Milestone Scientific(MLSS) - 2020 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q4 2020 increased sequentially by approximately $1 million, or 78% compared to Q3 2020, despite the impact of COVID-19 [7] - Total revenue for the year ended December 31, 2020, was $5.4 million, down from $8.3 million for the same period last year [26] - Gross profit for the year ended December 31, 2020, was $3.6 million or 76% of revenue, compared to $5.7 million or 68% of revenue for the year ended December 31, 2019 [27] - Operating loss for the year ended December 31, 2020, was approximately $7.5 million, compared to approximately $4 million for the year ended December 31, 2019 [28] - Net loss was approximately $7.3 million or $0.12 per share for the year ended December 31, 2020, versus a net loss of $7.5 million or $0.16 per share for the comparable period in 2019 [28] - Cash and cash equivalents as of December 31, 2020, were approximately $14.2 million [29] Business Line Data and Key Metrics Changes - Dental revenue decreased by approximately $2.9 million due to the impact of the COVID-19 pandemic [26] - Medical revenue for the 12 months ended December 31, 2020, was approximately $16,000, down from $38,000 for the year ended December 31, 2019 [26] - The company has begun selling CompuFlo Epidural and CathCheck disposables to several premier medical centers, indicating a positive trend in medical sales [9][10] Market Data and Key Metrics Changes - The company entered into an agreement with Bitmedical AG to distribute the CompuFlo Epidural instrument and CathCheck system in Switzerland and Austria, expanding its market presence [11] - A group purchasing agreement was awarded for CompuFlo and CathCheck with Premier, a leading group purchasing organization, which includes approximately 4,100 U.S. hospitals [12] Company Strategy and Development Direction - The company is focusing on expanding its dental business through a decentralized sales strategy, targeting independent distributors [21][22] - The strategy includes increasing the placement of the Wand STA instrument and expanding dental disposables [23] - The company aims to become the new standard of care in epidural procedures, with a focus on the CompuFlo Epidural system [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the dental business and the potential for growth in the medical sector [31] - The company is confident in the market potential of the CompuFlo Epidural, which is expected to transform the industry [31] - Management highlighted the importance of their strong financial position, with over $14 million in cash and cash equivalents, to support growth initiatives [32] Other Important Information - The company received two notices of allowance for key patents from the U.S. Patent and Trademark Office and the European Patent Office, enhancing its intellectual property portfolio [15][16] - The company is actively engaged in hiring sales professionals to enhance its rollout in the U.S. [19] Q&A Session Summary Question: Can you discuss the pilot programs and sales rep expansion? - Management indicated that they held off on significant hiring until they had success in at least two hospitals, which has now occurred, leading to an expansion of the sales force [35][36] Question: What is the current access to hospitals? - Access is still a mix, but the trend is encouraging as hospitals are reopening and allowing sales teams back in [42] Question: How has the GPO relationship facilitated hospital meetings? - The GPO relationship has helped reduce barriers to hospital access, facilitating introductions and endorsements [47][48] Question: What is the status of manufacturing and potential hurdles? - The dental instrument is produced in the U.S., while disposables are produced in China, with no anticipated difficulties in manufacturing [63][66] Question: What are the implications of the recent patent announcement? - The patent opens up new possibilities for the company, particularly in the peripheral nerve block market, which has a larger addressable market [76][79]