Milestone Scientific Provides 2020 Year-End Business Update; Reports a 78% Sequential Increase in Revenue for Q4 2020 Versus ...
April 01 2021 - 7:30AM
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 full year ending December
31, 2020.
Arjan Haverhals, President of Milestone
Scientific and CEO of Wand Dental Inc., stated, "I am pleased to
report that our revenue for the fourth quarter of 2020 increased
sequentially by approximately $1 million, or 78% versus the third
quarter of 2020. Importantly, we carefully managed our operating
expenses during the year and reduced our net loss. We achieved
these strong results despite the impact of COVID-19, which shows
that we are successfully navigating the pandemic and are on a
growth trajectory. Our sales initiatives are working. We expanded
our dental distribution network to seven independent distributors
in the U.S., plus a new distributor in Canada. Through our new
decentralized sales strategy, we accomplished our goal of building
a robust distribution network in the U.S. We are encouraged by the
growing interest in our dental instrument, and we expect our growth
within the dental business to continue in 2021.”
“At the same time, we have made significant
progress over the past year advancing our commercial efforts around
the CompuFlo® Epidural Instrument and CathCheck™ System.
Specifically, we have added new distributors and begun to penetrate
key hospitals with our CompuFlo® Epidural Instrument and we expect
this trend to continue as we anticipate adding additional hospitals
in 2021. A key element of our sales strategy focuses on the
disposable components of our system, which we believe will
contribute to high margins and recurring revenue. We’re also
expanding our medical sales force, and now that new protocols are
in place at hospitals, we are better able to enter the hospitals
and have commenced a number of new pilot programs. Overall, the
response from both hospitals and physicians has been positive and
we are in a number of trials across the country that have the
potential to convert to additional commercial orders this
year.”
Leonard Osser, Interim Chief Executive Officer,
further noted, “We have a strong cash runway with over $14 million
of cash, cash equivalents and other short-term investments as of
December 31, 2020. In addition, the proceeds from the recent
exercise of warrants strengthens our balance sheet with an
additional $4 million of cash since November 2020. This liquidity,
combined with our improved cash flow, should help accelerate our
sales and marketing activities around both our dental and medical
instruments. We believe the strength of our balance sheet provides
us substantial runway to advance the development and
commercialization of other indications for our proprietary DPS
Dynamic Pressure Sensing Technology. We believe this technology
platform is quite broad with multiple indications in large and
underserved markets.”
For the years ended December 31, 2020 and 2019,
revenues were approximately $5.4 million and $8.3 million,
respectively. Dental revenues decreased by approximately $2.9
million, due to the impact of the COVID-19 pandemic on the
Company’s customers and other business partners. Gross profit for
the year ended December 31, 2020 was $3.6 million or 67% of revenue
versus $5.7 million or 68% of revenue for the year ended December
31, 2019. Operating loss for the year ended December 31, 2020 was
approximately $(7.5) million versus approximately $(4.0) million
for the year ended December 31, 2019. Net loss was approximately
$(7.3) million, or $(0.12) per share for the year ended December
31, 2020, versus net loss of $(7.5) million, or $(0.16) per share,
for the comparable period in 2019.
Conference Call
Milestone Scientific’s executive management team
will host a conference call at 4:30 PM Eastern Time on Thursday,
April 1, 2021 to discuss the Company’s financial results for the
full year ending December 31, 2020, as well as the Company’s
corporate progress and other developments.
The conference call will be available via
telephone by dialing toll free 1- 877-407-0778 for U.S. callers or
201-689-8565 for international callers. A webcast of the call may
be accessed here or on the Company’s website at
https://www.milestonescientific.com/.
An audio replay of the of the call will be
available through April 15, 2021 and can be accessed by dialing
877-481-4010 for U.S callers or 919-882-2331 for international
callers and by entering the access code:
40609.
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, 2020. 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.
(tables follow)
MILESTONE SCIENTIFIC AND SUBSIDIARIESCONSOLIDATED
BALANCE SHEETS
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,223,917 |
|
|
$ |
1,516,272 |
|
Accounts receivable, net |
|
|
1,080,656 |
|
|
|
1,710,665 |
|
Prepaid expenses and other
current assets |
|
|
415,915 |
|
|
|
519,063 |
|
Inventories, net |
|
|
2,420,179 |
|
|
|
1,620,509 |
|
Advances on contracts |
|
|
414,202 |
|
|
|
710,662 |
|
Total current assets |
|
|
18,554,869 |
|
|
|
6,077,171 |
|
Furniture, fixtures and
equipment, net |
|
|
30,729 |
|
|
|
44,976 |
|
Intangibles, net |
|
|
329,249 |
|
|
|
382,260 |
|
Right of use assets |
|
|
632,453 |
|
|
|
15,977 |
|
Other assets |
|
|
24,150 |
|
|
|
35,905 |
|
Total assets |
|
$ |
19,571,450 |
|
|
$ |
6,556,289 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
482,972 |
|
|
$ |
1,379,425 |
|
Accounts payable, related
party |
|
|
385,138 |
|
|
|
1,358,752 |
|
Accrued expenses and other
payables |
|
|
824,454 |
|
|
|
775,055 |
|
Accrued expenses, related
party |
|
|
586,734 |
|
|
|
1,057,957 |
|
Current portion of finance
leases liabilities |
|
|
7,796 |
|
|
|
3,904 |
|
Current portion of operating
lease right-of-use liabilities |
|
|
72,031 |
|
|
|
12,073 |
|
Deferred profit, related
party |
|
|
242,589 |
|
|
|
340,476 |
|
Note payable |
|
|
276,180 |
|
|
|
- |
|
Total current liabilities |
|
|
2,877,894 |
|
|
|
4,927,642 |
|
Finance lease liabilities |
|
|
28,607 |
|
|
|
- |
|
Operating lease
liabilities |
|
|
557,981 |
|
|
|
- |
|
Total liabilities |
|
$ |
3,464,482 |
|
|
$ |
4,927,642 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock, par value $.001;
authorized 85,000,000 shares; 64,171,435 shares issued and
64,138,102 shares outstanding as of December 31, 2020; 49,410,176
shares issued and 49,376,843 shares outstanding as of December 31,
2019; |
|
|
64,171 |
|
|
|
49,410 |
|
Additional paid in
capital |
|
|
117,934,696 |
|
|
|
96,082,324 |
|
Accumulated deficit |
|
|
(100,885,957 |
) |
|
|
(93,524,297 |
) |
Treasury stock, at cost,
33,333 shares |
|
|
(911,516 |
) |
|
|
(911,516 |
) |
Total Milestone Scientific
Inc. stockholders' equity |
|
|
16,201,394 |
|
|
|
1,695,921 |
|
Noncontrolling interest |
|
|
(94,426 |
) |
|
|
(67,274 |
) |
Total stockholders’
equity |
|
$ |
16,106,968 |
|
|
$ |
1,628,647 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
|
$ |
19,571,450 |
|
|
$ |
6,556,289 |
|
MILESTONE SCIENTIFIC AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF OPERATIONSYEARS ENDED DECEMBER 31, 2020 AND
2019
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
Product sales, net |
|
$ |
5,437,236 |
|
|
$ |
8,374,501 |
|
Cost of products sold |
|
|
1,815,924 |
|
|
|
2,656,142 |
|
Gross profit |
|
|
3,621,312 |
|
|
|
5,718,359 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
10,766,580 |
|
|
|
9,527,429 |
|
Research and development
expenses |
|
|
307,850 |
|
|
|
189,923 |
|
Total operating expenses |
|
|
11,074,430 |
|
|
|
9,717,352 |
|
Loss from operations |
|
|
(7,453,118 |
) |
|
|
(3,998,993 |
) |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
(24,790 |
) |
|
|
(10,408 |
) |
Interest income |
|
|
6,709 |
|
|
|
1,543 |
|
Change in fair value of
derivative liability |
|
|
- |
|
|
|
(3,635,580 |
) |
Loss before provision for
income taxes and net of equity investments |
|
|
(7,471,199 |
) |
|
|
(7,643,438 |
) |
Provision for income
taxes |
|
|
(15,500 |
) |
|
|
(18,126 |
) |
Loss before equity in net
earnings of equity investments |
|
|
(7,486,699 |
) |
|
|
(7,661,564 |
) |
Earnings from equity method
investment |
|
|
97,887 |
|
|
|
81,324 |
|
Net loss |
|
|
(7,388,812 |
) |
|
|
(7,580,240 |
) |
Net loss attributable to
noncontrolling interests |
|
|
51,539 |
|
|
|
55,872 |
|
Net loss attributable to
Milestone Scientific Inc. |
|
|
(7,337,273 |
) |
|
|
(7,524,368 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share applicable
to common stockholders— |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.12 |
) |
|
$ |
(0.16 |
) |
Diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding and to be issued— |
|
|
|
|
|
|
|
|
Basic |
|
|
63,061,358 |
|
|
|
45,740,050 |
|
Diluted |
|
|
63,061,358 |
|
|
|
45,740,050 |
|
Contact:David Waldman or Natalya
RudmanCrescendo Communications, LLCEmail: mlss@crescendo-ir.comTel:
212-671-1020
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