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Note F - Investment in and Transactions with Unconsolidated Subsidiaries | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE F – INVESTMENT IN AND TRANSACTIONS WITH UNCONSOLIDATED SUBSIDIARIES Milestone China Ltd. Ownership 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. Related Party Transactions Milestone China is Milestone Scientific’s exclusive distributor in China. During 2017 and prior to the payment default during 2018, Milestone Scientific agreed to sell inventory to Milestone China and its agent. During 2018 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. Milestone Scientific collected $950,000 under the payment arrangement which resulted in a deferred revenue and deferred cost balance of $1.8 million and $1.25 million, respectively, prior to Milestone China’s default of the payment arrangement. Milestone China failed to make all the payments under the arrangement and due to the default on the arrangement and Milestone China’s liquidity constraints, Milestone Scientific halted shipments to Milestone China and 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 during the fourth quarter of 2018. During the year ended December 31, 2019, Milestone Scientific recognized gross revenue associated with 2018 delivered products to Milestone China and its agents of approximately $259,000, offset by accepted returns of approximately $104,000. During 2018, Milestone Scientific recognized $900,000 of related party sales of handpieces and instruments to Milestone China and its agent. As of December 31, 2018, Milestone Scientific had recorded deferred revenues and deferred costs associated with sales to Milestone China and it’s agents of $100,000 and $50,000, respectively. After 2019 collections, no deferred costs or deferred revenue remained as of December 31, 2019. Gross Profit Deferral 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 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 sales to Milestone China until that product is sold to third parties. At December 31, 2019 and 2018, the deferred profit was $340,476 and $421,800 respectively, which is included in deferred profit, related party in the consolidated balance sheets. For twelve months ended December 31, 2019 and 2018, Milestone Scientific recorded earnings on equity investment of $81,324 and $329,700 respectively, for product sold by Milestone China to third parties. Equity Method Disclosures As of December 31, 2019, and, 2018, Milestone Scientific's investment in Milestone China was $ 0 . As of December 31, 2019, and 2018, Milestone Scientific’s share of cumulative losses of Milestone China were $4,308,596 and $3,380,388, respectively, which have been suspended. The following table includes summarized financial information (unaudited) of Milestone China:
|  | December 31, 2019 |  |  | December 31, 2018 |
Assets: |  | (unaudited) |  |  | (unaudited) |
Current assets |  | $ | 8,392,858 |  |  | $ | 10,587,648 |
Non-current assets |  |  | 5,082,313 |  |  |  | 4,603,845 |
Total assets: |  | $ | 13,475,171 |  |  | $ | 15,191,493 |
Liabilities and stockholders’ deficit: |  |  |  |  |  |  |  |
Current liabilities |  | $ | 17,910,452 |  |  | $ | 17,696,393 |
Stockholders' deficit |  |  | (4,435,281 | ) |  |  | (2,504,900 | )
Total liabilities and stockholders’ deficit |  | $ | 13,475,171 |  |  | $ | 15,191,493 |
|  | December 31, 2019 |  |  | December 31, 2018 |
|  | (unaudited) |  |  | (unaudited) |
Net sales |  | $ | 3,401,025 |  |  | $ | 1,710,473 |
Cost of goods sold |  |  | 1,724,882 |  |  |  | 789,957 |
Gross profit |  |  | 1,676,143 |  |  |  | 920,516 |
Other expenses |  |  | (3,996,663 | ) |  |  | (1,371,085 | )
Net loss |  | $ | (2,320,520 | ) |  | $ | (450,569 | )

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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