Milestone Scientific Reports a 61% Increase in Revenue for Q1 2021
May 17 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 first quarter ended March
31, 2021.
Arjan Haverhals, President of Milestone
Scientific and CEO of Wand Dental Inc., stated, "I am pleased to
report that our revenue for the first quarter of 2021 increased
more than 61% to $2.9 million versus $1.8 million for the same
period last year. We also achieved a strong sequential increase in
sales of 32% versus the fourth quarter of 2020. We continue to
carefully manage our operating expenses and significantly reduced
our net loss during the quarter. Importantly, our dental segment
remains cash flow positive on a standalone basis with continued
growth opportunities. Our primary focus has been, and continues to
be, the commercialization of the CompuFlo Epidural System within
our medical segment. Specifically, now that we have penetrated
several medical institutions with our CompuFlo® Epidural Instrument
and CathCheck™ System, we are aggressively building our sales and
marketing organization as we prepare for the next phase of our
growth. We believe these latest commercial orders from several
recognized hospitals is validation that our technology provides a
level of safety and efficiency not currently available to medical
professionals using conventional syringes. We truly believe 2021
will be a transformative year for our medical business and an
important turning point as we execute on our goal of establishing
our medical instruments and disposables as the new standard of care
for epidural procedures in labor and delivery.”
Leonard Osser, Interim Chief Executive Officer,
further noted, “Our strong balance sheet with approximately $17
million of cash and cash equivalents as of March 31, 2021 provides
us substantial resources and the ability to accelerate our sales
and marketing activities around both our dental and medical
instruments. It also allows us to advance the development and
commercialization of other indications for our proprietary DPS
Dynamic Pressure Sensing Technology, which we believe represent
further growth opportunities for our company. Additionally, last
week we announced that we are promoting Arjan Haverhals to CEO and
hired Scott Kahn as our new CFO. Arjan has already proven his
exceptional leadership, and Scott will be instrumental, not only
overseeing our financial infrastructure, but also helping us to
increase investor awareness as we execute on key milestones. I look
forward to staying actively involved as Vice Chairman of the Board
and continuing to oversee our China operations.”
For the three months ended March 31, 2021 and
2020, revenues were approximately $2.9 million and $1.8 million,
respectively. Dental revenues increased by approximately $1.0
million, due to the re-opening of dental offices throughout the
country, the rest of the world, and China. Gross profit for the
first quarter ended March 31, 2021 was $1.8 million or 62% of
revenue versus $1.3 million or 71% of revenue for first quarter
ended March 31, 2020. The decrease in the gross profit margin is
due to the lower margin in sales to China. Operating loss for the
three months ended March 31, 2021 was approximately $(1.0) million
versus approximately $(1.6) million for the first quarter ended
March 31, 2020. Net loss was approximately $(1.0) million, or
$(0.01) per share for the three months ended March 31, 2021, versus
net loss of $(1.6) million, or $(0.03) per share, for the
comparable period in 2020.
Conference Call
Milestone Scientific’s executive management team
will host a conference call today at 11:00 A.M. Eastern Time to
discuss the Company’s financial results for the first quarter ended
March 31, 2021, 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 at https://www.webcaster4.com/Webcast/Page/2306/41369
or on the Company’s website at
https://www.milestonescientific.com/.
An audio replay of the of the call will be
available through May 31, 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: 41369.
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 SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED) |
|
|
|
|
|
|
|
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,950,710 |
|
|
$ |
14,223,917 |
|
Accounts receivable, net |
|
|
978,761 |
|
|
|
1,080,656 |
|
Accounts receivable, related
party net |
|
|
267,300 |
|
|
|
- |
|
Prepaid expenses and other
current assets |
|
|
688,820 |
|
|
|
415,915 |
|
Inventories, net |
|
|
2,020,549 |
|
|
|
2,420,179 |
|
Advances on contracts |
|
|
753,197 |
|
|
|
414,202 |
|
Total current assets |
|
|
21,659,337 |
|
|
|
18,554,869 |
|
Furniture, fixtures and
equipment, net |
|
|
27,074 |
|
|
|
30,729 |
|
Intangibles, net |
|
|
317,896 |
|
|
|
329,249 |
|
Right of use assets |
|
|
612,576 |
|
|
|
632,453 |
|
Other assets |
|
|
24,150 |
|
|
|
24,150 |
|
Total assets |
|
$ |
22,641,033 |
|
|
$ |
19,571,450 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
694,044 |
|
|
$ |
482,972 |
|
Accounts payable, related
party |
|
|
184,360 |
|
|
|
385,138 |
|
Accrued expenses and other
payables |
|
|
1,178,907 |
|
|
|
824,454 |
|
Accrued expenses, related
party |
|
|
382,627 |
|
|
|
586,734 |
|
Current portion of finance
leases liabilities |
|
|
7,977 |
|
|
|
7,796 |
|
Current portion of operating
lease right-of-use liabilities |
|
|
73,596 |
|
|
|
72,031 |
|
Deferred profit, related
party |
|
|
241,288 |
|
|
|
242,589 |
|
Note payable |
|
|
276,180 |
|
|
|
276,180 |
|
Total current liabilities |
|
|
3,038,979 |
|
|
|
2,877,894 |
|
Finance lease liabilities |
|
|
26,544 |
|
|
|
28,607 |
|
Operating lease
liabilities |
|
|
538,421 |
|
|
|
557,981 |
|
Total liabilities |
|
$ |
3,603,944 |
|
|
$ |
3,464,482 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock, par value $.001;
authorized 85,000,000 shares; 66,591,883 shares issued and
66,558,550 shares outstanding as of March 31, 2021; 64,171,435
shares issued and 64,138,102 shares outstanding as of December 31,
2020; |
|
|
66,591 |
|
|
|
64,171 |
|
Additional paid in
capital |
|
|
121,848,254 |
|
|
|
117,934,696 |
|
Accumulated deficit |
|
|
(101,858,826 |
) |
|
|
(100,885,957 |
) |
Treasury stock, at cost,
33,333 shares |
|
|
(911,516 |
) |
|
|
(911,516 |
) |
Total Milestone Scientific
Inc. stockholders' equity |
|
|
19,144,503 |
|
|
|
16,201,394 |
|
Noncontrolling interest |
|
|
(107,414 |
) |
|
|
(94,426 |
) |
Total stockholders’
equity |
|
|
19,037,089 |
|
|
|
16,106,968 |
|
Total liabilities and
stockholders’ equity |
|
$ |
22,641,033 |
|
|
$ |
19,571,450 |
|
|
|
|
|
|
|
|
|
|
|
MILESTONE SCIENTIFIC AND SUBSIDIARIESCONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(UNAUDITED) |
|
|
|
|
|
|
For the three months ended March 31, |
|
|
|
2021 |
|
|
2020 |
|
Product sales, net |
|
$ |
2,924,707 |
|
|
$ |
1,811,386 |
|
Cost of products sold |
|
|
1,122,413 |
|
|
|
527,250 |
|
Gross profit |
|
|
1,802,294 |
|
|
|
1,284,136 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
2,749,299 |
|
|
|
2,748,043 |
|
Research and development
expenses |
|
|
16,444 |
|
|
|
107,480 |
|
Depreciation and amortization
expense |
|
|
20,924 |
|
|
|
37,219 |
|
Total operating expenses |
|
|
2,786,667 |
|
|
|
2,892,742 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(984,373 |
) |
|
|
(1,608,606 |
) |
Interest expense, net |
|
|
(2,535 |
) |
|
|
(4,097 |
) |
Loss before provision for
income taxes and net of equity investments |
|
|
(986,908 |
) |
|
|
(1,612,703 |
) |
Provision for income
taxes |
|
|
(250 |
) |
|
|
(250 |
) |
Loss before equity in net
earnings of equity investments |
|
|
(987,158 |
) |
|
|
(1,612,953 |
) |
Income from China Joint
Venture |
|
|
1,301 |
|
|
|
- |
|
Net loss |
|
|
(985,857 |
) |
|
|
(1,612,953 |
) |
Net loss attributable to
noncontrolling interests |
|
|
(12,988 |
) |
|
|
(12,738 |
) |
Net loss attributable to
Milestone Scientific Inc. |
|
$ |
(972,869 |
) |
|
$ |
(1,600,215 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share applicable
to common stockholders— |
|
|
|
|
|
|
|
|
Basic |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
Diluted |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding and to be issued— |
|
|
|
|
|
|
|
|
Basic |
|
|
66,578,435 |
|
|
|
49,730,252 |
|
Diluted |
|
|
66,578,435 |
|
|
|
49,730,252 |
|
|
|
|
|
|
|
|
|
|
Contact:David Waldman or Natalya
RudmanCrescendo Communications, LLCEmail: mlss@crescendo-ir.comTel:
212-671-1020
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