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Note 12 - Related Party Transactions | 9 Months Ended
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Sep. 30, 2019
Notes to Financial Statements |
Related Party Transactions Disclosure [Text Block] | NOTE 12 -- RELATED PARTY TRANSACTIONS United Systems Milestone Scientific has a manufacturing agreement with United Systems (whose controlling shareholder, Tom Cheng, is a significant stockholder of Milestone Scientific), the principal manufacturers of its handpieces, pursuant to which it manufactures products under specific purchase orders, but without minimum purchase commitments. Purchases from this manufacturer were approximately $549,000 and $ 1.1 million for the three and nine months ended September 30, 2019 , respectively. Purchases from this this manufacturer were approximately $361,727 and $900,000 for the three and nine months ended September 30, 2018 respectively. As September 30, 2019 and December 31,2018, Milestone Scientific owed this manufacturer approximately $1.1 million, which is included in accounts payable, related party on the condensed consolidated balance sheets. In February 2019, Milestone Scientific board of directors granted United Systems (controlling shareholder, Tom Cheng) 285,714 shares of stock at $0.35 or $100,000 for consulting services. These shares were issued July 2019. During 2018 Milestone Scientific through its wholly owned subsidiary, Wand Dental, entered into an agreement with United Systems. The agreement was a Royalty Agreement for handpieces sold to Milestone China by United Systems. United Systems will pay Wand Dental a royalty equal to the net profit that Wand Dental would have received if the handpieces were sold directly to Milestone China or its Agent. As of September 30, 2019 and December 31, 2018, Wand Dental had deferred royalty income of $ 342,540 that will be recognized at the earlier of when payment of the royalties is received from United Systems or when collectability is deemed to be assured and is included in accounts receivable, related party and deferred revenue, related party on the condensed consolidated balance sheets. Also, during the year ended December 31, 2018, a Distribution Agreement was executed between Wand Dental and United Systems. Under the Distribution Agreement United Systems purchased 1,000 STA instruments in June 2018, for delivery to Milestone China. Due to the related party nature and collectability concerns Wand Dental has deferred the sale. During 2018, Milestone Scientific had recorded deferred revenues and deferred costs associated with the sale to United Systems of $750,000 and $686,365, respectively. Milestone Scientific entered into a payment arrangement with Milestone China to satisfy past due receivables from Milestone China and it’s agents which amounted to $ 2.8 million at the time of the payment arrangement. The payment terms required payments of $200,000 per month beginning in July 2018 through November 2018 and a balloon payment of approximately $1,425,000 during December 2018. Due to the default on the arrangement and Milestone China’s liquidity constraints, Milestone Scientific halted shipments to Milestone China. The Company has adjusted the accounts receivable related party and the deferred revenue related party based on the expected payment realization and recorded a reserve against the related deferred cost of $1.25 million which includes the sales to United Systems. The amounts due from United Systems described above are included in the adjustments and reserves for Milestone China. See Note 6. In July 2019, United System issued a credit to the Company for approximately $151,000 for handpieces founded to be defective. The Company recorded the credit in cost of sales since the Company previously recorded an allowance for against inventory during 2018. Milestone China Milestone Scientific owns a 40% interest in Milestone China. See Note 6. Other As of September 30, 2019 and December 31, 2018 Milestone Scientific recorded deferred compensation and accrued pension for Leonard Osser of approximately $222,000 and $387,000 respectively which is included accrued expenses related party. As of September 30, 2019 and December 31, 2018 Milestone Scientific recorded deferred compensation for Joseph D'Agostino of $ 20,000 , respectively which is included accrued expenses related party. As of September 30, 2019 and December 31, 2018 Milestone Scientific recorded deferred compensation and accrued pension for Gian Trombetta of approximately of $455,000 and 280,000 respectively which is included accrued expenses related party. In November 2016, K. Tucker Andersen, a significant stockholder of Milestone Scientific, entered into a three -year agreement with Milestone Scientific to provide financial and business strategic services. Expenses recognized on this agreement were $ 25,000 and $ 75,000 for the three and nine months ended September 30, 2019 and 2018, respectively. In January 2017, Milestone Scientific entered into a twelve -month agreement with Innovest S.p.A., a significant stockholder of Milestone Scientific, to provide consulting services. This agreement will renew for successive twelve -month terms unless terminated by Innovest S.p.A or Milestone Scientific. Expenses recognized on this agreement were $ 20,000 and $ 60,000 for the three and nine months ended September 30, 2019 and 2018, respectively. The Director of Clinical Affairs’ royalty fee was approximately $92,831 and $291,024 for the three and nine months ended September 30, 2019, respectively. The Director of Clinical Affairs’ royalty fee was approximately $77,907 and $284,437 for the three and nine months ended September 30, 2018, respectively. Additionally, Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of $39,000 and $117,000 for the three and nine months ended September 30, 2019 respectively. Milestone Scientific expensed consulting fees to the Director of Clinical Affairs of $39,000 and $146,751 for the three and nine months ended September 30, 2018 respectively. As of September 30, 2019 and December 31, 2018, Milestone Scientific owed the Director Clinical Affairs for royalties of approximately $416,000 and $364,000, respectively, which is included in accounts payable, related party and accrued expense, related party.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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