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Note 9 - Concentrations
6 Months Ended
Jun. 30, 2024
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, and epidural instruments pursuant to which they manufacture these products under specific purchase orders which contains advance payments for long lead items for production. Advances on contracts have been classified as current at  June 30, 2024 and December 31, 2023. 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 June 30, 2024, E-Commerce accounted for 66% of net product sales. For the six months ended June 30, 2024, E-Commerce accounted for 59% of net product sales. For the three months ended June 30, 2023, E-commerce accounted for 43% of net product sales and one international distributor accounted for 11% of net product sales. For the six months ended June 30, 2023, E-commerce accounted for 42% of net product sales. 

 

The Company had four distributors that accounted for 34%, 31%, 13% and 11%  of accounts receivable, respectively, as of June 30, 2024. The Company had three distributors that accounted for 39%, 38%, and 15% of accounts receivable, respectively as of December 31, 2023. 

 

As of June 30, 2024, the Company had three suppliers that accounted for 36% 12% and 11%, respectively, of accounts payable and accounts payable, related party. The Company had three vendors that accounted for 37%, 17% and 12% respectively of accounts payable and accounts payable, related party as of December 31, 2023.