Milestone Scientific Provides Business Update and Reports Financial Results for the Second Quarter of 2020

ROSELAND, NJ / ACCESSWIRE / August 17, 2020 / 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 second quarter and six months ending June 30, 2020.

Leonard Osser, Interim Chief Executive Officer of Milestone Scientific, commented, "As anticipated, the global pandemic had a negative impact on revenue for the second quarter due to reduced hours and closings of dental offices throughout the country and the rest of the world. Nevertheless, we are encouraged by the steady reopening of dental practices in the U.S. and Europe. In the meantime, we have utilized this period to significantly enhance our marketing activities, to better educate dentists on how The Wand® can help dentists rebuild their practice by providing a safer and more pleasant environment for patients and staff. With the recent appointment of Arjan Haverhals as Chief Executive Officer of Wand Dental, Inc., we have enhanced the sales and marketing activities around our dental instrument and are exploring new collaboration and distribution opportunities."

"Our primary focus remains commercialization of the CompuFlo® Epidural System, and we are moving ahead aggressively towards this goal. Although we experienced temporary setbacks due to COVID-19 with hospitals on complete lockdown, I am pleased to report our sales and business development pipeline is expanding. We are in late-stage discussions with a number of premier hospitals in the U.S. Moreover, the CathCheck™ technology has resonated well, given its ability to minimize contact between the patient and provider, which is especially important during the COVID-19 pandemic. Importantly, the CompuFlo® Epidural System is fully validated in terms of safety, efficacy and economics. For these reasons, we are as confident as ever that our technology will become the new standard of care."

"We ended the quarter with over $16.6 million of cash and cash equivalents as of June 30, 2020. As a result, we believe the strength of our balance sheet provides us with a substantial runway to help mitigate the risks related to COVID-19, as well as additional resources to accelerate sales and marketing activities around the CompuFlo Epidural System," concluded Mr. Osser.

For the three months ended June 30, 2020 and 2019, revenues were approximately $167,000 and $2.2 million, respectively. Dental revenues decreased by approximately $2.1 million, due to the impact of the COVID-19 pandemic on the Company's customers, suppliers, vendors, and other business partners. Gross profit for the second quarter ended June 30, 2020 was approximately $112,000, or 67% of revenue, versus approximately $1.5 million, or 68% of revenue for the second quarter ended June 30, 2019. Operating loss for the three months ended June 30, 2020 was approximately $(3.1) million versus $(1.1) million for the three months ending June 30, 2019. The increase in operating loss is due to decreased dental revenue. Net loss for the three months ended June 30, 2020 was approximately $(3.1) million, or $(0.06) per share, versus a net loss $(1.0) million, or $(0.02) per share, in the prior period.

For the six months ended June 30, 2020 and 2019, revenues were approximately $1.9 million and $4.1 million, respectively. Dental revenues decreased by approximately $2.1 million, which is related to decrease in sales of handpieces and devices throughout the country and internationally due to the COVID-19 pandemic. Gross profit for the first six months of 2020 was $1.3 million or 71% of revenue versus $2.8 million or 68% of revenue for the first six months of 2019. Operating loss for the first six months of 2020 was approximately $(4.7) million versus approximately $(1.9) million for the first six months of 2019. Net loss for the first six months of 2020 was $(4.7) million, or $(0.09) per share, versus net loss of $(1.8) million, or $(0.04) per share, for the comparable period in 2019.

Conference Call

Milestone Scientific's executive management team will host a conference call at 8:30 AM Eastern Time on Monday, August 17, 2020 to discuss the Company's financial results for the second quarter ended June 30, 2020, as well as the Company's corporate progress and other developments.

The conference call will be available on the Company's website at www.milestonescientific.com, or via telephone by dialing toll free 877-407-0778 for U.S. callers, or +1 201-689-8565 for international callers. For those unable to participate at that time, a replay of the call will be archived on the company's website or can be accessed by dialing 877-481-4010 for U.S. callers, or +1 919-882-2331 for international callers and entering the pass code 36611. The replay will be available for 90 days.

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, 2018. 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.

# # #

MILESTONE SCIENTIFIC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 

 
  June 30, 2020     December 31, 2019  
 
           
ASSETS
           
Current assets:
           
Cash and cash equivalents
  $ 16,610,217     $ 1,516,272  
Accounts receivable, net
    107,286       1,710,665  
Prepaid expenses and other current assets
    468,919       519,063  
Inventories, net
    1,852,453       1,620,509  
Advances on contracts
    842,180       710,662  
Total current assets
    19,881,055       6,077,171  
Furniture, fixtures and equipment, net
    30,925       44,976  
Patents, net
    355,755       382,260  
Right of use assets
    671,803       15,977  
Other assets
    24,150       35,905  
Total assets
  $ 20,963,688     $ 6,556,289  
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current liabilities:
               
Accounts payable
  $ 461,527     $ 1,379,425  
Accounts payable, related party
    519,393       1,358,752  
Accrued expenses and other payables
    1,048,006       775,055  
Accrued expenses, related party
    653,796       1,057,957  
Current portion of finance leases
    6,108       3,904  
Current operating lease right-of-use liabilities
    66,682       12,072  
Note payable
    272,099       -  
Deferred profit, related party
    340,476       340,476  
Total current liabilities
    3,368,087       4,927,642  
Finance lease liabilities, non-current
    32,596       -  
Operating lease right-of-use liabilities
    594,416       -  
Total liabilities
  $ 3,995,099     $ 4,927,642  
 
               
Commitments and contingencies
               
 
               
Stockholders' equity
               
Common stock, par value $.001; authorized 75,000,000 shares; 63,236,164 shares issued and 63,202,831 shares outstanding as of June 30, 2020; 49,410,176 shares issued and 49,376,843 shares outstanding as of December 31, 2019;
  $ 63,236     $ 49,410  
Additional paid in capital
    116,199,595       96,082,324  
Accumulated deficit
    (98,315,363 )     (93,524,297 )
Treasury stock, at cost, 33,333 shares
    (911,516 )     (911,516 )
Total Milestone Scientific Inc. stockholders' equity
    17,035,952       1,695,921  
Noncontrolling interest
    (67,363 )     (67,274 )
Total stockholders' equity
  $ 16,968,589       1,628,647  
Total liabilities and stockholders' equity
  $ 20,963,688     $ 6,556,289  

MILESTONE SCIENTIFIC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

 

 
  Three months ended June 30,     Six months ended June 30,  
 
  2020     2019     2020     2019  
Product sales, net
  $ 167,674     $ 2,257,851     $ 1,979,060     $ 4,173,759  
Cost of products sold
    55,626       752,183       615,326       1,370,876  
Gross profit
    112,048       1,505,668       1,363,734       2,802,883  
 
                               
Selling, general and administrative expenses
    3,176,768       2,517,970       5,929,580       4,627,023  
Research and development expenses
    108,170       95,529       215,650       101,875  
Total operating expenses
    3,284,938       2,613,499       6,145,230       4,728,898  
Loss from operations
    (3,172,890 )     (1,107,831 )     (4,781,496 )     (1,926,015 )
Interest income fees
    (4,062 )     (2,375 )     (8,159 )     (3,618 )
Change in fair value of derivative liability
    -       12,462       -       52,722  
Loss before provision for income taxes and net of equity investments
    (3,176,952 )     (1,097,744 )     (4,789,655 )     (1,876,911 )
Provision for income taxes
    (1,250 )     (14,163 )     (1,500 )     (18,627 )
Loss before equity in net earnings (losses) of equity investments
    (3,178,202 )     (1,111,907 )     (4,791,155 )     (1,895,538 )
Earnings from China Joint Venture
    -       (58,664 )     -       (49,100 )
Net loss
    (3,178,202 )     (1,053,243 )     (4,791,155 )     (1,846,438 )
Net loss attributable to noncontrolling interests
    11,738       11,959       24,476       22,402  
Net loss attributable to Milestone Scientific Inc.
  $ (3,166,464 )   $ (1,041,284 )   $ (4,766,679 )   $ (1,824,036 )
 
                               
Net loss per share applicable to common stockholders-
                               
Basic
  $ (0.06 )   $ (0.02 )   $ (0.09 )   $ (0.04 )
Diluted
  $ (0.06 )   $ (0.02 )   $ (0.09 )   $ (0.04 )
 
                               
Weighted average shares outstanding and to be issued-
                               
Basic
    56,694,793       45,366,237       51,728,806       41,904,581  
Diluted
    56,694,793       45,366,237       51,728,806       41,904,581  


SOURCE: Milestone Scientific, Inc.

 


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