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Advances on Contracts
6 Months Ended
Jun. 30, 2013
Advances on Contracts

NOTE – 7 ADVANCES ON CONTRACTS

The net advances on contracts represent funding of future STA inventory purchases. The balance of the net advances as of June 30, 2013 and December 31, 2012 is $2,672,376 and $2,827,446, respectively. The portion of this advance expected to be utilized in the next twelve months is classified as current asset, with the remainder classified as non-current asset. Milestone has an outstanding accounts payable of approximately $136,000 and $705,000 at June 30, 2013 and December 31, 2012, respectively to the contract manufacturer specifically related to the advances. Milestone is making monthly payments to the contract manufacturer.

Additionally, Milestone has an agreement with the manufacturer of the CompuDent and STA instruments to accrue interest on their outstanding accounts payable balance. For the three months ending June 30, 2013 and 2012, the interest expense for this indebtness was $5,128 and $41,239, respectively. For the six months ending June 30, 2013 and 2012, the interest expense for this indebtness was $14,573 and $62,140, respectively.