Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 12, 2014 | Jun. 28, 2013 | |
Document Document And Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'MILESTONE SCIENTIFIC INC. | ' | ' |
Entity Central Index Key | '0000855683 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $15,303,014 |
Entity Common Stock, Shares Outstanding | ' | 17,780,465 | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $1,147,198 | $165,249 |
Accounts receivable, net of allowance for doubtful accounts of $5,000 in 2013 and $179,259 in 2012 | 1,532,856 | 978,982 |
Inventories | 1,321,652 | 638,561 |
Advances on contracts | 727,478 | 476,969 |
Prepaid expenses and other current assets | 150,451 | 239,061 |
Total current assets | 4,879,635 | 2,498,822 |
Accounts receivable-long term, net of allowance for doubtful accounts of $167,971 in 2012 | ' | 119,201 |
Advances on contracts | 1,580,874 | 2,350,477 |
Investment in Milestone Medical Inc. | 924,115 | ' |
Investment in Milestone Education LLC | 42,082 | ' |
Furniture, Fixtures & Equipment net of accumulated depreciation of $476,884 as of December 31, 2013 and $458,708 as of December 31, 2012 | 23,988 | 36,624 |
Patents, net of accumulated amortization of $498,502 as of December 31, 2013 and $420,556 as of December 31, 2012 | 591,735 | 648,662 |
Other assets | 12,917 | 7,317 |
Total assets | 8,055,346 | 5,661,103 |
Current Liabilities: | ' | ' |
Accounts payable | 2,020,368 | 2,336,594 |
Accrued expenses and other payable | 515,132 | 581,407 |
Accrued interest on Notes Payable | ' | 356,563 |
Total current liabilities | 2,535,500 | 3,274,564 |
Long-term Liabilities: | ' | ' |
Notes payable | ' | 450,000 |
Total long-term liabilities | ' | 450,000 |
Commitments and Contingencies | ' | ' |
Stockholders’ Equity | ' | ' |
Preferred Stock, par value $.001, 5,000,000 shares | ' | ' |
Common stock, par value $.001; authorized 50,000,000 shares; 17,759,540 shares issued 1,839,930 shares to be issued and 17,726,207 shares outstanding as of December 31, 2013; 16,563,306 shares issued 1,635,709 shares to be issued and 16,529,973 shares outstanding as of December 31, 2012 | 19,599 | 18,199 |
Additional paid-in capital | 66,677,200 | 64,560,224 |
Accumulated deficit | -60,265,438 | -61,730,368 |
Treasury stock, at cost, 33,333 shares | -911,516 | -911,516 |
Total stockholders’ equity | 5,519,846 | 1,936,539 |
Total liabilities and stockholders’ equity | $8,055,346 | $5,661,103 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Condensed Balance Sheets Parenthetical [Line Items] | ' | ' |
Allowance for doubtful accounts | $5,000 | $179,259 |
Allowance for doubtful accounts noncurrent | ' | 167,971 |
Accumulated depreciation on Furniture, Fixtures & Equipment | 476,884 | 458,708 |
Accumulated amortization of patents | $498,502 | $420,556 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 17,759,540 | 16,563,306 |
Common stock, shares to be issued | 1,839,930 | 1,635,709 |
Common stock, shares outstanding | 17,726,207 | 16,529,973 |
Treasury stock, at cost | 33,333 | 33,333 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Product sales, net | $10,011,420 | $8,648,242 |
Cost of products sold | 3,198,908 | 3,055,991 |
Gross profit | 6,812,512 | 5,592,251 |
Selling, general and administrative expenses | 5,534,463 | 5,930,625 |
Research and development expenses | 191,345 | 181,979 |
Total operating expenses | 5,725,808 | 6,112,604 |
Income (loss) from operations | 1,086,704 | -520,353 |
Other income (expense) | ' | ' |
Other income | 17,543 | ' |
Interest income | 115 | 34 |
Interest expense | -70,801 | -175,905 |
Interest-Amortized debt issuance - cost | 0 | -3,065 |
Loss on Earnings from Medical Joint Venture | -924,363 | -171,016 |
Loss on Earnings from Education Joint Venture | -7,918 | ' |
Gain on Dilutive Effect on Medical Joint Venture stock issuance | 1,363,650 | ' |
Total other expense, net | 378,226 | -349,952 |
Income (loss) | 1,464,930 | -870,306 |
Provision for Income Tax | ' | ' |
Net Income (loss) | $1,464,930 | ($870,306) |
Net income (loss) per share applicable to common stockholders - | ' | ' |
Basic | $0.09 | ($0.05) |
Diluted | $0.08 | ($0.05) |
Weighted average shares outstanding and to be issued - | ' | ' |
Basic | 17,127,468 | 16,080,474 |
Diluted | 17,483,638 | 16,080,474 |
Statement_of_Changes_in_Stockh
Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning Balance at Dec. 31, 2011 | $1,936,317 | $17,058 | $63,690,837 | ($60,860,062) | ($911,516) |
Beginning Balance, shares at Dec. 31, 2011 | ' | 17,058,335 | ' | ' | ' |
Options issued to employees and consultants | 177,987 | ' | 177,987 | ' | ' |
Common stock to be issued to employee for bonuses | 237,000 | 230 | 236,770 | ' | ' |
Common stock to be issued to employee for bonuses, shares | 229,705 | 229,705 | ' | ' | ' |
Issuance of common stock for cash | 150,000 | 107 | 149,893 | ' | ' |
Sale of Common Stock, shares | 107,143 | 107,143 | ' | ' | ' |
Common stock issued for directors compensation | 45,000 | 155 | 44,845 | ' | ' |
Common stock issued for directors compensation, shares | 155,172 | 155,172 | ' | ' | ' |
Common stock issued for payment of consulting services to settle accounts payable | 217,415 | 543 | 216,872 | ' | ' |
Common stock issued for payment of consulting services to settle accounts payable, shares | 543,209 | 543,209 | ' | ' | ' |
Common stock issued for payment of employee compensation | 43,125 | 105 | 43,020 | ' | ' |
Common stock issued for payment of employee compensation, shares | 105,451 | 105,451 | ' | ' | ' |
Net income (loss) | -870,306 | ' | ' | -870,306 | ' |
Exercise of stock options, shares | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 1,936,539 | 18,199 | 64,560,224 | -61,730,368 | -911,516 |
Ending Balance, shares at Dec. 31, 2012 | ' | 18,199,015 | ' | ' | ' |
Options issued to employees and consultants | 219,196 | ' | 219,196 | ' | ' |
Common stock to be issued to employee for bonuses | 312,000 | 204 | 311,796 | ' | ' |
Common stock to be issued to employee for bonuses, shares | 204,222 | 204,222 | ' | ' | ' |
Issuance of common stock for cash | 200,000 | 136 | 199,864 | ' | ' |
Sale of Common Stock, shares | 135,714 | 135,714 | ' | ' | ' |
Common stock issued for directors compensation | 45,000 | 39 | 44,961 | ' | ' |
Common stock issued for directors compensation, shares | 39,129 | 39,129 | ' | ' | ' |
Common stock issued for payment of consulting services to settle accounts payable | 400,000 | ' | ' | ' | ' |
Common stock issued for payment of consulting services to settle accounts payable, shares | 312,956 | ' | ' | ' | ' |
Common stock issued for payment of employee compensation | 47,500 | 37 | 47,463 | ' | ' |
Common stock issued for payment of employee compensation, shares | 37,425 | 37,425 | ' | ' | ' |
Net income (loss) | 1,464,930 | ' | ' | 1,464,930 | ' |
Common stock issued for payment of consulting services | 400,000 | 313 | 399,687 | ' | ' |
Common stock issued for payment of consulting services. shares | ' | 329,622 | ' | ' | ' |
Common stock issued for conversion of notes payable and accrued interest | 860,080 | 614 | 859,466 | ' | ' |
Common stock issued for conversion of notes payable and accrued interest, shares | 614,344 | 614,344 | ' | ' | ' |
Exercise of stock options | 34,600 | 57 | 34,543 | ' | ' |
Exercise of stock options, shares | 56,666 | 56,666 | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | $5,519,846 | $19,599 | $66,677,200 | ($60,265,438) | ($911,516) |
Ending Balance, shares at Dec. 31, 2013 | ' | 19,599,470 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $1,464,930 | ($870,306) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation expense | 18,176 | 18,816 |
Amortization of patents | 77,947 | 76,317 |
Amortization of debt discount | 0 | 3,065 |
Common stock and options issued for compensation, consulting, and vendor services | 1,077,213 | 673,691 |
Increase in accrued interest for notes payable | ' | 87,016 |
Bad debt reversal | -308,350 | -207,650 |
Loss on sale/disposal of equipment | ' | 1,604 |
Loss on Earnings from Medical Joint Venture | 924,363 | 171,016 |
Loss on Earnings from Education Joint Venture | 7,918 | ' |
Gain on Dilutive Effect on Medical Joint Venture | -1,363,650 | ' |
Write-off of Investment in German Distributor | ' | 76,319 |
Changes in operating assets and liabilities: | ' | ' |
(Increase) Decrease in accounts receivable | -126,323 | 525,182 |
(Increase) Decrease in inventories | -683,091 | 151,933 |
Decrease to advances on contracts | 519,094 | 579,060 |
Decrease to prepaid expenses and other current assets | 88,610 | 65,119 |
(Increase) Decrease in other assets | -5,600 | 20,502 |
(Decrease) in accounts payable | -316,226 | -1,594,937 |
(Decrease) Increase in accrued expenses | -116,275 | 173,535 |
Net cash provided by (used in) operating activities | 1,258,736 | -49,718 |
Cash flows from investing activities: | ' | ' |
Investment in Education Joint Venture | -50,000 | ' |
Investment in Medical Joint Venture | -484,828 | ' |
Purchases of property and equipment | -5,539 | -4,735 |
Payments for patent rights | -21,020 | -26,622 |
Net cash used in investing activities | -561,387 | -31,357 |
Cash flows from financing activities: | ' | ' |
Proceeds from exercise of stock options | 34,600 | ' |
Proceeds from the sale of common stock | 200,000 | 150,000 |
Proceeds from related party loan | 50,000 | ' |
Net cash provided by financing activities | 284,600 | 150,000 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 981,949 | 68,925 |
Cash and cash equivalents at beginning of year | 165,249 | 96,324 |
Cash and cash equivalents at end of year | 1,147,198 | 165,249 |
Supplemental disclosure of non cash investing and financing activities: | ' | ' |
Shares issued to directors for the exercise of stock options | 34,600 | ' |
Shares issued to directors for compensation | 45,000 | 45,000 |
Shares issued for conversion of notes payable and accrued interest | 860,081 | ' |
Shares issued to employees in lieu of cash compensation | 47,500 | 43,125 |
Shares issued to settle accounts payable | 400,000 | 217,415 |
Gain on Dilutive Effect on Medical Joint Venture stock issuance | $1,363,650 | ' |
Organization_Business_and_Basi
Organization, Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Business and Basis of Presentation | ' |
NOTE A — ORGANIZATION, BUSINESS AND BASIS OF PRESENTATION | |
Milestone Scientific Inc. (“Milestone”) or (“our”) was incorporated in the State of Delaware in August 1989. Milestone has developed a proprietary, computer-controlled anesthetic delivery instrument, through the use of The Wand, a single use disposable handpiece. The instrument is marketed in dentistry under the trademark CompuDent, Wand Plus and STA (Single Tooth Anesthesia) and in medicine under the trademark CompuMed. CompuDent is suitable for all dental procedures that require local anesthetic. CompuMed and Wand Plus are suitable for many medical procedures regularly performed in Plastic Surgery, Hair Restoration Surgery, Podiatry, Colorectal Surgery, Dermatology, Orthopedics and a number of other disciplines. The instruments are sold in the United States and in over 47 countries abroad. Milestone’s products are manufactured by a third-party contract manufacturer. | |
Milestone had incurred significant operating losses since its inception. Milestone had positive cash flows from operating activities at December 31, 2013 of $1,258,736 and a negative cash flow from operating activities at December 31, 2012 of $49,718. At December 31, 2013, Milestone had cash and cash equivalents and a positive working capital of $1,147,198 and $2,344,135, respectively. The working capital increased of $3,199,877 as compared to 2012. The positive change in working capital is due to Milestone’s increase in current assets (cash and accounts receivable) and a substantial reduction in accounts payable. Milestone borrowed $450,000 in 2008 from a shareholder. This note and the related accrued interest was converted to common stock on August 8, 2013. Milestone is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue based upon management’s assessment of present contracts and current negotiations and reductions in operating expenses. As of December 31, 2013, Milestone does not expect to have sufficient cash reserves to meet all of its anticipated obligations for the next twelve months. Milestone may require the need for a higher level of marketing and sales efforts that at present it cannot fund. If Milestone is unable to continue to generate positive cash flows from its operating activities it will need to raise additional capital. There is no assurance that Milestone will be able to achieve positive operating cash flows or that traditional capital can be raised on terms and conditions satisfactory to Milestone, if at all. If positive cash flow cannot continue to be achieved or if additional capital is required and it cannot be raised, then Milestone would be forced to curtail its development activities, reduce marketing expenses for existing dental products or adopt other cost saving measures, any of which might negatively affect Milestone’s operating results. | |
Milestone’s recurring losses, and the matters discussed above, raise substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Significant Accounting Policies | ' | ||||||||
NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
1. Cash and Cash Equivalents | |||||||||
Milestone considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||
2. Accounts Receivable | |||||||||
The realization of Accounts Receivable current and long-term will have a significant impact on Milestone. Consequently, Milestone estimates losses resulting from the inability of its customers to make payments for amounts billed. The collectability of outstanding amounts is continually assessed (historical trend and credit worthiness of the customers). | |||||||||
3. Product Return and Warranty | |||||||||
Milestone does not accept non-defective returns from its customers. Product returns under warranty are accepted, evaluated and repaired or replaced in accordance with the Warranty Policy. Returns not within the Warranty Policy are all evaluated and the customer is charged for the repair. Warranty expense was $97,234 and $87,544 for 2013 and 2012, respectively. Non-Warranty repairs are collected from the customers. Non-Warranty repair income was $118,344 and $107,868 for 2013 and 2012, respectively. | |||||||||
4. Inventories | |||||||||
Inventories principally consist of finished goods and component parts stated at the lower of cost (first-in, first-out method) or market. Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess and obsolete inventory is recorded if required based on past and expected future sales. | |||||||||
5. Investment in Joint Ventures | |||||||||
Milestone has entered into a Joint Venture with a third party for the development and commercialization of two medical instruments. At inception, Milestone owned fifty percent of the joint venture and has recorded its investment on the equity basis of accounting. Milestone’s proportionate share of losses incurred by the Joint Venture is charged to the Statement of Operations and adjusted against the Investment in Joint Venture. In the fourth quarter of 2013, the Medical Joint Venture issued 2 million shares of its common stock in a private placement transaction. As a result of the shares being issued, Milestone’s ownership in the Joint Venture was reduced to 45.5%. Milestone recorded a $1,363,650 Gain on the Dilutive Effect of these additional shares issued by Milestone Medical Inc. | |||||||||
6. Furniture, Fixture and Equipment | |||||||||
Equipment is recorded at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. The costs of maintenance and repairs are charged to operations as incurred. | |||||||||
7. Investments | |||||||||
Investments in less than twenty percent owned entities are accounted for under the cost basis and are reviewed for impairment periodically. Milestone does not have any significant control over the operations of its investment in a German Distributor. In the fourth quarter of 2012, Milestone wrote off its total investment of $76,319 based on low performance and continued losses with that distributor. This expense is included within the selling, general and administrative expenses on the statement of operation for the year ended December 31, 2012. | |||||||||
8. Patents | |||||||||
Patents are recorded at actual cost to prepare and file the applicable documents with the United States Patent Office, or internationally with the applicable governmental office in the respective country. Although certain patents have not yet been approved, the costs related to these patents are being amortized using the straight-line method over the estimated useful life of the patent. If the applicable patent application is ultimately rejected, the remaining unamortized balance will be expensed in the period in which Milestone receives a notice of such rejection. Patent applications filed and patents obtained in foreign countries are subject to the laws and procedures that differ from those in the United States. Patent protection in foreign countries may be different from patent protection under United States laws and may not be favorable to Milestone. Milestone also attempts to protect the proprietary information through the use of confidentiality agreements and by limiting access to the facilities. There can be no assurance that the program of patents, confidentiality agreements and restricted access to the facilities will be sufficient to protect the proprietary technology. | |||||||||
9. Impairment of Long-Lived Assets | |||||||||
Milestone reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. The carrying value of the assets is evaluated in relation to the operating performance and future undiscounted cash flows of the underlying assets. Milestone adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. Milestone has reviewed long-lived assets for impairment and concluded no impairment exist as of December 31, 2013 and, 2012. | |||||||||
10. Revenue Recognition | |||||||||
Revenue from product sales is recognized net of discounts and allowances to the domestic distributor on the date of shipment of the goods, for essentially all shipments, since the terms are FOB warehouse. Milestone recognizes revenue on date of arrival where shipments are FOB destination. Shipments to the international distributors are FOB warehouse and revenue is therefore recognized on shipment. In both cases, the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone has no obligation on these sales for any post sale installation, set-up or maintenance, these being the responsibility of the buyer. Customer acceptance is considered made at delivery. The only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period. | |||||||||
11. Shipping and Handling Costs | |||||||||
Milestone includes shipping and handling costs in cost of goods sold. These costs are billed to customers at the time of shipment for domestic shipments. International shipments are FOB warehouse, therefore no costs are incurred by Milestone. | |||||||||
12. Research and Development | |||||||||
Research and development costs, which consist principally of new product development costs incurred to third parties, are expensed as incurred. | |||||||||
13. Advertising Expenses | |||||||||
Milestone expenses advertising costs as they are incurred. For the years ended December 31, 2013 and 2012, Milestone recorded advertising expenses of $30,104 and $51,412, respectively. | |||||||||
14. Income Taxes | |||||||||
Milestone accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The income tax provision or credit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. | |||||||||
15. Basic and diluted net loss per common share | |||||||||
Milestone presents “basic” earnings (loss) per common share applicable to common stockholders and, if applicable, “diluted” earnings (loss) per common share applicable to common stockholders pursuant to the provisions of Statement of Financial Accounting Standards ASC Topic 260. Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued during each period. The calculation of diluted earnings per common share is similar to that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options, warrants, and the conversion of debt were issued during the period. | |||||||||
Since Milestone had net losses for 2012, the assumed effects of the exercise of outstanding stock options and warrants were not included in the calculation as their effect would have been anti-dilutive. Such outstanding options and warrants totaled 1,523,740 at December 31, 2012. | |||||||||
16. Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the allowance for doubtful accounts, inventory valuation, and cash flow assumptions regarding evaluations for impairment of long-lived assets and valuation allowances on deferred tax assets. Actual results could differ from those estimates. | |||||||||
17. Fair Value of Financial Instruments | |||||||||
Fair Value Measurements: We follow the provisions of ASC 820, Fair Value Measurements and Disclosures related to financial assets and liabilities that are being measured and reported on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market at the measurement date (exit price). We are required to classify fair value measurements in one of the following categories: | |||||||||
Level 1 inputs which are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||
Level 2 inputs which are defined as inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly. | |||||||||
Level 3 inputs are defined as unobservable inputs for the assets or liabilities. | |||||||||
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may effect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||
18. Stock-Based Compensation | |||||||||
Milestone accounts for stock-based compensation under ASC Topic 718, Share-Based Payment. ASC Topic 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statements of operations over the service period, as an operating expense, based on the grant-date fair values. | |||||||||
The weighted-average fair value of the options granted during 2013 and 2012 was estimated as $1.62 and $0.95, respectively, on the date of grant. The fair value for 2013 and 2012 was determined using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Volatility | 168 | % | 172 | % | |||||
Risk-free interest rate | 1.37 | % | 0.79 | % | |||||
Expected life | 5 years | 5 years | |||||||
Dividend yield | 0 | % | 0 | % | |||||
Forfeiture Rate | 6 | % | 6 | % | |||||
Issuances of common stock, stock options or other equity instruments to non-employees as consideration for goods or services received by Milestone are accounted for based on the fair value of the equity instruments issued (unless the fair value of the consideration received can be more reliably measured). The fair value of any options or similar equity instruments issued is estimated based on the Black-Scholes option-pricing model, and the assumption that all of the options or other equity instruments will ultimately vest. Such fair value is measured as of an appropriate date pursuant to the guidance in the consensus of the party becomes committed to provide goods or services or the date performance by the other party is complete and capitalized or expensed as if Milestone had paid cash for the goods or services. | |||||||||
Expected volatilities are based on historical volatility of Milestone’s common stock over a period commensurate with expected term. Milestone uses historical data to estimate option exercise and employee termination within the valuation model. Milestone has granted performance based options to the chief executive officer. Such performance based options are earned based on specific criteria established by Milestone. Milestone records these options based on the likelihood of the officer achieving the specified performance objective and accrues these costs over the performance period. The estimates inherent in making this assessment are reviewed periodically by management and the resulting changes are booked through the statement of operations. | |||||||||
19. Concentration of Credit Risk | |||||||||
Milestone’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and trade accounts receivable, and advances to contract manufacturer. Milestone places its cash and cash equivalents with large financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. Milestone has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks. Financial instruments which potentially subject Milestone to credit risk consist principally of trade accounts receivable, as Milestone does not require collateral or other security to support customer receivables, and advances to contract manufacturer. Milestone entered into a purchase agreement with a vendor to supply Milestone with 12,000 STA Instrument (6,611 instruments are remaining on the purchase order as of December 31, 2013). As part of these agreements, Milestone has advanced approximately $2,308,000 and $2,827,000 to the vendor for purchase of materials at December 31, 2013 and 2012, respectively. The advance will be credited to Milestone as the goods are delivered. Milestone does not believe that significant credit risk exists with respect to this advance to the contract manufacturer at December 31, 2013 and 2012. | |||||||||
Milestone closely monitors the extension of credit to its customers while maintaining allowances, if necessary, for potential credit losses. On a periodic basis, Milestone evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. Management has provided a reserve that it believes is sufficient to record accounts receivable at net realizable value as of December 31, 2013 and 2012. | |||||||||
A shareholder of Milestone, who owns or controls in excess of five percent of Milestone’s common stock, is also a shareholder of a major supplier of handpieces to Milestone. In addition, he is an investor in the PRC entity, Beijing 3H, which entered into a joint venture agreement with Milestone. | |||||||||
Milestone purchased $3,026,041 and $1,966,077 from the supplier for the years ended December 31, 2013 and 2012, respectively. Milestone owed $1,024,653 and $808,908 to this supplier as of December 31, 2013 and 2012, respectively. | |||||||||
20. Recent Accounting Pronouncements | |||||||||
In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 did not have a material impact on Milestone’s financial position or results of operations. | |||||||||
In February 2013, the FASB issued Accounting Standards Update ("ASU") 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). ASU 2013-02 requires an entity to present the effect of certain significant reclassifications out of accumulated other comprehensive income on the respective line items in net income. The amendments in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2013-02 is effective for public companies on a prospective basis for fiscal years beginning after December 15, 2012. As an emerging growth company as defined by the JOBS Act, the Company has delayed adoption of this pronouncement. However, the Company has not incurred any components of comprehensive income for the periods presented and the ASU requires only additional presentation, as such, there will be no impact to the Company's results of operations or financial position upon adoption. | |||||||||
In September 2013 the United States Treasury Department and the IRS issued final and proposed regulations (the “Tangible Property Regulations”) effective for tax years beginning on or after January 1, 2014, that provided guidance on a number of matters with regard to tangible property, including whether expenditures qualified as deductible repairs, the treatment of materials and supplies, capitalization of tangible property, dispositions of property and related elections. The Company has evaluated the regulations and has determined that they do not have a material impact on the Company’s financial reporting. |
Accounts_Receivable_Current_an
Accounts Receivable - Current and Long Term | 12 Months Ended |
Dec. 31, 2013 | |
Accounts Receivable - Current and Long Term | ' |
NOTE C — ACCOUNTS RECEIVABLE – CURRENT AND LONG TERM | |
Milestone sells a significant amount of its product on credit terms to its major distributors. Milestone estimates losses from the inability of its customers to make payments on amounts billed. A majority of credit sales are due within ninety days from invoicing. In 2010, Milestone shipped a significant order to a major international distributor. At the time of the shipment, regulatory approval to sell the product in the respective country was in process. Obtaining such regulatory approval was not a condition of the purchase order and sale to the distributor. The regulatory approval has been delayed and as such the customer has not paid the full amount of the invoiced shipment. Milestone is receiving periodic payments from the international distributor. Based on the periodic payment plan prepared by the international distributor, Milestone had recorded a long term net accounts receivable of $119,201 as of December 31, 2012. The current portion of this net accounts receivable was $99,621 and Milestone had reserved $308,350 of the total accounts receivable from this distributor as December 31, 2012, which was reversed in 2013 after payment occurred. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories | ' | ||||||||
NOTE D — INVENTORIES | |||||||||
December 31 | |||||||||
2013 | 2012 | ||||||||
Inventories consist of the following: | |||||||||
Finished Goods | $ | 1,186,376 | $ | 476,340 | |||||
Component parts and other materials | 135,276 | 162,221 | |||||||
$ | 1,321,652 | $ | 638,561 | ||||||
Advances_on_Contracts
Advances on Contracts | 12 Months Ended |
Dec. 31, 2013 | |
Advances on Contracts | ' |
NOTE E — ADVANCES ON CONTRACTS | |
Milestone has entered into fixed arrangements with a contract manufacturer to manufacture STA, CompuDent and Wand Plus. The contract manufacturer bills Milestone as the work progresses and it is Milestone’s policy is to record these billings as advances on contracts. These advances are reclassified into inventory when the contract manufacturer ships the product and title passes to Milestone. The balance of the advances as of December 31, 2013 and 2012 totaled $2,308,352 and $2,827,446, respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory. Milestone also has an outstanding accounts payable of approximately $37,000 and $705,000 at December 31, 2013 and 2012, respectively to the contract manufacturer related to the progress billings received. Milestone charged to operations approximately $60,000 of STA parts that had expired shelf life and $135,000 of parts for the CompuDent and Wand Plus at December 31, 2012, due to the high cost of producing additional instruments. |
Investment_in_Joint_Ventures
Investment in Joint Ventures | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Investment in Joint Ventures | ' | |||||||
NOTE F — INVESTMENT IN JOINT VENTURES | ||||||||
In March 2011, Milestone entered into an agreement with a People’s Republic of China (“PRC”) entity Beijing 3H Scientific Technology Co., Ltd (Beijing 3H), to establish a Medical Joint Venture entity in the PRC to develop intra-articular and epidural drug delivery instruments utilizing Milestone’s patented CompuFlo technology (the “Medical Joint Venture”). Beijing 3H, agreed to contribute up to $1.5 million to this Medical Joint Venture entity, based on progress reports from Milestone and subject to refund if the instruments are not developed because of technological problems within 30 months of the inception date. Milestone evaluates the technological feasibility of the products to be developed using the CompuFlo technology periodically and at every reporting date to establish if circumstances indicate that the technology continues to be feasible. Based on the available evidence Milestone concluded that the contingency associated with the return of capital to Beijing 3H no longer existed as of December 31, 2013, since the instruments have advanced beyond the development state and accordingly no amounts have been accrued in the accompanying financial statements relating to this contingency. Milestone, with the consent of Beijing 3H, organized a domestic research and development corporation to which Beijing 3H made a capital contribution of $1,500,000. The Medical Joint Venture entity was initially owned fifty percent by the Beijing 3H and fifty percent by Milestone. Milestone contributed an exclusive worldwide royalty-free license to use CompuFlo technology to the Medical Joint Venture which has been valued at approximately $245,000 and has accounted for its investment in the Medical Joint Venture using the equity method of accounting. Further, Milestone was authorized by the Medical Joint Venture to manage and oversee the development of the two products for the Medical Joint Venture. In connection with this authorization, Milestone also entered into an agreement with a significant vendor to develop the two instruments included in the Medical Joint Venture. | ||||||||
Milestone will have distribution responsibility in the U.S. and Canada. Beijing 3H will distribute products exclusively in the PRC, Macao, Hong Kong and other regions of Asia. The rest of the world responsibilities will be shared by Milestone and Beijing 3H. | ||||||||
Milestone recorded a Loss on Medical Joint Venture of $924,363, of which $509,803 is from 2013 operations and $414,561 is from suspended losses in 2012 and prior years. The losses described represent fifty percent of the applicable losses record by medical joint venture during the periods. Milestone utilizes the equity method of accounting to recognize its financial results of the joint venture. | ||||||||
Milestone expended approximately $225,979 on behalf of the joint venture in the year ended December 31, 2013 for legal fees related to the FDA (510k) certifications. As part of the joint venture agreement, Milestone is to pay all fees related to the USA FDA certification process. | ||||||||
The Medical Joint Venture’s cumulative expenses since inception are approximately $2.4 million. Milestone has an investment in the Joint Venture of $924,115 at December 31, 2013 and there are no remaining suspended losses. | ||||||||
Milestone provides management, financial, engineering and accounting services to Milestone Medical, Inc the value of these services prior to July 31, 2013, of which approximately $336,000 was not reimbursed by Milestone Medical, Inc. | ||||||||
As of July 1, 2013, Milestone Scientific Inc. and Milestone Medical Inc., signed an agreement for the reimbursement of specific expenses incurred by Milestone Scientific Inc. specifically for the benefit of Milestone Medical Inc. Reimbursable expenses related to this agreement were approximately $260,000 for the year ending December 31, 2013. The expenses related to the agreement that have not been paid is $24,086 as of December 31, 2013 and are included in account receivable, net. | ||||||||
In July 2013, Milestone entered a strategic partnership with the largest provider of specialty sales and distribution solutions for healthcare. During the three year strategic partnership, the distributor will hold the exclusive rights to market, resell, label and distribute Milestone’s CompuFlo injection technology for use in epidural applications for childbirth and other pain management needs in hospitals in the U.S. | ||||||||
In the fourth quarter of 2013, Milestone Medical Inc, joint venture, sold 2 million shares of its common stock in a Private Placement offering at $1.50 per share ($3.0 million) in Poland. As a result of this sale, the joint venture received net proceeds of $2,363,000. The effect of this sale of new shares was to reduce Milestone’s ownership percentage from 50% to 45.5% (post transaction). Consistent with the equity method of accounting, the dilution in ownership percentage is treated as if the decreased percentage of ownership was the result of the sale of these shares. As a result, Milestone recorded in the fourth quarter of 2013, a $1,363,650 gain on dilution effect on Medical Joint Venture. | ||||||||
The following condensed financial information of Milestone Medical Inc, Medical Joint Venture, 45.5% ownership at December 31, 2013 and 2012, respectively is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Current Assets | $ | 2,258,809 | $ | 216,177 | ||||
Non Current Assets | 1,561,129 | 1,576,529 | ||||||
Total Assets | 3,819,939 | 1,792,706 | ||||||
Current Liability | 125,962 | 2,157 | ||||||
Equity | 3,693,977 | 1,790,549 | ||||||
Total Liability and Equity | $ | 3,819,939 | $ | 1,792,706 | ||||
December 31, | ||||||||
2013 | 2012 | |||||||
Revenue | - | - | ||||||
Operation expenses | 1,019,606 | 1,172,154 | ||||||
Net Loss | $ | (1,019,606 | ) | $ | (1,172,154 | ) | ||
Milestone Medical Inc. is a Development Stage Company and does not have revenues at this time. Milestone has recorded its share of the losses $509,803 and $586,077 for December 31, 2013 and 2012, respectively. | ||||||||
In the first quarter of 2013, the CEO of Milestone loaned Milestone $50,000 for use in capitalizing a fifty percent equity portion in the joint venture with Milestone Education LLC. This balance is included in the accrued expenses on the condensed balance sheets. There is no interest to this agreement. The loan will be paid in 2014. | ||||||||
Milestone established a joint venture, Milestone Education, LLC, in the first quarter of 2013. Milestone contributed $50,000 as did the other joint venture partner. Each of the partners owns fifty (50) percent of the joint venture. The joint venture is expected to provide training and education to dentists throughout the world. Milestone accounted for its investment in the Education Joint Venture using the equity method of accounting. Milestone Education LLC began operation in 2013. The investment in the joint venture is accounted for under the equity method of account. As of December 31, 2013, the joint venture has incurred a loss of $15,836 and fifty percent of these losses are recorded in the Statement of Operations for Milestone. | ||||||||
Furniture_Fixtures_and_Equipme
Furniture, Fixtures and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Furniture, Fixtures and Equipment | ' | ||||||||
NOTE G — FURNITURE, FIXTURES AND EQUIPMENT | |||||||||
December 31 | |||||||||
2013 | 2012 | ||||||||
Furniture, Fixtures and Equipment consist of the following: | |||||||||
Leasehold improvements | $ | 22,317 | $ | 22,317 | |||||
Office furniture and equipment | 96,703 | 96,703 | |||||||
Molds | 7,200 | 7,200 | |||||||
Trade show displays | 89,395 | 89,395 | |||||||
Computers and software | 190,027 | 184,488 | |||||||
Tooling equipment-STA & Wand | 31,477 | 31,477 | |||||||
STA Trials Instruments | 63,752 | 63,752 | |||||||
Total | 500,871 | 495,333 | |||||||
Less accumulated depreciation | (476,884 | ) | (458,708 | ) | |||||
$ | 23,988 | $ | 36,624 | ||||||
Depreciation expense was $18,176 and $18,816 for the years ended December 31, 2013 and 2012, respectively. |
Patents
Patents | 12 Months Ended |
Dec. 31, 2013 | |
Patents | ' |
NOTE H — PATENTS | |
Patents are being amortized by the straight-line method over estimated useful lives ranging from 10 to 20 years, with a weighted average amortization period of 12 years. Amortization expense amounted to $77,947 in 2013 and $76,317 in 2012. Estimated amortization expense of existing patents for each of the next five fiscal years amounts to approximately $78,000 per year. |
Line_of_Credit_and_Notes_Payab
Line of Credit and Notes Payable | 12 Months Ended |
Dec. 31, 2013 | |
Line of Credit and Notes Payable | ' |
NOTE I — LINE OF CREDIT AND NOTES PAYABLE | |
Milestone borrowed $450,000 from a shareholder in 2008. The loan was originally a short term loan with a maturity date of January 19, 2009. In December 2008, May 30, 2012 and again on March 29, 2013, this loan was extended with the shareholder and the due date has been extended to January 5, 2015. The loan accrued interest at 12% per annum, interest compounded quarterly, and interest and principal was due at maturity. The loan ($450,000) and related interest ($410,081) was converted to 614,344 shares of common stock on August 8, 2013. Further, the lender was granted 45,000 warrants exercisable at $0.32 per share, which expired unexercised in 2012. | |
Interest expense, relating to the notes payable, for the years ended December 31, 2013 and 2012 was $53,518 and $83,344, respectively. Accrued interest payable related to the note payable was $0.00 and $283,891 for years ended December 31, 2013 and 2012, respectively. Milestone converted the accrued interest to common stock on August 8, 2013. Milestone had also secured a line of credit, from this shareholder, for $1.3 million which was converted into equity in 2009. The accrued interest of $76,174, on the line of credit was converted to common stock on August 8, 2013. For the years ended December 31, 2013 and 2012 the charge for amortization of Debt Discount related to the outstanding line of credit is $0.00 and $3,065, respectively. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity | ' |
NOTE J — STOCKHOLDERS’ EQUITY | |
ISSUANCES OF COMMON STOCK | |
During 2013, Milestone issued 39,129 shares valued at $45,000 for the directors compensation. | |
During 2013, Milestone issued 312,956 shares valued at $400,000 for payment of consulting services. | |
During 2013, Milestone issued 614,344 shares valued at $860,080 for the conversion of notes payable and accrued interest. | |
During 2013, Milestone issued 37,425 shares valued at $47,500 for payment of employee compensation. | |
During 2013, Milestone issued 56,666 shares valued at $34,600 for exercise of stock options to two independent directors. | |
During 2013, Milestone sold 135,714 shares valued at $200,000. | |
During 2013, Milestone’s to be issued shares are 204,222 valued at $312,000 for employee for bonus compensation. | |
During 2012, Milestone issued 155,172 shares valued at $45,000 for the directors compensation. | |
During 2012, Milestone issued 543,209 shares valued at $217,415 for payment of consulting services. | |
During 2012, Milestone issued 105,451 shares valued at $43,125 for payment of employee compensation. | |
During 2012, Milestone sold 107,143 shares valued at $150,000. | |
During 2012, Milestone’s to be issued shares are 229,705 valued at $237,000 for employee for bonus compensation. | |
During 2012, Milestone converted 83,300 to be issued shares to issued shares, valued at $50,813, for consulting services. | |
During 2012, Milestone converted 12,153 to be issued shares to issued shares, valued at $4,375, for employee compensation. | |
SHARES TO BE ISSUED | |
As of December 31, 2013 and 2012, there were 1,839,930 and 1,635,709 shares that have been deferred from being issued, subject to employment agreements with the Chief Executive Officer, Chief Financial Officer and employees of Milestone. Such shares will be issued to each party upon termination of their employment. The number of shares were fixed at date of grant and there are no conditions other than the continued employment by the officers. The grant were fully vested upon grant date. | |
SHARES RESERVED FOR FUTURE ISSUANCE | |
At December 31, 2013 and 2012 there were 3,497,761 and 3,752,782 shares reserved for future issuance; 1,657,831 and 1,523,740 shares underlying other stock options and warrants that were outstanding at December 31, 2013 and 2012, respectively: 1,839,930 shares in 2013 and 1,635,709 shares in 2012 to be issued in settlement of deferred compensation to Officers of Milestone; and 593,334 shares in 2013 and 593,334 shares in 2012, for Performance Options issued to an Officer of Milestone. The Performance Options were cancelled in December 2013. | |
In December 2007, the Board of Directors authorized Milestone to issue up to $2 million of its common stock to vendors or employees, and to grant them piggy back registration rights in the usual form, at a value of not less than 90% of the market value on the date of the agreement for the vendor or employee to accept said shares. Such future shares are not included in the above noted shares reserved for future issuance. |
Stock_Option_Plans
Stock Option Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock Option Plans | ' | ||||||||||||||||
NOTE K — STOCK OPTION PLANS | |||||||||||||||||
In July 2004, the Board of Directors approved the adoption of the 2004 Stock Option Plan. The 2004 Stock Option Plan provides for the grant of options to purchase up to 750,000 shares of Milestone’s common stock. Options may be granted to employees, officers, directors and consultants of Milestone for the purchase of common stock of Milestone at a price not less than the fair market value of the common stock on the date of the grant. In general, options become exercisable over a three-year period from the grant date and expire five years after the date of grant. | |||||||||||||||||
In December 2007, the Board of Directors authorized Milestone to issue up to $2 million of its common stock to vendors or employees, and to grant them piggy back registration rights in the usual form, at a value of not less than 90% of the market value on the date of the agreement for the vendor or employee to accept said shares. Such future shares are not included in the above noted shares reserved for future issuance. | |||||||||||||||||
In November 2009, the Board of Directors authorized 666,667 options be reserved for a special bonus to the Chief Executive Officer of the Company, for obtaining a three year purchase order for the sale of 12,000 STA Instruments and related handpieces over a four year period. These options were reserved and 73,333 were granted but not vested in 2010. The remaining 593,334 were reserved until specific performance targets are achieved. The options will be issued upon achievement of the specific target on a yearly basis. The options were valued at $1.49 per share. The full performance requirements, for the 73,333 options, were met in 2013. Such options are fully vested as of December 31, 2013. The 593,334 options were cancelled in December 2013 due to expiration of the contract that gave rise to the granting of the options. | |||||||||||||||||
In June 2011, the Shareholders of the Company approved the 2011 Stock Option Plan (the “2011 Plan”) that provides for stock options to our employees, directors and consultants and incentive and non-qualified stock options to purchase up to 2,000,000 shares of common stock. Such future shares are included in the above noted shares reserved for future issuances. | |||||||||||||||||
A summary of option activity for employees under the plans as of December 31, 2013 and 2012, and changes during the year then ended is presented below: | |||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of | Averaged | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Options | ||||||||||||||
Price $ | Contractual | Value $ | |||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding, January 1, 2012 | 1,139,282 | 0.89 | 3.62 | - | |||||||||||||
Granted | 211,459 | 0.95 | 4.38 | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (67,000 | ) | 1.58 | - | - | ||||||||||||
Outstanding, December 31, 2012 | 1,283,741 | 0.79 | 3.07 | - | |||||||||||||
Exercisable, December 31, 2012 | 849,066 | 0.81 | 2.43 | - | |||||||||||||
Granted | 309,090 | 1.62 | 5 | ||||||||||||||
Exercised during 2013 | (56,666 | ) | - | - | - | ||||||||||||
Forfeited or expired | (51,666 | ) | 0.99 | - | - | ||||||||||||
Outstanding, December 31, 2013 | 1,484,499 | 1.03 | 2.88 | 996,554 | |||||||||||||
Exercisable, December 31, 2013 | 1,115,006 | 0.97 | 2.41 | 818,531 | |||||||||||||
Number | Weighted | ||||||||||||||||
of | Averaged | ||||||||||||||||
Options | Exercise | ||||||||||||||||
Price $ | |||||||||||||||||
VESTED OPTIONS | |||||||||||||||||
Outstanding, January 1, 2012 | 638,176 | 0.89 | |||||||||||||||
Exercised during 2012 | - | - | |||||||||||||||
Vested Options during 2012 | 277,222 | 0.92 | |||||||||||||||
Forfeited during 2012 | (66,332 | ) | 1.58 | ||||||||||||||
Outstanding, December 31, 2012 | 849,066 | 0.81 | |||||||||||||||
Exercised during 2013 | (56,666 | ) | - | ||||||||||||||
Vested Options during 2013 | 367,272 | 1.19 | |||||||||||||||
Forfeited during 2013 | (46,666 | ) | 0.96 | ||||||||||||||
Outstanding, December 31, 2013 | 1,115,006 | 0.97 | |||||||||||||||
NONVESTED OPTIONS | |||||||||||||||||
Nonvested, January 1, 2012 | 501,106 | 0.9 | |||||||||||||||
Granted during 2012 | 211,459 | 0.95 | |||||||||||||||
Vested during 2012 | (277,222 | ) | 0.92 | ||||||||||||||
Forfeited during 2012 | (668 | ) | 1.15 | ||||||||||||||
Nonvested, December 31, 2012 | 434,675 | 0.91 | |||||||||||||||
Granted during 2013 | 309,090 | 1.62 | |||||||||||||||
Vested during 2013 | 369,272 | 1.19 | |||||||||||||||
Forfeited during 2013 | (5,000 | ) | 1 | ||||||||||||||
Nonvested, December 31, 2013 | 369,493 | 1.22 | |||||||||||||||
Milestone recognizes compensation expense on a straight line basis over the requisite service period and in case of performance based options over the period of the expected performance. During the years ended December 31, 2013 and 2012 Milestone recognized $219,196, and $142,770 of total employee compensation cost related to options that vested each year, respectively. As of December 31, 2013 and 2012, there was $400,212 and $169,764 of total unrecognized compensation cost related to non-vested options which Milestone expects to recognize over a weighted average period of 1.60 years and 1.60 years for December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||
A summary of option activity for non-employees under the plans as of December 31, 2012 and 2013, and changes during the year ended is presented below: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Averaged | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Options | |||||||||||||||
Price $ | Contracted | Value $ | |||||||||||||||
Life (years) | |||||||||||||||||
Outstanding, January 1, 2012 | 414,999 | 1.87 | 1.43 | - | |||||||||||||
Exercisable, December 31, 2012 | 399,443 | 1.9 | 1.36 | - | |||||||||||||
Granted during 2012 | 100,000 | - | - | - | |||||||||||||
Forfeited during 2012 | (175,000 | ) | 1.79 | - | - | ||||||||||||
Outstanding, December 31, 2012 | 239,999 | 1.56 | 1.32 | - | |||||||||||||
Exercisable, December 31, 2012 | 234,442 | 1.57 | - | - | |||||||||||||
Forfeited during 2013 | (66,667 | ) | 2.5 | - | - | ||||||||||||
Outstanding, December 31, 2013 | 173,332 | 0.48 | 0.59 | 210,833 | |||||||||||||
Exercisable, December 31, 2013 | 173,332 | 0.48 | 0.59 | 210,833 | |||||||||||||
Number | Weighted | ||||||||||||||||
of | Averaged | ||||||||||||||||
Options | Exercise | ||||||||||||||||
Price $ | |||||||||||||||||
VESTED OPTIONS | |||||||||||||||||
Outstanding, January 1, 2012 | 399,443 | 1.9 | |||||||||||||||
Exercised during 2012 | - | - | |||||||||||||||
Vested during 2012 | 9,999 | 1.1 | |||||||||||||||
Forfeited during 2012 | 175,000 | 1.79 | |||||||||||||||
Outstanding, December 31, 2012 | 234,442 | 1.57 | |||||||||||||||
Exercised during 2013 | - | - | |||||||||||||||
Vested during 2013 | 5,557 | 1.27 | |||||||||||||||
Forfeited during 2013 | 6,667 | 2.5 | |||||||||||||||
Outstanding, December 31, 2013 | 173,332 | 0.48 | |||||||||||||||
NONVESTED OPTIONS | |||||||||||||||||
Nonvested January 1, 2012 | 15,556 | 1.16 | |||||||||||||||
Granted during 2012 | - | - | |||||||||||||||
Vested during 2012 | (9,999 | ) | 1.1 | ||||||||||||||
Forfeited during 2012 | - | - | |||||||||||||||
Nonvested December 31, 2012 | 5,557 | 1.27 | |||||||||||||||
Granted during 2013 | - | - | |||||||||||||||
Exercised during 2013 | - | - | |||||||||||||||
Vested during 2013 | 5,557 | 1.27 | |||||||||||||||
Outstanding, December 31, 2013 | - | - | |||||||||||||||
The fair value of the options was estimated on the date of grant using the Black Scholes option-pricing model. For the year ended December 31, 2013, the following weighted average assumptions were used in calculating fair value; expected life of 3 years; volatility of 117.82 and risk-free interest rate of 1.64%. There were no non-employee options granted for the year ending December 31, 2012. During the year ended December 31, 2013 and 2012, Milestone recognized $0.00 and $2,217 of expense related to non-employee options that vested, respectively. The total unrecognized compensation cost related to nonvested options was $0.00 as of December 31, 2013 and 2012. |
Employment_Contract_and_Deferr
Employment Contract and Deferred Compensation | 12 Months Ended |
Dec. 31, 2013 | |
Employment Contract and Deferred Compensation | ' |
NOTE L — EMPLOYMENT CONTRACT AND DEFERRED COMPENSATION | |
Employment Contracts | |
As of September 1, 2009 Milestone entered into a five-year employment agreement with Leonard Osser as its Chief Executive Officer. The term of the 2009 agreement is automatically extended for successive one-year periods unless prior to August 1 of any year, either party notifies the other that he or it chooses not to extend the term. Under the 2009 agreement, the CEO receives base compensation of $300,000 per year. In addition, the CEO, may earn annual bonuses up to an aggregate of $400,000, payable one half in cash and one half in common stock, contingent upon achieving targets set for each year by the Compensation Committee of the Board of Directors . In addition, if in any year of the term of the agreement the CEO earns a bonus, he shall also be granted five-year stock options to purchase twice the number of bonus shares earned. Each such option is to be exercisable at a price per share equal to the fair market value of a share on the date of grant (110%) of the fair market value if the CEO is a 10% or greater stockholder on the date of grant). The options shall vest and become exercisable to the extent of one-third of the shares covered at the end of each of the first three years following the date of grant, but shall only be exercisable while the CEO is employed by Milestone or within 30 days after the termination of his employment. In 2012 the CEO waived the option component of his bonus for that year. | |
In accordance with the employment contract, 1,306,716 shares of common stock are to be paid out at the end of the contract in settlement of $1,408,333 at December 31, 2013 and 1,182,493 shares of common stock are to be paid out at the end of the contract in settlement of $1,208,333 at December 31, 2012 of accrued deferred compensation and, accordingly, such shares have been classified in stockholders' equity with the common shares classified as to be issued. | |
This 2009 agreement amended the previous 2008 employment with 40-months remaining in its term. Under the 2008 agreement Mr. Osser is employed as an executive, but not the CEO. In March 2013, the 2008 agreement was amended to extend its remaining term to 120-months. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes | ' | ||||||||
NOTE M — INCOME TAXES | |||||||||
Milestone’s expected federal income tax benefit computed at the statutory rate (40%) on the pre-tax income (loss) amounted to a liability of $255,000 in 2013 and a benefit of $296,000 in 2012. Such expense/benefit was recognized in the accompanying financial statements as of December 31, 2013, with recognition of a net operating loss carryforward. Due to Milestone’s history of past operating losses, which required a full valuation allowances for all of Milestone’s deferred tax assets at December 31, 2013 and 2012, no recognition was given to the utilization of the remaining net operating loss carryforward. | |||||||||
Deferred tax attributes resulting from differences between financial accounting amounts and tax bases of assets and liabilities at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Current Assets | |||||||||
Allowance for doubtful accounts-short term | $ | 2,000 | $ | 72,000 | |||||
Inventory allowance | - | 79,000 | |||||||
Warranty reserve | 10,000 | 10,000 | |||||||
Impairment of Germany Investment | 31,000 | 31,000 | |||||||
Deferred officers compensation | 725,000 | 600,000 | |||||||
Subtotal | 768,000 | 792,000 | |||||||
Valuation allowance | (768,000 | ) | (792,000 | ) | |||||
Current deferred tax asset | $ | - | $ | - | |||||
Non-current assets | |||||||||
Allowance for doubtful accounts-long term | $ | - | $ | 67,000 | |||||
Net operating loss carryforward | 14,855,000 | 16,675,000 | |||||||
Subtotal | 14,855,000 | 16,742,000 | |||||||
Valuation allowance | (14,855,000 | ) | (16,742,000 | ) | |||||
Non-current deferred tax asset | $ | - | $ | - | |||||
As of December 31, 2013 and 2012, Milestone has federal net operating loss carryforwards of approximately $43,596,000 and $48,537,000, respectively that will be available to offset future taxable income, if any, through December 2032. Milestone has state net operating losses of $515,000 and $2,875,000 in 2013 and 2012, respectively, expiring through December 2029.The utilization of Milestone’s net operating losses may be subject to a substantial limitation due to the “change of ownership provisions” under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carry forwards before their utilization. Milestone has established a 100% valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization. | |||||||||
A reconciliation of the statutory tax rates for the years ended December 31, is as follows: | |||||||||
2013 | 2012 | ||||||||
Statutory rate | (34 | )% | (34 | )% | |||||
State income tax - all states | (6 | )% | (6 | )% | |||||
(40 | )% | (40 | )% | ||||||
Current year valuation allowance | 40 | % | 40 | % | |||||
Benefit for income taxes | 0 | % | 0 | % | |||||
Accounting for Uncertain Tax Positions: | |||||||||
Milestone follows the Income Taxes Topic of the FASB Accounting Standards Codification, which provides clarification on accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on derecognition, classification, interest and penalties, disclosure and transition. At December 31, 2013, no significant income tax uncertainties have been included in Milestone’s Balance Sheets. Milestone’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Statements of Operations. No interest and penalties are present for periods open. Tax returns for the 2010, 2011, and 2012 years are subject to audit by federal and state jurisdictions. |
Product_Sales_and_Significant_
Product Sales and Significant Customers and Vendors | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Product Sales and Significant Customers and Vendors | ' | ||||||||
NOTE N — PRODUCT SALES AND SIGNIFICANT CUSTOMERS AND VENDORS | |||||||||
Milestone’s sales by product and by geographical region are as follows: | |||||||||
Year End December 31, | |||||||||
2013 | 2012 | ||||||||
Instruments | $ | 2,672,026 | $ | 2,146,756 | |||||
Handpieces | 7,294,810 | 6,344,021 | |||||||
Other | 44,584 | 157,465 | |||||||
$ | 10,011,420 | $ | 8,648,242 | ||||||
United States | $ | 5,299,552 | $ | 4,343,807 | |||||
Canada | 305,171 | 553,984 | |||||||
Other foreign | 4,406,697 | 3,750,451 | |||||||
$ | 10,011,420 | $ | 8,648,242 | ||||||
Milestone has informal arrangements with the manufacturer of the STA, CompuDent and CompuMed instruments, one of the principal manufacturers for those instruments pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. Purchases from this supplier were $457,060 (13%) and $444,852 (18%) in 2013 and 2012, respectively. Milestone has a manufacturing agreement with one of the principal manufacturers, which is a related party, of its handpieces pursuant to which they manufacture products under specific purchase orders but without minimum purchase commitments. Purchases of handpieces from this vendor in China were $3,026,041 (87%) and $1,966,077 (82%) in 2013 and 2012, respectively. As further described in Note B, a five percent shareholder of Milestone is also a shareholder of this vendor. All other purchases from other suppliers were not significant in either 2013 or 2012. | |||||||||
For the year ended December 31, 2013, Milestone had two customers (distributors) that had approximately 42%, (21% and 21%) of its net product sales. Accounts receivable for the one major customer amounted to approximately $732,762, or 48% of gross accounts receivable. For the year ended December 31, 2012, Milestone had two customers (distributors) that had approximately 36%, (21% and 15%) of its net product sales. Accounts receivable, current and long term, for the three major customers amounted to approximately $421,890, or 38%, (8%, 10% and 20%) of gross accounts receivable. |
Commitments_and_Other
Commitments and Other | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Other | ' | ||||
NOTE O — COMMITMENTS AND OTHER | |||||
(1) Lease Commitments | |||||
The headquarters for Milestone is located at 220 South Orange Ave, Livingston, New Jersey. Milestone leases approximately 6,300 square feet of office space. The lease term expires June 30, 2014 at a monthly cost of $6,942. Milestone has entered negotiation with the landlord to extend this lease for an additional five year period. An agreement for the extension has not been reached. Additionally, Milestone has other smaller insignificant leases ending through 2017.A third party distribution and logistics center in Pennsylvania handles shipping and order fulfillment on a month-to-month basis. | |||||
Aggregate minimum rental commitments under noncancelable operating leases are as follows: | |||||
Year Ending December 31, | |||||
2014 | $ | 48,962 | |||
2015 | 7,309 | ||||
2016 | 5,965 | ||||
2017 | 5,965 | ||||
2018 | - | ||||
$ | 68,201 | ||||
For the years ended December 31, 2013 and 2012, respectively, rent expense amounted to $41,653 and $83,273 respectively. | |||||
(2) Contract Manufacturing Arrangement | |||||
Milestone has informal arrangements with the manufacturer of its products. STA, single tooth anesthesia, CompuDent and CompuMed instruments are manufactured for Milestone by Tricor Systems, Inc. pursuant to specific purchase orders. The STA and The Wand Handpiece with Needle are supplied to Milestone by a contractor in the United States, which arranges for its manufacture in China. These contractors provide an informal long term financing basis for Milestone. | |||||
The termination of the manufacturing relationship with any of the above manufacturers could have a material adverse effect on Milestone’s ability to produce and sell its products. Although alternate sources of supply exist and new manufacturing relationships could be established, Milestone would need to recover its existing tools or have new tools produced. Establishment of new manufacturing relationships could involve significant expense and delay. Any curtailment or interruption of the supply, whether or not as a result of termination of such a relationship, would adversely affect Milestone. | |||||
(3) Other Commitments | |||||
The technology underlying the SafetyWand and CompuFlo, and an improvement to the controls for CompuDent were developed by the Director of Clinical Affairs and assigned to us. Milestone purchased this technology pursuant to an agreement dated January 1, 2005, for 43,424 shares of restricted common stock and $145,000 in cash, payable on April 1, 2005. In addition, the Director will receive additional payments of 2.5% of the total sales of products using certain of these technologies, and 5% of the total sales of products using certain other of the technologies. In addition, he is granted, pursuant to the agreement, an option to purchase, at fair market value on the date of the grant, 8,333 shares of the common stock upon the issuance of each additional patent relating to these technologies. If products produced by third parties use any of these technologies (under license from us) then he will receive the corresponding percentage of the consideration received by Milestone for such sale or license. Milestone expensed the Director’s royalty fees of $357,972 and $306,983 in 2013 and 2012, respectively. Additionally, Milestone expensed consulting fee to the Director $99,450 and $156,000 for year ended 2013 and 2012, respectively. | |||||
In January 2010, Milestone issued a purchase order to Tricor Instruments for the purchase of 12,000 STA Instruments to be delivered over the next three years. The purchase order is for $5,261,640. As of December 31, 2013, Milestone’s production and sales of instruments to this commitment has been delayed. Consequently, advances to contractor has been classified as current and long term at December 31, 2013. | |||||
In August 2013, a shareholder of Milestone entered a three year agreement with the Milestone to provide financial and business strategic services. The fee for these services are $100,000 annually. | |||||
In November 2012, Milestone signed an exclusive distributor and marketing agreement with a well known US domestic distributor, for the sale and distribution of the STA instrument and handpieces in the United States and Canada. The marketing initiative will include participation in U.S. and Canada dental shows, as well as pediatric dental shows; an active advertising initiative targeting major dental publications; and direct mailing campaigns to over 15,000 dentists across the U.S. and Canada. | |||||
In August 2013, Milestone appointed Henry Schein as its exclusive distributor in the USA and Canada for the CompuDent handpieces. |
Pension_Plan
Pension Plan | 12 Months Ended |
Dec. 31, 2013 | |
Pension Plan | ' |
NOTE P — PENSION PLAN | |
Milestone has a Defined Contribution Plan that allows eligible employees to contribute part of their salary through payroll deductions. Milestone does not contribute to this plan, but does pay the administrative costs of the plan, which were not significant. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents | ' | ||||||||
1. Cash and Cash Equivalents | |||||||||
Milestone considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||
Accounts Receivable | ' | ||||||||
2. Accounts Receivable | |||||||||
The realization of Accounts Receivable current and long-term will have a significant impact on Milestone. Consequently, Milestone estimates losses resulting from the inability of its customers to make payments for amounts billed. The collectability of outstanding amounts is continually assessed (historical trend and credit worthiness of the customers). | |||||||||
Product Return and Warranty | ' | ||||||||
3. Product Return and Warranty | |||||||||
Milestone does not accept non-defective returns from its customers. Product returns under warranty are accepted, evaluated and repaired or replaced in accordance with the Warranty Policy. Returns not within the Warranty Policy are all evaluated and the customer is charged for the repair. Warranty expense was $97,234 and $87,544 for 2013 and 2012, respectively. Non-Warranty repairs are collected from the customers. Non-Warranty repair income was $118,344 and $107,868 for 2013 and 2012, respectively. | |||||||||
Inventories | ' | ||||||||
4. Inventories | |||||||||
Inventories principally consist of finished goods and component parts stated at the lower of cost (first-in, first-out method) or market. Inventory quantities on hand are reviewed on a quarterly basis and a provision for excess and obsolete inventory is recorded if required based on past and expected future sales. | |||||||||
Investment in Joint Ventures | ' | ||||||||
5. Investment in Joint Ventures | |||||||||
Milestone has entered into a Joint Venture with a third party for the development and commercialization of two medical instruments. At inception, Milestone owned fifty percent of the joint venture and has recorded its investment on the equity basis of accounting. Milestone’s proportionate share of losses incurred by the Joint Venture is charged to the Statement of Operations and adjusted against the Investment in Joint Venture. In the fourth quarter of 2013, the Medical Joint Venture issued 2 million shares of its common stock in a private placement transaction. As a result of the shares being issued, Milestone’s ownership in the Joint Venture was reduced to 45.5%. Milestone recorded a $1,363,650 Gain on the Dilutive Effect of these additional shares issued by Milestone Medical Inc. | |||||||||
Furniture, Fixture and Equipment | ' | ||||||||
6. Furniture, Fixture and Equipment | |||||||||
Equipment is recorded at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. The costs of maintenance and repairs are charged to operations as incurred. | |||||||||
Investments | ' | ||||||||
7. Investments | |||||||||
Investments in less than twenty percent owned entities are accounted for under the cost basis and are reviewed for impairment periodically. Milestone does not have any significant control over the operations of its investment in a German Distributor. In the fourth quarter of 2012, Milestone wrote off its total investment of $76,319 based on low performance and continued losses with that distributor. This expense is included within the selling, general and administrative expenses on the statement of operation for the year ended December 31, 2012. | |||||||||
Patents | ' | ||||||||
8. Patents | |||||||||
Patents are recorded at actual cost to prepare and file the applicable documents with the United States Patent Office, or internationally with the applicable governmental office in the respective country. Although certain patents have not yet been approved, the costs related to these patents are being amortized using the straight-line method over the estimated useful life of the patent. If the applicable patent application is ultimately rejected, the remaining unamortized balance will be expensed in the period in which Milestone receives a notice of such rejection. Patent applications filed and patents obtained in foreign countries are subject to the laws and procedures that differ from those in the United States. Patent protection in foreign countries may be different from patent protection under United States laws and may not be favorable to Milestone. Milestone also attempts to protect the proprietary information through the use of confidentiality agreements and by limiting access to the facilities. There can be no assurance that the program of patents, confidentiality agreements and restricted access to the facilities will be sufficient to protect the proprietary technology. | |||||||||
Impairment of Long-Lived Assets | ' | ||||||||
9. Impairment of Long-Lived Assets | |||||||||
Milestone reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. The carrying value of the assets is evaluated in relation to the operating performance and future undiscounted cash flows of the underlying assets. Milestone adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. Milestone has reviewed long-lived assets for impairment and concluded no impairment exist as of December 31, 2013 and, 2012. | |||||||||
Revenue Recognition | ' | ||||||||
10. Revenue Recognition | |||||||||
Revenue from product sales is recognized net of discounts and allowances to the domestic distributor on the date of shipment of the goods, for essentially all shipments, since the terms are FOB warehouse. Milestone recognizes revenue on date of arrival where shipments are FOB destination. Shipments to the international distributors are FOB warehouse and revenue is therefore recognized on shipment. In both cases, the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone has no obligation on these sales for any post sale installation, set-up or maintenance, these being the responsibility of the buyer. Customer acceptance is considered made at delivery. The only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period. | |||||||||
Shipping and Handling Costs | ' | ||||||||
11. Shipping and Handling Costs | |||||||||
Milestone includes shipping and handling costs in cost of goods sold. These costs are billed to customers at the time of shipment for domestic shipments. International shipments are FOB warehouse, therefore no costs are incurred by Milestone. | |||||||||
Research and Development | ' | ||||||||
12. Research and Development | |||||||||
Research and development costs, which consist principally of new product development costs incurred to third parties, are expensed as incurred. | |||||||||
Advertising Expenses | ' | ||||||||
13. Advertising Expenses | |||||||||
Milestone expenses advertising costs as they are incurred. For the years ended December 31, 2013 and 2012, Milestone recorded advertising expenses of $30,104 and $51,412, respectively. | |||||||||
Income Taxes | ' | ||||||||
14. Income Taxes | |||||||||
Milestone accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The income tax provision or credit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. | |||||||||
Basic and Diluted Net Loss Per Common Share | ' | ||||||||
15. Basic and diluted net loss per common share | |||||||||
Milestone presents “basic” earnings (loss) per common share applicable to common stockholders and, if applicable, “diluted” earnings (loss) per common share applicable to common stockholders pursuant to the provisions of Statement of Financial Accounting Standards ASC Topic 260. Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued during each period. The calculation of diluted earnings per common share is similar to that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options, warrants, and the conversion of debt were issued during the period. | |||||||||
Since Milestone had net losses for 2012, the assumed effects of the exercise of outstanding stock options and warrants were not included in the calculation as their effect would have been anti-dilutive. Such outstanding options and warrants totaled 1,523,740 at December 31, 2012. | |||||||||
Use of Estimates | ' | ||||||||
16. Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the allowance for doubtful accounts, inventory valuation, and cash flow assumptions regarding evaluations for impairment of long-lived assets and valuation allowances on deferred tax assets. Actual results could differ from those estimates. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
17. Fair Value of Financial Instruments | |||||||||
Fair Value Measurements: We follow the provisions of ASC 820, Fair Value Measurements and Disclosures related to financial assets and liabilities that are being measured and reported on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market at the measurement date (exit price). We are required to classify fair value measurements in one of the following categories: | |||||||||
Level 1 inputs which are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||
Level 2 inputs which are defined as inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly. | |||||||||
Level 3 inputs are defined as unobservable inputs for the assets or liabilities. | |||||||||
Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may effect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||
Stock-Based Compensation | ' | ||||||||
18. Stock-Based Compensation | |||||||||
Milestone accounts for stock-based compensation under ASC Topic 718, Share-Based Payment. ASC Topic 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statements of operations over the service period, as an operating expense, based on the grant-date fair values. | |||||||||
The weighted-average fair value of the options granted during 2013 and 2012 was estimated as $1.62 and $0.95, respectively, on the date of grant. The fair value for 2013 and 2012 was determined using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Volatility | 168 | % | 172 | % | |||||
Risk-free interest rate | 1.37 | % | 0.79 | % | |||||
Expected life | 5 years | 5 years | |||||||
Dividend yield | 0 | % | 0 | % | |||||
Forfeiture Rate | 6 | % | 6 | % | |||||
Issuances of common stock, stock options or other equity instruments to non-employees as consideration for goods or services received by Milestone are accounted for based on the fair value of the equity instruments issued (unless the fair value of the consideration received can be more reliably measured). The fair value of any options or similar equity instruments issued is estimated based on the Black-Scholes option-pricing model, and the assumption that all of the options or other equity instruments will ultimately vest. Such fair value is measured as of an appropriate date pursuant to the guidance in the consensus of the party becomes committed to provide goods or services or the date performance by the other party is complete and capitalized or expensed as if Milestone had paid cash for the goods or services. | |||||||||
Expected volatilities are based on historical volatility of Milestone’s common stock over a period commensurate with expected term. Milestone uses historical data to estimate option exercise and employee termination within the valuation model. Milestone has granted performance based options to the chief executive officer. Such performance based options are earned based on specific criteria established by Milestone. Milestone records these options based on the likelihood of the officer achieving the specified performance objective and accrues these costs over the performance period. The estimates inherent in making this assessment are reviewed periodically by management and the resulting changes are booked through the statement of operations. | |||||||||
Concentration of Credit Risk | ' | ||||||||
19. Concentration of Credit Risk | |||||||||
Milestone’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and trade accounts receivable, and advances to contract manufacturer. Milestone places its cash and cash equivalents with large financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. Milestone has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks. Financial instruments which potentially subject Milestone to credit risk consist principally of trade accounts receivable, as Milestone does not require collateral or other security to support customer receivables, and advances to contract manufacturer. Milestone entered into a purchase agreement with a vendor to supply Milestone with 12,000 STA Instrument (6,611 instruments are remaining on the purchase order as of December 31, 2013). As part of these agreements, Milestone has advanced approximately $2,308,000 and $2,827,000 to the vendor for purchase of materials at December 31, 2013 and 2012, respectively. The advance will be credited to Milestone as the goods are delivered. Milestone does not believe that significant credit risk exists with respect to this advance to the contract manufacturer at December 31, 2013 and 2012. | |||||||||
Milestone closely monitors the extension of credit to its customers while maintaining allowances, if necessary, for potential credit losses. On a periodic basis, Milestone evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. Management has provided a reserve that it believes is sufficient to record accounts receivable at net realizable value as of December 31, 2013 and 2012. | |||||||||
A shareholder of Milestone, who owns or controls in excess of five percent of Milestone’s common stock, is also a shareholder of a major supplier of handpieces to Milestone. In addition, he is an investor in the PRC entity, Beijing 3H, which entered into a joint venture agreement with Milestone. | |||||||||
Milestone purchased $3,026,041 and $1,966,077 from the supplier for the years ended December 31, 2013 and 2012, respectively. Milestone owed $1,024,653 and $808,908 to this supplier as of December 31, 2013 and 2012, respectively. | |||||||||
Recent Accounting Pronouncements | ' | ||||||||
20. Recent Accounting Pronouncements | |||||||||
In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 did not have a material impact on Milestone’s financial position or results of operations. | |||||||||
In February 2013, the FASB issued Accounting Standards Update ("ASU") 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). ASU 2013-02 requires an entity to present the effect of certain significant reclassifications out of accumulated other comprehensive income on the respective line items in net income. The amendments in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2013-02 is effective for public companies on a prospective basis for fiscal years beginning after December 15, 2012. As an emerging growth company as defined by the JOBS Act, the Company has delayed adoption of this pronouncement. However, the Company has not incurred any components of comprehensive income for the periods presented and the ASU requires only additional presentation, as such, there will be no impact to the Company's results of operations or financial position upon adoption. | |||||||||
In September 2013 the United States Treasury Department and the IRS issued final and proposed regulations (the “Tangible Property Regulations”) effective for tax years beginning on or after January 1, 2014, that provided guidance on a number of matters with regard to tangible property, including whether expenditures qualified as deductible repairs, the treatment of materials and supplies, capitalization of tangible property, dispositions of property and related elections. The Company has evaluated the regulations and has determined that they do not have a material impact on the Company’s financial reporting. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Weighted Average Assumptions | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Volatility | 168 | % | 172 | % | |||||
Risk-free interest rate | 1.37 | % | 0.79 | % | |||||
Expected life | 5 years | 5 years | |||||||
Dividend yield | 0 | % | 0 | % | |||||
Forfeiture Rate | 6 | % | 6 | % | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Inventory | ' | ||||||||
December 31 | |||||||||
2013 | 2012 | ||||||||
Inventories consist of the following: | |||||||||
Finished Goods | $ | 1,186,376 | $ | 476,340 | |||||
Component parts and other materials | 135,276 | 162,221 | |||||||
$ | 1,321,652 | $ | 638,561 | ||||||
Investment_in_Joint_Venture_Ta
Investment in Joint Venture (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Condensed Financial Information of Joint Ventures | ' | |||||||
The following condensed financial information of Milestone Medical Inc, Medical Joint Venture, 45.5% ownership at December 31, 2013 and 2012, respectively is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Current Assets | $ | 2,258,809 | $ | 216,177 | ||||
Non Current Assets | 1,561,129 | 1,576,529 | ||||||
Total Assets | 3,819,939 | 1,792,706 | ||||||
Current Liability | 125,962 | 2,157 | ||||||
Equity | 3,693,977 | 1,790,549 | ||||||
Total Liability and Equity | $ | 3,819,939 | $ | 1,792,706 | ||||
December 31, | ||||||||
2013 | 2012 | |||||||
Revenue | - | - | ||||||
Operation expenses | 1,019,606 | 1,172,154 | ||||||
Net Loss | $ | (1,019,606 | ) | $ | (1,172,154 | ) | ||
Furniture_Fixtures_and_Equipme1
Furniture, Fixtures and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Furniture Fixtures and Equipment | ' | ||||||||
December 31 | |||||||||
2013 | 2012 | ||||||||
Furniture, Fixtures and Equipment consist of the following: | |||||||||
Leasehold improvements | $ | 22,317 | $ | 22,317 | |||||
Office furniture and equipment | 96,703 | 96,703 | |||||||
Molds | 7,200 | 7,200 | |||||||
Trade show displays | 89,395 | 89,395 | |||||||
Computers and software | 190,027 | 184,488 | |||||||
Tooling equipment-STA & Wand | 31,477 | 31,477 | |||||||
STA Trials Instruments | 63,752 | 63,752 | |||||||
Total | 500,871 | 495,333 | |||||||
Less accumulated depreciation | (476,884 | ) | (458,708 | ) | |||||
$ | 23,988 | $ | 36,624 | ||||||
Stock_Option_Plans_Tables
Stock Option Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Option Activity for Employees and Non Employees | ' | ||||||||||||||||
A summary of option activity for employees under the plans as of December 31, 2013 and 2012, and changes during the year then ended is presented below: | |||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of | Averaged | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Options | ||||||||||||||
Price $ | Contractual | Value $ | |||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding, January 1, 2012 | 1,139,282 | 0.89 | 3.62 | - | |||||||||||||
Granted | 211,459 | 0.95 | 4.38 | - | |||||||||||||
Exercised | - | - | - | - | |||||||||||||
Forfeited or expired | (67,000 | ) | 1.58 | - | - | ||||||||||||
Outstanding, December 31, 2012 | 1,283,741 | 0.79 | 3.07 | - | |||||||||||||
Exercisable, December 31, 2012 | 849,066 | 0.81 | 2.43 | - | |||||||||||||
Granted | 309,090 | 1.62 | 5 | ||||||||||||||
Exercised during 2013 | (56,666 | ) | - | - | - | ||||||||||||
Forfeited or expired | (51,666 | ) | 0.99 | - | - | ||||||||||||
Outstanding, December 31, 2013 | 1,484,499 | 1.03 | 2.88 | 996,554 | |||||||||||||
Exercisable, December 31, 2013 | 1,115,006 | 0.97 | 2.41 | 818,531 | |||||||||||||
Number | Weighted | ||||||||||||||||
of | Averaged | ||||||||||||||||
Options | Exercise | ||||||||||||||||
Price $ | |||||||||||||||||
VESTED OPTIONS | |||||||||||||||||
Outstanding, January 1, 2012 | 638,176 | 0.89 | |||||||||||||||
Exercised during 2012 | - | - | |||||||||||||||
Vested Options during 2012 | 277,222 | 0.92 | |||||||||||||||
Forfeited during 2012 | (66,332 | ) | 1.58 | ||||||||||||||
Outstanding, December 31, 2012 | 849,066 | 0.81 | |||||||||||||||
Exercised during 2013 | (56,666 | ) | - | ||||||||||||||
Vested Options during 2013 | 367,272 | 1.19 | |||||||||||||||
Forfeited during 2013 | (46,666 | ) | 0.96 | ||||||||||||||
Outstanding, December 31, 2013 | 1,115,006 | 0.97 | |||||||||||||||
NONVESTED OPTIONS | |||||||||||||||||
Nonvested, January 1, 2012 | 501,106 | 0.9 | |||||||||||||||
Granted during 2012 | 211,459 | 0.95 | |||||||||||||||
Vested during 2012 | (277,222 | ) | 0.92 | ||||||||||||||
Forfeited during 2012 | (668 | ) | 1.15 | ||||||||||||||
Nonvested, December 31, 2012 | 434,675 | 0.91 | |||||||||||||||
Granted during 2013 | 309,090 | 1.62 | |||||||||||||||
Vested during 2013 | 369,272 | 1.19 | |||||||||||||||
Forfeited during 2013 | (5,000 | ) | 1 | ||||||||||||||
Nonvested, December 31, 2013 | 369,493 | 1.22 | |||||||||||||||
A summary of option activity for non-employees under the plans as of December 31, 2012 and 2013, and changes during the year ended is presented below: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Averaged | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Options | |||||||||||||||
Price $ | Contracted | Value $ | |||||||||||||||
Life (years) | |||||||||||||||||
Outstanding, January 1, 2012 | 414,999 | 1.87 | 1.43 | - | |||||||||||||
Exercisable, December 31, 2012 | 399,443 | 1.9 | 1.36 | - | |||||||||||||
Granted during 2012 | 100,000 | - | - | - | |||||||||||||
Forfeited during 2012 | (175,000 | ) | 1.79 | - | - | ||||||||||||
Outstanding, December 31, 2012 | 239,999 | 1.56 | 1.32 | - | |||||||||||||
Exercisable, December 31, 2012 | 234,442 | 1.57 | - | - | |||||||||||||
Forfeited during 2013 | (66,667 | ) | 2.5 | - | - | ||||||||||||
Outstanding, December 31, 2013 | 173,332 | 0.48 | 0.59 | 210,833 | |||||||||||||
Exercisable, December 31, 2013 | 173,332 | 0.48 | 0.59 | 210,833 | |||||||||||||
Number | Weighted | ||||||||||||||||
of | Averaged | ||||||||||||||||
Options | Exercise | ||||||||||||||||
Price $ | |||||||||||||||||
VESTED OPTIONS | |||||||||||||||||
Outstanding, January 1, 2012 | 399,443 | 1.9 | |||||||||||||||
Exercised during 2012 | - | - | |||||||||||||||
Vested during 2012 | 9,999 | 1.1 | |||||||||||||||
Forfeited during 2012 | 175,000 | 1.79 | |||||||||||||||
Outstanding, December 31, 2012 | 234,442 | 1.57 | |||||||||||||||
Exercised during 2013 | - | - | |||||||||||||||
Vested during 2013 | 5,557 | 1.27 | |||||||||||||||
Forfeited during 2013 | 6,667 | 2.5 | |||||||||||||||
Outstanding, December 31, 2013 | 173,332 | 0.48 | |||||||||||||||
NONVESTED OPTIONS | |||||||||||||||||
Nonvested January 1, 2012 | 15,556 | 1.16 | |||||||||||||||
Granted during 2012 | - | - | |||||||||||||||
Vested during 2012 | (9,999 | ) | 1.1 | ||||||||||||||
Forfeited during 2012 | - | - | |||||||||||||||
Nonvested December 31, 2012 | 5,557 | 1.27 | |||||||||||||||
Granted during 2013 | - | - | |||||||||||||||
Exercised during 2013 | - | - | |||||||||||||||
Vested during 2013 | 5,557 | 1.27 | |||||||||||||||
Outstanding, December 31, 2013 | - | - | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Deferred Tax Attributes and Tax Bases of Assets and Liabilities | ' | ||||||||
Deferred tax attributes resulting from differences between financial accounting amounts and tax bases of assets and liabilities at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Current Assets | |||||||||
Allowance for doubtful accounts-short term | $ | 2,000 | $ | 72,000 | |||||
Inventory allowance | - | 79,000 | |||||||
Warranty reserve | 10,000 | 10,000 | |||||||
Impairment of Germany Investment | 31,000 | 31,000 | |||||||
Deferred officers compensation | 725,000 | 600,000 | |||||||
Subtotal | 768,000 | 792,000 | |||||||
Valuation allowance | (768,000 | ) | (792,000 | ) | |||||
Current deferred tax asset | $ | - | $ | - | |||||
Non-current assets | |||||||||
Allowance for doubtful accounts-long term | $ | - | $ | 67,000 | |||||
Net operating loss carryforward | 14,855,000 | 16,675,000 | |||||||
Subtotal | 14,855,000 | 16,742,000 | |||||||
Valuation allowance | (14,855,000 | ) | (16,742,000 | ) | |||||
Non-current deferred tax asset | $ | - | $ | - | |||||
Reconciliation of the Statutory Tax Rates | ' | ||||||||
A reconciliation of the statutory tax rates for the years ended December 31, is as follows: | |||||||||
2013 | 2012 | ||||||||
Statutory rate | (34 | )% | (34 | )% | |||||
State income tax - all states | (6 | )% | (6 | )% | |||||
(40 | )% | (40 | )% | ||||||
Current year valuation allowance | 40 | % | 40 | % | |||||
Benefit for income taxes | 0 | % | 0 | % | |||||
Product_Sales_and_Significant_1
Product Sales and Significant Customers and Vendors (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Sales by Product and by Geographical Region | ' | ||||||||
Milestone’s sales by product and by geographical region are as follows: | |||||||||
Year End December 31, | |||||||||
2013 | 2012 | ||||||||
Instruments | $ | 2,672,026 | $ | 2,146,756 | |||||
Handpieces | 7,294,810 | 6,344,021 | |||||||
Other | 44,584 | 157,465 | |||||||
$ | 10,011,420 | $ | 8,648,242 | ||||||
United States | $ | 5,299,552 | $ | 4,343,807 | |||||
Canada | 305,171 | 553,984 | |||||||
Other foreign | 4,406,697 | 3,750,451 | |||||||
$ | 10,011,420 | $ | 8,648,242 | ||||||
Commitments_and_Other_Tables
Commitments and Other (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Aggregate Minimum Rental Commitments | ' | ||||
Aggregate minimum rental commitments under noncancelable operating leases are as follows: | |||||
Year Ending December 31, | |||||
2014 | $ | 48,962 | |||
2015 | 7,309 | ||||
2016 | 5,965 | ||||
2017 | 5,965 | ||||
2018 | - | ||||
$ | 68,201 | ||||
Organization_Business_and_Basi1
Organization, Business and Basis of Presentation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | |
Organization, Business and Basis of Presentation (Textual) [Abstract] | ' | ' | ' | ' |
Cash flow from operating activities | $1,258,736 | ($49,718) | ' | ' |
Cash and cash equivalents | 1,147,198 | 165,249 | 96,324 | ' |
Working capital | 2,344,135 | ' | ' | ' |
Increase in working capital | 3,199,877 | ' | ' | ' |
Borrowed from shareholder | ' | ' | ' | $450,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted average assumptions | ' | ' |
Volatility | 168.00% | 172.00% |
Risk-free interest rate | 1.37% | 0.79% |
Expected life | '5 years | '5 years |
Dividend yield | 0.00% | 0.00% |
Forfeiture Rate | 6.00% | 6.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | |
STA Instruments | Options | Minimum | Minimum | Maximum | Maximum | Corporate Joint Venture | Corporate Joint Venture | |||
Instruments | ||||||||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranty expense | $97,234 | $87,544 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-Warranty repair income | 118,344 | 107,868 | ' | ' | ' | ' | ' | ' | ' | ' |
Write-off of Investment | ' | 76,319 | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising expenses | 30,104 | 51,412 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average fair value of the individual options granted | $1.62 | $0.95 | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of materials in advance | 2,308,000 | 2,827,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of shareholder of the company | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Company purchased from supplier | 3,026,041 | 1,966,077 | ' | ' | ' | ' | ' | ' | ' | ' |
Owed by company | 1,024,653 | 808,908 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets for impairment | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment on the equity | ' | ' | ' | ' | ' | ' | ' | ' | 45.50% | 50.00% |
Common stock, shares issued | 17,759,540 | 16,563,306 | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Gain on Dilutive Effect on Medical Joint Venture stock issuance | $1,363,650 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | ' | '5 years | ' | '7 years | ' | ' | ' |
Impairment periodically | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Outstanding options and warrants | ' | ' | ' | 1,523,740 | ' | ' | ' | ' | ' | ' |
Number of instruments on purchase agreement | ' | ' | 12,000 | ' | ' | ' | ' | ' | ' | ' |
Number of remaining instruments on purchase agreement | ' | ' | 6,611 | ' | ' | ' | ' | ' | ' | ' |
Accounts_Receivable_Current_an1
Accounts Receivable - Current and Long Term (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts Receivable - Current and Long Term (Additional Textual) [Abstract] | ' | ' |
Due period for credit sales | '90 days | ' |
Long term net accounts receivable | ' | $119,201 |
Accounts Receivable - Current and Long Term (Textual) [Abstract] | ' | ' |
Current portion net accounts receivable | 1,532,856 | 978,982 |
International Distributor | ' | ' |
Accounts Receivable - Current and Long Term (Additional Textual) [Abstract] | ' | ' |
Long term net accounts receivable | ' | 119,201 |
Accounts Receivable - Current and Long Term (Textual) [Abstract] | ' | ' |
Current portion net accounts receivable | ' | 99,621 |
Account receivable reserved by company | ' | $308,350 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of inventory | ' | ' |
Finished Goods | $1,186,376 | $476,340 |
Component parts and other materials | 135,276 | 162,221 |
Total | $1,321,652 | $638,561 |
Advances_on_Contracts_Details
Advances on Contracts (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
STA parts | CompuDent and Wand Plus parts | |||
Advances on Contracts (Textual) [Abstract] | ' | ' | ' | ' |
Advances to contract manufacturer | $2,308,352 | $2,827,446 | ' | ' |
Outstanding accounts payable | 37,000 | 705,000 | ' | ' |
Parts operations charged off due to high cost and of producing additional instruments | ' | ' | $60,000 | $135,000 |
Investment_in_Joint_Ventures_D
Investment in Joint Ventures (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Instruments | Private Placement | Operations | Operations | Suspended losses | PRC | Medical Joint Venture | Medical Joint Venture | Medical Joint Venture | Education Joint Venture | Education Joint Venture | Milestone Company | Milestone Company | ||||
Products | Food And Drug Administration | |||||||||||||||
Investment in Medical Joint Venture (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Joint venture owned by the entity | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | 50.00% | 50.00% | ' |
Contribution of Milestone in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | $245,000 | $225,979 |
Capital contribution | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' |
Instrument inception period | ' | '30 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingency associated with the return of capital to Beijing 3H | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of development of products for medical joint venture | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of development of instruments | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on Earnings from Medical Joint Venture | ' | -924,363 | -171,016 | ' | ' | -509,803 | -586,077 | -414,561 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of loss on medical joint venture | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total expenses incurred on joint venture | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | 50,000 | ' | ' |
Investment to medical joint venture | 924,115 | 924,115 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in medical joint venture as shared services expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 336,000 | ' | ' | ' | ' | ' | ' |
Reimbursable expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 260,000 | ' | ' | ' | ' | ' |
Reimbursable expense included in account receivable, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,086 | ' | ' | ' | ' | ' |
Sale of stock, number of shares | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of stock, price per share | ' | ' | ' | ' | $1.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of stock, value | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds received in joint venture | 2,363,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership before transaction | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership after transaction | 45.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on dilution effect | 1,363,650 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss incurred by joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,019,606 | 1,172,154 | -15,836 | ' | ' | ' |
Loan from parent company CEO | ' | ' | ' | $50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_in_Joint_Ventures_D1
Investment in Joint Ventures (Details) (Medical Joint Venture, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Medical Joint Venture | ' | ' |
Schedule Of Equity Method Investments [Line Items] | ' | ' |
Current Assets | $2,258,809 | $216,177 |
Non Current Assets | 1,561,129 | 1,576,529 |
Total Assets | 3,819,939 | 1,792,706 |
Current Liability | 125,962 | 2,157 |
Equity | 3,693,977 | 1,790,549 |
Total Liability and Equity | 3,819,939 | 1,792,706 |
Revenue | ' | ' |
Operation expenses | 1,019,606 | 1,172,154 |
Net Loss | ($1,019,606) | ($1,172,154) |
Furniture_Fixtures_and_Equipme2
Furniture, Fixtures and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | $500,871 | $495,333 |
Less accumulated depreciation | -476,884 | -458,708 |
Furniture, fixtures and equipment net | 23,988 | 36,624 |
Leasehold Improvements | ' | ' |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | 22,317 | 22,317 |
Office Furniture and Equipment | ' | ' |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | 96,703 | 96,703 |
Molds | ' | ' |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | 7,200 | 7,200 |
Trade Show Displays | ' | ' |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | 89,395 | 89,395 |
Computers and Software | ' | ' |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | 190,027 | 184,488 |
Tooling Equipment-STA & Wand | ' | ' |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | 31,477 | 31,477 |
STA Trials Instruments | ' | ' |
Furniture, Fixtures and Equipment consist of the following: | ' | ' |
Total | $63,752 | $63,752 |
Furniture_Fixtures_and_Equipme3
Furniture, Fixtures and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Furniture, Fixtures and Equipment (Textual) [Abstract] | ' | ' |
Depreciation expense | $18,176 | $18,816 |
Patents_Details
Patents (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Patents (Textual) [Abstract] | ' | ' |
Amortization Expenses | $77,947 | $76,317 |
Patents | ' | ' |
Patents (Textual) [Abstract] | ' | ' |
Method Used for Amortization | 'Straight-Line Method | ' |
Weighted average amortization period | '12 years | ' |
Amortization Expenses | 77,947 | 76,317 |
Estimated Amortization Expenses for Next 12 Months | 78,000 | ' |
Estimated Amortization Expenses for Year 2 | 78,000 | ' |
Estimated Amortization Expenses for Year 3 | 78,000 | ' |
Estimated Amortization Expenses for Year 4 | 78,000 | ' |
Estimated Amortization Expenses for Year 5 | $78,000 | ' |
Patents | Maximum | ' | ' |
Patents (Textual) [Abstract] | ' | ' |
Estimated Useful Life of Patents | '20 years | ' |
Patents | Minimum | ' | ' |
Patents (Textual) [Abstract] | ' | ' |
Estimated Useful Life of Patents | '10 years | ' |
Line_of_Credit_and_Notes_Payab1
Line of Credit and Notes Payable (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
Aug. 08, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2008 | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Borrowed from shareholder | ' | ' | ' | ' | $450,000 |
Extended due date for loan borrowed | ' | 5-Jan-15 | ' | ' | ' |
Interest rate | ' | 12.00% | ' | ' | ' |
Warrants exercisable, price | ' | 0.32 | ' | ' | ' |
Number of share for warrants exercisable | ' | 45,000 | ' | ' | ' |
Year of warrants expired | ' | '2012 | ' | ' | ' |
Long term loan converted into common stock | 450,000 | ' | ' | ' | ' |
Interest converted into common stock | 410,081 | ' | ' | ' | ' |
Converted common stock | 614,344 | ' | ' | ' | ' |
Accrued interest | ' | 0 | 283,891 | ' | ' |
Line of credit from shareholder | ' | ' | ' | 1,300,000 | ' |
Amortization of debt discount | ' | 0 | 3,065 | ' | ' |
Interest Expense | ' | 70,801 | 175,905 | ' | ' |
Line of Credit | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Interest converted into common stock | 76,174 | ' | ' | ' | ' |
Interest Expense | ' | $53,518 | $83,344 | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | |
Stockholders Equity (Textual) [Abstract] | ' | ' | ' |
Common stock issued for directors compensation, shares | 39,129 | 155,172 | ' |
Common stock issued for directors compensation | $45,000 | $45,000 | ' |
Common stock issued for payment of consulting services to settle accounts payable, shares | 312,956 | 543,209 | ' |
Common stock issued for payment of consulting services to settle accounts payable | 400,000 | 217,415 | ' |
Common stock issued for conversion of notes payable and accrued interest, shares | 614,344 | ' | ' |
Common stock issued for conversion of notes payable and accrued interest | 860,080 | ' | ' |
Common stock issued for payment of employee compensation, shares | 37,425 | 105,451 | ' |
Common stock issued for payment of employee compensation | 47,500 | 43,125 | ' |
Exercise of stock options, shares | 56,666 | ' | ' |
Common stock issued for exercise of stock options to two independent directors | 34,600 | ' | ' |
Sale of Common Stock, shares | 135,714 | 107,143 | ' |
Issuance of common stock for cash | 200,000 | 150,000 | ' |
Common stock to be issued to employee for bonuses, shares | 204,222 | 229,705 | ' |
Common stock to be issued to employee for bonuses | 312,000 | 237,000 | ' |
Common stock to be issued converted to issued for consulting services, Share | ' | 83,300 | ' |
Common stock to be issued converted to issued for consulting services, Value | ' | 50,813 | ' |
Common stock to be issued converted to issued for employee compensation, Share | ' | 12,153 | ' |
Common stock to be issued converted to issued for employee compensation, Value | ' | 4,375 | ' |
Deferred compensation issued | 1,839,930 | 1,635,709 | ' |
Shares reserved for future issuance | 3,497,761 | 3,752,782 | ' |
Percentage on registration rights | ' | ' | 90.00% |
Company stock issued | ' | ' | $2,000,000 |
Other Stock Options and Warrants | ' | ' | ' |
Stockholders Equity (Textual) [Abstract] | ' | ' | ' |
Shares reserved for future issuance | 1,657,831 | 1,523,740 | ' |
Deferred Compensation | ' | ' | ' |
Stockholders Equity (Textual) [Abstract] | ' | ' | ' |
Shares reserved for future issuance | 1,839,930 | 1,635,709 | ' |
Performance Options | ' | ' | ' |
Stockholders Equity (Textual) [Abstract] | ' | ' | ' |
Shares reserved for future issuance | 593,334 | 593,334 | ' |
Stock_Option_Plans_Details
Stock Option Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of option activity for employees and non-employees | ' | ' | ' |
Number of Options, Beginning Balance | 1,283,741 | 1,139,282 | ' |
Number of Options, Granted | 309,090 | 211,459 | ' |
Number of Options, Exercised | -56,666 | ' | ' |
Number of Options, Forfeited or expired | -51,666 | -67,000 | ' |
Number of Options, Ending Balance | 1,484,499 | 1,283,741 | 1,139,282 |
Number of Options, Exercisable, Ending Balance | 1,115,006 | 849,066 | ' |
Weighted Averaged Exercise Price, Beginning Balance | $0.79 | $0.89 | ' |
Weighted Averaged Exercise Price, Granted | $1.62 | $0.95 | ' |
Weighted Averaged Exercise Price, Exercised | ' | ' | ' |
Weighted Averaged Exercise Price, Forfeited or expired | $0.99 | $1.58 | ' |
Weighted Averaged Exercise Price, Ending Balance | $1.03 | $0.79 | $0.89 |
Weighted Averaged Exercise Price, Exercisable, Ending Balance | $0.97 | $0.81 | ' |
Weighted Average Remaining Contractual Life (Years), Outstanding | '2 years 10 months 17 days | '3 years 26 days | '3 years 7 months 13 days |
Weighted Average Remaining Contractual Life (Years), Granted | '5 years | '4 years 4 months 17 days | ' |
Weighted Average Remaining Contractual Life (Years), Exercisable | '2 years 4 months 28 days | '2 years 5 months 5 days | ' |
Aggregate Intrinsic Options Value, Ending Balance | $996,554 | ' | ' |
Aggregate Intrinsic Options Value, Exercisable, Ending Balance | 818,531 | ' | ' |
Number of Options, Exercisable, Beginning Balance | 849,066 | ' | ' |
Weighted Averaged Exercise Price, Exercisable, Beginning Balance | $0.81 | ' | ' |
Option Activity for Non-Employees | ' | ' | ' |
Summary of option activity for employees and non-employees | ' | ' | ' |
Number of Options, Beginning Balance | 239,999 | 414,999 | ' |
Number of Options, Granted | ' | 100,000 | ' |
Number of Options, Ending Balance | 173,332 | 239,999 | 414,999 |
Number of Options, Exercisable, Ending Balance | 173,332 | 234,442 | 399,443 |
Weighted Averaged Exercise Price, Beginning Balance | $1.56 | $1.87 | ' |
Weighted Averaged Exercise Price, Ending Balance | $0.48 | $1.56 | $1.87 |
Weighted Averaged Exercise Price, Exercisable, Ending Balance | $0.48 | $1.57 | $1.90 |
Weighted Average Remaining Contractual Life (Years), Outstanding | '7 months 2 days | '1 year 3 months 26 days | '1 year 5 months 5 days |
Weighted Average Remaining Contractual Life (Years), Exercisable | '7 months 2 days | ' | '1 year 3 months 18 days |
Aggregate Intrinsic Options Value, Ending Balance | 210,833 | ' | ' |
Aggregate Intrinsic Options Value, Exercisable, Ending Balance | $210,833 | ' | ' |
Number of Options, Forfeited | -66,667 | -175,000 | ' |
Weighted Averaged Exercise Price, Forfeited | $2.50 | $1.79 | ' |
Number of Options, Exercisable, Beginning Balance | 234,442 | 399,443 | ' |
Weighted Averaged Exercise Price, Exercisable, Beginning Balance | $1.57 | $1.90 | ' |
Vested Options | ' | ' | ' |
Summary of option activity for employees and non-employees | ' | ' | ' |
Number of Options, Beginning Balance | 849,066 | 638,176 | ' |
Number of Options, Exercised | -56,666 | ' | ' |
Number of Options, Ending Balance | 1,115,006 | 849,066 | ' |
Weighted Averaged Exercise Price, Beginning Balance | $0.81 | $0.89 | ' |
Weighted Averaged Exercise Price, Exercised | ' | ' | ' |
Weighted Averaged Exercise Price, Ending Balance | $0.97 | $0.81 | ' |
Number of Options, Vested | 367,272 | 277,222 | ' |
Number of Options, Forfeited | -46,666 | -66,332 | ' |
Weighted Average Exercise Price, Vested | $1.19 | $0.92 | ' |
Weighted Averaged Exercise Price, Forfeited | $0.96 | $1.58 | ' |
Vested Options | Option Activity for Non-Employees | ' | ' | ' |
Summary of option activity for employees and non-employees | ' | ' | ' |
Number of Options, Beginning Balance | 234,442 | 399,443 | ' |
Number of Options, Exercised | ' | ' | ' |
Number of Options, Ending Balance | 173,332 | 234,442 | ' |
Weighted Averaged Exercise Price, Beginning Balance | $1.57 | $1.90 | ' |
Weighted Averaged Exercise Price, Exercised | ' | ' | ' |
Weighted Averaged Exercise Price, Ending Balance | $0.48 | $1.57 | ' |
Number of Options, Vested | 5,557 | 9,999 | ' |
Number of Options, Forfeited | 6,667 | 175,000 | ' |
Weighted Average Exercise Price, Vested | $1.27 | $1.10 | ' |
Weighted Averaged Exercise Price, Forfeited | $2.50 | $1.79 | ' |
Nonvested Options | ' | ' | ' |
Summary of option activity for employees and non-employees | ' | ' | ' |
Number of Options, Beginning Balance | 434,675 | 501,106 | ' |
Number of Options, Granted | 309,090 | 211,459 | ' |
Number of Options, Ending Balance | 369,493 | 434,675 | ' |
Weighted Averaged Exercise Price, Beginning Balance | $0.91 | $0.90 | ' |
Weighted Averaged Exercise Price, Granted | $1.62 | $0.95 | ' |
Weighted Averaged Exercise Price, Ending Balance | $1.22 | $0.91 | ' |
Number of Options, Vested | 369,272 | -277,222 | ' |
Number of Options, Forfeited | -5,000 | -668 | ' |
Weighted Average Exercise Price, Vested | $1.19 | $0.92 | ' |
Weighted Averaged Exercise Price, Forfeited | $1 | $1.15 | ' |
Nonvested Options | Option Activity for Non-Employees | ' | ' | ' |
Summary of option activity for employees and non-employees | ' | ' | ' |
Number of Options, Beginning Balance | 5,557 | 15,556 | ' |
Number of Options, Granted | ' | ' | ' |
Number of Options, Exercised | ' | ' | ' |
Number of Options, Ending Balance | ' | 5,557 | ' |
Weighted Averaged Exercise Price, Beginning Balance | $1.27 | $1.16 | ' |
Weighted Averaged Exercise Price, Granted | ' | ' | ' |
Weighted Averaged Exercise Price, Exercised | ' | ' | ' |
Weighted Averaged Exercise Price, Ending Balance | ' | $1.27 | ' |
Number of Options, Vested | 5,557 | -9,999 | ' |
Number of Options, Forfeited | ' | ' | ' |
Weighted Average Exercise Price, Vested | $1.27 | $1.10 | ' |
Weighted Averaged Exercise Price, Forfeited | ' | ' | ' |
Stock_Option_Plans_Details_Tex
Stock Option Plans (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2009 | Dec. 31, 2013 | Jul. 31, 2004 | Jul. 31, 2004 | Nov. 30, 2009 | Dec. 31, 2011 | |
Option Activity for Employees | Option Activity for Employees | Option Activity for Non-Employees | Option Activity for Non-Employees | Chief Executive Officer | Chief Executive Officer | Chief Executive Officer | Common Stock | 2004 Stock Option Plan | Performance Options | 2011 Stock Option Plan | ||||
Instruments | ||||||||||||||
Stock Option Plans (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant of options to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000 | ' | ' |
Options exercisable from the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Expired period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Shares authorized, amount | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount from market price on date of the agreement | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options reserved for a special bonus | ' | ' | ' | ' | ' | ' | ' | ' | 666,667 | ' | ' | ' | ' | ' |
Purchase order Period | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
STA Instruments and related handpieces | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 | ' | ' | ' | ' | ' |
Sale order Period | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,333 | ' |
Options reserved | ' | ' | ' | ' | ' | ' | ' | ' | 593,334 | ' | ' | ' | ' | ' |
Options valued | ' | ' | ' | ' | ' | ' | ' | ' | $1.49 | ' | ' | ' | ' | ' |
Options vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,333 | ' | ' | ' | ' |
Options cancelled | ' | ' | ' | ' | ' | ' | ' | 593,334 | ' | ' | ' | ' | ' | ' |
Performance options issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Milestone recognized total compensation cost | ' | ' | ' | 219,196 | 142,770 | 0 | 2,217 | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to non-vested options | ' | ' | ' | $400,212 | $169,764 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' |
Milestone recognize cost over a weighted average period | ' | ' | ' | '1 year 7 months 6 days | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life of fair value options | ' | '5 years | '5 years | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility of fair value options | ' | 168.00% | 172.00% | ' | ' | 117.82% | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free Interest rate of fair value options | ' | 1.37% | 0.79% | ' | ' | 1.64% | ' | ' | ' | ' | ' | ' | ' | ' |
Non Employee options granted | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employment_Contract_and_Deferr1
Employment Contract and Deferred Compensation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Chief Executive Officer | Chief Executive Officer | Chief Executive Officer | ||
Maximum | ||||
Employment Contract and Deferred Compensation (Textual) [Abstract] | ' | ' | ' | ' |
Chief executive officer employment agreement period | ' | '5 years | ' | ' |
Chief executive officer automatic extended employment agreement period | ' | '1 year | ' | ' |
Employment Contracts | ' | 31-Dec-12 | ' | ' |
Base compensation | ' | $300,000 | ' | ' |
Annual bonuses, one half cash, one half common stock | ' | ' | ' | 400,000 |
Earn bonus | ' | 'five-year stock options to purchase twice the number of bonus shares earned. | ' | ' |
Exercisable share | 90.00% | 110.00% | ' | ' |
Greater stockholder on the date of grant | ' | 10.00% | ' | ' |
Option shall vest | ' | 'one-third of the shares covered at the end of each of the first three years | ' | ' |
Options exercisable period | ' | '30 days | ' | ' |
Payment of common stock | ' | $1,408,333 | $1,208,333 | ' |
Accrued deferred compensation | ' | 1,306,716 | 1,182,493 | ' |
Employment agreement amended before period | ' | '40 months | ' | ' |
Employment agreement extended period | ' | '120 months | ' | ' |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textual) [Abstract] | ' | ' |
Statutory rate, including state income tax | -40.00% | -40.00% |
Amount of Pre-tax Loss | $255,000 | $296,000 |
Percentage of valuation allowance | 100.00% | ' |
Significant accounting income tax uncertainties | 0 | ' |
Interest and penalties | 0 | ' |
State | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' |
Net operating loss carryforward, expiration date | 31-Dec-19 | ' |
Net operating loss | 515,000 | 2,875,000 |
Federal | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' |
Net operating loss carryforward, expiration date | 31-Dec-32 | ' |
Net operating loss | $43,596,000 | $48,537,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Allowance for doubtful accounts-short term | $2,000 | $72,000 |
Inventory allowance | ' | 79,000 |
Warranty reserve | 10,000 | 10,000 |
Impairment of Germany Investment | 31,000 | 31,000 |
Deferred officers compensation | 725,000 | 600,000 |
Subtotal | 768,000 | 792,000 |
Valuation allowance | -768,000 | -792,000 |
Current deferred tax asset | ' | ' |
Non-current assets | ' | ' |
Allowance for doubtful accounts-long term | ' | 67,000 |
Net operating loss carryforward | 14,855,000 | 16,675,000 |
Subtotal | 14,855,000 | 16,742,000 |
Valuation allowance | -14,855,000 | -16,742,000 |
Non-current deferred tax asset | ' | ' |
Income_Taxes_Details_1
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of the statutory tax rates | ' | ' |
Statutory rate | -34.00% | -34.00% |
State income tax - all states | -6.00% | -6.00% |
Change in valuation allowance | -40.00% | -40.00% |
Current year valuation allowance | 40.00% | 40.00% |
Benefit for income taxes | 0.00% | 0.00% |
Product_Sales_and_Significant_2
Product Sales and Significant Customers and Vendors (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Sales by product and by geographical region | ' | ' |
Total sales | $10,011,420 | $8,648,242 |
United States | ' | ' |
Sales by product and by geographical region | ' | ' |
Total sales | 5,299,552 | 4,343,807 |
Canada | ' | ' |
Sales by product and by geographical region | ' | ' |
Total sales | 305,171 | 553,984 |
Other Foreign | ' | ' |
Sales by product and by geographical region | ' | ' |
Total sales | 4,406,697 | 3,750,451 |
Instruments | ' | ' |
Sales by product and by geographical region | ' | ' |
Total sales | 2,672,026 | 2,146,756 |
Handpieces | ' | ' |
Sales by product and by geographical region | ' | ' |
Total sales | 7,294,810 | 6,344,021 |
Other | ' | ' |
Sales by product and by geographical region | ' | ' |
Total sales | $44,584 | $157,465 |
Product_Sales_and_Significant_3
Product Sales and Significant Customers and Vendors (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | |
Entity Wide Information Revenue From External Customer [Line Items] | ' | ' |
Accounts receivable current and noncurrent percentage | 48.00% | 38.00% |
Aggregate accounted of revenue | 42.00% | 36.00% |
Product Sales and Significant Customers and Vendors (Textual) [Abstract] | ' | ' |
Accounts receivable | $732,762 | $421,890 |
Number of customers | 2 | 2 |
Number of Customers involved in Accounts receivables | 1 | 3 |
Customer One | ' | ' |
Entity Wide Information Revenue From External Customer [Line Items] | ' | ' |
Accounts receivable current and noncurrent percentage | ' | 8.00% |
Aggregate accounted of revenue | 21.00% | 21.00% |
Customer Two | ' | ' |
Entity Wide Information Revenue From External Customer [Line Items] | ' | ' |
Accounts receivable current and noncurrent percentage | ' | 10.00% |
Aggregate accounted of revenue | 21.00% | 15.00% |
Customer Three | ' | ' |
Entity Wide Information Revenue From External Customer [Line Items] | ' | ' |
Accounts receivable current and noncurrent percentage | ' | 20.00% |
Instruments | ' | ' |
Entity Wide Information Revenue From External Customer [Line Items] | ' | ' |
Purchase from suppliers | 457,060 | 444,852 |
Percentage of purchase | 13.00% | 18.00% |
China | ' | ' |
Entity Wide Information Revenue From External Customer [Line Items] | ' | ' |
Purchase from suppliers | $3,026,041 | $1,966,077 |
Percentage of purchase | 87.00% | 82.00% |
Commitments_and_Other_Details
Commitments and Other (Details) (USD $) | Dec. 31, 2013 |
Aggregate minimum rental commitments | ' |
2014 | $48,962 |
2015 | 7,309 |
2016 | 5,965 |
2017 | 5,965 |
2018 | 0 |
Total | $68,201 |
Commitments_and_Other_Details_
Commitments and Other (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Jan. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | |
Agreement | Instruments | sqft | ||
Commitments and Other (Textual) [Abstract] | ' | ' | ' | ' |
Monthly cost | ' | ' | $6,942 | ' |
Commitments and Other (Additional Textual) [Abstract] | ' | ' | ' | ' |
Area of office space | ' | ' | 6,300 | ' |
Lease expiration date | ' | ' | 30-Jun-14 | ' |
Term of lease extension | ' | ' | '5 years | ' |
Rent expense | ' | ' | 41,653 | 83,273 |
Restricted Common Stock | ' | ' | 43,424 | ' |
Cash payable | ' | ' | 145,000 | ' |
Additional payment received by using technology | ' | ' | 2.50% | ' |
Additional payment received by using other technology | ' | ' | 5.00% | ' |
Consulting fees | ' | ' | 99,450 | 156,000 |
Issue of purchase order to Tricor Instruments | ' | 12,000 | ' | ' |
Purchase order | ' | 5,261,640 | ' | ' |
Number of Agreement Between Shareholder and Company | 3 | ' | ' | ' |
Servicing Fees | 100,000 | ' | ' | ' |
Wand or STA Instruments | ' | ' | ' | ' |
Commitments and Other (Textual) [Abstract] | ' | ' | ' | ' |
Delivery period | ' | '3 years | ' | ' |
Director | ' | ' | ' | ' |
Commitments and Other (Textual) [Abstract] | ' | ' | ' | ' |
Options to purchase common stock issued | ' | ' | 8,333 | ' |
Director's royalty fees | ' | ' | $357,972 | $306,983 |