Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Apr. 06, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MILESTONE SCIENTIFIC INC. | ||
Entity Central Index Key | 855,683 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MLSS | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 25,888,742 | ||
Entity Common Stock, Shares Outstanding | 21,687,164 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 4,194,384 | $ 10,367,993 |
Accounts receivable | 1,793,801 | 1,541,478 |
Other receivable | 58,140 | |
Inventories | 4,258,094 | 2,497,099 |
Advances on contracts | 1,215,128 | 721,197 |
Prepaid expenses and other current assets | 304,604 | 454,566 |
Total current assets | 11,824,151 | 15,582,333 |
Furniture, fixtures & equipment net of accumulated depreciation | 235,935 | 88,818 |
Patents, net of accumulated amortization of $646,388 as of December 31, 2015 and $576,960 as of December 31, 2014 | 715,540 | 530,029 |
Other assets | 17,355 | 14,685 |
Total assets | 12,809,327 | 17,477,428 |
Current Liabilities: | ||
Accounts payable | 2,088,268 | 1,453,908 |
Accrued expenses and other payables | 1,555,567 | 981,168 |
Total current liabilities | $ 3,643,835 | $ 2,435,076 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common stock, par value $.001; authorized 50,000,000 shares; 21,720,497 shares issued, 963,451 shares to be issued and 21,687,164 shares outstanding as of December 31, 2015; 21,404,494 shares issued, 974,953 shares to be issued and 21,371,161 shares outstanding as of December 31, 2014 | $ 22,685 | $ 22,380 |
Additional paid-in capital | 78,632,383 | 77,504,415 |
Accumulated deficit | (67,434,984) | (61,967,462) |
Treasury stock, at cost, 33,333 shares | (911,516) | (911,516) |
Total Milestone Scientific Inc. stockholders' equity | 10,308,575 | 14,647,824 |
Noncontrolling interest | (1,143,083) | 394,528 |
Total Equity | 9,165,492 | 15,042,352 |
Total liabilities and stockholders’ equity | 12,809,327 | 17,477,428 |
Series A Preferred Stock [Member] | ||
Stockholders’ Equity | ||
Series A convertible preferred stock, par value $.001, authorized 5,000,000 shares, 7,000 shares issued and outstanding, respectively | 7 | 7 |
Milestone Medical Inc. [Member] | ||
Current Assets: | ||
Investment in joint venture | 888,720 | |
Stockholders’ Equity | ||
Total Equity | (1,965,230) | |
Milestone Education LLC [Member] | ||
Current Assets: | ||
Investment in joint venture | 16,346 | 24,192 |
Milestone China [Member] | ||
Current Assets: | ||
Investment in joint venture | 0 | $ 348,651 |
Variable Interest Entities [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 1,222 | |
Accounts receivable | 45,075 | |
Inventories | 885,961 | |
Advances on contracts | 43,524 | |
Furniture, fixtures & equipment net of accumulated depreciation | 119,007 | |
Current Liabilities: | ||
Accounts payable | 461,292 | |
Accrued expenses and other payables | $ 354,361 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $ 5,000 | $ 5,000 |
Accumulated depreciation on Furniture, Fixtures & Equipment | 566,477 | 416,210 |
Accumulated amortization of patents | $ 646,388 | $ 576,960 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,720,497 | 21,404,494 |
Common stock, shares to be issued | 963,451 | 974,953 |
Common stock, shares outstanding | 21,687,164 | 21,371,161 |
Treasury stock, at cost | 33,333 | 33,333 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 7,000 | 7,000 |
Preferred stock, shares outstanding | 7,000 | 7,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Product sales, net | $ 9,491,569 | $ 10,333,090 |
Cost of products sold | 3,048,260 | 3,630,765 |
Gross profit | 6,443,309 | 6,702,325 |
Selling, general and administrative expenses | 9,399,201 | 7,404,258 |
Research and development expenses | 100,856 | 88,243 |
Total operating expenses | 9,500,057 | 7,492,501 |
Loss from operations | (3,056,748) | (790,176) |
Other (expenses) | (5,347) | |
Interest income | 3,838 | 2,389 |
Total other expenses, net | (1,509) | 2,389 |
Loss before provision for income tax and equity in net earnings of equity investments | (3,058,257) | (787,787) |
Provision for income tax | (36,157) | (9,509) |
Loss before equity in net earnings of equity investments | (3,094,414) | (797,296) |
Net loss in equity investments | (2,445,489) | (910,200) |
Net Loss | (5,539,903) | (1,707,496) |
Net loss attributable to noncontrolling interests | 72,381 | 5,472 |
Net loss attributable to Milestone Scientific Inc. | $ (5,467,522) | $ (1,702,024) |
Net loss per share applicable to common stockholders— | ||
Basic | $ (0.26) | $ (0.08) |
Diluted | $ (0.26) | $ (0.08) |
Weighted average shares outstanding and to be issued— | ||
Basic | 21,429,993 | 20,063,513 |
Diluted | 21,429,993 | 20,063,513 |
Milestone Medical Inc. [Member] | ||
Product sales, net | $ 51,000 | $ 0 |
Total operating expenses | 3,990,000 | 1,900,000 |
Net loss in equity investments | (2,019,211) | (891,500) |
Milestone Education LLC [Member] | ||
Net loss in equity investments | (7,846) | (17,890) |
Net Loss | (7,846) | (17,889) |
Milestone China [Member] | ||
Net loss in equity investments | (348,651) | (810) |
Loss on earnings from China Joint Venture | $ (418,432) | $ (810) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Total | Director [Member] | Employees [Member] | Milestone Medical Inc. [Member] | Preferred Stock [Member]Series A Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member]Director [Member] | Common Stock [Member]Employees [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Director [Member] | Additional Paid-in Capital [Member]Employees [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member]Director [Member] | Noncontrolling Interest [Member]Milestone Medical Inc. [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2013 | $ 5,519,845 | $ 19,599 | $ 66,677,200 | $ (60,265,438) | $ (911,516) | |||||||||||
Beginning Balance, Shares at Dec. 31, 2013 | 19,599,470 | |||||||||||||||
Options to employees and consultants | 429,131 | 429,131 | ||||||||||||||
Capital Contribution from noncontrolling interest | 400,000 | $ 400,000 | ||||||||||||||
Common stock to be issued to employee for bonuses | 226,750 | $ 112 | 226,638 | |||||||||||||
Common stock to be issued to employee for bonuses, Shares | 112,131 | |||||||||||||||
Common stock issued for compensation | $ 55,200 | $ 46,041 | $ 30 | $ 27 | $ 55,170 | $ 46,014 | ||||||||||
Common stock issued for compensation, shares | 30,000 | 26,156 | 30,000 | 26,156 | ||||||||||||
Common stock issued for payment of consulting services | $ 274,500 | $ 148 | 274,353 | |||||||||||||
Common stock issued for payment of consulting services, shares | 147,731 | 147,731 | ||||||||||||||
Exercise of stock options for employees and consultants | $ 307,447 | $ 389 | 307,058 | |||||||||||||
Exercise of stock options for employees and consultants, shares | 388,959 | |||||||||||||||
Exercise of stock options for directors | 41,250 | $ 75 | 41,175 | |||||||||||||
Exercise of stock options for directors, shares | 75,000 | |||||||||||||||
Issuance of common stock for cash | 9,449,683 | $ 7 | $ 2,000 | 9,447,676 | ||||||||||||
Issuance of common stock for cash, shares | 7,000 | 2,000,000 | ||||||||||||||
Net income (loss) | $ (1,707,496) | (1,702,024) | (5,472) | |||||||||||||
Common stock issued to employee for exercise of stock options, shares | 75,000 | 237,293 | ||||||||||||||
Ending Balance at Dec. 31, 2014 | $ 15,042,352 | $ 7 | $ 22,380 | 77,504,415 | (61,967,462) | 394,528 | (911,516) | |||||||||
Ending Balance, shares at Dec. 31, 2014 | 7,000 | 22,379,447 | ||||||||||||||
Options to employees and consultants | $ 637,108 | $ 637,108 | ||||||||||||||
Capital Contribution from noncontrolling interest | $ 500,000 | $ 500,000 | ||||||||||||||
Common stock to be issued to employee for bonuses | $ 100,000 | $ 29 | 99,971 | |||||||||||||
Common stock to be issued to employee for bonuses, Shares | 29,865 | 29,865 | ||||||||||||||
Common stock issued for compensation | $ 50,000 | $ 18 | $ 49,982 | |||||||||||||
Common stock issued for compensation, shares | 17,817 | 17,817 | ||||||||||||||
Common stock issued for payment of consulting services | $ 120,000 | $ 41 | 119,959 | |||||||||||||
Common stock issued for payment of consulting services, shares | 41,365 | 41,365 | ||||||||||||||
Net income (loss) | $ (5,539,903) | (5,467,522) | (72,381) | |||||||||||||
Common stock issued to employee for exercise of stock options | 200,000 | $ 200 | 199,800 | |||||||||||||
Common stock issued to employee for exercise of stock options, shares | 200,000 | 200,000 | ||||||||||||||
Exercise of stock options for consultants | 21,165 | $ 17 | 21,148 | |||||||||||||
Exercise of stock options for consultants, shares | 8,333 | 16,666 | ||||||||||||||
Ending Balance at Dec. 31, 2015 | $ 9,165,492 | $ (1,965,230) | $ 7 | $ 22,685 | $ 78,632,383 | $ (67,434,984) | $ (1,143,083) | $ (1,965,230) | $ (911,516) | |||||||
Ending Balance, shares at Dec. 31, 2015 | 7,000 | 22,685,160 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (5,539,903) | $ (1,707,496) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation expense | 27,947 | 17,380 |
Amortization of patents | 69,428 | 78,458 |
Common stock and options for compensation, consulting and vendor services | 1,128,274 | 1,031,623 |
Equity loss on joint venture | 2,445,489 | 910,200 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (207,248) | (8,623) |
Increase in other receivable | (58,140) | |
Increase in inventories | (875,034) | (1,175,447) |
(Increase) decrease to advances on contracts | (450,407) | 1,587,155 |
(Increase) decrease to prepaid expenses and other current assets | 192,601 | (304,114) |
Increase in other assets | (2,670) | (1,768) |
Increase (decrease) in accounts payable | 173,068 | (516,460) |
Increase in accrued expenses and other payables | 220,038 | 466,035 |
Net cash (used in) provided by operating activities | (2,946,338) | 376,943 |
Cash flows from investing activities: | ||
Purchases of intangible assets | (9,939) | (16,752) |
Purchases of property and equipment | (67,581) | (82,210) |
Net cash used in investing activities | (3,727,271) | (1,304,528) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 348,697 | |
Net proceeds on Private Placement Offering | 9,449,683 | |
Repayment of related party loan | (50,000) | |
Capital contribution from noncontrolling interest | 500,000 | 400,000 |
Net cash provided by financing activities | 500,000 | 10,148,380 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (6,173,609) | 9,220,795 |
Cash and cash equivalents at beginning of year | 10,367,993 | 1,147,198 |
Cash and cash equivalents at end of year | 4,194,384 | 10,367,993 |
Supplemental disclosure of cash flow information: | ||
Net Assets Acquired from Variable Interest Entity | 566,775 | |
Milestone Medical Inc. [Member] | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Equity loss on joint venture | 2,019,211 | 891,500 |
Cash flows from investing activities: | ||
Investment in Joint Venture | (856,105) | |
Investment in Milestone Medical prior to consolidation (Note F) | (3,649,751) | |
Milestone Education LLC [Member] | ||
Cash flows from operating activities: | ||
Net loss | (7,846) | (17,889) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Equity loss on joint venture | 7,846 | 17,890 |
Milestone China [Member] | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Equity loss on joint venture | $ 348,651 | 810 |
Cash flows from investing activities: | ||
Investment in Joint Venture | $ (349,461) |
Organization, Business and Basi
Organization, Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization, Business and Basis of Presentation | NOTE A — ORGANIZATION, BUSINESS AND BASIS OF PRESENTATION Milestone Scientific Inc. and Subsidiaries, (collectively “Milestone Scientific”, “our”, “us” or “we”) was incorporated in the State of Delaware in August 1989. Milestone Scientific has developed a proprietary, computer-controlled anesthetic delivery instrument, through the use of The Wand®, CompuDent®, Wand Plus® and STA (Single Tooth Anesthesia) TM CompuMed®. CompuDent® CompuMed® Wand Plus In July 2014, Milestone Scientific acquired all of the 750,000 outstanding shares of an inactive Florida corporation and changed its name to Wand Dental, Inc. (“Wand Dental”). In September 2014, that corporation was merged into a Delaware corporation, retaining the same name and capitalization. On July 1, 2014, Wand Dental was capitalized with cash and received Milestone Scientific’s dental business and related dental assets including the exclusive license of Milestone Scientific’s, patents, trademarks, and technology for use in the dental marketplace. Wand Dental is consolidated into Milestone Scientific. On June 1, 2015, Milestone Scientific listed its common stock on the NYSE MKT LLC (NYSE MKT) under the ticker symbol MLSS. Milestone Scientific has incurred operating losses and negative cash flows from operating activities since its inception, except for 2013. Milestone Scientific is actively pursuing the generation of revenue, positive operating income and net income. The capital raised in May 2014, provided Milestone Scientific with the opportunity to continue to develop and commercialize additional medical instruments and aggressively market the dental instruments throughout the world. Milestone Scientific 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, 2015, Milestone Scientific believes that with the new distribution agreement with Henry Schein Inc. (effective January 1, 2016), the world’s largest supplier of medical, dental and veterinary supplies and devices, that dental revenue is projected to improve in the upcoming 12 months. To further reduce our expenditures, Milestone Medical’s expenses related to USA FDA clearance for the epidural and intra-articular instruments can be controlled as required to meet Milestone Scientific’s budget. The Company has completed a detailed cash flow projection for the upcoming 12 months and has concluded that by limiting the FDA related expenses and increasing the dental instrument revenue through the new distribution agreement, management believes that Milestone Scientific will have sufficient cash reserves to meet all of its anticipated obligations over the next twelve months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of Milestone Scientific and its wholly owned and majority-owned subsidiaries, as well as Milestone Medical, Inc., a variable interest entity for which Milestone Scientific is the primary beneficiary. All significant intra-entity transactions and balances have been eliminated in consolidation. Milestone Advanced Cosmetic Systems, Inc. (“ACS”) was organized in July 2014, and is owned fifty percent by Milestone China and fifty percent by Milestone Scientific. Milestone China is 40% owned by Milestone Scientific, as a result, through attribution Milestone Scientific owns seventy percent of ACS. 2. Variable Interest Entities A Variable Interest Entity (VIE) is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. If the Company determines that it has operating power and the obligation to absorb losses or receive benefits, the Company consolidates the VIE as the primary beneficiary, and if not, does not consolidate. The Company’s involvement constitutes power that is most significant to the entity when it has unconstrained decision making ability over key operational functions within the entity. Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. The Company is the primary beneficiary of Milestone Medical Inc. and Milestone Scientific Education Inc., as variable interest entities. Accordingly, the assets and liabilities of Milestone Medical Inc. are included in the accompanying consolidated balance sheet. Please refer to footnote F for further details regarding the treatment of the variable interest entity. However, the assets and liabilities of Milestone Scientific Education Inc. have not been consolidated as the impact on the financial statements is not considered material. Please refer to footnote G for further details regarding the treatment. 3. Cash and Cash Equivalents Milestone Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. 4. Accounts Receivable Milestone Scientific sells a significant amount of its product on credit terms to its major distributors. Milestone Scientific 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. There have not been any significant credit losses reported by the Company. 5. Product Return and Warranty Milestone Scientific 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 evaluated and the customer is charged for the repair. Warranty expense was $73,539 and $79,017 for 2015 and 2014, respectively. Non-Warranty repairs are collected from the customers. Non-Warranty repair income was $39,264 and $60,473 for 2015 and 2014, respectively. 6 . 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. 7 . Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long term assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is presented below the income tax line on the Consolidated Statement of Operations since the activities of the investee are not closely aligned with the operations of the Company. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. 8. 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. 9. Intangible Assets - Patents Patents are recorded at 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 Scientific 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 Scientific Milestone Scientific 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. 10. Impairment of Long-Lived Assets Milestone Scientific 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 Scientific adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. Milestone Scientific has reviewed long-lived assets for impairment and concluded no impairment exist as of December 31, 2015 and 2014. 11. Revenue Recognition Revenue from product sales is recognized net of discounts and allowances to domestic distributors on the date of shipment for essentially all shipments, since the shipment terms are FOB warehouse. Milestone Scientific will recognize revenue on date of arrival of the goods at the customer’s location, where shipments are FOB destination. Shipments to international distributors are FOB warehouse, therefore revenue is recognized on shipment of the goods. In all cases the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone Scientific has no obligation on these sales for any post installation, set-up or maintenance, these being the responsibility of the buyer. Milestone Scientific’s only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period. 12. Shipping and Handling Costs Milestone Scientific 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 Scientific. 13. Research and Development Research and development costs, which consist principally of new product development costs payable to third parties, are expensed as incurred. 14. Advertising Expenses Milestone Scientific expenses advertising costs as they are incurred. For the years ended December 31, 2015 and 2014, Milestone Scientific recorded advertising expenses of $33,570 and $26,569, respectively. 15. Income Taxes Milestone Scientific 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. 16. Basic and diluted net loss per common share Milestone Scientific 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 Scientific had net losses for 2015 and 2014, the assumed effects of the exercise of potentially dilutive 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 1,427,769 and 1,488,796 at December 31, 2015 and 2014, respectively. 17. 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 going concern considerations, and valuation allowances on deferred tax assets. Actual results could differ from those estimates . 18. Fair Value of Financial Instruments Fair Value Measurements : We follow the provisions of ASC 820, 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 affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. 19. Stock-Based Compensation Milestone Scientific accounts for stock-based compensation under ASC Topic 718, Share-Based Payment. The weighted-average fair value of the options granted during 2015 and 2014 was estimated as $3.01 and $2.18, respectively, on the date of grant. The fair value for 2014 and 2014 was determined using the Black-Scholes option-pricing model with the following weighted average assumptions: December 31 2015 2014 Volatility 167% 149% Risk-free interest 1.73% 1.62% Expected Life 5 years 5 years Dividend yield 0% 0% Forfeiture Rate 6% 6% 20 . In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017, with early adoption permitted only for reporting periods beginning after December 15, 2016. We are currently evaluating the impact, if any, that this new accounting pronouncement will have on our financial statements. In June 2014, the FASB issued guidance for stock compensation which requires that a performance target that affects vesting of share-based payments and that could be achieved after the requisite service period be treated as a performance condition that affects vesting and as such, should not be reflected in estimating the grant-date fair value of the award. The guidance is effective for annual and interim periods beginning after December 15, 2015. This standard is not expected to have a material effect on the Company’s financial position, results of operations or cash flows. In February 2015, the Financial Accounting Standards Board issued a new standard ASU No.2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The new standard affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model, including limited partnerships and similar legal entity. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2015. We are currently evaluating the impact, if any, that this new accounting pronouncement will have on our financial statements. In July 2015, the FASB issued guidance for inventory. Under the guidance, an entity should measure inventory within the scope of this guidance at the lower of cost and net realizable value, except when inventory is measured using LIFO or the retail inventory method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. In addition, the FASB has amended some of the other inventory guidance to more clearly articulate the requirements for the measurement and disclosure of inventory. The guidance is effective for reporting periods beginning after December 15, 2016. The guidance should be applied prospectively, with earlier application permitted. We will adopt the guidance as of January 1, 2016, on a prospective basis. The adoption of this new guidance is not expected to have a material impact on our financial statements. In November 2015, the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. As of December 31, 2015 and 2014 there are no deferred tax assets or liabilities recorded. In February 2016, the Financial Accounting Standards Board issued a new standard ASU No.2016-02, “Leases “ (Topic 842): The new standard is intended to increase transparency and comparability among organizations to recognize lease assets and liabilities on the balance sheet and disclose key information about leasing arrangements. It will be effective for fiscal years beginning after December 15, 2019 and for interim periods within fiscal years beginning after December 15, 2020. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows. In March 2016, the Financial Accounting Standards Board issued a new standard ASU No.2016-07, “Investments - Equity Method and Joint Ventures” (Topic 323): The new standard is intended to eliminate the requirement that when an investment qualifies for the use of the equity method as a result of an in increase in the level of ownership or degree of influence, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect all of the previous periods that the investment was held. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2016. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | NOTE C — ACCOUNTS RECEIVABLE Milestone Scientific sells a significant amount of its product on credit terms to its major distributors. Milestone Scientific 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. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE D — INVENTORIES December 31 2015 2014 Inventories consist of the following: Finished goods $ 4,252,612 $ 2,466,829 Component parts and other materials 5,482 30,270 $ 4,258,094 $ 2,497,099 |
Advances on Contracts
Advances on Contracts | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Advances on Contracts | NOTE E — ADVANCES ON CONTRACTS Milestone Scientific has entered into fixed arrangements with a contract manufacturer to manufacture STA, CompuDent® Wand Plus® |
Consolidation of Variable Inter
Consolidation of Variable Interest Entity | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Consolidation of Variable Interest Entity | NOTE F – CONSOLIDATION OF VARIABLE INTEREST ENTITY Milestone Medical Milestone Medical, Inc. is 49.98% owned by Milestone Scientific Inc. The Company has been established to develop and commercialize intra-articular and epidural drug delivery instruments, utilizing an exclusive royalty-free license to Milestone Scientific’s CompuFlo technology. The license was contributed by Milestone Scientific for our initial ownership in Milestone Medical. Since our initial investment in Milestone Medical, Inc., we have accounted for the investment in accordance with the equity method of accounting. However, during 2015, Milestone Scientific provided short term bridge financing to Milestone Medical in anticipation of the completion of a secondary stock offering in the Polish Market. In December 2015, the Company suspended their capital raise efforts meriting re-consideration of the initial accounting for the investment as an equity method investment. As a result of the change in circumstances around the proposed offering in December 2015 by Milestone Medical, we reevaluated the relationship between the two entities and the status of Milestone Medical as a VIE. We have concluded that Milestone Medical does not have sufficient capital at risk to support its activities without additional financial support from Milestone Scientific. As a result of these factors, we have concluded that the line of credit extended to Milestone Medical constitutes a variable interest in Milestone Medical and we should consolidate Milestone Medical as of December 31, 2015. Since the factors giving rise to concluding that Milestone Medical is a VIE happened so close to the end of fiscal year 2015, the acquisition date for measuring the consolidation of Milestone Medical has been deemed to be December 31, 2015. As such the statement of operations do not include any adjustment for the consolidation and the portion of our loss from Milestone Medical for the year ended December 31, 2015 is included in “loss from earnings of Milestone Medical.” The assets and liabilities of Milestone Medical Inc. are included in the accompanying consolidated Balance Sheet as of December 31, 2015. Pro Forma Financial Information (Unaudited). The financial information in the table below summarizes the combined results of operations of Milestone Scientific and subsidiaries and Milestone Medical Inc. (a variable interest entity) on a pro forma basis as though the companies had been combined as of the beginning of the earliest period presented. The pro forma financial information is presented for informational purposes only and is not indicative of the result of operations that would have been achieved if the consolidation had taken place at the beginning of each of the period presented. 2015 Pro Forma Consolidated 2014 Consolidated Revenue $ 9,542,544 $ 10,333,089 Cost of sales 3,061,299 3,630,765 Gross profit 6,481,245 6,702,324 Selling, general and administrative expenses 12,645,445 8,899,447 Research and development expenses 892,255 489,551 Total operating expenses 13,537,700 9,388,998 Loss income from operations (7,056,455 ) (2,686,674 ) Other Expenses (5,347 ) - Interest Expense (40,331 ) (2,955 ) Interest Income 3,838 5,057 Loss before provision for income taxes (7,098,295 ) (2,684,572 ) Provision for income tax (36,157 ) (9,509 ) Loss before equity in net earnings of equity investments (7,134,452 ) (2,694,081 ) Loss on earnings from Education Joint Venture (7,846 ) (17,890 ) Loss on earnings from China Joint Venture (418,432 ) (810 ) Net loss in equity investments (426,278 ) (18,700 ) Net loss (7,560,730 ) (2,712,781 ) Net loss attributable to the noncontrolling interests 2,093,208 954,423 Net loss attributable to Milestone Scientific Inc. $ (5,467,522 ) $ (1,758,358 ) The financial performance of Milestone Medical reported in the consolidated income statement for the years ended December 31, 2015 and 2014, respectively; includes revenues of approximately $51,000 and $0, operating expenses of approximately $3,990,000 and $1,900,000, and interest expense of approximately $40,000 and $280. |
Investment in Joint Ventures
Investment in Joint Ventures | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Joint Ventures | NOTE G – INVESTMENT IN JOINT VENTURES Milestone Education LLC. Milestone Education LLC (“Education”) began operations in 2013 to provide training and education to our dentists throughout the world. Milestone Scientific accounts for its investment in Education using the equity method of accounting. Approximately 80% of the revenue earned by Education is from services performed for Milestone Scientific. As a result of this relationship, we concluded that we have the power to direct the activities that most significantly impact Education’s economic performance, and that it is a variable interest entity and should be consolidated in the financials of Milestone Scientific. However the impact of the consolidation was deemed not to be material to the consolidated financial statements, and as such Education was not consolidated at December 31, 2015 and 2014. We recorded losses on earnings from Education of $7,846 and $17,889 for the years ended December 31, 2015 and 2014 respectively, which represents 50% of the reported losses of Education for each period respectively. Milestone Scientific’s had an investment in Milestone Education was $16,346 as December 31, 2015 and $24,192 as of December 31, 2014. Advance Ocular Science SA Advanced Ocular Sciences Inc. is an entity organized to develop an instrument that delivers injections into the eye. The company is a shell company as of December 31, 2015. Milestone Scientific owns 25% of this entity. As of the balance sheet date, no equity has been contributed to the Company be Milestone Scientific. During 2015, Milestone Scientific advanced $78,798 for marketing and strategy planning to Advanced Ocular Sciences SA. Advanced Ocular Sciences SA., or their organizers are obligated to repay this advance once the public offering is approved and funded in Poland during 2016. Advance Ocular Science was not included in the consolidated financial statements at December 31, 2015 as no investment has been made by Milestone Scientific. Milestone China Ltd. In June 2014, Milestone Scientific agreed to invest $1 Million through the contribution of 772 STA instruments (at a distributor price of approximately $1,295 per instrument) for a forty percent ownership in Milestone China Ltd. (“Milestone China”). Milestone Scientific sold $507,000 in handpieces and $938,200 in instruments during year ended December 31, 2015 to Milestone China Ltd. Milestone China Ltd. owes $357,200 to Milestone Scientific for handpieces shipped in 2015, which is included in accounts receivable at December 31, 2015. Milestone Scientific recognizes the total revenue and costs of goods sold at the time the shipment of instruments and handpieces. However, due to timing differences of when the inventory is sold to Milestone China and when Milestone China sells the acquired inventory to third parties, elimination of the intra-entity profit is required as of the balance sheet date. In accordance with Accounting Standard Codification (“ASC”) 323 – Equity Method and Joint In January 2016, Milestone Scientific contributed 308 STA instruments (valued at $308,000 ($1,000 per instrument)) to Milestone China Inc. as an increase in our investment in this subsidiary. |
Furniture, Fixtures and Equipme
Furniture, Fixtures and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Furniture, Fixtures and Equipment | NOTE H — FURNITURE, FIXTURES AND EQUIPMENT December 31 2015 2014 Furniture, Fixtures and Equipment consist of the following: Leasehold improvements $ 24,734 $ 24,734 Office furniture and equipment 134,948 122,198 Molds 7,200 7,200 Trade show displays 136,029 89,395 Computers and software 217,265 166,272 Tooling Safety Wand 20,377 20,377 Tooling equipment-STA, Wand and Medical 115,745 11,100 STA Trials Instruments 63,752 63,752 EPI and IA instruments 82,362 - Total 802,412 505,028 Less accumulated depreciation (566,477 ) (416,210 ) $ 235,935 $ 88,818 Depreciation expense was $27,947 and $17,380 for the years ended December 31, 2015 and 2014, respectively. |
Patents
Patents | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Patents | NOTE I — 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 $69,428 in 2015 and $78,458 in 2014. Estimated amortization expense of existing patents for each of the next five fiscal years amounts to approximately $79,000 per year. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | NOTE J — STOCKHOLDERS’ EQUITY ISSUANCES OF PREFERRED AND COMMON STOCK During 2015, Milestone Scientific provided shares to be issued 29,865 shares valued at $100,000 for payment of employee bonus. During 2015, Milestone Scientific issued 41,365 shares valued at $120,000 for payment of consulting services. During 2015, Milestone Scientific issued 17,817 shares valued at $50,000 for payment of employee compensation. During 2015, Milestone Scientific issued 16,666 shares valued at $21,165 for exercise of stock options to a consultant. During 2015, Milestone Scientific issued 200,000 shares valued at $200,000 for exercise of stock options to an employee. During 2014, Milestone Scientific issued 237,293 shares valued at $250,531 for exercise of stock options to employees. During 2014, Milestone Scientific issued 151,666 shares valued at $56,916 for exercise of stock options to a consultant. During 2014, Milestone issued 30,000 shares valued at $55,200 for the director’s compensation. During 2014, Milestone issued 112,131 shares valued at $226,750 to a consultant. During 2014, Milestone issued 147,731 shares valued at $274,500 for payment of consulting services. During 2014, Milestone issued 26,156 shares valued at $46,041 for payment of employee compensation. During 2014, Milestone issued 75,000 shares valued at $41,250 for exercise of stock options to three independent directors. During 2014, Milestone issued 2,000,000 shares of common stock and 7,000 shares of Series A shares of preferred stock valued at $10,000,000 to an investor, minus professional fees of $500,000. SHARES TO BE ISSUED As of December 31, 2015 and 2014, there were 963,451 and 954,953 shares, respectively, that have been deferred from being issued, subject to employment agreements with the Chief Executive Officer, Chief Financial Officer and employees of Milestone Scientific. 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 continued employment by the officers. The grants were fully vested upon grant date. SHARES RESERVED FOR FUTURE ISSUANCE At December 31, 2015 and 2014 there were 2,391,220 and 2,443,749 shares reserved for future issuance and 1,427,769 and 1,488,796 shares underlying other stock options and warrants outstanding, respectively. There were 963,451 shares in 2015 and 974,953 shares in 2014 to be issued in settlement of deferred compensation to officers of Milestone Scientific. |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
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 Scientific’s common stock. Options may be granted to employees, officers, directors and consultants of Milestone Scientific for the purchase of common stock of Milestone Scientific 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 Scientific 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 June 2011, the Shareholders of Milestone Scientific 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. Milestone Scientific recognizes compensation expense on a straight line basis over the requisite service period and in the case of performance based options over the period of the expected performance. During the years ended December 31, 2015 and 2014 Milestone Scientific recognized $637,108, and $429,131 of total employee compensation cost related to options that vested each year, respectively. As of December 31, 2015 and 2014, there was $1,167,865 and $569,641 of total unrecognized compensation cost related to non-vested options which Milestone Scientific expects to recognize over a weighted average period of 2.78 years and 3.23 years for December 31, 2015 and December 31, 2014, respectively. A summary of option activity for employees under the plans as of December 31, 2015 and 2014, and changes during the year then ended is presented below: Number of Options Weighted Averaged Exercise Price $ Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Options Value $ Outstanding, January 1, 2014 1,484,499 1.03 2.88 - Granted 390,470 2.25 4.87 - Exercised (312,293 ) 0.93 - - Forfeited or expired (90,546 ) 1.30 - - Outstanding, December 31, 2014 1,472,130 0.79 3.23 1,430,231 Exercisable, December 31, 2014 1,036,185 1.10 2.75 1,244,074 Granted 157,306 3.01 4.18 Exercised during 2015 (200,000 ) 1.00 - - Forfeited or expired (10,000 ) 1.00 - - Outstanding, December 31, 2015 1,419,436 1.56 2.78 1,220,338 Exercisable, December 31, 2015 1,041,680 1.29 2.41 1,135,819 Number of Options Weighted Averaged Exercise Price $ VESTED OPTIONS Outstanding, January 1, 2014 1,115,006 0.97 Exercised (312,293 ) 0.93 Vested Options 324,018 1.45 Forfeited (90,546 ) 1.30 Outstanding, December 31, 2014 1,036,185 1.11 Exercised (200,000 ) 1.00 Vested Options 215,495 1.92 Forfeited (10,000 ) 1.00 Outstanding, December 31, 2015 1,041,680 1.29 NONVESTED OPTIONS Nonvested, January 1, 2014 369,493 1.22 Granted 390,470 2.18 Vested (324,018 ) 1.45 Forfeited - - Nonvested, December 31, 2014 435,945 1.87 Granted 157,306 3.01 Vested (215,495 ) 1.92 Forfeited - - Nonvested, December 31, 2015 377,756 2.32 A summary of option activity for non-employees under the plans as of December 31, 2015 and 2014, and changes during the year ended is presented below: Number of Options Weighted Averaged Exercise Price $ Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Options Value $ Outstanding, January 1, 2014 173,332 0.48 0.59 210,833 Exercisable, December 31, 2014 173,332 0.48 0.59 210,833 Exercised (151,666 ) 0.38 - - Forfeited (5,000 ) 1.15 - - Outstanding, December 31, 2014 16,666 1.27 0.62 17,166 Exercisable, December 31, 2014 16,666 1.27 0.62 17,166 Granted 8,333 2.70 4.83 22,499 Exercised (16,666 ) - - - Outstanding, December 31, 2015 8,333 2.70 4.83 - Exercisable, December 31, 2015 2,777 2.70 4.83 - Number of Options Weighted Averaged Exercise Price $ VESTED OPTIONS Outstanding, January 1, 2014 173,332 0.48 Exercised 151,666 0.38 Forfeited 5,000 1.15 Outstanding, December 31, 2014 16,666 1.27 Vested 5,556 2.70 Exercised 166,666 1.27 Forfeited - - Outstanding, December 31, 2015 2,777 2.70 NONVESTED OPTIONS Nonvested January 1, 2014 - - Granted 8,333 2.70 Vested during 2015 2,777 3.70 Outstanding, December 31, 2015 5,556 2.70 The fair value of the options was estimated on the date of grant using the Black Scholes option-pricing model. There were 8,333 non-employee options granted for the years ending December 31, 2015 and none granted during 2014. During the years ended December 31, 2015 and 2014, Milestone Scientific recognized $7,050 expense related to non-employee options that vested. At December 31, 2015 there was $15,000 of total unrecognized compensation cost related to non-vested options which Milestone Scientific expects to recognize over weighted average of 4.83 years. |
Employment Contract and Deferre
Employment Contract and Deferred Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employment Contract and Deferred Compensation | NOTE L — EMPLOYMENT CONTRACT AND DEFERRED COMPENSATION Employment Contracts As of September 1, 2009 Milestone Scientific 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 Scientific 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, 735,369 shares of common stock are to be paid out at the end of the contract in settlement of 730,985 at December 31, 2015 and 706,716 shares of common stock are to be paid out at the end of the contract in settlement of $630,985 at December 31, 2014 of accrued deferred compensation and, accordingly, such shares have been classified in stockholders' equity with the common shares classified as to be issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE M — INCOME TAXES Due to Milestone Scientific’s history of operating losses, a full valuation allowances has been provided for all of Milestone Scientific’s deferred tax assets at December 31, 2015 and 2014, no recognition was given to the utilization of the remaining net operating loss carryforwards. Deferred tax attributes resulting from differences between financial accounting amounts and tax bases of assets and liabilities at December 31, 2015 and 2014 are as follows: 2015 2014 Current Assets Allowance for doubtful accounts-short term $ 2,000 $ 2,000 Warranty reserve 43,000 12,000 Deferred officers compensation 643,000 392,000 Subtotal 688,000 406,000 Valuation allowance (688,000 ) (406,000 ) Non-current assets Depreciation and Amortization $ 149,000 $ - Net operating loss carryforward 16,160,000 15,686,000 Federal tax effect of state deferred tax assets (117,000 ) Subtotal 16,192,000 15,686,000 Valuation allowance (16,192,000 ) (15,686,000 ) As of December 31, 2015 and 2014, Milestone Scientific has federal net operating loss carryforwards of approximately $46,875,000 and $44,478,000, respectively that will be available to offset future taxable income, if any, through December 2032. Milestone Scientific has state net operating losses of $3,771,000 and $1,374,000 in 2015 and 2014, respectively, expiring through December 2035. The utilization of Milestone Scientific’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 Scientific has established a 100% valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization. For the year ended December 31, 2015 and 2014, state tax liability was approximately $62,000 and $27,000. Such expense was recognized in the accompanying consolidated financial statements as of December 31, 2015. Due to Milestone Scientific’s history of past operating losses, which required a full valuation allowances for all of Milestone Scientific’s deferred tax assets at December 31, 2015 and 2014, no recognition was given to the utilization of the remaining Federal and State net operating loss carryforwards A reconciliation of the statutory tax rates for the years ended December 31, is as follows: 2015 2014 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 Scientific 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, 2015, and 2014, we had no uncertain tax positions that required recognition in the consolidated financial statements. Milestone Scientific’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 2012, 2013, and 2014 years are subject to audit by federal and state jurisdictions. |
Product Sales and Significant C
Product Sales and Significant Customers and Vendors | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Product Sales and Significant Customers and Vendors | NOTE N — PRODUCT SALES AND SIGNIFICANT CUSTOMERS AND VENDORS Milestone Scientific’s consolidated dental sales by product and by geographical region are as follows: Year Ending December 31 2015 2014 Instruments $ 2,911,614 $ 2,569,102 Handpieces 6,409,924 7,627,140 Other 170,031 136,848 $ 9,491,569 $ 10,333,090 United States $ 3,295,307 $ 4,655,648 Canada 211,035 100,321 Other Foreign 5,985,227 5,577,121 $ 9,491,569 $ 10,333,090 Milestone Scientific has informal arrangements with the manufacturer of the STA CompuDent® CompuMed® Milestone Scientific owed $716,520 and $455,573 to this supplier as of September 30, 2015 and December 31, 2014, respectively. For the year ended December 31, 2015, Milestone Scientific had two customers (distributors) at December 31, 2015, that had approximately 33% (15% and 18%), of its net product sales. Accounts receivable for the two major customers amounted to approximately $784,690 or 45% of gross accounts receivable. For the year ended December 31, 2014 Milestone had two customers (distributors) had approximately 45% (17% and 28%), of its net product sales. Accounts receivable for the two major customers amounted to approximately $1,100,000 or 69% of gross accounts receivable. |
Commitments and Other
Commitments and Other | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Other | NOTE O — COMMITMENTS AND OTHER (1) Lease Commitments The headquarters for Milestone Scientific is located at 220 South Orange Ave, Livingston, New Jersey. Milestone Scientific leases approximately 7,625 square feet of office space. The lease term expires January 31, 2020 at a monthly cost of $12,522. Additionally, Milestone Scientific 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, 2016 170,108 2017 170,108 2018 170,108 2019 170,108 2020 156,879 $ 837,311 For the years ended December 31, 2015 and 2014, respectively, rent expense amounted to $121,866 and $86,348 respectively. (2) Contract Manufacturing Arrangement Milestone Scientific has informal arrangements for the manufacture of its products. STA, single tooth anesthesia, and CompuDent® instruments are manufactured for Milestone Scientific by Tricor Systems, Inc. pursuant to specific purchase orders. The STA and the Wand® Handpiece with Needle is supplied to Milestone Scientific by a contractor in the United States, which arranges for its manufacture with two factories in China. The termination of the manufacturing relationship with any of the above manufacturers could have a material adverse effect on Milestone Scientific’s ability to produce and sell its products. Although alternate sources of supply exist and new manufacturing relationships could be established, Milestone Scientific 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 Scientific. (3) Other Commitments and Subsequent Events 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 Scientific purchased this technology pursuant to an agreement dated January 1, 2005. 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, the Director 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 the Director will receive the corresponding percentage of the consideration received by Milestone Scientific for such sale or license. Milestone Scientific expensed the Director’s royalty fee of $313,751 and $404,828 the years ended December 31, 2015 and 2014, respectively. Additionally, Milestone Scientific expensed consulting fees to the Director of $260,000 and $200,000 the years ended December 31, 2015 and 2014, respectively. In January 2010, Milestone Scientific issued a purchase order to Tricor Systems Inc. for the purchase of 12,000 STA Instruments to be delivered over the next three years. The purchase order is for $5,261,640. Wand Dental Inc, a wholly-owned subsidiary of Milestone Scientific was assigned this commitment on October 1, 2014. As of September 30, 2015, this commitment was completed. In the second quarter of 2015, Wand Dental Inc. entered into a new purchase commitment for 3,000 STA instruments, ($1,785,750) for the delivery of these instruments beginning October 2015 and into 2016. The balance of the advances at December 31, 2015 and December 31, 2014 is $1,215,127 and $721,197, respectively. In August 2013, a shareholder of Milestone Scientific entered a three year agreement with the Milestone Scientific to provide financial and business strategic services. The fee for these services are $100,000 annually. |
Pension Plan
Pension Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plan | NOTE P — PENSION PLAN Milestone Scientific has a Defined Contribution Plan that allows eligible employees to contribute part of their salary through payroll deductions. Milestone Scientific does not contribute to this plan, but does pay the administrative costs of the plan, which were not significant. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | 1. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of Milestone Scientific and its wholly owned and majority-owned subsidiaries, as well as Milestone Medical, Inc., a variable interest entity for which Milestone Scientific is the primary beneficiary. All significant intra-entity transactions and balances have been eliminated in consolidation. Milestone Advanced Cosmetic Systems, Inc. (“ACS”) was organized in July 2014, and is owned fifty percent by Milestone China and fifty percent by Milestone Scientific. Milestone China is 40% owned by Milestone Scientific, as a result, through attribution Milestone Scientific owns seventy percent of ACS. |
Variable Interest Entities | 2. Variable Interest Entities A Variable Interest Entity (VIE) is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. If the Company determines that it has operating power and the obligation to absorb losses or receive benefits, the Company consolidates the VIE as the primary beneficiary, and if not, does not consolidate. The Company’s involvement constitutes power that is most significant to the entity when it has unconstrained decision making ability over key operational functions within the entity. Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. The Company is the primary beneficiary of Milestone Medical Inc. and Milestone Scientific Education Inc., as variable interest entities. Accordingly, the assets and liabilities of Milestone Medical Inc. are included in the accompanying consolidated balance sheet. Please refer to footnote F for further details regarding the treatment of the variable interest entity. However, the assets and liabilities of Milestone Scientific Education Inc. have not been consolidated as the impact on the financial statements is not considered material. Please refer to footnote G for further details regarding the treatment. |
Cash and Cash Equivalents | 3. Cash and Cash Equivalents Milestone Scientific considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | 4. Accounts Receivable Milestone Scientific sells a significant amount of its product on credit terms to its major distributors. Milestone Scientific 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. There have not been any significant credit losses reported by the Company. |
Product Return and Warranty | 5. Product Return and Warranty Milestone Scientific 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 evaluated and the customer is charged for the repair. Warranty expense was $73,539 and $79,017 for 2015 and 2014, respectively. Non-Warranty repairs are collected from the customers. Non-Warranty repair income was $39,264 and $60,473 for 2015 and 2014, respectively. |
Inventories | 6 . 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. |
Equity Method Investments | 7 . Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long term assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is presented below the income tax line on the Consolidated Statement of Operations since the activities of the investee are not closely aligned with the operations of the Company. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
Furniture, Fixture and Equipment | 8. 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. |
Intangible Assets - Patents | 9. Intangible Assets - Patents Patents are recorded at 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 Scientific 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 Scientific Milestone Scientific 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 | 10. Impairment of Long-Lived Assets Milestone Scientific 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 Scientific adjusts the net book value of an underlying asset if its fair value is determined to be less than its net book value. Milestone Scientific has reviewed long-lived assets for impairment and concluded no impairment exist as of December 31, 2015 and 2014. |
Revenue Recognition | 11. Revenue Recognition Revenue from product sales is recognized net of discounts and allowances to domestic distributors on the date of shipment for essentially all shipments, since the shipment terms are FOB warehouse. Milestone Scientific will recognize revenue on date of arrival of the goods at the customer’s location, where shipments are FOB destination. Shipments to international distributors are FOB warehouse, therefore revenue is recognized on shipment of the goods. In all cases the price to the buyer is fixed and the collectability is reasonably assured. Further, Milestone Scientific has no obligation on these sales for any post installation, set-up or maintenance, these being the responsibility of the buyer. Milestone Scientific’s 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 | 12. Shipping and Handling Costs Milestone Scientific 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 Scientific. |
Research and Development | 13. Research and Development Research and development costs, which consist principally of new product development costs payable to third parties, are expensed as incurred. |
Advertising Expenses | 14. Advertising Expenses Milestone Scientific expenses advertising costs as they are incurred. For the years ended December 31, 2015 and 2014, Milestone Scientific recorded advertising expenses of $33,570 and $26,569, respectively. |
Income Taxes | 15. Income Taxes Milestone Scientific 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 | 16. Basic and diluted net loss per common share Milestone Scientific 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 Scientific had net losses for 2015 and 2014, the assumed effects of the exercise of potentially dilutive 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 1,427,769 and 1,488,796 at December 31, 2015 and 2014, respectively. |
Use of Estimates | 17. 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 going concern considerations, and valuation allowances on deferred tax assets. Actual results could differ from those estimates . |
Fair Value of Financial Instruments | 18. Fair Value of Financial Instruments Fair Value Measurements : We follow the provisions of ASC 820, 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 affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. |
Stock-Based Compensation | 19. Stock-Based Compensation Milestone Scientific accounts for stock-based compensation under ASC Topic 718, Share-Based Payment. The weighted-average fair value of the options granted during 2015 and 2014 was estimated as $3.01 and $2.18, respectively, on the date of grant. The fair value for 2014 and 2014 was determined using the Black-Scholes option-pricing model with the following weighted average assumptions: December 31 2015 2014 Volatility 167% 149% Risk-free interest 1.73% 1.62% Expected Life 5 years 5 years Dividend yield 0% 0% Forfeiture Rate 6% 6% |
Recent Accounting Pronouncements | 20 . In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017, with early adoption permitted only for reporting periods beginning after December 15, 2016. We are currently evaluating the impact, if any, that this new accounting pronouncement will have on our financial statements. In June 2014, the FASB issued guidance for stock compensation which requires that a performance target that affects vesting of share-based payments and that could be achieved after the requisite service period be treated as a performance condition that affects vesting and as such, should not be reflected in estimating the grant-date fair value of the award. The guidance is effective for annual and interim periods beginning after December 15, 2015. This standard is not expected to have a material effect on the Company’s financial position, results of operations or cash flows. In February 2015, the Financial Accounting Standards Board issued a new standard ASU No.2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The new standard affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model, including limited partnerships and similar legal entity. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2015. We are currently evaluating the impact, if any, that this new accounting pronouncement will have on our financial statements. In July 2015, the FASB issued guidance for inventory. Under the guidance, an entity should measure inventory within the scope of this guidance at the lower of cost and net realizable value, except when inventory is measured using LIFO or the retail inventory method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. In addition, the FASB has amended some of the other inventory guidance to more clearly articulate the requirements for the measurement and disclosure of inventory. The guidance is effective for reporting periods beginning after December 15, 2016. The guidance should be applied prospectively, with earlier application permitted. We will adopt the guidance as of January 1, 2016, on a prospective basis. The adoption of this new guidance is not expected to have a material impact on our financial statements. In November 2015, the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. As of December 31, 2015 and 2014 there are no deferred tax assets or liabilities recorded. In February 2016, the Financial Accounting Standards Board issued a new standard ASU No.2016-02, “Leases “ (Topic 842): The new standard is intended to increase transparency and comparability among organizations to recognize lease assets and liabilities on the balance sheet and disclose key information about leasing arrangements. It will be effective for fiscal years beginning after December 15, 2019 and for interim periods within fiscal years beginning after December 15, 2020. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows. In March 2016, the Financial Accounting Standards Board issued a new standard ASU No.2016-07, “Investments - Equity Method and Joint Ventures” (Topic 323): The new standard is intended to eliminate the requirement that when an investment qualifies for the use of the equity method as a result of an in increase in the level of ownership or degree of influence, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect all of the previous periods that the investment was held. It will be effective for all entities for fiscal years and interim periods, beginning after December 15, 2016. Milestone Scientific is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Weighted Average Assumptions | The fair value for 2014 and 2014 was determined using the Black-Scholes option-pricing model with the following weighted average assumptions December 31 2015 2014 Volatility 167% 149% Risk-free interest 1.73% 1.62% Expected Life 5 years 5 years Dividend yield 0% 0% Forfeiture Rate 6% 6% |
Inventories - Inventories (Tab
Inventories - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | December 31 2015 2014 Inventories consist of the following: Finished goods $ 4,252,612 $ 2,466,829 Component parts and other materials 5,482 30,270 $ 4,258,094 $ 2,497,099 |
Consolidation of Variable Int26
Consolidation of Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Pro Forma Financial Information (Unaudited) | Pro Forma Financial Information (Unaudited). The financial information in the table below summarizes the combined results of operations of Milestone Scientific and subsidiaries and Milestone Medical Inc. (a variable interest entity) on a pro forma basis as though the companies had been combined as of the beginning of the earliest period presented. The pro forma financial information is presented for informational purposes only and is not indicative of the result of operations that would have been achieved if the consolidation had taken place at the beginning of each of the period presented. 2015 Pro Forma Consolidated 2014 Consolidated Revenue $ 9,542,544 $ 10,333,089 Cost of sales 3,061,299 3,630,765 Gross profit 6,481,245 6,702,324 Selling, general and administrative expenses 12,645,445 8,899,447 Research and development expenses 892,255 489,551 Total operating expenses 13,537,700 9,388,998 Loss income from operations (7,056,455 ) (2,686,674 ) Other Expenses (5,347 ) - Interest Expense (40,331 ) (2,955 ) Interest Income 3,838 5,057 Loss before provision for income taxes (7,098,295 ) (2,684,572 ) Provision for income tax (36,157 ) (9,509 ) Loss before equity in net earnings of equity investments (7,134,452 ) (2,694,081 ) Loss on earnings from Education Joint Venture (7,846 ) (17,890 ) Loss on earnings from China Joint Venture (418,432 ) (810 ) Net loss in equity investments (426,278 ) (18,700 ) Net loss (7,560,730 ) (2,712,781 ) Net loss attributable to the noncontrolling interests 2,093,208 954,423 Net loss attributable to Milestone Scientific Inc. $ (5,467,522 ) $ (1,758,358 ) |
Furniture, Fixtures and Equip27
Furniture, Fixtures and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Furniture Fixtures and Equipment | FURNITURE, FIXTURES AND EQUIPMENT December 31 2015 2014 Furniture, Fixtures and Equipment consist of the following: Leasehold improvements $ 24,734 $ 24,734 Office furniture and equipment 134,948 122,198 Molds 7,200 7,200 Trade show displays 136,029 89,395 Computers and software 217,265 166,272 Tooling Safety Wand 20,377 20,377 Tooling equipment-STA, Wand and Medical 115,745 11,100 STA Trials Instruments 63,752 63,752 EPI and IA instruments 82,362 - Total 802,412 505,028 Less accumulated depreciation (566,477 ) (416,210 ) $ 235,935 $ 88,818 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Activity for Employees and Non-Employees | A summary of option activity for employees under the plans as of December 31, 2015 and 2014, and changes during the year then ended is presented below: Number of Options Weighted Averaged Exercise Price $ Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Options Value $ Outstanding, January 1, 2014 1,484,499 1.03 2.88 - Granted 390,470 2.25 4.87 - Exercised (312,293 ) 0.93 - - Forfeited or expired (90,546 ) 1.30 - - Outstanding, December 31, 2014 1,472,130 0.79 3.23 1,430,231 Exercisable, December 31, 2014 1,036,185 1.10 2.75 1,244,074 Granted 157,306 3.01 4.18 Exercised during 2015 (200,000 ) 1.00 - - Forfeited or expired (10,000 ) 1.00 - - Outstanding, December 31, 2015 1,419,436 1.56 2.78 1,220,338 Exercisable, December 31, 2015 1,041,680 1.29 2.41 1,135,819 Number of Options Weighted Averaged Exercise Price $ VESTED OPTIONS Outstanding, January 1, 2014 1,115,006 0.97 Exercised (312,293 ) 0.93 Vested Options 324,018 1.45 Forfeited (90,546 ) 1.30 Outstanding, December 31, 2014 1,036,185 1.11 Exercised (200,000 ) 1.00 Vested Options 215,495 1.92 Forfeited (10,000 ) 1.00 Outstanding, December 31, 2015 1,041,680 1.29 NONVESTED OPTIONS Nonvested, January 1, 2014 369,493 1.22 Granted 390,470 2.18 Vested (324,018 ) 1.45 Forfeited - - Nonvested, December 31, 2014 435,945 1.87 Granted 157,306 3.01 Vested (215,495 ) 1.92 Forfeited - - Nonvested, December 31, 2015 377,756 2.32 A summary of option activity for non-employees under the plans as of December 31, 2015 and 2014, and changes during the year ended is presented below: Number of Options Weighted Averaged Exercise Price $ Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Options Value $ Outstanding, January 1, 2014 173,332 0.48 0.59 210,833 Exercisable, December 31, 2014 173,332 0.48 0.59 210,833 Exercised (151,666 ) 0.38 - - Forfeited (5,000 ) 1.15 - - Outstanding, December 31, 2014 16,666 1.27 0.62 17,166 Exercisable, December 31, 2014 16,666 1.27 0.62 17,166 Granted 8,333 2.70 4.83 22,499 Exercised (16,666 ) - - - Outstanding, December 31, 2015 8,333 2.70 4.83 - Exercisable, December 31, 2015 2,777 2.70 4.83 - Number of Options Weighted Averaged Exercise Price $ VESTED OPTIONS Outstanding, January 1, 2014 173,332 0.48 Exercised 151,666 0.38 Forfeited 5,000 1.15 Outstanding, December 31, 2014 16,666 1.27 Vested 5,556 2.70 Exercised 166,666 1.27 Forfeited - - Outstanding, December 31, 2015 2,777 2.70 NONVESTED OPTIONS Nonvested January 1, 2014 - - Granted 8,333 2.70 Vested during 2015 2,777 3.70 Outstanding, December 31, 2015 5,556 2.70 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
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, 2015 and 2014 are as follows: 2015 2014 Current Assets Allowance for doubtful accounts-short term $ 2,000 $ 2,000 Warranty reserve 43,000 12,000 Deferred officers compensation 643,000 392,000 Subtotal 688,000 406,000 Valuation allowance (688,000 ) (406,000 ) Non-current assets Depreciation and Amortization $ 149,000 $ - Net operating loss carryforward 16,160,000 15,686,000 Federal tax effect of state deferred tax assets (117,000 ) Subtotal 16,192,000 15,686,000 Valuation allowance (16,192,000 ) (15,686,000 ) |
Reconciliation of the Statutory Tax Rates | A reconciliation of the statutory tax rates for the years ended December 31, is as follows: 2015 2014 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 Significant30
Product Sales and Significant Customers and Vendors (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Consolidated Dental Sales by Product and by Geographical Region | Milestone Scientific’s consolidated dental sales by product and by geographical region are as follows: Year Ending December 31 2015 2014 Instruments $ 2,911,614 $ 2,569,102 Handpieces 6,409,924 7,627,140 Other 170,031 136,848 $ 9,491,569 $ 10,333,090 United States $ 3,295,307 $ 4,655,648 Canada 211,035 100,321 Other Foreign 5,985,227 5,577,121 $ 9,491,569 $ 10,333,090 |
Commitments and Other (Tables)
Commitments and Other (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Aggregate Minimum Rental Commitments | Aggregate minimum rental commitments under noncancelable operating leases are as follows: Year Ending December 31, 2016 170,108 2017 170,108 2018 170,108 2019 170,108 2020 156,879 $ 837,311 |
Organization, Business and Ba32
Organization, Business and Basis of Presentation - Additional Information (Detail) | Jul. 31, 2014shares |
Wand Dental Inc [Member] | |
Organization Business And Basis Of Presentation [Line Items] | |
Number of outstanding shares acquired | 750,000 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Due period for credit sales | 90 days | |||
Warranty expense | $ 73,539 | $ 79,017 | ||
Non-Warranty repair income | 39,264 | 60,473 | ||
Long-lived assets for impairment | 0 | 0 | ||
Advertising expenses | $ 33,570 | $ 26,569 | ||
Weighted-average fair value of the individual options granted | $ 3.01 | $ 2.18 | ||
Deferred Tax assets | $ 0 | $ 0 | ||
Deferred Tax liabilities | $ 0 | $ 0 | ||
Options [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Outstanding options and warrants | 1,427,769 | 1,488,796 | ||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 5 years | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 7 years | |||
Milestone China [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Equity method investment, ownership percentage | 40.00% | 40.00% | ||
Milestone Advanced Cosmetic System Inc | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Ownership percentage attributable to Milestone | 70.00% | |||
Milestone China Investment In Milestone Advanced Cosmetic System I N C | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Capital contributions | $ 900,000 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average assumptions | ||
Volatility | 167.00% | 149.00% |
Risk-free interest | 1.73% | 1.62% |
Expected Life | 5 years | 5 years |
Dividend yield | 0.00% | 0.00% |
Forfeiture Rate | 6.00% | 6.00% |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Due period for credit sales | 90 days |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of inventory | ||
Finished goods | $ 4,252,612 | $ 2,466,829 |
Component parts and other materials | 5,482 | 30,270 |
Total | $ 4,258,094 | $ 2,497,099 |
Advances on Contracts - Additio
Advances on Contracts - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Advances To Contract Manufacturer [Abstract] | ||
Advances on contracts | $ 1,215,128 | $ 721,197 |
Consolidation of Variable Int38
Consolidation of Variable Interest Entity - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Equity Method Investments [Line Items] | ||
Product sales, net | $ 9,491,569 | $ 10,333,090 |
Operating expenses | $ 9,500,057 | 7,492,501 |
Milestone Medical Inc. [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.98% | |
Product sales, net | $ 51,000 | 0 |
Operating expenses | 3,990,000 | 1,900,000 |
Interest expense | $ 40,000 | $ 280 |
Consolidation of Variable Int39
Consolidation of Variable Interest Entity - Pro Forma Financial Information (Unaudited) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Equity Method Investments [Line Items] | ||
Net loss in equity investments | $ (2,445,489) | $ (910,200) |
Milestone Medical Inc. [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Revenue | 9,542,544 | 10,333,089 |
Cost of sales | 3,061,299 | 3,630,765 |
Gross profit | 6,481,245 | 6,702,324 |
Selling, general and administrative expenses | 12,645,445 | 8,899,447 |
Research and development expenses | 892,255 | 489,551 |
Total operating expenses | 13,537,700 | 9,388,998 |
Loss income from operations | (7,056,455) | (2,686,674) |
Other Expenses | (5,347) | |
Interest Expense | (40,331) | (2,955) |
Interest Income | 3,838 | 5,057 |
Loss before provision for income taxes | (7,098,295) | (2,684,572) |
Provision for income tax | (36,157) | (9,509) |
Loss before equity in net earnings of equity investments | (7,134,452) | (2,694,081) |
Net loss in equity investments | (2,019,211) | (891,500) |
Net loss in equity investments | (426,278) | (18,700) |
Net loss | (7,560,730) | (2,712,781) |
Net loss attributable to the noncontrolling interests | 2,093,208 | 954,423 |
Net loss attributable to Milestone Scientific Inc. | (5,467,522) | (1,758,358) |
Milestone Education LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net loss in equity investments | (7,846) | (17,890) |
Milestone China [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net loss in equity investments | (348,651) | (810) |
Loss on earnings from China Joint Venture | $ (418,432) | $ (810) |
Investment in Joint Ventures -
Investment in Joint Ventures - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2016USD ($)Instruments$ / Instruments | Dec. 31, 2015USD ($) | Jun. 30, 2014USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 31, 2014 | |
Schedule Of Equity Method Investments [Line Items] | ||||||
Profit (loss) | $ (5,539,903) | $ (1,707,496) | ||||
Gain (Loss) on earnings from joint venture | (2,445,489) | (910,200) | ||||
Cost of products sold | $ 3,048,260 | $ 3,630,765 | ||||
Milestone Education LLC [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Percentage of revenue from services performed to variable interest entity | 80.00% | 80.00% | ||||
Percentage of losses on joint venture | 50.00% | 50.00% | ||||
Investment in joint venture | $ 16,346 | $ 16,346 | $ 24,192 | |||
Profit (loss) | (7,846) | (17,889) | ||||
Gain (Loss) on earnings from joint venture | $ (7,846) | (17,890) | ||||
Advanced Ocular Sciences Inc. [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 25.00% | 25.00% | ||||
Advances for marketing and strategy planning | $ 78,798 | $ 78,798 | ||||
Milestone China [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Investment in joint venture | 0 | $ 1,000,000 | 0 | 348,651 | ||
Equity method investment, ownership percentage | 40.00% | 40.00% | ||||
Distributor price per instrument | $ / shares | $ 1,295 | |||||
Delivery period | 2 years | |||||
Gain (Loss) on earnings from joint venture | (348,651) | $ (810) | ||||
Suspended losses on investment | 215,347 | |||||
Deferred profit included in Statements | (69,781) | |||||
Milestone China [Member] | Subsequent Events [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Issue of purchase order | Instruments | 308 | |||||
Purchase order | $ 308,000 | |||||
Purchase order value per instrument | $ / Instruments | 1,000 | |||||
Milestone China [Member] | Handpieces [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Cost of products sold | 507,000 | |||||
Accounts receivable | $ 357,200 | 357,200 | ||||
Milestone China [Member] | STA Instrument [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Cost of products sold | $ 938,200 |
Furniture, Fixtures and Equip41
Furniture, Fixtures and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Furniture, Fixtures and Equipment consist of the following: | ||
Total | $ 802,412 | $ 505,028 |
Less accumulated depreciation | (566,477) | (416,210) |
Furniture, fixtures and equipment net | 235,935 | 88,818 |
Leasehold Improvements [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 24,734 | 24,734 |
Office Furniture and Equipment [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 134,948 | 122,198 |
Molds [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 7,200 | 7,200 |
Trade Show Displays [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 136,029 | 89,395 |
Computers and Software [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 217,265 | 166,272 |
Tooling Safety Wand [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 20,377 | 20,377 |
Tooling Equipment-STA & Wand and Medical [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 115,745 | 11,100 |
STA Trials Instruments [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | 63,752 | $ 63,752 |
EPI and IA Instruments [Member] | ||
Furniture, Fixtures and Equipment consist of the following: | ||
Total | $ 82,362 |
Furniture, Fixtures and Equip42
Furniture, Fixtures and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 27,947 | $ 17,380 |
Patents - Additional Informatio
Patents - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization Expenses | $ 69,428 | $ 78,458 |
Patents [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Method Used for Amortization | Straight-Line Method | |
Weighted average amortization period | 12 years | |
Amortization Expenses | $ 69,428 | $ 78,458 |
Estimated Amortization Expenses for Next 12 Months | 79,000 | |
Estimated Amortization Expenses for Year 2 | 79,000 | |
Estimated Amortization Expenses for Year 3 | 79,000 | |
Estimated Amortization Expenses for Year 4 | 79,000 | |
Estimated Amortization Expenses for Year 5 | $ 79,000 | |
Patents [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life of Patents | 20 years | |
Patents [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life of Patents | 10 years |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders Equity [Line Items] | ||
Common stock to be issued to employee for bonuses, Shares | 29,865 | |
Common stock to be issued to employee for bonuses | $ 100,000 | $ 226,750 |
Common stock issued for payment of consulting services to settle accounts payable, shares | 41,365 | 147,731 |
Common stock issued for payment of consulting services to settle accounts payable | $ 120,000 | $ 274,500 |
Common stock issued for exercise of stock options to three independent directors | $ 41,250 | |
Exercise of stock options, shares | 75,000 | |
Common stock issued for exercise of stock options to employees | 200,000 | $ 250,531 |
Common stock issued for exercise of stock options to consultants | $ 21,165 | 56,916 |
Common stock issued to consultant, value | 226,750 | |
Stock issued during period value to investor. | 10,000,000 | |
Professional fees | $ 500,000 | |
Shares reserved for future issuance | 2,391,220 | 2,443,749 |
Shares reserved for future issuance in settlement of deferred compensation | 963,451 | 974,953 |
Other Stock Options and Warrants [Member] | ||
Stockholders Equity [Line Items] | ||
Shares reserved for future issuance | 1,427,769 | 1,488,796 |
Common Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Common stock to be issued to employee for bonuses, Shares | 29,865 | 112,131 |
Common stock to be issued to employee for bonuses | $ 29 | $ 112 |
Common stock issued for payment of consulting services to settle accounts payable, shares | 41,365 | 147,731 |
Common stock issued for payment of consulting services to settle accounts payable | $ 41 | $ 148 |
Exercise of stock options, shares | 200,000 | |
Stock issued during period shares to investor | 2,000,000 | |
Series A [Member] | ||
Stockholders Equity [Line Items] | ||
Stock issued during period shares to investor | 7,000 | |
Director [Member] | ||
Stockholders Equity [Line Items] | ||
Common stock issued for compensation, shares | 30,000 | |
Common stock issued for compensation, value | $ 55,200 | |
Professional fees | $ 260,000 | $ 200,000 |
Director [Member] | Common Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Common stock issued for compensation, shares | 30,000 | |
Common stock issued for compensation, value | $ 30 | |
Employees [Member] | ||
Stockholders Equity [Line Items] | ||
Common stock issued for compensation, shares | 17,817 | 26,156 |
Common stock issued for compensation, value | $ 50,000 | $ 46,041 |
Exercise of stock options, shares | 200,000 | 237,293 |
Employees [Member] | Common Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Common stock issued for compensation, shares | 17,817 | 26,156 |
Common stock issued for compensation, value | $ 18 | $ 27 |
Consultants [Member] | ||
Stockholders Equity [Line Items] | ||
Exercise of stock options, shares | 16,666 | 151,666 |
Common stock issued to consultant, shares | 112,131 | |
Chief Executive Officer, Chief Financial Officer And Employees [Member] | ||
Stockholders Equity [Line Items] | ||
Deferred compensation employment arrangements, shares authorized for issuance | 963,451 | 954,953 |
Stock Option Plans - Additional
Stock Option Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2011 | Dec. 31, 2007 | Jul. 31, 2004 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized, amount | $ 2,000,000 | ||||
Percentage on registration rights | 90.00% | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Options, Granted | 157,306 | 390,470 | |||
Milestone recognized total compensation cost | $ 637,108 | $ 429,131 | |||
Total unrecognized compensation cost related to non-vested options | $ 1,167,865 | $ 569,641 | |||
Milestone recognize cost over a weighted average period | 2 years 9 months 11 days | 3 years 2 months 23 days | |||
Option Activity for Non-Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Options, Granted | 8,333 | ||||
Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options exercisable from the grant date | 3 years | ||||
Expired period | 5 years | ||||
2004 Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant of options to purchase common stock | 750,000 | ||||
2011 Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Options, Granted | 2,000,000 | ||||
Nonvested Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Options, Granted | 157,306 | 390,470 | |||
Nonvested Options | Option Activity for Non-Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Options, Granted | 8,333 | 0 | |||
Total unrecognized compensation cost related to non-vested options | $ 15,000 | ||||
Milestone recognize cost over a weighted average period | 4 years 9 months 29 days | ||||
Vested Options | Option Activity for Non-Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Milestone recognized total compensation cost | $ 7,050 | $ 7,050 |
Stock Option Plans - Summary of
Stock Option Plans - Summary of Option Activity for Employees and Non-Employees (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Exercised | (75,000) | ||
Vested Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Beginning Balance | 1,036,185 | 1,115,006 | |
Number of Options, Exercised | (200,000) | (312,293) | |
Number of Options, Ending Balance | 1,041,680 | 1,036,185 | 1,115,006 |
Number of Options, Vested | (215,495) | (324,018) | |
Number of Options, Forfeited | (10,000) | (90,546) | |
Weighted Averaged Exercise Price, Beginning Balance | $ 1.11 | $ 0.97 | |
Weighted Averaged Exercise Price, Exercised | 1 | 0.93 | |
Weighted Averaged Exercise Price, Forfeited or expired | 1 | 1.30 | |
Weighted Averaged Exercise Price, Ending Balance | 1.29 | 1.11 | $ 0.97 |
Weighted Averaged Exercise Price, Vested | $ 1.92 | $ 1.45 | |
Nonvested Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Beginning Balance | 435,945 | 369,493 | |
Number of Options, Granted | 157,306 | 390,470 | |
Number of Options, Ending Balance | 377,756 | 435,945 | 369,493 |
Number of Options, Vested | (215,495) | (324,018) | |
Weighted Averaged Exercise Price, Beginning Balance | $ 1.87 | $ 1.22 | |
Weighted Averaged Exercise Price, Granted | 3.01 | 2.18 | |
Weighted Averaged Exercise Price, Ending Balance | 2.32 | 1.87 | $ 1.22 |
Weighted Averaged Exercise Price, Vested | $ 1.92 | $ 1.45 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Beginning Balance | 1,472,130 | 1,484,499 | |
Number of Options, Granted | 157,306 | 390,470 | |
Number of Options, Exercised | (200,000) | (312,293) | |
Number of Options, Forfeited or expired | (10,000) | (90,546) | |
Number of Options, Ending Balance | 1,419,436 | 1,472,130 | 1,484,499 |
Number of Options, Exercisable, Ending Balance | 1,041,680 | 1,036,185 | |
Weighted Averaged Exercise Price, Beginning Balance | $ 0.79 | $ 1.03 | |
Weighted Averaged Exercise Price, Granted | 3.01 | 2.25 | |
Weighted Averaged Exercise Price, Exercised | 1 | 0.93 | |
Weighted Averaged Exercise Price, Forfeited or expired | 1 | 1.30 | |
Weighted Averaged Exercise Price, Ending Balance | 1.56 | 0.79 | $ 1.03 |
Weighted Averaged Exercise Price, Exercisable, Ending Balance | $ 1.29 | $ 1.10 | |
Weighted Average Remaining Contractual Life (Years), Outstanding | 2 years 9 months 11 days | 3 years 3 months 11 days | 2 years 10 months 17 days |
Weighted Average Remaining Contractual Life (Years), Granted | 4 years 2 months 5 days | 4 years 10 months 13 days | |
Weighted Average Remaining Contractual Life (Years), Exercisable | 2 years 4 months 28 days | 2 years 9 months | |
Aggregate Intrinsic Options Value, Beginning Balance | $ 1,430,231 | ||
Aggregate Intrinsic Options Value, Exercisable, Beginning Balance | 1,244,074 | ||
Aggregate Intrinsic Options Value, Ending Balance | 1,220,338 | $ 1,430,231 | |
Aggregate Intrinsic Options Value, Exercisable, Ending Balance | $ 1,135,819 | $ 1,244,074 | |
Weighted Averaged Exercise Price, Exercisable, Beginning Balance | $ 1.10 | ||
Number of Options, Exercisable, Beginning Balance | 1,036,185 | ||
Option Activity for Non-Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Beginning Balance | 16,666 | 173,332 | |
Number of Options, Granted | 8,333 | ||
Number of Options, Exercised | (16,666) | (151,666) | |
Number of Options, Forfeited or expired | (5,000) | ||
Number of Options, Ending Balance | 8,333 | 16,666 | 173,332 |
Number of Options, Exercisable, Ending Balance | 2,777 | 16,666 | 173,332 |
Weighted Averaged Exercise Price, Beginning Balance | $ 1.27 | $ 0.48 | |
Weighted Averaged Exercise Price, Granted | 2.70 | ||
Weighted Averaged Exercise Price, Exercised | 0.38 | ||
Weighted Averaged Exercise Price, Ending Balance | 2.70 | 1.27 | $ 0.48 |
Weighted Averaged Exercise Price, Exercisable, Ending Balance | $ 2.70 | $ 1.27 | $ 0.48 |
Weighted Average Remaining Contractual Life (Years), Outstanding | 4 years 9 months 29 days | 7 months 13 days | 7 months 2 days |
Weighted Average Remaining Contractual Life (Years), Granted | 4 years 9 months 29 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable | 4 years 9 months 29 days | 7 months 13 days | 7 months 2 days |
Aggregate Intrinsic Options Value, Beginning Balance | $ 17,166 | $ 210,833 | |
Aggregate Intrinsic Options Value, Exercisable, Beginning Balance | 17,166 | 210,833 | |
Aggregate Intrinsic Options Value, Ending Balance | 17,166 | $ 210,833 | |
Aggregate Intrinsic Options Value, Exercisable, Ending Balance | $ 17,166 | $ 210,833 | |
Aggregate Intrinsic Options Value, Granted | $ 22,499 | ||
Weighted Averaged Exercise Price, Exercisable, Beginning Balance | $ 1.27 | $ 0.48 | |
Weighted Averaged Exercise Price, Forfeited | $ 1.15 | ||
Number of Options, Exercisable, Beginning Balance | 16,666 | 173,332 | |
Option Activity for Non-Employees [Member] | Vested Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Beginning Balance | 16,666 | 173,332 | |
Number of Options, Exercised | (166,666) | (151,666) | |
Number of Options, Forfeited or expired | (5,000) | ||
Number of Options, Ending Balance | 2,777 | 16,666 | 173,332 |
Number of Options, Vested | (5,556) | ||
Weighted Averaged Exercise Price, Beginning Balance | $ 1.27 | $ 0.48 | |
Weighted Averaged Exercise Price, Exercised | 1.27 | 0.38 | |
Weighted Averaged Exercise Price, Ending Balance | 2.70 | 1.27 | $ 0.48 |
Weighted Averaged Exercise Price, Vested | $ 2.70 | ||
Weighted Averaged Exercise Price, Forfeited | $ 1.15 | ||
Option Activity for Non-Employees [Member] | Nonvested Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Granted | 8,333 | 0 | |
Number of Options, Ending Balance | 5,556 | ||
Number of Options, Vested | (2,777) | ||
Weighted Averaged Exercise Price, Granted | $ 2.70 | ||
Weighted Averaged Exercise Price, Ending Balance | 2.70 | ||
Weighted Averaged Exercise Price, Vested | $ 3.70 |
Employment Contract and Defer47
Employment Contract and Deferred Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | |||
Exercisable share | 90.00% | ||
Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | |||
Chief executive officer employment agreement period | 5 years | ||
Chief executive officer automatic extended employment agreement period | 1 year | ||
Employment Contracts | Dec. 31, 2012 | ||
Base compensation | $ 300,000 | ||
Earn bonus | five-year stock options to purchase twice the number of bonus shares earned. | ||
Exercisable share | 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 | $ 730,985 | $ 630,985 | |
Accrued deferred compensation | 735,369 | 706,716 | |
Chief Executive Officer [Member] | Maximum [Member] | |||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | |||
Annual bonuses, one half cash, one half common stock | $ 400,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | $ 0 | $ 0 |
Percentage of valuation allowance | 100.00% | |
Amount of state tax expense | $ 62,000 | 27,000 |
Uncertain tax positions | 0 | 0 |
Interest and penalties | 0 | |
Federal [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | $ 0 | 0 |
Net operating loss carryforward, expiration date | Dec. 31, 2032 | |
Net operating loss | $ 46,875,000 | 44,478,000 |
State [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | $ 0 | 0 |
Net operating loss carryforward, expiration date | Dec. 31, 2035 | |
Net operating loss | $ 3,771,000 | $ 1,374,000 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Attributes and Tax Bases of Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Allowance for doubtful accounts-short term | $ 2,000 | $ 2,000 |
Warranty reserve | 43,000 | 12,000 |
Deferred officers compensation | 643,000 | 392,000 |
Subtotal | 688,000 | 406,000 |
Valuation allowance | (688,000) | (406,000) |
Non-current assets | ||
Depreciation and Amortization | 149,000 | |
Net operating loss carryforward | 16,160,000 | 15,686,000 |
Federal tax effect of state deferred tax assets | (117,000) | |
Subtotal | 16,192,000 | 15,686,000 |
Valuation allowance | $ (16,192,000) | $ (15,686,000) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Tax Rates (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 Significant51
Product Sales and Significant Customers and Vendors - Consolidated Dental Sales by Product and by Geographical Region (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Product Information [Line Items] | ||
Total sales | $ 9,491,569 | $ 10,333,090 |
Instruments [Member] | ||
Product Information [Line Items] | ||
Total sales | 2,911,614 | 2,569,102 |
Handpieces [Member] | ||
Product Information [Line Items] | ||
Total sales | 6,409,924 | 7,627,140 |
Other [Member] | ||
Product Information [Line Items] | ||
Total sales | 170,031 | 136,848 |
United States [Member] | ||
Product Information [Line Items] | ||
Total sales | 3,295,307 | 4,655,648 |
Canada [Member] | ||
Product Information [Line Items] | ||
Total sales | 211,035 | 100,321 |
Other Foreign [Member] | ||
Product Information [Line Items] | ||
Total sales | $ 5,985,227 | $ 5,577,121 |
Product Sales and Significant52
Product Sales and Significant Customers and Vendors - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | Sep. 30, 2015USD ($) | Oct. 01, 2014 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Number of customers | Customer | 2 | 2 | ||
Accounts receivable | $ 784,690 | $ 1,100,000 | ||
Related Party Supplier [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Payable | $ 455,573 | $ 716,520 | ||
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Concentration risk percentage | 33.00% | 45.00% | ||
Number of customers | Customer | 2 | 2 | ||
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Customer One [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Concentration risk percentage | 15.00% | 17.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Customer Two [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Concentration risk percentage | 18.00% | 28.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Concentration risk percentage | 45.00% | 69.00% | ||
Instruments [Member] | Supplier Concentration Risk [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Purchase from suppliers | $ 1,745,619 | $ 948,024 | ||
Concentration risk percentage | 28.00% | 26.00% | ||
China [Member] | Cost of Goods, Total [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Purchase from suppliers | $ 2,698,522 | $ 2,698,043 | ||
Concentration risk percentage | 72.00% | 74.00% | ||
Minimum [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Rate of shareholder of the company | 5.00% |
Commitments and Other - Additio
Commitments and Other - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2013USD ($) | Jan. 31, 2010USD ($)Instruments | Jun. 30, 2015USD ($)Instruments | Dec. 31, 2015USD ($)ft²shares | Dec. 31, 2014USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||
Monthly cost | $ 12,522 | ||||
Area of office space | ft² | 7,625 | ||||
Lease expiration date | Jan. 31, 2020 | ||||
Rent expense | $ 121,866 | $ 86,348 | |||
Additional payment received by using technology | 2.50% | ||||
Additional payment received by using other technology | 5.00% | ||||
Professional fees | 500,000 | ||||
Period of shareholder agreement | 3 years | ||||
Annual service fee | $ 100,000 | ||||
STA Instruments [Member] | Tricor Systems Inc [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Issue of purchase order | Instruments | 12,000 | ||||
Delivery period | 3 years | ||||
Purchase order | $ 5,261,640 | ||||
STA Instruments [Member] | Wand Dental Inc [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Issue of purchase order | Instruments | 3,000 | ||||
Purchase order | $ 1,785,750 | ||||
New purchase commitment, description | As of September 30, 2015, this commitment was completed. In the second quarter of 2015, Wand Dental Inc. entered into a new purchase commitment for 3,000 STA instruments, ($1,785,750) for the delivery of these instruments beginning October 2015 and into 2016. | ||||
Advance made on purchase commitment order | $ 1,215,127 | 721,197 | |||
Director [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Options to purchase common stock issued | shares | 8,333 | ||||
Director's royalty fees | $ 313,751 | 404,828 | |||
Professional fees | $ 260,000 | $ 200,000 |
Commitments and Other - Aggrega
Commitments and Other - Aggregate Minimum Rental Commitments (Detail) | Dec. 31, 2015USD ($) |
Aggregate minimum rental commitments | |
2,016 | $ 170,108 |
2,017 | 170,108 |
2,018 | 170,108 |
2,019 | 170,108 |
2,020 | 156,879 |
Total | $ 837,311 |