is a VIE and, if so, identifying the primary beneficiary. As Milestone China’s equity at risk and voting rights were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> proportional to their economic interest, Milestone China was determined to be a VIE. Milestone Scientific would be considered the primary beneficiary of the VIE if it has both of the following characteristics:</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;">●   Power Criterion: The power to direct the activities that most significantly impact the entity<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s economic performance; and</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;">●   Losses/Benefits Criterion: The obligation to absorb losses that could potentially be significant or the right to receive benefits that could potentially be significant to the VIE.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 18pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone management does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have the ability to control the activities that most significantly impact Milestone China's economics and, therefore, the power criterion has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been met. Management placed the most weight on the relationship and significance of activities of Milestone China to the majority shareholder/CEO of Milestone China.  As majority shareholder, majority holder of voting rights, and the active CEO, the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53%</div> investor has the power to direct the activities that most significantly impact the economic performance of Milestone China. Management has concluded that Milestone Scientific is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> the primary beneficiary under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">810.</div> Accordingly, Milestone China has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been consolidated into the financial statements of Milestone Scientific and continues to be accounted for under the equity method (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>).</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.</div> Cash and Cash Equivalents</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 9pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific considers all highly liquid investments purchased with an original maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less to be cash equivalents.</div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.</div> Accounts Receivable</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific sells a significant amount of its product on credit terms to its major distributors. Milestone Scientific estimates losses from the inability of its customers to make payments on amounts billed. A majority of credit sales are due within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ninety</div> days from invoicing. There have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been any significant credit losses incurred to date.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.</div> Note Receivable</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017, </div>Milestone Scientific entered into an agreement for the sale of the Milestone China Shares to an unaffiliated United States domiciled purchaser and a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year option agreement to repurchase the Milestone China Shares. The purchase price for th<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">e Milestone China Shares was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div> of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> was paid in cash and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,275,000</div> was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$125,000</div> until paid in full and is secured by the Milestone China Shares until full repayment.  In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year option agreement provides Milestone Scientific an option to repurchase the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> equity interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div> within the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> years and at fair value (as defined in such agreement) for the remainder of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,400,000</div>). The carrying value of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">forty</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div>) percent investment at the transaction date was zero. (See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>).</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div> Product Return and Warranty</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific generally does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> accept non-defective returns from its customers. Product returns under warranty are accepted, evaluated and repaired or replaced in accordance with the Warranty Policy. Returns <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> within the Warranty Policy are evaluated and the customer is charged for the repair. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.</div> Inventories</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Inventories principally consist of finished goods and component parts stated at the lower of cost (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-out method) or market. Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess and obsolete inventory is recorded if required based on past and expected future sales, potential technological obsolescence and product expiration requirements.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.</div> Equity Method Investments</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Investments in which Milestone Scientific has the ability to exercise significant influence, but do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> control, are accounted for under the equity method of accounting and are included in the long term assets on the condensed consolidated balance sheets. Under this method of accounting, Milestone Scientific's share of the net earnings or losses of the investee is presented below the income tax line on the condensed consolidated statements of operations.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">Milestone Scientific evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be impaired. If a decline in the value of an equity method investment is determined to be ot<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">her than temporary, a loss is recorded in earnings in the current period. </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.</div> Furniture, Fixture and Equipment<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">   </div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Equipment is recorded at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, which range from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">seven</div> years. The costs of maintenance and repairs are charged to operations as incurred.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12.</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">  Intangible Assets - Patents</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Patents are recorded at cost to prepare and file the applicable documents with the US Patent Office, or internationally with the applicable governmental office in the respective country. Although certain patents have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet been approved, the costs related to these patents are being amortized using the straight-line method over the estimated useful life of the patent. If the applicable patent application is ultimately rejected, the remaining unamortized balance will be expensed in the period in which Milestone Scientific receives notice of such rejection.  </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13.</div> Impairment of Long-Lived Assets</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific reviews long-lived assets for impairment whenever events or circumstances (i.e. a triggering event) indicate that the carrying amounts <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be recoverable. The carrying value of the assets is evaluated in relation to the operating performance and future undiscounted cash flows of the underlying assets. Milestone Scientific adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. There have been <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impairment indicators or triggering events and therefore, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impairment reviews have been performed in the period ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14.</div> Revenue Recognition</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Revenue from product sales is recognized, net of discounts and allowances to domestic distributors, on the date of shipment for substantially all shipments, since the shipment terms are FOB warehouse. Milestone Scientific recognizes revenue on date of arrival of the goods at the customer's location, where shipments are FOB destination. In all cases the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone Scientific has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> obligation on these sales for any post installation, set-up or maintenance, these being the responsibility of the buyer. Milestone Scientific's only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period. Instrument and hand pieces are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> bundled but rather sold separately and, as such, there are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> multiple element determinations in connection with the revenue recognition. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15.</div> Shipping and Handling Costs</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific includes shipping and handling costs in cost of goods sold. These costs are billed to customers at the time of shipment for domestic shipments. International shipments are FOB warehouse, therefore <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> costs are incurred by Milestone Scientific.<div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16.</div> Research and Development</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Research and development costs, which consist principally of new product development costs payable to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties, are expensed as incurred. Advance payments for the research are amortized to expense either as services are performed or over the relevant service period using the straight line method.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17.</div> Income Taxes</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Scientific accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18.</div> Use of Estimates</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the allowance for doubtful accounts, inventory valuation, and cash flow assumptions regarding evaluations for impairment of long-lived assets and going concern considerations, and valuation allowances on deferred tax assets. Actual results could differ from those estimates<div style="display: inline; font-weight: bold;">.</div></div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19.</div> Fair Value of Financial Instruments</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Fair Value Measurements: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market at the measurement date (exit price). We are required to classify fair value measurements in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the following categories:</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;">●   Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs which are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:73.8pt;margin-right:7.5pt;margin-top:0pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;">●    <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> inputs which are defined as inputs other than quoted prices included within Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> that are observable for the assets or liabilities, either directly or indirectly.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:73.8pt;margin-right:7.5pt;margin-top:0pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;">●    <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> inputs are defined as unobservable inputs for the assets or liabilities.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:15pt;margin-top:0pt;text-align:left;text-indent:-18pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20.</div> Recent Accounting Pronouncements</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> steps: <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) identify the contract, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) identify performance obligations, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) determine the transaction price, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) allocate the transaction price, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2015, </div>the FASB issued guidance approving a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-year deferral, making the standard effective for reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>The FASB continues to release guidance clarifying certain aspects of the revenue guidance. We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe that this new accounting pronouncement will have a material impact on our financial statements.</div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 18pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2015, </div>the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. The Company has adopted this pronouncement as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>and applied retrospectively, for its provision for income taxes disclosure. The adoption did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have an impact on the presentation of the balance sheet, as the Company assigns a full valuation allowance to its net deferred tax asset. </div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;">In Februa<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">ry <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued a new standard Accounting Standards Update ("ASU ") <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> "Leases"(Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842</div>). The new standard is intended to increase transparency and comparability among organizations to recognize lease assets and liabilities on the balance sheet and disclose key information about leasing arrangements. It will be effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018. </div>Milestone Scientific is in the process of determining what impact, the adoption of this ASU will have on its financial position, results of operations and cash flows. </div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">07,</div> “Investments - Equity Method and Joint Ventures” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">323</div>): The new standard is intended to eliminate the requirement that when an investment qualifies for the use of the equity method as a result of an in increase in the level of ownership or degree of influence, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect all of the previous periods that the investment was held. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div></div>The Company has adopted the standard, effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>and has determined the adoption of this standard will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have an impact on its financial reporting.</div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: "Times New Roman",Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Compensation – Stock Compensation” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>): The new standard is intended, under FASB’s Simplification Initiative, to address certain diversity of application within previous guidance. The new standard primarily addresses certain tax aspects in connection with the stock compensation held. It will be effective for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>The Company has adopted the standard, effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>and the adoption did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a </div>material effect <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">on its financial reporting.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,</div> “Financial Instruments – Credit Losses” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">326</div>).: The new standard is intended to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018. </div>Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued a new standa<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">rd ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> "Statement Cash Flows “Classification of Certain Cash Receipts and Cash Disbursements" Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>). The new standard provides guidance as to the conformity of presentation of certain cash receipts and disbursements. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> "Consolidation Interests Held through Related Parties That Are under Common Control"(Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">810</div>). The new standard provides guidance as to consideration of consolidation requirements of a primary beneficiary and variable interest entity that are part of related party group under common control.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">It will be effective for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Milestone Scientific has adopted the standard, effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>which did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have an impact on its financial reporting. </div></div> <div style=" margin: 0pt; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,</div> “Statement of Cash Flows – Restricted Cash” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>). The new standard provides guidance as to address the diversity of treatment of restricted cash on the statement of cash flows. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017 </div>and interim periods therein. Milestone Scientific does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of this ASU </div>to have a material effect<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">on its presentation within the statement of cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> “Business Combinations” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">805</div>). The new standard provides guidance to clarify the definition of a <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">‘business’, and assist entities in evaluation whether a transaction should be accounted for as an acquisition/disposal of assets or a business. It will be effective for public entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>with limited early application. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued a new standard ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> “Compensation – Stock Compensation” (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>). The new standard provides guidance and clarity for modification to equity based compensation programs. It will be effective for all entities for fiscal years and interim periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.</div></div></div>

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; text-indent: 0pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div>- Subsequent Events</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 10, 2017 (</div>the “<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Effective Date”), Milestone Scientific entered into a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-year employment agreement with Daniel Goldberger to serve as President and Chief Executive Officer of Milestone Scientific. Under the agreement, Mr. Goldberger will receive base compensation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$300,000</div> per annum and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>additionally earn annual bonuses of up to an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$400,000,</div> payable <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> half in cash and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> half in Milestone Scientific common stock (“Bonus Shares”) contingent upon achieving performance benchmarks periodically set for each year by the compensation committee of the Board. In addition to any such shares of common stock, Mr. Goldberger is entitled to receive stock options (“Bonus Options”) to acquire twice the number of any Bonus Shares earned, pursuant to a non-qualified stock option grant agreement under Milestone Scientific’s then existing equity compensation plan. The Bonus Options shall have a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-year term and shall vest in equal annual installments on each of the first, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> anniversary of the grant date, subject to continued employment on such vesting date and accelerated vesting upon the occurrence of certain events. The exercise price of the Bonus Options will be based on the fair market value of per share of common stock, on the date of grant (or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">110%</div> of such value if at the time of grant Mr. Goldberger beneficially own <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div>) or more of the common stock). </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">In addition, on the Effective Date, Milestone Scientific granted to Mr. Gold<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">berger non-qualified stock options to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">921,942</div> shares of common stock at an exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.00</div> per share. Those options have a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-year term and shall vest in equal annual installments on each of the first, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> anniversaries of the grant date, subject to his continued employment on the vesting date and accelerated vesting upon the occurrence of certain events. </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">On the Effective Date, Milestone Scientific entered into a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div>-year new employment agreement with Mr. Osser, who previously served as President and Chief Executive Officer. This new agreement provides for annual compensation of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$300,000</div> consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$100,</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">000</div> in cash and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$200,000</div> in the Company’s common stock valued at the average closing price of the Company’s common stock on the NYSE or such other market or exchange on which its shares are then traded during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fifteen</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div>) trading days of the last full calendar month of each year during the Employment Term. This agreement supersedes all prior employment agreements between Mr. Osser and Milestone Scientific. If the Milestone Scientific terminates Mr. Osser’s employment hereunder “Without Cause,” other than due to his death or disability, or if Mr. Osser terminates his employment for “Good Reason” (both as defined in the agreement), Mr. Osser is entitled to be paid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> lump sum payment as soon as practicable following such termination: an amount equal to the aggregate present value (as determined in accordance with Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">280G</div>(d)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) of the Code) of all compensation pursuant to this agreement from the effective date of termination hereunder through the remainder of the Employment Term.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">On the Effective Date, Mr. Osser also resigned from his positions of Chairman of the Board, Chief Executive Office and President of Milestone Medical. Upon his resignation, Milestone Medical entered in a consulting agreement with U.S. Asian Consulting Group LLC, an entity controlled by Mr. Osser, pursuant to which he will provide specific services to Milestone Medical for a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div>- year term. Pursuant to the consulting agreement, U.S. Asian Consulting Group, LLC, is entitled to receive <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$100,000</div> per year for Mr. Osser's services.</div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 13, 2017 (</div>the “<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Closing Date”), Milestone Scientific consummated an Asset Purchase Agreement (the “Agreement”) with APAD Octrooi B.V. and APAD B.V. (each, a “Seller”, and collectively, the “Sellers”) pursuant to which Milestone Scientific acquired certain patent rights and other intellectual property rights related to the Sellers’ computer controlled injection instrument (the “Purchased Assets”). Entry into the Agreement was previously disclosed by Milestone Scientific in a Current Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div>-K, filed with the Securities and Exchange Commission on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2, 2017. </div>On the Closing Date, Milestone Scientific issued to the Sellers an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,646,358</div> shares of its common stock, valued at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,486,000</div> for the Purchased Assets which shares are subject to certain post-closing upward or downward adjustments. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> registration rights have been granted with respect to these shares of common stock. The issuance of these shares of stock is exempt from registration under the Securities Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1933,</div> as amended (the “Act”), as each of the Sellers is an accredited investor (as defined in Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">501</div>(a) of Regulation D, as promulgated under the Act), and has agreed to hold such shares for investment and without a view to distribution. </div></div> <div style=" margin: 0pt; text-align: justify; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: justify; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 7, 2017, </div>Milestone Scientific's compensation committee<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> approved the issuance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">400,000</div> stock options to Gian Domenico Trombetta, CEO of Wand Dental and a Director of Milestone Scientific (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">250,000</div> option at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.55</div> per share to be issued on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 7, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150,000</div> options at the higher of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.55</div> or the market price of the stock on the date of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> Annual Stockholder meeting, subject to approval of a new or amended equity incentive plan at such meeting.)</div></div></div>

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">NOTE<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> - <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> CONSOLIDATION OF VARIABLE INTEREST ENTITY</div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; text-indent: 27pt; font-family: Times New Roman,Times,serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">Milestone Education is a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> owned subsidiary of Milestone Scientific which began operations in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013</div> to provide training and education to dentists throughout the world. Milestone Scientific accounted for its investment in Milestone Education using the equity method of accounting through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015. </div>Approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">81%</div> of the revenue earned by Milestone Education is from services performed for Milestone Scientific as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div>As a result of this relationship, we determined that we had the power to direct the activities that most significantly impact Milestone Education's economic performance, and that it was  a VIE and would  be consolidated in the financial statements  of Milestone Scientific effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2016.</div></div></div></div>

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Product Concentration Risk [Member] Customer Concentration Risk [Member] us-gaap_TreasuryStockValue Treasury stock, at cost, 33,333 shares Concentration Risk Type [Domain] us-gaap_IncreaseDecreaseInOtherOperatingAssets (Increase) decrease in other assets Geographic Concentration Risk [Member] us-gaap_NotesReceivableNet Financing Receivable, Net Concentration Risk Type [Axis] Relationship to Entity [Domain] Title of Individual [Axis] us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets Increase to prepaid expenses and other current assets us-gaap_StockIssuedDuringPeriodSharesPurchaseOfAssets Stock Issued During Period, Shares, Purchase of Assets us-gaap_SharesIssuedPricePerShare Shares Issued, Price Per Share us-gaap_StockIssuedDuringPeriodValuePurchaseOfAssets Stock Issued During Period, Value, Purchase of Assets us-gaap_SharesIssued Balance (in shares) Balance (in shares) Net assets acquired from variable entity Sales Revenue, Goods, Net [Member] Accounts Receivable [Member] mlss_PercentageOfRevenueFromServicesPerformedToVariableInterestEntity Percentage of Revenue from Services Performed to Variable Interest Entity Percentage of revenue from services performed to variable interest entity. Concentration Risk Benchmark [Domain] Concentration Risk Benchmark [Axis] Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] Underwritten Public Offering [Member] Information pertaining to the underwritten public offering. Advanced Ocular Sciences SA [Member] The name of an unconsolidated subsidiary of the reporting entity. Common stock issued to employee for exercise of stock options (in shares) Number of options exercised (in shares) Common stock issued to employee for exercise of stock options us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardGross Stock Issued During Period, Value, Restricted Stock Award, Gross us-gaap_IncreaseDecreaseInAccountsReceivableRelatedParties Decrease (increase) in accounts receivable related party us-gaap_IncreaseDecreaseInOtherReceivables Decrease (increase) in other receivable mlss_ClassOfWarrantOrRightExpirationPeriod Class of Warrant or Right, Expiration Period Period from issue date that a warrant expires, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days. Common stock to be issued to employee for compensation (in shares) us-gaap_IncreaseDecreaseInAccountsReceivable (Increase) decrease in accounts receivable Non-employee Options [Member] Represents information pertaining to stock options for non-employees of the reporting entity. Common stock to be issued to employee for compensation Number of options granted (in shares) Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross Weighted average remaining contractual life, granted (Year) Share based payment award options grants in period weighted average remaining contractual term. Common stock issued for payment of consulting services (in shares) Common stock issued for payment of consulting services Sale of Common Stock (in shares) Stock Issued During Period, Shares, New Issues Sale of Common Stock us-gaap_LiabilitiesAndStockholdersEquity Total liabilities and stockholders’ equity Total liabilities and stockholders’ equity Accumulated deficit Product sales, net Sales Revenue, Goods, Net us-gaap_IncreaseDecreaseInInventories Decrease (increase) in inventories Weighted average remaining contractual life, exercised (Year) Weighted average remaining contractual term for option awards exercised, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days. mlss_PercentageOfValuationAllowance Percentage of Valuation Allowance Represents the percentage of valuation allowance. Shares issued to employees for bonus The fair value of stock issued for public offering in noncash financing activities. mlss_NumberOfCustomers Number of Customers Represents the number of major customers accounting for 10% or more of the specified concentration risk benchmark, which includes, but not limited to, sales revenue, accounts receivable, etc. mlss_LongtermPurchaseCommitmentRemainingAmount Long-term Purchase Commitment, Remaining Amount The remaining minimum amount the entity agreed to spend under the long-term purchase commitment. mlss_LongtermPurchaseCommitmentRemainingQuantities Long-term Purchase Commitment, Remaining Quantities Remaining number of units of goods that must be purchased within the specified time period of the agreement to avoid penalties or unfavorable effects on pricing, among other adverse consequences. Fair Value of Financial Instruments, Policy [Policy Text Block] Prepaid expenses and other current assets us-gaap_DisclosureTextBlockAbstract Notes to Financial Statements us-gaap_AssetsNoncurrent Non-Current Assets Stock Option Plan 2011 [Member] Information pertaining to the 2011 Stock Option Plan. Revenue Other (expenses) Income Tax, Policy [Policy Text Block] Changes in operating assets and liabilities: Interest income Research and Development Expense, Policy [Policy Text Block] us-gaap_ServicingFees Servicing Fees us-gaap_DeferredRevenueRevenueRecognized1 Deferred Revenue, Revenue Recognized us-gaap_OperatingIncomeLoss Loss from operations Gross Profit Gross profit Treasury stock, at cost, shares (in shares) us-gaap_OperatingLeasesRentExpenseMinimumRentals Operating Leases, Rent Expense, Minimum Rentals Amendment Flag Common stock, par value $.001; authorized 50,000,000 shares; 31,376,699 shares issued, 1,361,071 shares to be issued and 31,343,366 shares outstanding as of June 30, 2017; 30,457,224 shares issued, 1,270,481 shares to be issued and 30,423,891 shares outstanding as of December 31, 2016 Common stock, shares authorized (in shares) Common stock, shares issued (in shares) Other assets Common stock, par value (in dollars per share) Notes receivable, financing transaction long term Current Fiscal Year End Date Shipping and Handling Cost, Policy [Policy Text Block] Document Fiscal Period Focus Document Fiscal Year Focus Document Period End Date Series A convertible preferred stock, par value $.001, authorized 5,000,000 shares, 33,333 shares held in the treasury, and 7,000 shares issued and outstanding as June 30, 2017 and December 31, 2016 Preferred stock, shares issued (in shares) Document Type Preferred stock, shares authorized (in shares) Document Information [Line Items] Document Information [Table] Preferred stock, par value (in dollars per share) us-gaap_AssetsCurrent Current Assets Total current assets Depreciation expense Entity Filer Category Advances on contracts Advances on Inventory Purchases Entity Current Reporting Status Entity Voluntary Filers Entity Well-known Seasoned Issuer Two Customers [Member] Information pertaining to two customers. Adjustments to reconcile net loss to net cash used in operating activities: mlss_WriteoffOfAdvancesToAffiliate Write-off of Advances to Affiliate Represents the amount of write-off of advances to affiliate. Entity Central Index Key Advances to Contract Manufacturer [Text Block] Advances to contract manufacturer. us-gaap_PaymentsForPostemploymentBenefits Payments for Postemployment Benefits Entity Registrant Name Instruments [Member] A product of the reporting entity. Product Sales and Significant Customers and Vendors Disclosure [Text Block] Entire disclosure of product sales and significant customers and vendors. Entity [Domain] Legal Entity [Axis] Deferred cost Deferred Costs, Current Noncontrolling interest us-gaap_ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 Class of Warrant or Right, Exercise Price of Warrants or Rights Customer One [Member] Unspecified major customer one. us-gaap_ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights Class of Warrant or Right, Number of Securities Called by Warrants or Rights Customer Two [Member] Unspecified major customer two. Sales by Product and by Geographical Region [Table Text Block] Entire disclosure of sales by product and by geographical region. Domestic [Member] The domestic country of the reporting entity. Entity Common Stock, Shares Outstanding (in shares) Handpieces [Member] Represents handpieces. International [Member] Countries other than the domestic country of the reporting entity. us-gaap_ShippingHandlingAndTransportationCosts Shipping, Handling and Transportation Costs Other Products [Member] Other unspecified products sold by the reporting entity. Deferred profit, related party The carrying amount of deferred profit from related parties. Additional paid-in capital Inventories Stockholders’ Equity Revenue Recognition, Policy [Policy Text Block] Increase in deferred profit, related party mlss_IncreaseDecreaseInDeferredProfitRelatedParties The increase (decrease) during the reporting period of deferred profit from related parties. Standard Product Warranty, Policy [Policy Text Block] mlss_OptionToRepurchaseVariableEntitySharesAtSpecifiedPurchasePricePeriod Option to Repurchase Variable Entity Shares at Specified Purchase Price, Period Period to repurchase the variable entity shares at a specified purchase price under the agreement. Trading Symbol mlss_OptionToRepurchaseVariableInterestEntitySharesPurchasePrice Option to Repurchase Variable Interest Entity Shares, Purchase Price Purchase price under the agreement to repurchase the variable interest entity shares within the first two years. mlss_OptionToRepurchasePeriod Option to Repurchase, Period The period of option to repurchase pursuant to the agreement. us-gaap_StockholdersEquity Total Milestone Scientific Inc. stockholders' equity Intangible Assets, Finite-Lived, Policy [Policy Text Block] Innovest S.p.A. [Member] Represents Innovest S.p.A. Consulting Services [Member] Represents consulting services. Deferred Profit, Related Party [Member] Financial statement caption encompassing deferred profit, related party. Employee Stock Options Issued at the Higher of $2.54 Per Share or Market Price [Member] Represents employee stock options issued at the higher of $2.54 or the market price of the stock on the date of the 2018 Annual Stockholder meeting, subject to approval of a new amended equity incentive plan at such meeting. Commitments and Contingencies EX-101.PRE 12 mlss-20170630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 13 R1.htm IDEA: XBRL DOCUMENT

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2017	Aug. 14, 2017
Document Information [Line Items]
Entity Registrant Name	MILESTONE SCIENTIFIC INC.
Entity Central Index Key	0000855683
Trading Symbol	mlss
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		32,989,724
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML 14 R2.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 2,945,631	$ 3,602,229
Accounts receivable, net of allowance for doubtful accounts of $10,000 as of June 30, 2017 and $5,000 as of December 31, 2016	1,419,731	802,384
Accounts receivable from related party	356,400	2,714,600
Other receivable		10,000
Notes receivable, financing transaction short term	500,000
Inventories	4,498,371	4,602,719
Advances on contracts	851,504	700,900
Deferred cost	181,116	620,041
Prepaid expenses and other current assets	746,491	291,929
Total current assets	11,499,244	13,344,802
Furniture, fixtures & equipment net of accumulated depreciation of $707,167 as of June 30, 2017 and $659,144 as of December 31, 2016	170,552	159,026
Patents, net of accumulated amortization of $809,332 as of June 30,2017 and $717,086 as of December 31, 2016	625,092	660,457
Notes receivable, financing transaction long term	775,000
Other assets	26,878	17,355
Total assets	13,096,766	14,181,640
Current Liabilities:
Accounts payable	985,736	1,341,207
Accounts payable related party	381,432	1,235,052
Accrued expenses and other payables	1,652,144	1,436,262
Deferred profit, related party	659,931	630,990
Deferred revenue	356,400	1,001,800
Total current liabilities	4,035,643	5,645,311
Deferral from financing transaction	1,400,000
Total liabilities	5,435,643	5,645,311
Commitments and Contingencies
Stockholders’ Equity
Series A convertible preferred stock, par value $.001, authorized 5,000,000 shares, 33,333 shares held in the treasury, and 7,000 shares issued and outstanding as June 30, 2017 and December 31, 2016	7	7
Common stock, par value $.001; authorized 50,000,000 shares; 31,376,699 shares issued, 1,361,071 shares to be issued and 31,343,366 shares outstanding as of June 30, 2017; 30,457,224 shares issued, 1,270,481 shares to be issued and 30,423,891 shares outstanding as of December 31, 2016	32,736	31,720
Additional paid-in capital	83,600,384	82,761,503
Accumulated deficit	(75,365,184)	(73,381,491)
Treasury stock, at cost, 33,333 shares	(911,516)	(911,516)
Total Milestone Scientific Inc. stockholders' equity	7,356,427	8,500,223
Noncontrolling interest	304,696	36,106
Total Equity	7,661,123	8,536,329
Total liabilities and stockholders’ equity	$ 13,096,766	$ 14,181,640

XML 15 R3.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accounts receivable, allowance for doubtful accounts	$ 10,000	$ 5,000
Furniture, fixtures & equipment, accumulated depreciation	707,167	659,144
Patents, accumulated amortization	$ 809,332	$ 717,086
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	7,000	7,000
Preferred stock, shares outstanding (in shares)	7,000	7,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	31,376,699	30,457,224
Common stock, shares to be issued (in shares)	1,361,071	1,270,481
Common stock, shares outstanding (in shares)	31,343,366	30,423,891
Treasury stock, at cost, shares (in shares)	33,333	33,333

XML 16 R4.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue
Product sales, net	$ 2,523,750	$ 2,371,710	$ 6,212,738	$ 5,836,196
Cost of products sold	873,586	789,801	2,275,871	2,157,990
Gross profit	1,650,164	1,581,909	3,936,867	3,678,206
Selling, general and administrative expenses	3,082,534	3,290,998	5,790,161	6,292,109
Research and development expenses	120,065	309,335	225,080	452,780
Total operating expenses	3,202,599	3,600,333	6,015,241	6,744,889
Loss from operations	(1,552,435)	(2,018,424)	(2,078,374)	(3,066,683)
Other (expenses)	(1,024)	(1,004)	(1,763)	(1,936)
Interest income	2,154		2,442
Loss before provision for income tax and equity in net earnings of equity investments	(1,551,305)	(2,019,428)	(2,077,695)	(3,068,619)
Provision for income tax	(4,664)	(16,791)	(11,865)	(63,624)
Loss before equity in net earnings of equity investments	(1,555,969)	(2,036,219)	(2,089,560)	(3,132,243)
Profit or (loss) on equity investment in China Joint Venture	15,460	(57,882)	(28,941)	(222,719)
Net loss	(1,540,509)	(2,094,101)	(2,118,501)	(3,354,962)
Net loss attributable to noncontrolling interests	(61,684)	(507,262)	(134,808)	(976,308)
Net loss attributable to Milestone Scientific Inc.	$ (1,478,825)	$ (1,586,839)	$ (1,983,693)	$ (2,378,654)
Net loss per share applicable to common stockholders—
Basic (in dollars per share)	$ (0.05)	$ (0.06)	$ (0.06)	$ (0.10)
Diluted (in dollars per share)	$ (0.05)	$ (0.06)	$ (0.06)	$ (0.10)
Weighted average shares outstanding and to be issued—
Basic (in shares)	32,399,997	25,989,857	32,122,482	24,362,441
Diluted (in shares)	32,399,997	25,989,857	32,122,482	24,362,441
Milestone China [Member]
Revenue
Product sales, net	$ 356,400	$ 356,400	$ 1,714,600	$ 1,356,000
Profit or (loss) on equity investment in China Joint Venture	$ 15,460	$ (57,882)	$ 0	$ (164,837)

XML 17 R5.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)	Underwritten Public Offering [Member] Common Stock [Member]	Underwritten Public Offering [Member] Additional Paid-in Capital [Member]	Underwritten Public Offering [Member]	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Treasury Stock [Member]	Total
Balance (in shares) at Dec. 31, 2016				7,000	31,727,705
Balance at Dec. 31, 2016				$ 7	$ 31,720	$ 82,761,503	$ (73,381,491)	$ 36,106	$ (911,516)	$ 8,536,329
Stock based compensation						237,858				237,858
Common stock to be issued to employee for compensation (in shares)					10,913
Common stock to be issued to employee for compensation					$ 11	14,989				15,000
Common stock issued to employee for exercise of stock options (in shares)					83,333
Common stock issued to employee for exercise of stock options					$ 83	62,417				62,500
Common stock issued for payment of consulting services (in shares)					245,373
Common stock issued for payment of consulting services					$ 260	422,249				422,509
Common stock to be issued to employee for bonuses (in shares)					114,748
Common stock to be issued to employee for bonuses					$ 107	194,885				194,992
Common Stock exchanged for MMD (in shares)					311,998
Common Stock exchanged for MMD					$ 311	(403,709)		403,398
Common stock issued to directors for bonuses (in shares)					120,000
Common stock issued to directors for bonuses					$ 120	159,480				159,600
Sale of Common Stock (in shares)	123,700
Sale of Common Stock	$ 124	$ 150,712	$ 150,836
Net loss							(1,983,693)	(134,808)		(2,118,501)
Balance (in shares) at Jun. 30, 2017				7,000	32,737,770
Balance at Jun. 30, 2017				$ 7	$ 32,736	$ 83,600,384	$ (75,365,184)	$ 304,696	$ (911,516)	$ 7,661,123

XML 18 R6.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (2,118,501)	$ (3,354,962)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	31,023	46,177
Amortization of patents	35,364	35,707
Common stock and options for compensation, consulting and vendor services	237,858	784,480
Equity method loss China joint venture	28,941	222,719
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(617,347)	366.982
Decrease (increase) in accounts receivable related party	2,358,200	(1,156,400)
Decrease (increase) in other receivable	10,000	(8,975)
Decrease (increase) in inventories	104,348	(233,393)
(Increase) decrease to advances on contracts	(150,604)	117
Increase to prepaid expenses and other current assets	(454,562)	(71,240)
(Increase) decrease in other assets	(9,523)	5,975
Decrease in accounts payable	(355,471)	(272,696)
(Decrease) increase in accounts payable related party	(853,620)	680,232
Increase in deferred profit, related party	438,925
Increase (decrease) in accrued expenses and other payables	1,007,983	(67,367)
Decrease in deferred revenue	(645,400)
Net cash used in operating activities	(952,386)	(3,022,644)
Cash flows from investing activities:
Purchase of intangible assets	(39,199)	(15,616)
Purchase of property and equipment	(3,349)	(15,668)
Consolidation of variable interest entity		26,925
Net cash used in investing activities	(42,548)	(4,359)
Cash flows from financing activities:
Capital contribution from noncontrolling interest		16,346
Proceeds from exercise of stock options	62,500
Net proceeds on Private Placement Offering	150,836	2,000,000
Proceeds from financing transaction	125,000
Net cash provided by financing activities	338,336	2,016,346
Net decrease in cash and cash equivalents	(656,598)	(1,010,657)
Cash and cash equivalents at beginning of period	3,602,229	4,194,384
Cash and cash equivalents at end of period	2,945,631	3,183,727
Supplemental disclosure of cash flow information:
Net assets acquired from variable entity		6,307
Sale of Milestone China shares, financing transaction	1,400,000
Shares issued to employees for bonus	194,885	339,549
Shares issued to consultants in lieu of cash payment	422,249	75,000
Milestone China [Member]
Adjustments to reconcile net loss to net cash used in operating activities:
Equity method loss China joint venture	$ 0	$ 164,837

XML 19 R7.htm IDEA: XBRL DOCUMENT

Note 1 - Organization and Business	6 Months Ended
Note 1 - Organization and Business	Jun. 30, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1 - ORGANIZATION and BUSINESS All references in this report to “Milestone Scientific,” “us,” “our,” “we,” or “Milestone” refer to Milestone Scientific Inc., and its consolidated subsidiaries, Wand Dental, Milestone Advanced Cosmetic, Milestone Medical, and Milestone Education (all described below), unless the context otherwise indicates. Milestone Scientific is the owner of the following registered U.S. trademarks: C ompuDent®; CompuMed®; CompuFlo®; DPS Dynamic Pressure Sensing Technology®; Milestone Scientific ®; the Milestone logo ®; SafetyWand®; STA Single Tooth Anesthesia System®; and The Wand ®. Milestone Scientific was incorporated in the State of Delaware in August 1989. Milestone Scientific 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®, and STA Single Tooth Anesthesia System® and in medicine under the trademark CompuMed®. CompuDent® is suitable for all dental procedures that require local anesthetic. CompuMed® is 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 dental instruments are sold in the United States and in over 47 countries abroad. To date there have been no medical instruments sold in the United States and limited amounts sold internationally, although certain medical instruments have obtained CE mark approval and can be marketed and sold in most European countries. In June 2017, Milestone Scientific received 510 (k) marketing clearance from the U.S. Food and Drug Administration (FDA) on the CompuFlo ® Epidural Computer Controlled Anesthesia System. During 2015, our common stock was listed on the NYSE MKT LLC (“NYSE MKT”) under the ticker symbol “MLSS”. In June 2016, we raised $2.0 million of gross proceeds in a private placement of one million shares of common stock, at a price of $2.00 per share. In the second quarter of 2016, Milestone Scientific initiated a share exchange program pursuant to which we exchanged one share of common stock for every two outstanding shares of Milestone Medical, Inc. (described below) common stock, a previously consolidated variable interest entity. As a result of the exchange program, at June 30, 2017, Milestone Scientific owned approximately 98% of Milestone Medical. In July 2016, Milestone Scientific raised gross proceeds of $250,000 in a registered direct offering of 104,200 shares of common stock at $2.40 per share. In July 2016, Milestone Scientific filed for 510 (k) marketing clearance with the FDA for the for the CompuFlo ® Computer Controlled Anesthesia System for both intra-articular and epidural injections. In June 2017, the FDA approved the CompuFlo ® Epidural Computer Controlled Anesthesia System for epidural injections. Milestone Scientific is in the process of introductory meetings with medical device distributors within the United States and foreign markets. Milestone Scientific ’s immediate focus is on marketing its epidural instrument throughout the world. In December 2016, we received notification from the FDA that based upon the 510 (k) application submitted for the CompuFlo ® Intra Articular Computer Controlled Injection System, we did not adequately document that the device met the equivalency standard required for 510 (k) clearance. Following consultation with the FDA Office of Device Evaluation, we intend to provide additional data, which could include a new Human Factor Validation study (HFV Study) in support of a new 510 (k) application for the device. An HFV Study demonstrates the ease of use of a product. In December 2016, we completed an underwritten public offering of 2,000,000 shares of common stock and warrants to purchase up to 1,592,775 shares of common stock, including 92,775 additional warrants pursuant to a partial exercise of the over-allotment option granted to the underwriters. The public offering price for each share and related warrant was $1.50. The warrants have a three -year term and an exercise price of $2.55 per share. The gross proceeds from this offering were approximately $3,000,000, before deducting underwriting discounts and commissions and other offering expenses. In January 2017, in connection with Milestone Scientific public offering of shares in December 2016, the underwriter of the offering exercised a portion of its over-allotment option and purchased an additional 123,700 shares of common stock at the public offering price of $1.499 per share. The gross proceeds to Milestone Scientific from this exercise was approximately $186,000 before deducting underwriting discounts and commissions and other offering expenses. In June 2017, Milestone Scientific entered into an agreement for the sale of its interest in Milestone China (a forty ( 40% ) percent interest) (the “ Milestone China Shares”) to an unaffiliated United States domiciled purchaser and a 10 -year option agreement to repurchase the Milestone China Shares. The purchase price for the Milestone China Shares was $1,400,000 of which $125,000 was paid in cash and $1,275,000 was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of $125,000 until paid in full and is secured by the Milestone China Shares until full repayment. In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The 10 -year option agreement provides Milestone Scientific an option to repurchase the 40% equity interest at $1,400,000 within the first two years and at fair value (as defined in such agreement) for the remainder of the 10 -year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction ( $1,400,000 ). The carrying value of the forty ( 40% ) percent investment at the transaction date was zero. (See Note 5 ). Milestone Scientific has incurred operating losses and negative cash flows from operating activities in each year since its inception, except for 2013. Milestone Scientific is actively pursuing the generation of revenue, positive operating income and net income. The capital raised in December 2016 and January 2017 provided Milestone Scientific with working capital to continue to develop and commercialize additional medical instruments and aggressively market its dental instruments throughout the world. Milestone Scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business worldwide, the generation of medical instruments and disposables revenue in the United States (from epidural instruments following June 2017 FDA approval) and worldwide, and a reductions in operating expenses. Management believes that Milestone Scientific will have sufficient cash reserves to meet its anticipated obligations over the next twelve month period following the issuance date of these financial statements. However, Milestone Scientific may need to raise additional capital prior to management's expected generation of sustainable positive cash flow from operating activities including the dental business expected growth and the medical business launch to support medical instrument revenue.

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Note 2 - Summary of Accounting Policies	6 Months Ended
Note 2 - Summary of Accounting Policies	Jun. 30, 2017
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE - 2 SUMMARY OF ACCOUNTING POLICIES 1. Basis of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of Milestone Scientific and its wholly owned and majority owned subsidiaries, including, Wand Dental (wholly owned), Milestone Advanced Cosmetic (majority owned) and Milestone Medical (majority owned). Milestone Education is a variable interest entity of which Milestone Scientific is the primary beneficiary and is consolidated into Milestone Scientific's financial statements. All significant, intra-entity transactions and balances have been eliminated in the consolidation. 2. Basis of Presentation The unaudited condensed consolidated financial statements of Milestone Scientific have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information with the instructions for Form 10Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring entries) necessary to fairly present such interim results. Interim results are not necessarily indicative of the results of operations which may be expected for a full year or any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2016, included in Milestone Scientific's Annual Report on Form 10 -K. 3. Reclassifications Certain reclassifications have been made to the 2016 financial statements to conform to the consolidated 2017 financial statement presentation. These reclassifications had no effect on net loss or cash flows as previously reported. 4. Variable Interest Entities A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. If Milestone Scientific determines that it has operating power and the obligation to absorb losses or receive benefits, Milestone Scientific consolidates the VIE as the primary beneficiary. Milestone Scientific ’s involvement constitutes power that is most significant to the entity when it has unconstrained decision making ability over key operational functions within the entity. Milestone Scientific is the primary beneficiary of Milestone Education as of January 2016 ( see Note 4 ). Accordingly, the assets and liabilities of Milestone Education are included in the accompanying condensed consolidated financial statements. Because Milestone Scientific had an increasing variable interest in Milestone China, it further considered the guidance in Accounting Standard Codification ("ASC") 810 as it relates to determining whether Milestone China is a VIE and, if so, identifying the primary beneficiary. As Milestone China’s equity at risk and voting rights were not proportional to their economic interest, Milestone China was determined to be a VIE. Milestone Scientific would be considered the primary beneficiary of the VIE if it has both of the following characteristics: ● Power Criterion: The power to direct the activities that most significantly impact the entity ’s economic performance; and ● Losses/Benefits Criterion: The obligation to absorb losses that could potentially be significant or the right to receive benefits that could potentially be significant to the VIE. Milestone management does not have the ability to control the activities that most significantly impact Milestone China's economics and, therefore, the power criterion has not been met. Management placed the most weight on the relationship and significance of activities of Milestone China to the majority shareholder/CEO of Milestone China. As majority shareholder, majority holder of voting rights, and the active CEO, the 53% investor has the power to direct the activities that most significantly impact the economic performance of Milestone China. Management has concluded that Milestone Scientific is not the primary beneficiary under ASC 810. Accordingly, Milestone China has not been consolidated into the financial statements of Milestone Scientific and continues to be accounted for under the equity method (see Note 5 ). 5. Cash and Cash Equivalents Milestone Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. 6. Accounts Receivable Milestone Scientific sells a significant amount of its product on credit terms to its major distributors. Milestone Scientific estimates losses from the inability of its customers to make payments on amounts billed. A majority of credit sales are due within ninety days from invoicing. There have not been any significant credit losses incurred to date. 7. Note Receivable In June 2017, Milestone Scientific entered into an agreement for the sale of the Milestone China Shares to an unaffiliated United States domiciled purchaser and a 10 -year option agreement to repurchase the Milestone China Shares. The purchase price for th e Milestone China Shares was $1,400,000 of which $125,000 was paid in cash and $1,275,000 was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of $125,000 until paid in full and is secured by the Milestone China Shares until full repayment. In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The 10 -year option agreement provides Milestone Scientific an option to repurchase the 40% equity interest at $1,400,000 within the first two years and at fair value (as defined in such agreement) for the remainder of the 10 -year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction ( $1,400,000 ). The carrying value of the forty ( 40% ) percent investment at the transaction date was zero. (See Note 5 ). 8. Product Return and Warranty Milestone Scientific generally does not accept non-defective returns from its customers. Product returns under warranty are accepted, evaluated and repaired or replaced in accordance with the Warranty Policy. Returns not within the Warranty Policy are evaluated and the customer is charged for the repair. 9. Inventories Inventories principally consist of finished goods and component parts stated at the lower of cost ( first -in, first -out method) or market. Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess and obsolete inventory is recorded if required based on past and expected future sales, potential technological obsolescence and product expiration requirements. 10. Equity Method Investments Investments in which Milestone Scientific has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long term assets on the condensed consolidated balance sheets. Under this method of accounting, Milestone Scientific's share of the net earnings or losses of the investee is presented below the income tax line on the condensed consolidated statements of operations. Milestone Scientific evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be ot her than temporary, a loss is recorded in earnings in the current period. 11. Furniture, Fixture and Equipment Equipment is recorded at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. The costs of maintenance and repairs are charged to operations as incurred. 12. Intangible Assets - Patents Patents are recorded at cost to prepare and file the applicable documents with the US Patent Office, or internationally with the applicable governmental office in the respective country. Although certain patents have not yet been approved, the costs related to these patents are being amortized using the straight-line method over the estimated useful life of the patent. If the applicable patent application is ultimately rejected, the remaining unamortized balance will be expensed in the period in which Milestone Scientific receives notice of such rejection. 13. Impairment of Long-Lived Assets Milestone Scientific reviews long-lived assets for impairment whenever events or circumstances (i.e. a triggering event) indicate that the carrying amounts may not be recoverable. The carrying value of the assets is evaluated in relation to the operating performance and future undiscounted cash flows of the underlying assets. Milestone Scientific adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. There have been no impairment indicators or triggering events and therefore, no impairment reviews have been performed in the period ending June 30, 2017. 14. Revenue Recognition Revenue from product sales is recognized, net of discounts and allowances to domestic distributors, on the date of shipment for substantially all shipments, since the shipment terms are FOB warehouse. Milestone Scientific recognizes revenue on date of arrival of the goods at the customer's location, where shipments are FOB destination. In all cases the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone Scientific has no obligation on these sales for any post installation, set-up or maintenance, these being the responsibility of the buyer. Milestone Scientific's only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period. Instrument and hand pieces are not bundled but rather sold separately and, as such, there are no multiple element determinations in connection with the revenue recognition. 15. Shipping and Handling Costs Milestone Scientific includes shipping and handling costs in cost of goods sold. These costs are billed to customers at the time of shipment for domestic shipments. International shipments are FOB warehouse, therefore no costs are incurred by Milestone Scientific. 16. Research and Development Research and development costs, which consist principally of new product development costs payable to third parties, are expensed as incurred. Advance payments for the research are amortized to expense either as services are performed or over the relevant service period using the straight line method. 17. Income Taxes Milestone Scientific accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. 18. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the allowance for doubtful accounts, inventory valuation, and cash flow assumptions regarding evaluations for impairment of long-lived assets and going concern considerations, and valuation allowances on deferred tax assets. Actual results could differ from those estimates . 19. Fair Value of Financial Instruments Fair Value Measurements: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market at the measurement date (exit price). We are required to classify fair value measurements in one of the following categories: ● Level 1 inputs which are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. ● Level 2 inputs which are defined as inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly. ● Level 3 inputs are defined as unobservable inputs for the assets or liabilities. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. 20. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1 ) identify the contract, 2 ) identify performance obligations, 3 ) determine the transaction price, 4 ) allocate the transaction price, and 5 ) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one -year deferral, making the standard effective for reporting periods beginning after December 15, 2017. The FASB continues to release guidance clarifying certain aspects of the revenue guidance. We do not believe that this new accounting pronouncement will have a material impact on our financial statements. In November 2015, the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. The Company has adopted this pronouncement as of January 1, 2017, and applied retrospectively, for its provision for income taxes disclosure. The adoption did not have an impact on the presentation of the balance sheet, as the Company assigns a full valuation allowance to its net deferred tax asset. In Februa ry 2016, the FASB issued a new standard Accounting Standards Update ("ASU ") No.2016 - 02, "Leases"(Topic 842 ). The new standard is intended to increase transparency and comparability among organizations to recognize lease assets and liabilities on the balance sheet and disclose key information about leasing arrangements. It will be effective for fiscal years beginning after December 15, 2018. Milestone Scientific is in the process of determining what impact, the adoption of this ASU will have on its financial position, results of operations and cash flows. In March 2016, the FASB issued a new standard ASU No.2016 - 07, “Investments - Equity Method and Joint Ventures” (Topic 323 ): The new standard is intended to eliminate the requirement that when an investment qualifies for the use of the equity method as a result of an in increase in the level of ownership or degree of influence, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect all of the previous periods that the investment was held. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2016. The Company has adopted the standard, effective January 1, 2017, and has determined the adoption of this standard will not have an impact on its financial reporting. In March 2016, the FASB issued a new standard ASU No.2016 - 09, “ Compensation – Stock Compensation” (Topic 718 ): The new standard is intended, under FASB’s Simplification Initiative, to address certain diversity of application within previous guidance. The new standard primarily addresses certain tax aspects in connection with the stock compensation held. It will be effective for fiscal years and interim periods, beginning after December 15, 2016. The Company has adopted the standard, effective January 1, 2017, and the adoption did not have a material effect on its financial reporting. In June 2016, the FASB issued a new standard ASU No.2016 - 13, “Financial Instruments – Credit Losses” (Topic 326 ).: The new standard is intended to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2018. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows. In August 2016, the FASB issued a new standa rd ASU No.2016 - 15, "Statement Cash Flows “Classification of Certain Cash Receipts and Cash Disbursements" Topic 230 ). The new standard provides guidance as to the conformity of presentation of certain cash receipts and disbursements. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows. In October 2016, the FASB issued a new standard ASU No.2016 - 17, "Consolidation Interests Held through Related Parties That Are under Common Control"(Topic 810 ). The new standard provides guidance as to consideration of consolidation requirements of a primary beneficiary and variable interest entity that are part of related party group under common control. It will be effective for fiscal years and interim periods, beginning after December 15, 2016. Milestone Scientific has adopted the standard, effective January 1, 2017, which did not have an impact on its financial reporting. In November 2016, the FASB issued a new standard ASU No.2016 - 18, “Statement of Cash Flows – Restricted Cash” (Topic 230 ). The new standard provides guidance as to address the diversity of treatment of restricted cash on the statement of cash flows. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017 and interim periods therein. Milestone Scientific does not expect the adoption of this ASU to have a material effect on its presentation within the statement of cash flows. In January 2017, the FASB issued a new standard ASU No.2017 - 01, “Business Combinations” (Topic 805 ). The new standard provides guidance to clarify the definition of a ‘business’, and assist entities in evaluation whether a transaction should be accounted for as an acquisition/disposal of assets or a business. It will be effective for public entities for fiscal years and interim periods, beginning after December 15, 2017, with limited early application. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows. In May 2017, the FASB issued a new standard ASU No.2017 - 09, “Compensation – Stock Compensation” (Topic 718 ). The new standard provides guidance and clarity for modification to equity based compensation programs. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.

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Note 3 - Basic and Diluted Net Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE - 3 Basic and Diluted Net INCOME (Loss) Per Common Share Milestone Scientific presents "basic" earnings (loss) per common share applicable to common stockholders and, if applicable, "diluted" earnings (loss) per common share applicable to common stockholders pursuant to the provisions of Statement of Financial Accounting Standards ASC Topic 260. Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued during each period. The calculation of diluted earnings per common share is similar to that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options, warrants, and the conversion of debt were issued during the period. Since Milestone Scientific had net losses for three months and six months ended June 30, 2017 and 2016, the assumed effects of the exercise of potentially dilutive outstanding stock options and warrants were not included in the calculation as their effect would have been anti-dilutive. Such outstanding options and warrants totaled 3,364,840 and 1,976,677 at June 30, 2017 and 2016, respectively.

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Note 4 - Consolidation of Variable Interest Entity	6 Months Ended
Note 4 - Consolidation of Variable Interest Entity	Jun. 30, 2017
Notes to Financial Statements
Variable Interest Entity Disclosure [Text Block]	NOTE - 4 CONSOLIDATION OF VARIABLE INTEREST ENTITY Milestone Education is a 50% owned subsidiary of Milestone Scientific which began operations in 2013 to provide training and education to dentists throughout the world. Milestone Scientific accounted for its investment in Milestone Education using the equity method of accounting through December 31, 2015. Approximately 81% of the revenue earned by Milestone Education is from services performed for Milestone Scientific as of June 30, 2017. As a result of this relationship, we determined that we had the power to direct the activities that most significantly impact Milestone Education's economic performance, and that it was a VIE and would be consolidated in the financial statements of Milestone Scientific effective January 2016.

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Note 5 - Investment in Unconsolidated Subsidiaries

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE

INVESTMENTS IN

UNCONSOLIDATED SUBSIDIARIES

Advance Ocular Science SA

Advanced Ocular Sciences SA ("Advanced Ocular") is an entity organized to develop an instrument to deliver injections into the eyes. Advanced Ocular is a shell company as of

June 30, 2017,

Milestone Scientific owns

25%

of this entity. During

2015,

Milestone Scientific advanced

$78,798

for marketing and strategy planning to Advanced Ocular and it, or its organizers, are obligated to repay this advance once a public offering of Advanced Ocular equity is approved and funded in Poland during

2016.

public offering was completed in Poland as of

June 30, 2017.

As a result, Milestone Scientific wrote-off the

$78,798

advanced to Advanced Ocular as of

December 31, 2016.

Advance Ocular was

not

included in the condensed consolidated financial statements at

June 30, 2017

further investment has been made by Milestone Scientific.

Milestone China Ltd.

June 2014,

Milestone Scientific invested

million in Milestone China Ltd. (“Milestone China”) by contributing

772

STA Instruments to Milestone China for a

40%

ownership interest. Milestone Scientific recorded this investment under the equity method of accounting. Milestone Scientific recorded a loss on its investment in Milestone China of

and

$164,837,

as of

June 30, 2017

and

2016,

respectively. Milestone Scientific's investment in Milestone China was

as of

June 30, 2017

and

December 31, 2016,

respectively. Milestone Scientific incurred

cumulative

losses on its investment in Milestone China of

$1,654,477

and

$1,124,350

as of

June 30, 2017

and

December 31, 2016,

respectively, which have been suspended.

June 2017,

Milestone Scientific entered into an agreement for the sale of the Milestone China Shares to an unaffiliated United States domiciled purchaser and a

-year option agreement to repurchase the Milestone China Shares. The purchase price for th

e Milestone China Shares was

$1,400,000

of which

$125,000

was paid in cash and

$1,275,000

was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of

$125,000

until paid in full and is secured by the Milestone China Shares until full repayment. In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The

-year option agreement provides Milestone Scientific an option to repurchase the

40%

equity interest at

$1,400,000

within the

first

two

years and at fair value (as defined in such agreement) for the remainder of the

-year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction (

$1,400,000

). The carrying value of the

forty

(

40%

) percent investment at the transaction date was zero. (See Note

Milestone Scientific had

$356,400

and

$1,714,600

of related party sales of handpieces and instruments to Milestone China and Milestone China’s agent during the

three

and

six

months ended

June 30, 2017.

Milestone Scientific had

$356,400

and

$1,356,000

of related party sales of handpieces and instruments to Milestone China during the

three

and

six

months ended

June 30, 2016,

respectively. As of

June 30, 2017

and

December 31, 2016,

Milestone Scientific recorded deferred revenues and deferred costs associates with sales to Milestone China of

$356,400

and

$181,116,

and

$1,001,800

and

$620,041,

respectively. As of

June 30, 2017

and

December 31, 2016,

Milestone China owed

$356,400

and

$2,714,600,

respectively, to Milestone Scientific for handpieces and STA instruments which is included in related party accounts receivable on the condensed consolidated balance sheets. Milestone China made payments in

April 2017

to satisfy the outstanding instruments receivable from

2016

and therefore the deferred revenue of

$1,001,800

December 31, 2016

has been recorded in revenue for the

six

months ended

June 30, 2017.

Milestone Scientific defers the total revenue and costs of goods sold when instruments and handpieces are shipped to Milestone China and

Milestone China’s agent due to market conditions and Milestone China liquidity concerns. However, due to timing differences of when the inventory is sold to Milestone China and when Milestone China sells the acquired inventory to

third

parties, elimination of the intra-entity profit is required as of the balance sheet date. In accordance with ASC

323

Equity Method and Joint Ventures, Milestone Scientific has deferred the gross profit associated with inventory shipped to Milestone China that has

not

been sold to

third

parties. At

June 30, 2017

and

December 31, 2016,

the deferred profit was

$659,931

and

$630,990

respectively, which is included in the condensed consolidated balance sheets. For the

six

months ended

June 30, 2017

and

2016,

the loss on equity investment was

$28,941

and

$222,719,

respectively, which is included in the condensed consolidated statements of operation. For the

three

months ended

June 30, 2017

and

2016,

Milestone had a profit on equity investment of

$15,460

and loss on equity investment

$57,882,

respectively, which is included in the condensed consolidated statements of operation.

The following table includes summarized financial information (unaudited) of Milestone China:

	June 30, 2017		December 31, 2016

Assets:
Current Assets	$	9,940,116	$	9,362,198
Non-Current Assets		2,841,127		2,467,547
Total Assets:		12,781,243		11,829,745

Liabilities:
Current Liabilities		12,110,291		9,900,611
Stockholders' equity		670,952		1,929,134
Total liabilities and stockholders ’ equity	$	12,781,243	$	11,829,745

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Net Sales	$	322,226		$	57,102		$	1,165,552		$	329,322
Cost of Goods Sold		422,789			74,464			889,204			283,864
Gross Profit		(100,563	)		(17,362	)		276,348			45,458
Other Expenses		(643,570	)		(263,540	)		(1,601,666	)		(643,313	)
Net Losses	$	(744,133	)	$	(280,902	)	$	(1,325,318	)	$	(597,855	)

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Note 6 - Stock Option Plans

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE –

Stock Option Plans

three

and

six

months ended

June 30, 2017

Milestone Scientific recognized

$110,305

and

$244,115

of total employee stock based

compensation cost, respectively.

For the

three

and

six

months ended

June 30, 2016,

Milestone Scientific recognized

$133,330

and

$266,601

of total employee stock based

compensation cost, respectively.

As of

June 30, 2017

and

2016,

there was

$619,173

and

$884,183

of total unrecognized compensation cost related to nonvested options, respectively, which Milestone Scientific expects to recognize these cost over a weighted average period of

2.5

years and

2.74

years as of

June 30, 2017

and

2016,

respectively.

A summary of option activity for employees under the plans and changes during the

six

month ended

June 30, 2017,

is presented below:

	Number of Options			Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2017		1,511,995			1.74		2.97		17,921
Granted		211,179			1.64		4.52
Exercised during 2017		(83,333	)		0.75
Forfeited or expired
Options outstanding June 30, 2017		1,639,841			1.87		2.89
Exercisable, June 30, 2017		1,130,958			1.88		2.46

A summary of option activity for non-employees under the plans as of

June 30, 2017

and changes during the

six

month ended is presented below:

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2017		224,999		2.53		5.32		-
Granted		-
Exercised during 2017		-
Forfeited or expired		-
Options outstanding June 30, 2017		224,999		2.53		4.82		-
Exercisable, June 30, 2017		10,183		2.33		3.86		-

The fair value of the non-employee options was estimated on the date of grant using the Black Scholes option-pricing model at the date of grant. In accordance with the provisions of FASB ASC

505,

Milestone Scientific re-measures the value of the grant at each presentation date unless there is a significant disincentive for non-performance or until performance has been. For the

three

and

six

months ended

June 30, 2017,

Milestone Scientific recognized expense of

$10,835

and income

$6,257,

respectively related to non-employee options.

For the

three

and

six

months ended

June 30, 2016,

Milestone Scientific recognized expense of

$8,421

and

$9,596

respectively related to non-employee options.

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Note 7 - Concentration of Credit Risk	6 Months Ended
Note 7 - Concentration of Credit Risk	Jun. 30, 2017
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	NOTE – 7 CONCENTRATION OF CREDIT RISK Milestone Scientific's consolidated financial instruments that are exposed to concentrations of credit risk consist primarily of cash, trade accounts receivable, and advances on contracts. Milestone Scientific places its cash and cash equivalents with large financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. Milestone Scientific has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks. Financial instruments which potentially subject Milestone Scientific to credit risk consist principally of trade accounts receivable, as Milestone Scientific does not require collateral or other security to support customer receivables, and advances on contracts. Milestone Scientific closely monitors the extension of credit to its customers while maintaining allowances, if necessary, for potential credit losses. On a periodic basis, Milestone Scientific evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions.

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Note 8 - Advances on Contracts	6 Months Ended
Note 8 - Advances on Contracts	Jun. 30, 2017
Notes to Financial Statements
Advances to Contract Manufacturer [Text Block]	NOTE – 8 ADVANCES ON CONTRACTS The advances on contracts represent funding of future STA inventory purchases. The balance of the advances as of June 30, 2017 and December 31, 2016 is $851,504 and $700,900, respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory.

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Note 9 - Income Taxes	6 Months Ended
Note 9 - Income Taxes	Jun. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE – 9 INCOME TAXES Due to Milestone Scientific's history of operating losses, a full valuation allowances has been provided for all of Milestone Scientific's deferred tax assets at June 30, 2017 and December 31, 2016, no recognition was given to the utilization of the remaining net operating loss carryforwards in each of these periods. The utilization of Milestone Scientific's net operating losses may be subject to a substantial limitation due to the "change of ownership provisions" under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carry forwards before their utilization. Milestone Scientific has established a 100% valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization. As of June 30, 2017 and December 31, 2016, state tax liability was approximately $11,865 and $63,000, respectively. Such expense was recognized in the accompanying condensed consolidated financial statements.

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Note 10 - Significant Concentrations and Geographical Information

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

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

NOTE

–

SIGNIFICANT

CONCENTRATIONS

& GEOGRAPHICAL INFORMATION

Milestone Scientific

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

	Three months Ended June 30,				Six months Ended June 30,
	2017		2016		2017		2016
DOMESTIC
Instruments	$	219,648	$	190,504	$	405,293	$	852,149
Handpieces		1,182,985		695,761		2,693,471		1,753,685
Other		21,509		20,652		40,449		34,126
Total Domestic	$	1,424,142	$	906,917	$	3,139,213	$	2,639,960
INTERNATIONAL
Instruments	$	353,805	$	535,335	$	1,712,475	$	1,559,050
Handpieces		718,837		882,135		1,302,186		1,537,124
Other		26,966		47,323		58,864		100,062
Total International	$	1,099,608	$	1,464,793	$	3,073,525	$	3,196,236
DOMESTIC/INTERNATIONAL ANALYSIS
Domestic	$	1,424,142	$	906,917	$	3,139,213	$	2,639,960
International	$	1,099,608	$	1,464,793	$	3,073,525	$	3,196,236
Total Product Sales	$	2,523,750	$	2,371,710	$	6,212,738	$	5,836,196

Milestone Scientific has informal arrangements with a

third

party manufacturer of the STA,

CompuDent®

and

CompuMed®

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 purchase commitment for delivery of

3,000

instruments. There are

200

instruments remaining on this purchase order as of

June 30, 2017.

An advance of an aggregate of

$85,480

remained at

June 30, 2017.

January 2017,

Milestone Scientific entered into a purchase commitment for the delivery of

2,000

instruments beginning in the

quarter of

2017.

An advance of

$717,938

was recorded at

June 30, 2017.

Consequently, advances on contracts have been classified as current at

June 30, 2017

and

December 31,

2016.

For the

three

months ended

June 30, 2017,

an aggregate of approximately

69%

of Milestone Scientific's net product sales were to

two

customers/ distributors (

one

of which was a related party),

55%,

and

14%,

respectively. For the

six

months ended

June 30, 2017,

an aggregate of approximately

75%

of Milestone Scientific's net product sales were to

two

customers/distributors (

one

of which was a related party),

53%,

and

22%,

respectively. Accounts receivable for the

two

major customers/distributors amounted to an a

ggregate of approximately

$1,345,021,

75%

of Milestone Scientific's accounts receivable for

six

months ended

June 30, 2017.

For the

three

months ended

June 30, 2016,

an aggregate of

61%

of Milestone Scientific's net product sales were to

two

customers/distributors (

one

of which was a related party),

44%,

and

17%,

respectively

. For the

six

months ended

June 30, 2016,

an aggregate of approximately

72%

of Milestone Scientific's net product sales were to

three

customers/distributors (

one

of which was a related party),

38%,

22%

, and

12%,

respectivel

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Note 11 - Related Parties	6 Months Ended
Note 11 - Related Parties	Jun. 30, 2017
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE – 11 RELATED PARTIES Milestone Scientific has a manufacturing agreement with one of its principal manufacturers of its handpieces, which is a related party, pursuant to which it manufactures products under specific purchase orders, but without minimum purchase commitments. Purchases from this manufacturer $584,792 and $1,037,144 for the three and six months ended June 30, 2017, respectively. Purchases of handpieces from this manufacturer were $485,167 and $1,121,226 for the three and six months ended June 30, 2016, respectively . Milestone Scientific Inc. owed $381,432 and $687,522 to this manufacturer as of June 30, 2017 and December 31, 2016, respectively. Milestone Scientific had $356,400 and $1,714,600 of related party sales of handpieces and instruments to Milestone China and Milestone China’s agent during the three and six months ended June 30, 2017. Milestone Scientific had $356,400 and $1,356,000 of related party sales of handpieces and instruments to Milestone China during the three and six months ended June 30, 2016, respectively. As of June 30, 2017 and December 31, 2016, Milestone Scientific recorded deferred revenues and deferred costs associates with sales to Milestone China of $356,400 and $181,116, and $1,001,800 and $620,041, respectively. As of June 30, 2017 and December 31, 2016, Milestone China owed $356,400 and $2,714,600, respectively, to Milestone Scientific for handpieces and STA instruments which is included in related party accounts receivable on the condensed consolidated balance sheets. Milestone China made payments in April 2017 to satisfy the outstanding instruments receivable from 2016 and therefore the deferred revenue of $1,001,800 at December 31, 2016 has been recorded in revenue for the six months ended June 30, 2017. Milestone Scientific defers the total revenue and costs of goods sold when instruments and handpieces are shipped to Milestone China and Milestone China’s agent due to market conditions and Milestone China liquidity concerns. However, due to timing differences of when the inventory is sold to Milestone China and when Milestone China sells the acquired inventory to third parties, elimination of the intra-entity profit is required as of the balance sheet date. In accordance with ASC 323 Equity Method and Joint Ventures, Milestone Scientific has deferred the gross profit associated with inventory shipped to Milestone China that has not been sold to third parties. At June 30, 2017 and December 31, 2016, the deferred profit was $659,931 and $630,990 , respectively, which is included in the condensed consolidated balance sheets. For the six months ended June 30, 2017 and 2016, the loss on equity investment was $28,941 and $222,719, respectively, which is included in the condensed consolidated statements of operation. For the three months ended June 30, 2017 and 2016, Milestone had a profit on equity investment of $15,460 and loss on equity investment $57,882, respectively, which is included in the condensed consolidated statements of operations. 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 $50,000 for the three and six months ended June 30, 2017, respectively. Expenses recognized on this agreement were $35,000 and $70,000 for the three and six months ended June 30, 2016, respectively. In January 2017, Milestone Scientific entered into a 12 month agreement with Innovest S.p.A. to provide consulting services. This agreement will renew for successive 12 month terms unless terminated by Innovest S.p.A or Milestone Scientific. Expenses recognized on this agreement were $20,000 and $40,000 for the three and six months ended June 30, 2017, respectively.

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Note 12 - Commitments and Other	6 Months Ended
Note 12 - Commitments and Other	Jun. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE – 12 COMMITMENTS AND OTHER ( 1 ) Lease Commitments The headquarters for Milestone Scientific is located at 220 South Orange Ave, Livingston, New Jersey. Milestone Scientific leases approximately 7,625 square feet of office space. The lease term expires January 31, 2020 and provides for a monthly lease payment of $12,522. Additionally, Milestone Scientific has other smaller insignificant leases ending through 2017. Further, a third party distribution and logistics center in Pennsylvania handles shipping and order fulfillment on a month-to-month basis. For the three and six months ended June 30, 2017, rent expense amounted to $34,833, and $69,349 respectively. For the three and six months ended June 30, 2016 rent expense amounted to $34,749, and $69,987, respectively. ( 2 ) Other Commitments Milestone Scientific's employment agreement (the “ 2009 Agreement”) with Leonard Osser, its former Chief Executive Officer, provides for payments of $203,111 per year for five years to the executive or as he directs such payments, to a third party, to fund his acquisition of, or contribution to, an annuity, pension, or deferred distribution plan; or for an investment for the benefit of the executive and his family. Milestone Scientific expensed approximately $51,000 and $102,000 for the three and six months ended June 30, 2017, and 2016 respectively to fund this obligation. In July 2017, Milestone Scientific entered into a new employment agreement with Mr. Osser, which superseded the 2009 Agreement pursuant to which he stepped down from his position as Chief Executive Officer and became Managing Director – China Operations (See Note 13 ). Pursuant to the new agreement, Milestone Scientific agreed to fund the last installment of $203,111 in January 2018 as provided for in the 2009 Agreement. The technology underlying the SafetyWand® and CompuFlo® , and an improvement to the controls for CompuDent® were developed by the Director of Clinical Affairs and assigned to Milestone Scientific. Milestone Scientific purchased this technology pursuant to an agreement dated January 1, 2005. The Director of Clinical Affairs will receive additional payments of 2.5% of the total sales of products using certain of these technologies, and 5% of the total sales of products using certain other of the technologies until the expiration of the last patent. The Director of Clinical Affairs was granted, pursuant to the agreement, an option to purchase, at fair market value on the date of the grant 8,333 shares of common stock upon the issuance of each additional patent relating to these technologies. If products produced by third parties use any of these technologies (under license from us) then the Director of Clinical Affairs will receive the corresponding percentage of the consideration received by Milestone Scientific for such sale or license. The Director of Clinical Affairs’ royalty fee was $123,764 and $305,672 for the three and six months ended June 30, 2017, respectively. Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of $68,751 and $137,502 for the three and six months ended June 30, 2017, and 2016 respectively. The Director of Clinical Affairs’ royalty fee was $110,764 and $300,643 for the three and six months ended June 30, 2016, respectively. In May 2017 Milestone Scientific entered an agreement with Innovest a stockholder of Milestone Scientific to provide consulting services. Expenses recognized on this agreement were $20,000 and $40,000 for the three and six months ended June 30, 2017, resp ectively.

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Note 13 - Subsequent Events	6 Months Ended
Note 13 - Subsequent Events	Jun. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	Note 13 - Subsequent Events On July 10, 2017 ( the “ Effective Date”), Milestone Scientific entered into a three -year employment agreement with Daniel Goldberger to serve as President and Chief Executive Officer of Milestone Scientific. Under the agreement, Mr. Goldberger will receive base compensation of $300,000 per annum and may additionally earn annual bonuses of up to an aggregate of $400,000, payable one half in cash and one half in Milestone Scientific common stock (“Bonus Shares”) contingent upon achieving performance benchmarks periodically set for each year by the compensation committee of the Board. In addition to any such shares of common stock, Mr. Goldberger is entitled to receive stock options (“Bonus Options”) to acquire twice the number of any Bonus Shares earned, pursuant to a non-qualified stock option grant agreement under Milestone Scientific’s then existing equity compensation plan. The Bonus Options shall have a five -year term and shall vest in equal annual installments on each of the first, second and third anniversary of the grant date, subject to continued employment on such vesting date and accelerated vesting upon the occurrence of certain events. The exercise price of the Bonus Options will be based on the fair market value of per share of common stock, on the date of grant (or 110% of such value if at the time of grant Mr. Goldberger beneficially own ten ( 10% ) or more of the common stock). In addition, on the Effective Date, Milestone Scientific granted to Mr. Gold berger non-qualified stock options to purchase 921,942 shares of common stock at an exercise price of $2.00 per share. Those options have a five -year term and shall vest in equal annual installments on each of the first, second and third anniversaries of the grant date, subject to his continued employment on the vesting date and accelerated vesting upon the occurrence of certain events. On the Effective Date, Milestone Scientific entered into a ten -year new employment agreement with Mr. Osser, who previously served as President and Chief Executive Officer. This new agreement provides for annual compensation of $300,000 consisting of $100, 000 in cash and $200,000 in the Company’s common stock valued at the average closing price of the Company’s common stock on the NYSE or such other market or exchange on which its shares are then traded during the first fifteen ( 15 ) trading days of the last full calendar month of each year during the Employment Term. This agreement supersedes all prior employment agreements between Mr. Osser and Milestone Scientific. If the Milestone Scientific terminates Mr. Osser’s employment hereunder “Without Cause,” other than due to his death or disability, or if Mr. Osser terminates his employment for “Good Reason” (both as defined in the agreement), Mr. Osser is entitled to be paid in one lump sum payment as soon as practicable following such termination: an amount equal to the aggregate present value (as determined in accordance with Section 280G (d)( 4 ) of the Code) of all compensation pursuant to this agreement from the effective date of termination hereunder through the remainder of the Employment Term. On the Effective Date, Mr. Osser also resigned from his positions of Chairman of the Board, Chief Executive Office and President of Milestone Medical. Upon his resignation, Milestone Medical entered in a consulting agreement with U.S. Asian Consulting Group LLC, an entity controlled by Mr. Osser, pursuant to which he will provide specific services to Milestone Medical for a ten - year term. Pursuant to the consulting agreement, U.S. Asian Consulting Group, LLC, is entitled to receive $100,000 per year for Mr. Osser's services. On July 13, 2017 ( the “ Closing Date”), Milestone Scientific consummated an Asset Purchase Agreement (the “Agreement”) with APAD Octrooi B.V. and APAD B.V. (each, a “Seller”, and collectively, the “Sellers”) pursuant to which Milestone Scientific acquired certain patent rights and other intellectual property rights related to the Sellers’ computer controlled injection instrument (the “Purchased Assets”). Entry into the Agreement was previously disclosed by Milestone Scientific in a Current Report on Form 8 -K, filed with the Securities and Exchange Commission on June 2, 2017. On the Closing Date, Milestone Scientific issued to the Sellers an aggregate of 1,646,358 shares of its common stock, valued at $2,486,000 for the Purchased Assets which shares are subject to certain post-closing upward or downward adjustments. No registration rights have been granted with respect to these shares of common stock. The issuance of these shares of stock is exempt from registration under the Securities Act of 1933, as amended (the “Act”), as each of the Sellers is an accredited investor (as defined in Rule 501 (a) of Regulation D, as promulgated under the Act), and has agreed to hold such shares for investment and without a view to distribution. On July 7, 2017, Milestone Scientific's compensation committee approved the issuance of 400,000 stock options to Gian Domenico Trombetta, CEO of Wand Dental and a Director of Milestone Scientific ( 250,000 option at $2.55 per share to be issued on July 7, 2017 and 150,000 options at the higher of $2.55 or the market price of the stock on the date of the 2018 Annual Stockholder meeting, subject to approval of a new or amended equity incentive plan at such meeting.)

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Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2017
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	1. Basis of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of Milestone Scientific and its wholly owned and majority owned subsidiaries, including, Wand Dental (wholly owned), Milestone Advanced Cosmetic (majority owned) and Milestone Medical (majority owned). Milestone Education is a variable interest entity of which Milestone Scientific is the primary beneficiary and is consolidated into Milestone Scientific's financial statements. All significant, intra-entity transactions and balances have been eliminated in the consolidation.
Basis of Accounting, Policy [Policy Text Block]	2. Basis of Presentation The unaudited condensed consolidated financial statements of Milestone Scientific have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information with the instructions for Form 10Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring entries) necessary to fairly present such interim results. Interim results are not necessarily indicative of the results of operations which may be expected for a full year or any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2016, included in Milestone Scientific's Annual Report on Form 10 -K.
Reclassification, Policy [Policy Text Block]	3. Reclassifications Certain reclassifications have been made to the 2016 financial statements to conform to the consolidated 2017 financial statement presentation. These reclassifications had no effect on net loss or cash flows as previously reported.
Consolidation, Variable Interest Entity, Policy [Policy Text Block]	4. Variable Interest Entities A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. If Milestone Scientific determines that it has operating power and the obligation to absorb losses or receive benefits, Milestone Scientific consolidates the VIE as the primary beneficiary. Milestone Scientific ’s involvement constitutes power that is most significant to the entity when it has unconstrained decision making ability over key operational functions within the entity. Milestone Scientific is the primary beneficiary of Milestone Education as of January 2016 ( see Note 4 ). Accordingly, the assets and liabilities of Milestone Education are included in the accompanying condensed consolidated financial statements. Because Milestone Scientific had an increasing variable interest in Milestone China, it further considered the guidance in Accounting Standard Codification ("ASC") 810 as it relates to determining whether Milestone China is a VIE and, if so, identifying the primary beneficiary. As Milestone China’s equity at risk and voting rights were not proportional to their economic interest, Milestone China was determined to be a VIE. Milestone Scientific would be considered the primary beneficiary of the VIE if it has both of the following characteristics: ● Power Criterion: The power to direct the activities that most significantly impact the entity ’s economic performance; and ● Losses/Benefits Criterion: The obligation to absorb losses that could potentially be significant or the right to receive benefits that could potentially be significant to the VIE. Milestone management does not have the ability to control the activities that most significantly impact Milestone China's economics and, therefore, the power criterion has not been met. Management placed the most weight on the relationship and significance of activities of Milestone China to the majority shareholder/CEO of Milestone China. As majority shareholder, majority holder of voting rights, and the active CEO, the 53% investor has the power to direct the activities that most significantly impact the economic performance of Milestone China. Management has concluded that Milestone Scientific is not the primary beneficiary under ASC 810. Accordingly, Milestone China has not been consolidated into the financial statements of Milestone Scientific and continues to be accounted for under the equity method (see Note 5 ).
Cash and Cash Equivalents, Policy [Policy Text Block]	5. Cash and Cash Equivalents Milestone Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Trade and Other Accounts Receivable, Policy [Policy Text Block]	6. Accounts Receivable Milestone Scientific sells a significant amount of its product on credit terms to its major distributors. Milestone Scientific estimates losses from the inability of its customers to make payments on amounts billed. A majority of credit sales are due within ninety days from invoicing. There have not been any significant credit losses incurred to date.
Finance, Loans and Leases Receivable, Policy [Policy Text Block]	7. Note Receivable In June 2017, Milestone Scientific entered into an agreement for the sale of the Milestone China Shares to an unaffiliated United States domiciled purchaser and a 10 -year option agreement to repurchase the Milestone China Shares. The purchase price for th e Milestone China Shares was $1,400,000 of which $125,000 was paid in cash and $1,275,000 was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of $125,000 until paid in full and is secured by the Milestone China Shares until full repayment. In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all of its assets prior to repayment of the note. The 10 -year option agreement provides Milestone Scientific an option to repurchase the 40% equity interest at $1,400,000 within the first two years and at fair value (as defined in such agreement) for the remainder of the 10 -year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction ( $1,400,000 ). The carrying value of the forty ( 40% ) percent investment at the transaction date was zero. (See Note 5 ).
Standard Product Warranty, Policy [Policy Text Block]	8. Product Return and Warranty Milestone Scientific generally does not accept non-defective returns from its customers. Product returns under warranty are accepted, evaluated and repaired or replaced in accordance with the Warranty Policy. Returns not within the Warranty Policy are evaluated and the customer is charged for the repair.
Inventory, Policy [Policy Text Block]	9. Inventories Inventories principally consist of finished goods and component parts stated at the lower of cost ( first -in, first -out method) or market. Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess and obsolete inventory is recorded if required based on past and expected future sales, potential technological obsolescence and product expiration requirements.
Equity Method Investments [Policy Text Block]	10. Equity Method Investments Investments in which Milestone Scientific has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long term assets on the condensed consolidated balance sheets. Under this method of accounting, Milestone Scientific's share of the net earnings or losses of the investee is presented below the income tax line on the condensed consolidated statements of operations. Milestone Scientific evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be ot her than temporary, a loss is recorded in earnings in the current period.
Property, Plant and Equipment, Policy [Policy Text Block]	11. Furniture, Fixture and Equipment Equipment is recorded at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. The costs of maintenance and repairs are charged to operations as incurred.
Intangible Assets, Finite-Lived, Policy [Policy Text Block]	12. Intangible Assets - Patents Patents are recorded at cost to prepare and file the applicable documents with the US Patent Office, or internationally with the applicable governmental office in the respective country. Although certain patents have not yet been approved, the costs related to these patents are being amortized using the straight-line method over the estimated useful life of the patent. If the applicable patent application is ultimately rejected, the remaining unamortized balance will be expensed in the period in which Milestone Scientific receives notice of such rejection.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	13. Impairment of Long-Lived Assets Milestone Scientific reviews long-lived assets for impairment whenever events or circumstances (i.e. a triggering event) indicate that the carrying amounts may not be recoverable. The carrying value of the assets is evaluated in relation to the operating performance and future undiscounted cash flows of the underlying assets. Milestone Scientific adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. There have been no impairment indicators or triggering events and therefore, no impairment reviews have been performed in the period ending June 30, 2017.
Revenue Recognition, Policy [Policy Text Block]	14. Revenue Recognition Revenue from product sales is recognized, net of discounts and allowances to domestic distributors, on the date of shipment for substantially all shipments, since the shipment terms are FOB warehouse. Milestone Scientific recognizes revenue on date of arrival of the goods at the customer's location, where shipments are FOB destination. In all cases the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone Scientific has no obligation on these sales for any post installation, set-up or maintenance, these being the responsibility of the buyer. Milestone Scientific's only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period. Instrument and hand pieces are not bundled but rather sold separately and, as such, there are no multiple element determinations in connection with the revenue recognition.
Shipping and Handling Cost, Policy [Policy Text Block]	15. Shipping and Handling Costs Milestone Scientific includes shipping and handling costs in cost of goods sold. These costs are billed to customers at the time of shipment for domestic shipments. International shipments are FOB warehouse, therefore no costs are incurred by Milestone Scientific.
Research and Development Expense, Policy [Policy Text Block]	16. Research and Development Research and development costs, which consist principally of new product development costs payable to third parties, are expensed as incurred. Advance payments for the research are amortized to expense either as services are performed or over the relevant service period using the straight line method.
Income Tax, Policy [Policy Text Block]	17. Income Taxes Milestone Scientific accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Use of Estimates, Policy [Policy Text Block]	18. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the allowance for doubtful accounts, inventory valuation, and cash flow assumptions regarding evaluations for impairment of long-lived assets and going concern considerations, and valuation allowances on deferred tax assets. Actual results could differ from those estimates .
Fair Value of Financial Instruments, Policy [Policy Text Block]	19. Fair Value of Financial Instruments Fair Value Measurements: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market at the measurement date (exit price). We are required to classify fair value measurements in one of the following categories: ● Level 1 inputs which are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. ● Level 2 inputs which are defined as inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly. ● Level 3 inputs are defined as unobservable inputs for the assets or liabilities. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.
New Accounting Pronouncements, Policy [Policy Text Block]	20. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1 ) identify the contract, 2 ) identify performance obligations, 3 ) determine the transaction price, 4 ) allocate the transaction price, and 5 ) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one -year deferral, making the standard effective for reporting periods beginning after December 15, 2017. The FASB continues to release guidance clarifying certain aspects of the revenue guidance. We do not believe that this new accounting pronouncement will have a material impact on our financial statements. In November 2015, the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. The Company has adopted this pronouncement as of January 1, 2017, and applied retrospectively, for its provision for income taxes disclosure. The adoption did not have an impact on the presentation of the balance sheet, as the Company assigns a full valuation allowance to its net deferred tax asset. In Februa ry 2016, the FASB issued a new standard Accounting Standards Update ("ASU ") No.2016 - 02, "Leases"(Topic 842 ). The new standard is intended to increase transparency and comparability among organizations to recognize lease assets and liabilities on the balance sheet and disclose key information about leasing arrangements. It will be effective for fiscal years beginning after December 15, 2018. Milestone Scientific is in the process of determining what impact, the adoption of this ASU will have on its financial position, results of operations and cash flows. In March 2016, the FASB issued a new standard ASU No.2016 - 07, “Investments - Equity Method and Joint Ventures” (Topic 323 ): The new standard is intended to eliminate the requirement that when an investment qualifies for the use of the equity method as a result of an in increase in the level of ownership or degree of influence, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect all of the previous periods that the investment was held. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2016. The Company has adopted the standard, effective January 1, 2017, and has determined the adoption of this standard will not have an impact on its financial reporting. In March 2016, the FASB issued a new standard ASU No.2016 - 09, “ Compensation – Stock Compensation” (Topic 718 ): The new standard is intended, under FASB’s Simplification Initiative, to address certain diversity of application within previous guidance. The new standard primarily addresses certain tax aspects in connection with the stock compensation held. It will be effective for fiscal years and interim periods, beginning after December 15, 2016. The Company has adopted the standard, effective January 1, 2017, and the adoption did not have a material effect on its financial reporting. In June 2016, the FASB issued a new standard ASU No.2016 - 13, “Financial Instruments – Credit Losses” (Topic 326 ).: The new standard is intended to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2018. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows. In August 2016, the FASB issued a new standa rd ASU No.2016 - 15, "Statement Cash Flows “Classification of Certain Cash Receipts and Cash Disbursements" Topic 230 ). The new standard provides guidance as to the conformity of presentation of certain cash receipts and disbursements. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows. In October 2016, the FASB issued a new standard ASU No.2016 - 17, "Consolidation Interests Held through Related Parties That Are under Common Control"(Topic 810 ). The new standard provides guidance as to consideration of consolidation requirements of a primary beneficiary and variable interest entity that are part of related party group under common control. It will be effective for fiscal years and interim periods, beginning after December 15, 2016. Milestone Scientific has adopted the standard, effective January 1, 2017, which did not have an impact on its financial reporting. In November 2016, the FASB issued a new standard ASU No.2016 - 18, “Statement of Cash Flows – Restricted Cash” (Topic 230 ). The new standard provides guidance as to address the diversity of treatment of restricted cash on the statement of cash flows. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017 and interim periods therein. Milestone Scientific does not expect the adoption of this ASU to have a material effect on its presentation within the statement of cash flows. In January 2017, the FASB issued a new standard ASU No.2017 - 01, “Business Combinations” (Topic 805 ). The new standard provides guidance to clarify the definition of a ‘business’, and assist entities in evaluation whether a transaction should be accounted for as an acquisition/disposal of assets or a business. It will be effective for public entities for fiscal years and interim periods, beginning after December 15, 2017, with limited early application. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows. In May 2017, the FASB issued a new standard ASU No.2017 - 09, “Compensation – Stock Compensation” (Topic 718 ). The new standard provides guidance and clarity for modification to equity based compensation programs. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2017. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its presentation within the statement of cash flows.

XML 33 R21.htm IDEA: XBRL DOCUMENT

Note 5 - Investment in Unconsolidated Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2017

Milestone China [Member]

Notes Tables

Condensed Balance Sheet [Table Text Block]

	June 30, 2017		December 31, 2016

Assets:
Current Assets	$	9,940,116	$	9,362,198
Non-Current Assets		2,841,127		2,467,547
Total Assets:		12,781,243		11,829,745

Liabilities:
Current Liabilities		12,110,291		9,900,611
Stockholders' equity		670,952		1,929,134
Total liabilities and stockholders ’ equity	$	12,781,243	$	11,829,745

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Net Sales	$	322,226		$	57,102		$	1,165,552		$	329,322
Cost of Goods Sold		422,789			74,464			889,204			283,864
Gross Profit		(100,563	)		(17,362	)		276,348			45,458
Other Expenses		(643,570	)		(263,540	)		(1,601,666	)		(643,313	)
Net Losses	$	(744,133	)	$	(280,902	)	$	(1,325,318	)	$	(597,855	)

XML 34 R22.htm IDEA: XBRL DOCUMENT

Note 6 - Stock Option Plans (Tables)

6 Months Ended

Jun. 30, 2017

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Number of Options			Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2017		1,511,995			1.74		2.97		17,921
Granted		211,179			1.64		4.52
Exercised during 2017		(83,333	)		0.75
Forfeited or expired
Options outstanding June 30, 2017		1,639,841			1.87		2.89
Exercisable, June 30, 2017		1,130,958			1.88		2.46

	Number of Options		Weighted Averaged Exercise Price $		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Options Value $
Options outstanding January 1, 2017		224,999		2.53		5.32		-
Granted		-
Exercised during 2017		-
Forfeited or expired		-
Options outstanding June 30, 2017		224,999		2.53		4.82		-
Exercisable, June 30, 2017		10,183		2.33		3.86		-

XML 35 R23.htm IDEA: XBRL DOCUMENT

Note 10 - Significant Concentrations and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2017

Notes Tables

Sales by Product and by Geographical Region [Table Text Block]

	Three months Ended June 30,				Six months Ended June 30,
	2017		2016		2017		2016
DOMESTIC
Instruments	$	219,648	$	190,504	$	405,293	$	852,149
Handpieces		1,182,985		695,761		2,693,471		1,753,685
Other		21,509		20,652		40,449		34,126
Total Domestic	$	1,424,142	$	906,917	$	3,139,213	$	2,639,960
INTERNATIONAL
Instruments	$	353,805	$	535,335	$	1,712,475	$	1,559,050
Handpieces		718,837		882,135		1,302,186		1,537,124
Other		26,966		47,323		58,864		100,062
Total International	$	1,099,608	$	1,464,793	$	3,073,525	$	3,196,236
DOMESTIC/INTERNATIONAL ANALYSIS
Domestic	$	1,424,142	$	906,917	$	3,139,213	$	2,639,960
International	$	1,099,608	$	1,464,793	$	3,073,525	$	3,196,236
Total Product Sales	$	2,523,750	$	2,371,710	$	6,212,738	$	5,836,196

XML 36 R24.htm IDEA: XBRL DOCUMENT

Note 1 - Organization and Business (Details Textual) - USD ($)	1 Months Ended						3 Months Ended	6 Months Ended		18 Months Ended
	Jun. 30, 2017	Jan. 31, 2017	Dec. 31, 2016	Jul. 31, 2016	Jun. 30, 2016	Sep. 30, 2011	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	May 31, 2017	Jun. 30, 2014
Number of Countries in which Entity Operates	47							47		47
Proceeds from Issuance of Private Placement					$ 2,000,000			$ 150,836	$ 2,000,000
Stock Issued During Period, Shares, New Issues				104,200
Shares Issued, Price Per Share				$ 2.40
Proceeds from Issuance of Common Stock				$ 250,000
Proceeds from Sale of Variable Interest Entity Shares with Agreement to Repurchase								125,000
Milestone China [Member]
Equity Method Investment, Ownership Percentage												40.00%
Equity Method Investment, Deferred Gain on Sale	$ 1,400,000
Equity Method Investments	0		$ 0					$ 0		$ 0		$ 1,000,000
Milestone China [Member] \| Sale of Variable Interest Entity's Shares [Member]
Option to Repurchase Variable Interest Entity Shares, Purchase Price	$ 1,400,000
Option to Repurchase Variable Entity Shares at Specified Purchase Price, Period	2 years
Equity Method Investment, Ownership Percentage	40.00%							40.00%		40.00%	40.00%
Option to Repurchase, Period	10 years									10 years
Price for Shares of Variable Interest Entity Interest Sold	$ 1,400,000							$ 1,400,000		$ 1,400,000
Proceeds from Sale of Variable Interest Entity Shares with Agreement to Repurchase	125,000
Financing Receivable, Net	1,275,000							$ 1,275,000		$ 1,275,000
Note Receivable, Quarterly Installment Amount	125,000
Equity Method Investment, Deferred Gain on Sale	$ 1,400,000
Milestone Medical Inc. [Member]
Share Exchange Program, Number of Shares of VIE Common Stock Received Per Share of Entity's Common Stock							2
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage						50.00%		98.00%
Private Placement [Member]
Stock Issued During Period, Value, Restricted Stock Award, Gross					$ 1,000,000
Shares Issued, Price Per Share					$ 2		$ 2		$ 2
Underwritten Public Offering [Member]
Stock Issued During Period, Shares, New Issues			2,000,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			1,592,775
Shares Issued, Price Per Share			$ 1.50
Class of Warrant or Right, Expiration Period			3 years
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 2.55
Over-Allotment Option [Member]
Stock Issued During Period, Shares, New Issues		123,700
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			92,775
Shares Issued, Price Per Share		$ 1.499
Proceeds from Issuance of Common Stock		$ 186,000	$ 3,000,000

XML 37 R25.htm IDEA: XBRL DOCUMENT

Note 2 - Summary of Accounting Policies (Details Textual) - USD ($)	1 Months Ended	6 Months Ended		18 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	May 31, 2017	Dec. 31, 2016	Jun. 30, 2014
Proceeds from Sale of Variable Interest Entity Shares with Agreement to Repurchase		$ 125,000
Shipping, Handling and Transportation Costs		$ 0
Minimum [Member]
Property, Plant and Equipment, Useful Life		5 years
Maximum [Member]
Property, Plant and Equipment, Useful Life		7 years
Milestone China [Member]
Variable Interest Entity Majority Shareholder Ownership Percentage		53.00%
Equity Method Investment, Ownership Percentage							40.00%
Equity Method Investment, Deferred Gain on Sale	$ 1,400,000
Equity Method Investments	0	$ 0		$ 0		$ 0	$ 1,000,000
Milestone China [Member] \| Sale of Variable Interest Entity's Shares [Member]
Price for Shares of Variable Interest Entity Interest Sold	1,400,000	1,400,000		1,400,000
Proceeds from Sale of Variable Interest Entity Shares with Agreement to Repurchase	125,000
Financing Receivable, Net	1,275,000	$ 1,275,000		$ 1,275,000
Note Receivable, Quarterly Installment Amount	$ 125,000
Equity Method Investment, Ownership Percentage	40.00%	40.00%		40.00%	40.00%
Option to Repurchase Variable Interest Entity Shares, Purchase Price	$ 1,400,000
Option to Repurchase Variable Entity Shares at Specified Purchase Price, Period	2 years
Option to Repurchase, Period	10 years			10 years
Equity Method Investment, Deferred Gain on Sale	$ 1,400,000

XML 38 R26.htm IDEA: XBRL DOCUMENT

Note 3 - Basic and Diluted Net Income (Loss) Per Common Share (Details Textual) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Options and Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,364,840	1,976,677

XML 39 R27.htm IDEA: XBRL DOCUMENT

Note 4 - Consolidation of Variable Interest Entity (Details Textual)	1 Months Ended	6 Months Ended
	Sep. 30, 2011	Jun. 30, 2017
Milestone Medical Inc. [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	50.00%	98.00%
Milestone Education LLC [Member]
Percentage of Revenue from Services Performed to Variable Interest Entity		81.00%

XML 40 R28.htm IDEA: XBRL DOCUMENT

Note 5 - Investment in Unconsolidated Subsidiaries (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended	18 Months Ended
	Jun. 30, 2017	Apr. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 30, 2017	May 31, 2017	Dec. 31, 2015	Jun. 30, 2014
Sales Revenue, Goods, Net			$ 2,523,750	$ 2,371,710	$ 6,212,738	$ 5,836,196
Deferred Revenue, Current	$ 356,400		356,400		356,400		$ 1,001,800	$ 356,400
Income (Loss) from Equity Method Investments			15,460	(57,882)	(28,941)	(222,719)
Proceeds from Sale of Variable Interest Entity Shares with Agreement to Repurchase					125,000
Milestone China [Member] \| Accounts Receivable from Related Parties [Member]
Equity Method Investment, Deferred Intercompany Profit (Loss)	$ 659,931		$ 659,931		659,931		630,990	$ 659,931
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount					$ (28,941)	(222,719)
Advanced Ocular Sciences SA [Member]
Advances to Affiliate										$ 78,798
Write-off of Advances to Affiliate							78,798
Equity Method Investment, Ownership Percentage	25.00%		25.00%		25.00%			25.00%
Milestone China [Member]
Equity Method Investment, Deferred Gain on Sale	$ 1,400,000
Sales Revenue, Goods, Net			$ 356,400	356,400	$ 1,714,600	1,356,000
Deferred Revenue, Revenue Recognized		$ 1,001,800			1,001,800
Income (Loss) from Equity Method Investments			15,460	(57,882)	0	(164,837)
Equity Method Investments	0		0		0		0	$ 0			$ 1,000,000
Equity Method Investment, Ownership Percentage											40.00%
Cost-method Investments, Realized Losses					1,654,477		1,124,350
Milestone China [Member] \| Loss on Earnings from China Joint Venture [Member]
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount			15,460	(57,882)
Milestone China [Member] \| Instruments and Handpieces [Member]
Sales Revenue, Goods, Net			356,400	$ 356,400	1,714,600	$ 1,356,000
Deferred Revenue, Current	356,400		356,400		356,400		181,116	356,400
Milestone China [Member] \| STA Instruments and Handpieces [Member]
Deferred Revenue, Current	1,001,800		1,001,800		1,001,800		620,041	1,001,800
Accounts Receivable, Related Parties	356,400		$ 356,400		$ 356,400		$ 2,714,600	$ 356,400
Milestone China [Member] \| Sale of Variable Interest Entity's Shares [Member]
Equity Method Investment, Deferred Gain on Sale	$ 1,400,000
Variable Interest Entity Ownership Percentage Sold	40.00%
Equity Method Investment, Ownership Percentage	40.00%		40.00%		40.00%			40.00%	40.00%
Option to Repurchase Variable Interest Entity Shares, Purchase Price	$ 1,400,000
Option to Repurchase Variable Entity Shares at Specified Purchase Price, Period	2 years
Option to Repurchase, Period	10 years							10 years
Price for Shares of Variable Interest Entity Interest Sold	$ 1,400,000		$ 1,400,000		$ 1,400,000			$ 1,400,000
Proceeds from Sale of Variable Interest Entity Shares with Agreement to Repurchase	125,000
Financing Receivable, Net	1,275,000		$ 1,275,000		$ 1,275,000			$ 1,275,000
Note Receivable, Quarterly Installment Amount	$ 125,000

XML 41 R29.htm IDEA: XBRL DOCUMENT

Note 5 - Investment in Unconsolidated Subsidiaries - Balance Sheet Accounts for Milestone China (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Current Assets	$ 11,499,244		$ 11,499,244		$ 13,344,802
Total Assets:	13,096,766		13,096,766		14,181,640
Current Liabilities	5,435,643		5,435,643		5,645,311
Stockholders' equity	7,661,123		7,661,123		8,536,329
Total liabilities and stockholders’ equity	13,096,766		13,096,766		14,181,640
Cost of products sold	873,586	$ 789,801	2,275,871	$ 2,157,990
Gross Profit	1,650,164	1,581,909	3,936,867	3,678,206
Net loss	(1,540,509)	(2,094,101)	(2,118,501)	(3,354,962)
Milestone China [Member]
Current Assets	9,940,116		9,940,116		9,362,198
Non-Current Assets	2,841,127		2,841,127		2,467,547
Total Assets:	12,781,243		12,781,243		11,829,745
Current Liabilities	12,110,291		12,110,291		9,900,611
Stockholders' equity	670,952		670,952		1,929,134
Total liabilities and stockholders’ equity	12,781,243		12,781,243		$ 11,829,745
Net Sales	322,226	57,102	1,165,552	329,322
Cost of products sold	422,789	74,464	889,204	283,864
Gross Profit	(100,563)	(17,362)	276,348	45,458
Other Expenses	(643,570)	(263,540)	(1,601,666)	(643,313)
Net loss	$ (744,133)	$ (280,902)	$ (1,325,318)	$ (597,855)

XML 42 R30.htm IDEA: XBRL DOCUMENT

Note 6 - Stock Option Plans (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
Note 6 - Stock Option Plans (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 619,173	$ 884,183	$ 619,173	$ 884,183
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 182 days	2 years 270 days
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	110,305	133,330	$ 244,115	$ 266,601
Non-employee Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ 10,835	$ 8,421	$ 6,257	$ 9,596

XML 43 R31.htm IDEA: XBRL DOCUMENT

Note 6 - Stock Option Plans - Summary of Option Activity for Employees and Non-employees (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Number of options forfeited and expired (in shares)
Weighted average exercise price, forfeited or expired (in dollars per share)
Employee Stock Option [Member]
Number of options exercisable (in shares)	1,130,958
Weighted average exercise price, exercisable (in dollars per share)	$ 1.88
Weighted average remaining contractual life, exercisable (Year)	2 years 167 days
Aggregate intrinsic value, exercisable
Number of options (in shares)	1,511,995
Weighted average exercise price, outstanding (in dollars per share)	$ 1.74
Weighted average exercise price, outstanding (in dollars per share)	$ 1.87	$ 1.74
Weighted average remaining contractual life, outstanding (Year)	2 years 324 days	2 years 354 days
Aggregate intrinsic value, outstanding		$ 17,921
Number of options granted (in shares)	211,179
Weighted average exercise price, granted (in dollars per share)	$ 1.64
Weighted average remaining contractual life, granted (Year)	4 years 189 days
Number of options exercised (in shares)	(83,333)
Weighted average exercise price, exercised (in dollars per share)	$ 0.75
Weighted average remaining contractual life, exercised (Year)
Number of options (in shares)	1,639,841	1,511,995
Non-employee Options [Member]
Number of options exercisable (in shares)	10,183
Weighted average exercise price, exercisable (in dollars per share)	$ 2.33
Weighted average remaining contractual life, exercisable (Year)	3 years 313 days
Aggregate intrinsic value, exercisable
Number of options (in shares)	224,999
Weighted average exercise price, outstanding (in dollars per share)	$ 2.53
Weighted average exercise price, outstanding (in dollars per share)	$ 2.53	$ 2.53
Weighted average remaining contractual life, outstanding (Year)	4 years 299 days	5 years 116 days
Aggregate intrinsic value, outstanding
Number of options granted (in shares)
Weighted average exercise price, granted (in dollars per share)
Weighted average remaining contractual life, granted (Year)
Number of options exercised (in shares)
Weighted average exercise price, exercised (in dollars per share)
Weighted average remaining contractual life, exercised (Year)
Number of options forfeited and expired (in shares)
Weighted average exercise price, forfeited or expired (in dollars per share)
Number of options (in shares)	224,999	224,999

XML 44 R32.htm IDEA: XBRL DOCUMENT

Note 8 - Advances on Contracts (Details Textual) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Advances on Inventory Purchases	$ 851,504	$ 700,900

XML 45 R33.htm IDEA: XBRL DOCUMENT

Note 9 - Income Taxes (Details Textual) - USD ($)	6 Months Ended
Note 9 - Income Taxes (Details Textual) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Operating Loss Carryforwards, Valuation Allowance	$ 0	$ 0
Percentage of Valuation Allowance	100.00%
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	$ 11,865	$ 63,000

XML 46 R34.htm IDEA: XBRL DOCUMENT

Note 10 - Significant Concentrations and Geographical Information (Details Textual)	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2017	Mar. 31, 2016	Jun. 30, 2017 USD ($)	Jun. 30, 2016	Jun. 30, 2017 USD ($)	Jun. 30, 2016
Accounts Receivable, Gross			$ 1,345,021		$ 1,345,021
Long-term Purchase Commitment, Remaining Quantities			200		200
Long-term Purchase Commitment, Remaining Amount			$ 85,480		$ 85,480
Long-term Purchase Commitment, Minimum Quantity Required	2,000	3,000
Long-term Purchase Commitment, Amount					$ 717,938
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member]
Number of Customers			2	2	2	3
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member] \| Two Customers [Member]
Concentration Risk, Percentage			69.00%	61.00%	75.00%
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member] \| Customer One [Member]
Concentration Risk, Percentage			55.00%	44.00%	53.00%	38.00%
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member] \| Customer Two [Member]
Concentration Risk, Percentage			14.00%	17.00%	22.00%	22.00%
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member] \| Three Customers [Member]
Concentration Risk, Percentage						72.00%
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member] \| Customer Three [Member]
Concentration Risk, Percentage						12.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Concentration Risk, Percentage					2.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Two Customers [Member]
Accounts Receivable, Gross			$ 75		$ 75

XML 47 R35.htm IDEA: XBRL DOCUMENT

Note 10 - Significant Concentrations and Geographical Information - Sales by Product and by Geographical Region (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Product sales, net	$ 2,523,750	$ 2,371,710	$ 6,212,738	$ 5,836,196
Sales Revenue, Goods, Net [Member] \| Geographic Concentration Risk [Member]
Product sales, net	2,523,750	2,371,710	6,212,738	5,836,196
Domestic [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	1,424,142	906,917	3,139,213	2,639,960
Domestic [Member] \| Sales Revenue, Goods, Net [Member] \| Geographic Concentration Risk [Member]
Product sales, net	1,424,142	906,917	3,139,213	2,639,960
Domestic [Member] \| Instruments [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	219,648	190,504	405,293	852,149
Domestic [Member] \| Handpieces [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	1,182,985	695,761	2,693,471	1,753,685
Domestic [Member] \| Other Products [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	21,509	20,652	40,449	34,126
International [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	1,099,608	1,464,793	3,073,525	3,196,236
International [Member] \| Sales Revenue, Goods, Net [Member] \| Geographic Concentration Risk [Member]
Product sales, net	1,099,608	1,464,793	3,073,525	3,196,236
International [Member] \| Instruments [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	353,805	535,335	1,712,475	1,559,050
International [Member] \| Handpieces [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	718,837	882,135	1,302,186	1,537,124
International [Member] \| Other Products [Member] \| Sales Revenue, Goods, Net [Member] \| Product Concentration Risk [Member]
Product sales, net	$ 26,966	$ 47,323	$ 58,864	$ 100,062

XML 48 R36.htm IDEA: XBRL DOCUMENT

Note 11 - Related Parties (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
Note 11 - Related Parties (Details Textual) - USD ($)	Apr. 30, 2017	Jan. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Sales Revenue, Goods, Net			$ 2,523,750	$ 2,371,710	$ 6,212,738	$ 5,836,196
Deferred Revenue, Current			356,400		356,400		$ 1,001,800
Deferred Costs, Current			181,116		181,116		620,041
Servicing Fees			25,000	35,000	50,000	70,000
Milestone China [Member]
Sales Revenue, Goods, Net			356,400	356,400	1,714,600	1,356,000
Deferred Revenue, Revenue Recognized	$ 1,001,800				1,001,800
Milestone China [Member] \| Deferred Profit, Related Party [Member]
Equity Method Investment, Deferred Intercompany Profit (Loss)			659,931		659,931		630,990
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount			15,460	(57,882)	28,941	222,719
Milestone China [Member] \| Instruments and Handpieces [Member]
Sales Revenue, Goods, Net			356,400	356,400	1,714,600	1,356,000
Deferred Revenue, Current			356,400		356,400		181,116
Deferred Costs, Current			1,001,800		1,001,800		620,041
Milestone China [Member] \| STA Instruments and Handpieces [Member]
Deferred Revenue, Current			1,001,800		1,001,800		620,041
Accounts Receivable, Related Parties			356,400		356,400		2,714,600
Related Vendor in China [Member]
Due to Related Parties			381,432		381,432		$ 687,522
Manufacturing Agreement for Handpieces [Member] \| Related Vendor in China [Member]
Related Party Transaction, Purchases from Related Party			584,792	$ 485,167	1,037,144	$ 1,121,226
Consulting Services [Member] \| Innovest S.p.A. [Member]
Consulting Services Agreement, Term		1 year
Consulting Services Agreement, Renewal Term		1 year
Related Party Transaction, Expenses from Transactions with Related Party			$ 20,000		$ 40,000

XML 49 R37.htm IDEA: XBRL DOCUMENT

Note 12 - Commitments and Other (Details Textual)		3 Months Ended		6 Months Ended
Note 12 - Commitments and Other (Details Textual)	Jan. 01, 2005 shares	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) ft²	Jun. 30, 2016 USD ($)
Area of Office Space \| ft²				7,625
Operating Leases, Rent Expense, Minimum Rentals				$ 12,522
Operating Leases, Rent Expense		$ 34,833	$ 34,749	69,349	$ 69,987
Payments for Postemployment Benefits				$ 203,111
Additional Percentage of Director Compensation on Sales Value Using Certain Specify Technology	2.50%
Additional Percentage of Director Compensation Sales Value Using Other Kind of Technology	5.00%
Define Benefit Plan, Payment Period				5 years
Pension Cost (Reversal of Cost)		51,000	102,000	$ 51,000	102,000
Innovest S.p.A. [Member] \| Consulting Services [Member]
Related Party Transaction, Expenses from Transactions with Related Party		20,000		40,000
Director of Clinical Affairs [Member]
Professional Fees		68,751	137,502	68,751	137,502
Stock Issued During Period, Shares, Stock Options Exercised, Attributable to Consultants \| shares	8,333
Royalty Expense		$ 123,764	$ 110,764	$ 305,672	$ 300,643

XML 50 R38.htm IDEA: XBRL DOCUMENT

Note 13 - Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($)	Jul. 13, 2017	Jul. 10, 2017	Jul. 07, 2017
APAD Octrooi B.V. and APAD B.V. [Member]
Stock Issued During Period, Shares, Purchase of Assets	1,646,358
Stock Issued During Period, Value, Purchase of Assets	$ 2,486,000
President and Chief Executive Officer [Member]
Employment Agreement, Base Compensation		$ 300,000
Employment Agreement, Maximum Bonuses		$ 400,000
Employment Agreement, Bonus Options, Term		5 years
Employment Agreement, Bonus Options, Exercise Price, Percentage of Fair Market Value		110.00%
Employment Agreement Term		3 years
President and Chief Executive Officer [Member] \| Non-qualified Stock Options [Member] \| Stock Option Plan 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		921,942
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 2
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		5 years
Previous President and Chief Executive Officer [Member]
Employment Agreement, Base Compensation		$ 300,000
Employment Agreement, Base Compensation, Cash		100,000
Employment Agreement, Base Compensation, Common Stock Value		$ 200,000
Consulting Agreement, Term		10 years
Consulting Agreement, Annual Payment		$ 100,000
Employment Agreement Term		10 years
Gian Domenico Trombetta [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			400,000
Gian Domenico Trombetta [Member] \| Employee Stock Options Issued at $2.54 Per Share [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 2.55
Gian Domenico Trombetta [Member] \| Employee Stock Options Issued at the Higher of $2.54 Per Share or Market Price [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			150,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 2.55

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