Note 12 - Concentrations

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE

12

 -- 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, 2021, 

and

December 31, 2020 . 

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, 2021,

and

2020

an aggregate of approximately

29%

and

39%

of the Company's net product sales were from

one

domestic distributor, respectively. Additionally,

three

months ended

March 31, 2021

approximately

18%

of the Company's net product sales are to Milestone China. Accounts receivable for the domestic  distributor and Milestone China amounted to approximately

28%

 and

21%

of Milestone Scientific's gross accounts receivable as of

March 31, 2021,

respectively. Accounts receivable for the major customer/distributor amounted to approximately

69%

of Milestone Scientific's gross accounts receivable as of

December 31, 2020.