Related Party (Medical Joint Venture)

3 Months Ended

Mar. 31, 2015

Medical Joint Venture

Related Party

NOTE – 11 RELATED PARTY

Milestone has a manufacturing agreement with a related party. The related party manufactures products under specific purchase orders but without minimum purchase commitments.Milestone purchased $617,602 and $824,574 from the supplier for the three months ended March 31, 2015 and 2014, respectively. Milestone owed $523,576 and $455,574 to this supplier as of March 31, 2015 and December 31, 2014, respectively.

On July 1, 2013, Milestone and Milestone Medical signed an agreement for the reimbursement of specific expenses incurred by Milestone specifically for the benefit of Milestone Medical. At March 31, 2015, the expenses due from Milestone Medical are $184,589.

In December 2014 Milestone entered into a bridge financing to Milestone Medical while waiting approval of the capital raise, Milestone Scientific (49.9% owners) entered into a line of credit agreement which allows Milestone Medical to withdraw funds from Scientific up to $2 million through January 2016, if needed to assist in paying for the capital raise. The loan provides for interest charge at a rate of 3.25% per annual, the prime rate at the inception of the line of credit. The agreement terminates at April 15, 2016. $200,000 was borrowed by Milestone Medical at March 31, 2015 and is recognized as notes receivable on the condensed consolidated balance sheet.