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Note 9 - Concentrations
3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

NOTE 9 – CONCENTRATIONS

 

Milestone Scientific has informal arrangements with third-party U.S. manufacturers of the STA devices, pursuant to which they manufacture these products under specific purchase orders which contain advance requirements but without any long-term contract or minimum purchase commitment. Advances on contracts have been classified as current at  March 31, 2023, and 2022. 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.

 

On January 3, 2023, the Company launched an E-Commerce platform, selling and shipping STA Single Tooth Anesthesia System® (STA) and handpieces directly to dental offices and dental groups within the U.S. For the three months ended March 31, 2023 E-Commerce accounted for 40% of  net product sales and one distributor  accounted for 15% of net product sales. We had three distributors that accounted for 31%, 13%, and 13% of net product sales, respectively, for three months ended March 31, 2022. 

 

We had two distributors that accounted for 43%, and 13% of accounts receivable, respectively for three months ended March 31, 2023. We had two customers that accounted for 33%, and 20% amount of accounts receivable, respectively as of December 31, 2022. 

 

As of  March 31, 2023, we had one vendor that accounted for 11% of accounts payable. As of  March 31, 2023, we had one vendor that accounted for 35% of accounts payable related party. We had one vendor that accounted for 42% of accounts payable related party as of December 31, 2022.