Note 10 - Concentration

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 10 – 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  March 31, 2025 and December 31, 2024. 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, 2025, E-Commerce accounted for 50% of net product sales and one international distributor accounted for 13% of net product sales. For the three months ended March 31, 2024, E-commerce accounted for 53% of net product sales and one international distributor accounted for 15% of net product sales. 

The Company had three distributors that accounted for 29%, 23%, 12% of accounts receivable, respectively, for the three months ended March 31, 2025. The Company had three distributors that accounted for 22%, 13% and 11% of accounts receivable, respectively as of December 31, 2024. 

As of March 31, 2025, the Company had four suppliers that accounted for 13%, 12%, 14% and 27%, respectively, of accounts payable and accounts payable related party. The Company had the Company had two suppliers that accounted for 31% and 30%, respectively of accounts payable and accounts payable related to the party as of December 31, 2024.