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Note 11 - Concentrations
3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE
11
 -- CONCENTRATIONS
 
Milestone Scientific has informal arrangements with
third
-party manufacturers of the STA, epidural, and intra-articular 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
March 31, 2020 
and
December 31, 2019 . 
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, 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
March 31, 2020,
and
2019
an aggregate of approximately
39%
and
52%
of the Company’s net product sales were from
one
domestic Distributor, respectively. For the
three
months ended
March 31, 2020
net product sales were
15%
from
one
international Distributor. Accounts receivable for the domestic and international distributor amounted to approximately or
59%
and
10%,
of Milestone Scientific's gross accounts receivable as of
March 31, 2020,
respectively. Accounts receivable for the major customer/distributor amounted to approximately or
77%,
of Milestone Scientific's gross accounts receivable as of
December 31, 2019.
 
Business interruptions, including any interruptions resulting from COVID-
19
could significantly disrupt our operations and could have a material adverse impact on our business. All of our employees are located in the U.S. In addition to our employees, we rely on (i) distributors, agents and
third
-party logistics providers in connection with product sales and distribution and (ii) raw material and component suppliers in the U.S., Europe and China. If we, or any of these
third
party partners encounter any disruptions to our or their respective operations or facilities, or if we or any of these
third
party partners were to shut down for any reason, including by fire, natural disaster, such as a hurricane, tornado or severe storm, power outage, systems failure, labor dispute, pandemic or other unforeseen disruption, then we or they
may
be prevented or delayed from effectively operating our or their business, respectively.