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Milestone Scientific Provides Business Update for the First Quarter of 2018

LIVINSTON, N.J., May 15, 2018 (GLOBE NEWSWIRE) -- Milestone Scientific Inc. (NYSE:MLSS), a dental and medical company that develops and commercializes a growing portfolio of proprietary injection technologies, today provided a business update and announced financial results for the first quarter ended March 31, 2018.

Leonard Osser, Interim Chief Executive Officer of Milestone Scientific, commented, “We have begun to ramp up our commercial efforts around the CompuFlo® Epidural system. We recently hired two experienced sales and marketing executives to spearhead these commercial efforts. Milestone Scientific is now commencing the next phase of our strategy, which involves building out our distribution channels. We have decided to pursue a decentralized sales strategy employing regional distributors with strong physician relationships within their respective territories and clinical specialties. This week we announced that we signed an agreement with a Midwestern distributor. We are targeting distributors with highly specialized sales forces that have the ability to both educate and inform anesthesiologists on the clinical benefits of the CompuFlo® Epidural System.  In addition, we are in discussions with distributors around the world and look forward to having the results of our clinical trials published in leading industry journals later this year, which should help drive market adoption. At the end of March, we announced that Health Canada issued a medical device license for the CompuFlo® Epidural System. This is another important step and validation in our global roll-out strategy.”

“As anticipated, we experienced a short term weakness within our dental division in the first quarter of 2018. This was due to the timing of domestic and international promotions, as well as the timing and revenue recognition of orders from China.  Nevertheless, we anticipate our dental division will achieve continued growth and maintain solid margins in 2018. Last week, we announced that The Brookdale University Hospital and Medical Center in New York will now utilize The Wand® computer assisted anesthesia system for its advanced education program in Pediatric Dentistry. In addition, The Wand® will be incorporated for regular use in the Department of Dental Medicine & Oral Maxillofacial Surgery. We are pleased to see another university utilizing our technology in their curriculum and ongoing practice.”

For the three months ended March 31, 2018 and 2017, revenues were approximately $1.8 million and $3.7 million, respectively. The decrease in revenue was primarily due to the revenue recognition of orders from China and advanced purchases from Henry Schein in the fourth quarter of 2017 due to the planned price increase in 2018. The gross profit for the first quarter ended March 31, 2018 was $1.2 million, or 69% of revenue, versus $2.3 million, or 62% of revenue for the first quarter ended March 31, 2017. Net loss for the three months ended March 31, 2018 was $(1.9) million, or $(0.06) per share, versus a net loss of $(0.57) million, or $(0.02) per share, in the prior year.

/EIN News/ -- Conference Call

Milestone Scientific’s executive management team will host a conference call at 8:00 AM Eastern Time on Wednesday, May 16, 2018 to discuss the Company’s financial results for the first quarter ended March 31, 2018, as well as the Company’s corporate progress and other developments.

The conference call will be available on the Company’s website at www.milestonescientific.com, or via telephone by dialing toll free 800-263-0877 and entering the pass code: 6112920. For those unable to participate at that time, a replay of the call will be archived on the company’s website or can be accessed by dialing 888-203-1112 and entering the pass code 6112920. The replay will be available for 90 days.

About Milestone Scientific Inc.

Milestone Scientific Inc. (MLSS) is a biomedical technology research and development company that patents, designs and develops innovative diagnostic and therapeutic injection technologies and instruments for medical, dental, cosmetic and veterinary applications. Milestone's computer-controlled systems are designed to make injections precise, efficient, and virtually painless. Milestone’s proprietary DPS Dynamic Pressure Sensing technology® is our technology platform that advances the development of next-generation devices, regulating flow rate and monitoring pressure from the tip of the needle, through platform extensions for local anesthesia for subcutaneous drug delivery, with specific applications for cosmetic botulinum toxin injections, epidural space identification in regional anesthesia procedures and intra-articular joint injections. For more information please visit our website: www.milestonescientific.com.

Safe Harbor Statement

This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues, timing of regulatory approvals and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions, future business decisions and regulatory developments, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2016. The forward looking statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

             
MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
             
    March 31,
2018
    December 31,
2017
 
ASSETS   (Unaudited)     (Audited)  
Current Assets:                
Cash and cash equivalents   $ 2,094,238     $ 2,636,956  
Accounts receivable, net     833,836       1,535,513  
Accounts receivable from related party     1,725,450       1,725,450  
Notes receivable from financing transaction, current     500,000       500,000  
Prepaid expenses and other current assets     494,717       436,410  
Deferred cost related party     1,109,671       1,109,671  
Inventories, net     3,265,058       3,379,209  
Advances on contracts     984,408       697,192  
Total current assets     11,007,378       12,020,401  
Furniture, fixtures & equipment, net     115,502       141,760  
Patents, net     2,552,382       2,789,748  
Notes receivable from financing transaction, noncurrent     650,000       650,000  
Other assets     26,878       26,878  
Total assets   $ 14,352,140     $ 15,628,787  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current Liabilities:                
Accounts payable   $ 1,556,689     $ 977,623  
Accounts payable related party     1,075,078       985,678  
Accrued expenses and other payables     1,928,654       2,287,908  
Deferred profit, related party     714,717       751,500  
Deferred revenue, related party     1,725,450       1,725,450  
Total current liabilities     7,000,588       6,728,159  
Deferred gain from financing transaction     1,400,000       1,400,000  
Total liabilities     8,400,588       8,128,159  
                 
Commitments and Contingencies                
 

Stockholders’ Equity
               
Series A convertible preferred stock, par value $.001, authorized 5,000,000 shares, and 7,000 shares issued and
outstanding as of March 31, 2018 and December 31, 2017
    7       7  
Common stock, par value $.001; authorized 50,000,000 shares; 33,216,571 shares issued, 1,699,323 shares to be issued
and 33,183,238 shares outstanding as of March 31, 2018; 33,191,571 shares issued, 1,401,247 shares to be issued and
33,158,238 shares outstanding as of December 31, 2017;
    34,916       34,593  
Additional paid-in capital     87,115,070       86,689,084  
Accumulated deficit     (80,442,262 )     (78,568,284 )
Treasury stock, at cost, 33,333 shares     (911,516 )     (911,516 )
Total Milestone Scientific Inc. stockholders' equity     5,796,215       7,243,884  
Noncontrolling interest     155,337       256,744  
Total stockholders’ equity     5,951,552       7,500,628  
Total liabilities and stockholders’ equity   $ 14,352,140     $ 15,628,787  
                 


       
MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
       
    For the Three Months Ended  
                 
    March 31,
2018
    March 31,
2017
 
Revenue                
Product sales, net   $ 1,805,605     $ 3,688,988  
Cost of products sold     562,676       1,402,285  
Gross profit     1,242,929       2,286,703  
                 
Selling, general and administrative expenses     3,018,780       2,707,620  
Research and development expenses     225,817       105,015  
Total operating expenses     3,244,597       2,812,635  
Loss from operations     (2,001,668 )     (525,932 )
Other expenses     (1,700 )     (1,209 )
Interest income     2,664       758  
Loss before provision for income taxes and equity in net losses of equity investments     (2,000,704 )     (526,383 )
Provision for income taxes     (11,464 )     (7,201 )
Loss before equity in net losses of equity investments     (2,012,168 )     (533,584 )
Loss on earnings from China Joint Venture     36,783       (44,401 )
Net loss     (1,975,385 )     (577,985 )
Net loss attributable to noncontrolling interests     (101,407 )     (73,117 )
Net loss attributable to Milestone Scientific Inc.   $ (1,873,978 )   $ (504,868 )
                 
Net loss per share applicable to common stockholders—                
Basic   $ (0.06 )   $ (0.02 )
Diluted   $ (0.06 )   $ (0.02 )
                 
Weighted average shares outstanding and to be issued—  
Basic     34,766,014       32,004,548  
Diluted     34,766,014       32,004,548  


             
MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
             
    March 31,
2018
    March 31,
2017
 
Cash flows from operating activities:                
         Net loss   $ (1,975,385 )   $ (577,985 )
Adjustments to reconcile net loss to net cash used in operating activities:          
         Depreciation expense     27,625       16,860  
         Amortization of patents     237,366       17,682  
         Stock compensation     86,809       116,718  
          Equity income on China joint venture     (36,783 )     -  
Changes in operating assets and liabilities:                
         Decrease (increase) in accounts receivable     701,677       (824,182 )
         Decrease in accounts receivable related party     -       1,400,801  
         Decrease in inventories     114,151       68,885  
         Increase to in advances on contracts     (287,216 )     (161,114 )
         Increase in prepaid expenses and other current assets     (58,307 )     (207,613 )
         Increase in other assets     -       (9,523 )
         Decrease in deferred cost, related party     -       438,925  
         Increase (decrease) in accounts payable     579,070       (452,157 )
         Increase (decrease) in accounts payable related party     89,400       (152,748 )
         (Decrease) increase in accrued expenses and other payables     (19,757 )     96,841  
         (Decrease) in deferred revenue, related party     -       (645,400 )
Net cash used in operating activities     (541,350 )     (874,010 )
Cash flows from investing activities:                
         Purchase of property and equipment     (1,368 )     -  
Net cash used in investing activities     (1,368 )     -  
Cash flows from financing activities:                
         Net proceeds on Public offering     -       150,836  
         Proceeds from exercise of stock options     -       62,500  
Net cash provided by financing activities     -       213,336  
Net decrease in cash and cash equivalents     (542,718 )     (660,674 )
         Cash and cash equivalents at beginning of period     2,636,956       3,602,229  
         Cash and cash equivalents at end of period   $ 2,094,238     $ 2,941,555  
                 
         Supplemental disclosure of cash flow information:                
         Shares issued to employees for bonuses   $ 359,254     $ 195,000  
         Shares issued to consultants in lieu of cash payments   $ -     $ 43,750  
                 

Contact:
David Waldman or Natalya Rudman
Crescendo Communications, LLC
Email: mlss@crescendo-ir.com
Tel: 212-671-1020

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