Note 13 - Related Party Transactions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

13

 -- RELATED PARTY TRANSACTIONS

United Systems

Milestone Scientific has a manufacturing agreement with United Systems (whose controlling shareholder, Tom Cheng, is a significant stockholder of Milestone Scientific), the principal manufacturers of its handpieces, pursuant to which it manufactures products under specific purchase orders, but without minimum purchase commitments. Purchases from this manufacturer were approximately

$385,000

and

$544,000

for the

three

months ended

March 31, 2021

and

2020

, respectively. As of

March 

31,

2021,

and

December 31, 2020,

Milestone Scientific owed this manufacturer approximately

$179,000

 and

$362,000,

respectively, which is included in accounts payable, related party on the condensed consolidated balance sheets as of

March 31, 2021

and

December 31, 2020,

respectively. 

On

April 29, 2020,

the Board of Directors approved the purchase of United Systems accounts receivable (

$370,260

) See Note

6.

 

Milestone China

See Note

6.

 

Other

As of

March 31, 2021,

and

December 31, 2020,

Milestone Scientific had deferred compensation for Gian Domenico Trombetta, a director of the Company and the previous Chief Executive Officer of Wand Dental, of approximately $

zero

and $

275,000,

respectively, which is included accrued expenses related party.

The Company engaged Mr. Trombetta as a consultant for a period of 

twelve

 months (beginning 

October 

1,

 

2020

 and ending 

September 

30,

 

2021

). Mr. Trombetta will provide International Business, Dental Segment 

information and business contacts to the Company and provide consulting services  for new International Business and Dental Segment concepts during this 

twelve

-month consulting period. Under this  agreement, Mr. Trombetta is to receive 

$60,000

 payable in Milestone Scientific shares. As of

March 31, 2021,

the company had

$45,000

payable on this agreement, which is included accrued expenses related party, in the unaudited condensed consolidated balance sheet. 

In

August 2016,

K. Tucker Andersen, a significant stockholder of Milestone Scientific, entered into an agreement with Milestone Scientific to provide financial and business strategic services. Expenses recognized on this agreement were

$25,000

for each of the

three

months ended 

March 31, 2021

and

2020.

In

January 2017,

Milestone Scientific entered into a

twelve

-month agreement with Innovest S.p.A., a significant stockholder of Milestone Scientific, to provide consulting services. Expenses recognized on this agreement were 

zero

and

$20,000

for  the

three

months ended

March 31, 2021

and

2020,

respectively. This agreement was terminated on

September 30, 2020.

The Director of Clinical Affairs' royalty fee was approximately

$136,000

 and

$95,000

for the

three

months ended

March 31, 2021

and

2020,

respectively. Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of

$39,000

 for each of the

three

months ended

March 31, 2021

and

2020.

As of

March 31, 2021

and

December 31, 2020,

Milestone Scientific owed the Director Clinical Affairs for royalties of approximately

$159,000

 and

$467,000,

respectively, which is included in accounts payable, related party and accrued expense, related party, in the unaudited condensed consolidated balance sheet. See Note

14

(

3

) below for additional information about the royalty agreement.