Milestone Scientific(MLSS) - 2023 Q3 - Quarterly Report

FORM 10-Q Filing Information Registrant Details Milestone Scientific Inc. filed its Form 10-Q as a non-accelerated, smaller reporting company, with 71,048,241 common shares outstanding - Milestone Scientific Inc. is a non-accelerated filer and a smaller reporting company[1] - As of November 14, 2023, the registrant had 71,048,241 shares of Common Stock, $0.001 par value outstanding[2] Forward-Looking Statements Forward-looking statements are subject to risks including continued operating losses, funding needs, and reliance on third-party manufacturers - Forward-looking statements are subject to numerous risks and uncertainties, including continued operating losses, the need for additional funding, and reliance on third-party manufacturers[6] - Milestone Scientific disclaims any intent or obligation to update such forward-looking statements[6] Trademarks Milestone Scientific Inc. owns registered U.S. trademarks for its products, including CompuDent®, CompuFlo®, and The Wand® - Milestone Scientific owns registered U.S. trademarks including CompuDent®, CompuFlo®, DPS Dynamic Pressure Sensing technology®, SafetyWand®, STA Single Tooth Anesthesia Device®, and The Wand®[7] PART I—FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements Milestone Scientific's unaudited condensed consolidated financial statements, including balance sheets, operations, and cash flows, are presented Condensed Consolidated Balance Sheets The balance sheet shows a decrease in total assets and stockholders' equity, primarily due to reduced cash and cash equivalents Balance Sheet Summary | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--------------------------------- | :----------- | :----------- | | Cash and cash equivalents | $2,170,593 | $8,715,279 | | Marketable securities | $2,450,470 | - | | Total current assets | $9,972,611 | $12,970,504 | | Total assets | $10,583,558 | $13,702,086 | | Total current liabilities | $3,278,840 | $3,299,675 | | Total liabilities | $3,590,533 | $3,695,652 | | Total stockholders' equity | $6,993,025 | $10,006,434 | Condensed Consolidated Statements of Operations Net product sales increased, gross profit rose, and net loss improved due to reduced operating expenses Statements of Operations Summary | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Product sales, net | $2,059,284 | $2,215,699 | $7,566,848 | $6,564,969 | | Gross profit | $1,503,434 | $1,452,735 | $5,282,118 | $3,815,809 | | Total operating expenses | $3,010,139 | $3,466,230 | $10,409,051 | $10,628,665 | | Loss from operations | $(1,506,705) | $(2,013,495) | $(5,126,933) | $(6,812,856) | | Net loss attributable to Milestone Scientific Inc. | $(1,466,294) | $(1,971,803) | $(4,990,277) | $(6,732,007) | | Net loss per share (Basic and Diluted) | $(0.02) | $(0.03) | $(0.07) | $(0.10) | Condensed Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity decreased due to net loss, while additional paid-in capital increased from common stock issuance for compensation Stockholders' Equity Summary | Metric | Balance Jan 1, 2023 | Balance Sep 30, 2023 | | :--------------------------------- | :------------------ | :------------------- | | Common Stock Amount | $69,306 | $70,894 | | Additional Paid in Capital | $127,478,325 | $129,487,592 | | Accumulated Deficit | $(116,410,405) | $(121,400,682) | | Total Stockholder Equity | $10,006,434 | $6,993,025 | - Stock-based compensation for the nine months ended September 30, 2023, totaled $1,113,427[13] Condensed Consolidated Statements of Cash Flows Net cash used in operating activities decreased, but investing activities led to a significant outflow, resulting in a net decrease in cash Cash Flows Summary | Metric | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :------------------------------------- | :-------------------------- | :-------------------------- | | Net loss | $(5,024,264) | $(6,786,037) | | Net cash used in operating activities | $(4,080,330) | $(4,942,360) | | Net cash used in investing activities | $(2,457,870) | $(3,827) | | Net cash used in financing activities | $(6,486) | $(6,486) | | Net decrease in cash and cash equivalents | $(6,544,686) | $(4,952,673) | | Cash and cash equivalents at end of period | $2,170,593 | $9,811,673 | Notes to Unaudited Condensed Consolidated Financial Statements These notes provide detailed explanations and disclosures for the financial statements, covering organization, liquidity, accounting policies, and segment data NOTE 1 — Organization and Business Milestone Scientific develops computer-controlled anesthetic delivery devices for dental and medical applications using DPS Dynamic Pressure Sensing Technology® - Milestone Scientific develops computer-controlled anesthetic delivery devices using DPS Dynamic Pressure Sensing Technology® for dental and medical applications[21] - Dental devices (CompuDent®, STA Single Tooth Anesthesia System®) are sold in the U.S., Canada, and over 41 other countries[22] - The CompuFlo® Epidural Computer Controlled Anesthesia System has FDA 510(k) marketing clearance for lumbar, thoracic, and cervical thoracic junction of the spinal region, and CE mark approval for European countries[22] NOTE 2 — Liquidity and Uncertainties Despite cumulative losses, management believes the company has sufficient cash for the next 12 months due to cost-cutting and NOL program participation - Total losses since inception are $121 million, with operating losses of $5.1 million for the nine months ended September 30, 2023[23] - Management believes there is no substantial doubt about the company's ability to continue as a going concern for the next year due to cost-cutting