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Note H - Investment in Unconsolidated Subsidiaries | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE H – INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES Advance Ocular Science SA Advanced Ocular Sciences SA ("Advanced Ocular") is a shell company attempting to develop an instrument to deliver injections into the eyes. As of December 31, 2017, Milestone Scientific owns 25% of this entity. During 2015, Milestone Scientific advanced $78,798 for marketing and strategy planning to Advance Ocular, or its organizers, were obligated to repay this advance if a public offering of Advanced Ocular equity was approved and funded in Poland during 2016. However, a public offering has yet to be completed in Poland. As a result, Milestone Scientific wrote-off the $78,798 advanced to Advanced Ocular as of December 31, 2016. Advance Ocular was not included in the consolidated financial statements at December 31, 2017 as no further investment has been made and there is no significant activity that would be considered material to the financial statements. Milestone China Ltd. In June 2014, Milestone Scientific invested $1 million in Milestone China Ltd. (“Milestone China”) by contributing 772 STA Instruments to Milestone China for a 40% ownership interest. Milestone Scientific recorded this investment under the equity method of accounting. Milestone Scientific recorded a loss on its investment in Milestone China of $0 and $795,827, as of December 31, 2017 and 2016, respectively. Milestone Scientific's investment in Milestone China was $0 as of December 31, 2017 and 2016, respectively. Milestone Scientific incurred cumulative losses on its investment in Milestone China of $3,147470 and $1,124,350 as of December 31, 2017 and 2016, respectively, which have been suspended. In June 2017, Milestone Scientific entered into an agreement for the sale of the Milestone China Shares to an unaffiliated United States domiciled purchaser and a 10 -year option agreement to repurchase the Milestone China Shares. The purchase price for the Milestone China Shares was $1,400,000 of which $125,000 was paid in cash and $1,275,000 was paid by delivery of a non-interest bearing secured promissory note. The note is payable in quarterly installments of $125,000 until paid in full and is secured by the Milestone China Shares until full repayment. In addition, pursuant to such note, the purchaser is precluded from selling all or substantially all its assets prior to repayment of the note. The 10 -year option agreement provides Milestone Scientific an option to repurchase the 40% equity interest at $1,400,000 within the first two years and at fair value (as defined in such agreement) for the remainder of the 10 -year term. The transaction has been accounted for as a secured financing and Milestone Scientific will continue to account for its relationship with Milestone China under the equity method of accounting. A note receivable is presented on the Balance Sheet, along with a deferral from financing transaction ( $1,400,000 ). The carrying value of the forty ( 40% ) percent investment at the transaction date was zero. As of March 2, 2018, the promissory note was in default. If Milestone Scientific exercises its rights as a secured party it may be obligated to return to the purchaser up to the $250,000 received for the Milestone China Shares as surplus. At this time Milestone Scientific has not received a response from the purchaser of the Milestone China Shares, Milestone Scientific has not recorded any financial benefit from the sale of Milestone China Shares to date. Milestone Scientific had $2,071,000 of related party sales of handpieces and instruments to Milestone China and Milestone China ’s agent for twelve months ended December 31, 2017. Milestone Scientific had $3,425,000 of related party sales of handpieces and instruments to Milestone China for twelve months ended December 31, 2016. Milestone Scientific defers the total revenue and costs of goods sold when instruments and handpieces are shipped to Milestone China and Milestone China’s agent due to market conditions and Milestone China liquidity concerns. Due to timing differences of when the inventory sold to Milestone China is recognized and when Milestone China sells the acquired inventory to third parties, an elimination of the intra-entity profit is required as of the balance sheet date. In accordance with ASC 323 Equity Method and Joint Ventures, Milestone Scientific has deferred 40% of the gross profit associated with recognized revenue from Milestone China that has not been sold to third parties. At December 31, 2017 and 2016, the deferred profit was $751,500 and $630,990, respectively, which is included in deferred profit, related party in the consolidated balance sheets. For twelve months ended December 31, 2017 and 2016, the loss on equity investment was $120,510 and $795,827, respectively, which is included in the consolidated statements of operation. The following table includes summarized financial information (unaudited) of Milestone China:
|  | December 31, 2017 |  |  | December 31, 2016 |
Assets: |  |  |  |  |  |  |  |
Current assets |  | $ | 13,127,422 |  |  | $ | 9,362,198 |
Non-current assets |  |  | 3,213,520 |  |  |  | 2,467,547 |
Total assets: |  |  | 16,340,942 |  |  |  | 11,829,745 |
Liabilities: |  |  |  |  |  |  |  |
Current liabilities |  |  | 18,468,937 |  |  |  | 9,900,611 |
Stockholders' equity |  |  | (2,127,995) |  |  |  | 1,929,134 |
Total liabilities and stockholders ’ equity |  | $ | 16,340,942 |  |  | $ | 11,829,745 |
|  | December 31, 2017 |  |  | December 31, 2016 |
Net sales |  | $ | 1,666,605 |  |  | $ | 1,126,484 |
Cost of goods sold |  |  | 477,200 |  |  |  | 976,106 |
Gross Profit |  |  | 1,189,405 |  |  |  | 150,378 |
Other Expenses |  |  | (6,247,205) |  |  |  | (2,834,980 | )
Net Losses |  | $ | (5,057,800) |  |  | $ | (2,684,602 | )

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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