Note 13 - Concentration

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE

13

 -- CONCENTRATION

Milestone Scientific has informal arrangements with

third

-party manufacturers of the STA,

CompuDent

® and

CompuMed

® devices, pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. Consequently, advances on contracts have been classified as current at

June 30, 2018

and

December 31, 2017,

respectively.  The termination of the manufacturing relationship with any of these manufacturers could have a material adverse effect on Milestone Scientific’s ability to produce and sell its products. Although alternate sources of supply exist, and new manufacturing relationships could be established, Milestone Scientific would need to recover its existing tools or have new tools produced. Establishment of new manufacturing relationships could involve significant expense and delay. Any curtailment or interruption of the supply, whether because of termination of such a relationship, would have a material adverse effect on Milestone Scientific’s financial condition, business and results of operations.

For the

three

months ended

June 30, 2018,

an aggregate of approximately

44%

of Milestone Scientific's net product sales were to

one

customer/distributor. For the

six

months ended

June 30, 2018,

an aggregate of approximately

43%

of Milestone Scientific's net product sales were to

one

customer/distributor. For the

three

months ended

June 30, 2017,

an aggregate of approximately

69%

of Milestone Scientific's net product sales were to

two

customer/distributors (

one

of which, Milestone China, is 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

customer/distributors (

one

of which, Milestone China, is a related party),

53%,

and

22%,

respectively.

Accounts receivable for the major customer/distributors, (

one

of which, Milestone China, is a related party), amounted to an aggregate of approximately

$3,926,759,

or

84%

of Milestone Scientific's accounts receivable as of

June 30, 2018. 

Accounts receivable, including related party accounts receivable, for the major customer/distributors(

one

of which, Milestone China, is a related party), amounted to an aggregate of approximately

$2,555,476,

or

78%

of Milestone Scientific's accounts receivable, as of

December 31, 2017.