Milestone Scientific Reports Seven-Fold Sequential Increase in Dental Sales for Q3 2020 Versus Q2 2020
November 17 2020 - 8:00AM
Milestone Scientific Inc. (NYSE: MLSS), a leading
developer of computerized drug delivery instruments that provide
painless and precise injections, today provided a business update
and announced financial results for the third quarter and nine
months ending September 30, 2020.
Leonard Osser, Interim Chief Executive Officer
of Milestone Scientific, commented, "This quarter, our dental
business improved considerably as dental offices began to reopen
across the country and around the world. Specifically, our dental
sales increased more than seven-fold versus the second quarter of
2020. Importantly, our marketing initiatives and ‘back to work'
promotions have been well received, as we are working hard to
address the needs of both dentists and their patients during the
pandemic.”
"With a number of hospitals re-opening to
outside vendors, we are advancing our sales efforts and exploring
new collaboration opportunities around the CompuFlo® Epidural
System and CathCheck™. Most recently, we were awarded a group
purchasing agreement with Premier, a leading group purchasing
organization, with approximately 4,100 U.S. hospitals and 200,000
other providers within their network. This agreement is further
validation of the growing awareness and importance of our
instruments in improving health outcomes and lowering costs for
healthcare institutions. At the same time, we are expanding our
trials in major hospitals and medical schools, as well as
partnering with key opinion leaders to approach the purchasing
departments of hospitals together. We look forward to announcing
additional agreements with several premier hospitals as soon as
they are completed. Finally, we have a strong cash runway with over
$14 million of cash on hand as of September 30, 2020. This
liquidity, combined with our improved cash flow, will support our
ongoing activities, including accelerated marketing activities
around both our dental and medical instruments.”
For the three months ended September 30, 2020
and 2019, revenues were approximately $1.2 million and $1.9
million, respectively. Dental revenues decreased by approximately
$644,000, due to the impact of the COVID-19 pandemic on the
Company’s customers, suppliers, vendors, and other business
partners. Gross profit for the third quarter ended September 30,
2020 was approximately $836,000, or 67% of revenue, versus
approximately $1.4 million, or 72% of revenue for the third quarter
ended September 30, 2019. Operating loss for the three months ended
September 30, 2020 was approximately $(1.5) million versus $(1.0)
million for the three months ending September 30, 2019. The
increase in operating loss is due to decreased dental revenue. Net
loss for the three months ended September 30, 2020 was
approximately $(1.5) million, or $(0.02) per share, versus a net
loss $(2.8) million, or $(0.06) per share, in the prior period.
For the nine months ended September 30, 2020 and
2019, revenues were approximately $3.2 million and $6.1 million,
respectively. Dental revenues decreased by approximately $2.8
million, which is related to decrease in sales of handpieces and
devices throughout the country and internationally due to the
COVID-19 pandemic. Gross profit for the nine months of 2020 was
$2.2 million or 68% of revenue versus $4.2 million or 69% of
revenue for the first nine months of 2019. Operating loss for the
nine months of 2020 was approximately $(6.3) million versus
approximately $(2.9) million for the nine months of 2019. Net loss
for the nine months of 2020 was $(6.3) million, or $(0.11) per
share, versus net loss of $(4.7) million, or $(0.11) per share, for
the comparable period in 2019.
Conference Call
Milestone Scientific’s executive management team
will host a conference call at 8:30 AM Eastern Time Tuesday,
November 17, 2020 to discuss the Company’s financial results for
the third quarter ended September 30, 2020, 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 877-407-0778 for U.S. callers, or +1
201-689-8565 for international callers. 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 877-481-4010
for U.S. callers, or +1 919-882-2331 for international callers and
entering the pass code 38544. 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, 2018. 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.
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MILESTONE SCIENTIFIC AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED) |
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|
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September 30, 2020 |
|
|
December 31, 2019 |
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|
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ASSETS |
|
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|
|
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Current assets: |
|
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|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,448,903 |
|
|
$ |
1,516,272 |
|
Accounts receivable, net |
|
|
962,983 |
|
|
|
1,710,665 |
|
Prepaid expenses and other current assets |
|
|
527,059 |
|
|
|
519,063 |
|
Inventories, net |
|
|
2,229,760 |
|
|
|
1,620,509 |
|
Advances on contracts |
|
|
723,084 |
|
|
|
710,662 |
|
Total current assets |
|
|
18,891,789 |
|
|
|
6,077,171 |
|
Furniture, fixtures and equipment, net |
|
|
31,311 |
|
|
|
44,976 |
|
Patents, net |
|
|
342,501 |
|
|
|
382,260 |
|
Right of use assets |
|
|
655,870 |
|
|
|
15,977 |
|
Other assets |
|
|
24,150 |
|
|
|
35,905 |
|
Total assets |
|
$ |
19,945,621 |
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|
$ |
6,556,289 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
|
$ |
666,094 |
|
|
|
1,379,425 |
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Accounts payable, related party |
|
|
393,090 |
|
|
|
1,358,752 |
|
Accrued expenses and other payables |
|
|
1,147,698 |
|
|
|
775,055 |
|
Accrued expenses, related party |
|
|
593,625 |
|
|
|
1,057,958 |
|
Current portion of finance leases |
|
|
7,903 |
|
|
|
3,904 |
|
Current operating lease right-of-use liabilities |
|
|
68,934 |
|
|
|
12,072 |
|
Note payable |
|
|
276,180 |
|
|
|
- |
|
Deferred profit, related party |
|
|
340,476 |
|
|
|
340,476 |
|
Total current liabilities |
|
|
3,494,000 |
|
|
|
4,927,642 |
|
Finance lease liabilities, non-current |
|
|
30,624 |
|
|
|
- |
|
Operating lease right-of-use liabilities |
|
|
576,407 |
|
|
|
- |
|
Total liabilities |
|
$ |
4,101,031 |
|
|
$ |
4,927,642 |
|
|
|
|
|
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Commitments and contingencies |
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Stockholders' equity |
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Common stock, par value $.001; authorized 75,000,000 shares;
63,605,119 shares issued and 63,571,786 shares outstanding as of
September 30, 2020; 49,410,176 shares issued and 49,376,843 shares
outstanding as of December 31, 2019; |
|
|
63,605 |
|
|
|
49,410 |
|
Additional paid in capital |
|
|
116,577,241 |
|
|
|
96,082,324 |
|
Accumulated deficit |
|
|
(99,806,352 |
) |
|
|
(93,524,297 |
) |
Treasury stock, at cost, 33,333 shares |
|
|
(911,516 |
) |
|
|
(911,516 |
) |
Total Milestone Scientific Inc. stockholders' equity |
|
|
15,922,978 |
|
|
|
1,695,921 |
|
Noncontrolling interest |
|
|
(78,388 |
) |
|
|
(67,274 |
) |
Total stockholders' equity |
|
|
15,844,590 |
|
|
|
1,628,647 |
|
Total liabilities and stockholders' equity |
|
$ |
19,945,621 |
|
|
$ |
6,556,289 |
|
|
|
|
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MILESTONE SCIENTIFIC
AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED) |
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Three months ended
September 30, 2020 |
|
Three months ended
September 30, 2019 |
|
Nine months ended
September 30, 2020 |
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Nine months ended
September 30, 2019 |
Product sales, net |
$ |
1,246,110 |
|
|
$ |
1,899,821 |
|
|
$ |
3,225,170 |
|
|
$ |
6,073,580 |
|
Cost of
products sold |
|
409,621 |
|
|
|
523,672 |
|
|
|
1,024,947 |
|
|
|
1,894,550 |
|
Gross
profit |
|
836,489 |
|
|
|
1,376,149 |
|
|
|
2,200,223 |
|
|
|
4,179,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
2,291,779 |
|
|
|
2,314,943 |
|
|
|
8,221,359 |
|
|
|
6,941,964 |
|
Research and
development expenses |
|
21,438 |
|
|
|
7,940 |
|
|
|
237,089 |
|
|
|
109,815 |
|
Total
operating expenses |
|
2,313,217 |
|
|
|
2,322,883 |
|
|
|
8,458,448 |
|
|
|
7,051,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(1,476,728 |
) |
|
|
(946,734 |
) |
|
|
(6,258,225 |
) |
|
|
(2,872,749 |
) |
Interest
expense |
|
(569 |
) |
|
|
(2,449 |
) |
|
|
(8,727 |
) |
|
|
(6,067 |
) |
Change in
fair value of derivative liability |
|
- |
|
|
|
(1,899,484 |
) |
|
|
- |
|
|
|
(1,846,761 |
) |
Loss before
provision for income taxes and net of equity investments |
|
(1,477,297 |
) |
|
|
(2,848,667 |
) |
|
|
(6,266,952 |
) |
|
|
(4,725,577 |
) |
Provision
for income taxes |
|
(24,717 |
) |
|
|
(1,250 |
) |
|
|
(26,217 |
) |
|
|
(19,877 |
) |
Loss before
equity in net earnings (losses) of equity investments |
|
(1,502,014 |
) |
|
|
(2,849,917 |
) |
|
|
(6,293,169 |
) |
|
|
(4,745,454 |
) |
Earnings
from China Joint Venture |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
49,099 |
|
Net
loss |
|
(1,502,014 |
) |
|
|
(2,849,917 |
) |
|
|
(6,293,169 |
) |
|
|
(4,696,355 |
) |
Net loss
attributable to noncontrolling interests |
|
11,025 |
|
|
|
12,941 |
|
|
|
35,501 |
|
|
|
35,343 |
|
Net loss
attributable to Milestone Scientific Inc. |
$ |
(1,490,989 |
) |
|
$ |
(2,836,976 |
) |
|
$ |
(6,257,668 |
) |
|
$ |
(4,661,012 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share applicable to common stockholders-- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
Diluted |
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding and to be issued-- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
65,817,132 |
|
|
|
47,721,732 |
|
|
|
56,478,151 |
|
|
|
43,311,984 |
|
Diluted |
|
65,817,132 |
|
|
|
47,721,732 |
|
|
|
56,478,151 |
|
|
|
43,311,984 |
|
|
|
|
|
|
|
|
|
|
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Contact:David Waldman or Natalya RudmanCrescendo Communications,
LLCEmail: mlss@crescendo-ir.com Tel: 212-671-1020
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