NOTE N — PRODUCT SALES AND SIGNIFICANT CUSTOMERS AND VENDORS

Milestone Scientific’s consolidated dental sales by product and by geographical region are as follows:

	Year Ending December 31
	2015		2014

Instruments	$	2,911,614	$	2,569,102
Handpieces		6,409,924		7,627,140
Other		170,031		136,848
	$	9,491,569	$	10,333,090

United States	$	3,295,307	$	4,655,648
Canada		211,035		100,321
Other Foreign		5,985,227		5,577,121
	$	9,491,569	$	10,333,090

Milestone Scientific has informal arrangements with the manufacturer of the STA, CompuDent® and CompuMed® instruments, one of the principal manufacturers for those instruments pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. Purchases from this supplier were $1,745,619 (28%) and $948,024 (26%) in 2015 and 2014, respectively. Milestone Scientific has a manufacturing agreement with one of the principal manufacturers, which is a related party, of its handpieces pursuant to which they manufacture products under specific purchase orders but without minimum purchase commitments. Purchases of handpieces from this vendor in China were $2,698,522 (72%) and $2,698,043 (74%) in 2015 and 2014, respectively. A five percent shareholder of Milestone Scientific is also a shareholder of this vendor. All other purchases from other suppliers were not significant in either 2015 or 2014. Milestone Scientific owed $716,520 and $455,573 to this supplier as of September 30, 2015 and December 31, 2014, respectively.

For the year ended December 31, 2015, Milestone Scientific had two customers (distributors) at December 31, 2015, that had approximately 33% (15% and 18%), of its net product sales. Accounts receivable for the two major customers amounted to approximately $784,690 or 45% of gross accounts receivable. For the year ended December 31, 2014 Milestone had two customers (distributors) had approximately 45% (17% and 28%), of its net product sales. Accounts receivable for the two major customers amounted to approximately $1,100,000 or 69% of gross accounts receivable.