Note N - Concentrations

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE N-- CONCENTRATIONS

Milestone Scientific has informal arrangements with

third

-party US 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

December 31, 2020 

and

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

twelve

months ended

December

31,2020

an aggregate of approximately

38%

of the Company's net product sales were from

one

US Distributor. For the

twelve

months ended

December 31, 2019,

an aggregate of approximately

46%

of Wand Dental's net product sales were from

one

US Distributor.

Accounts receivable for the major customer/distributors amounted to approximately or

69%,

of Milestone Scientific's gross accounts receivable as of

December 31,

20120.

 Accounts receivable for the major customer/distributors amounted to approximately or

71%

of Milestone Scientific's gross accounts receivable as of

December 31, 2019.