Milestone Scientific Achieves 12% Increase in Revenue and 39% Increase in Gross Profit for the Year Ended 2023
- Revenue increased by 11.6% and gross profit by 39% in 2023.
- Successful transition to a direct sales model in the U.S. with a new online sales portal for the STA Single Tooth Anesthesia System®.
- Focus on international expansion in 2024.
- Progress in the rollout of the CompuFlo® Epidural System.
- Acceleration of reimbursement claims submission with a significant increase in claims activity.
- Ended 2023 with approximately $6.0 million in cash, cash equivalents, and marketable securities.
- None.
Insights
The financial results of Milestone Scientific Inc. indicate a year of growth, with a revenue increase of 11.6% and a gross profit increase of 39%. The transition to a direct sales model and the launch of an online sales portal for the STA system have been central to this performance. These factors likely contributed to improved margins, as evidenced by the gross profit increase and reduced reliance on distributors. The termination of the exclusive distributor agreement and the shift to direct sales may have streamlined operations and enhanced customer relationships, which could be attractive to investors looking for companies that are optimizing their sales strategies.
Additionally, the company's focus on cost-effective scaling through the addition of large dental practices suggests a strategic approach to growth. The successful adoption of the CompuFlo Epidural System in various medical settings and the advancement of a reimbursement strategy are positive indicators for future revenue streams. However, investors should be mindful of the company's net loss, despite the reduction from the previous year and consider the implications of the company's cash reserves in relation to its growth strategy and potential need for additional funds.
The advancement of the CompuFlo Epidural System and its increasing adoption in pain management clinics and hospitals is a significant development. The reported 100% clinical success rate and the use of the new CPT code for reimbursement claims could enhance the system's marketability and adoption rate. The distribution agreement in Spain and the anticipation of additional distributors could signal an expansion of Milestone Scientific's global footprint, which is a key factor for growth in the medical device sector.
However, the international revenue decrease raises questions about the company's performance in global markets outside the U.S. It will be important to monitor how the company addresses this challenge and whether the renewed international focus mentioned by the CEO will translate into increased international sales. The healthcare market's response to the reimbursement strategy and the ability of the company to secure reimbursement for the CompuFlo will be important for long-term profitability and market penetration.
The shift from exclusive distributor agreements to a direct sales model is a trend in various industries, aimed at increasing margins and gaining more control over the sales process. Milestone Scientific's successful implementation of this strategy could serve as a case study for other small to mid-sized companies looking to enhance profitability. The e-commerce platform's contribution to revenue is noteworthy, especially as it reflects consumer behavior shifts towards online procurement in the dental industry.
The company's operational loss reduction, combined with a strong cash position and no debt, presents a stable financial outlook that may appeal to investors who are risk-averse. However, the long-term sustainability of this model will depend on the company's ability to maintain growth momentum and manage operational costs effectively. The emphasis on both large group practices and individual practices suggests a diversified customer base, which could mitigate risks associated with market fluctuations.
Reports acceleration of reimbursement claims submission for the CompuFlo® Epidural System Technology
ROSELAND, N.J., April 01, 2024 (GLOBE NEWSWIRE) -- Milestone Scientific Inc. (NYSE: MLSS), a leading developer of computerized drug delivery instruments that provide painless and precise injections, today provides a business update and announces financial results for the year ending December 31, 2023.
Arjan Haverhals, CEO and President of Milestone Scientific, stated, “We achieved solid financial results in 2023, with revenue increasing
“We are also advancing the rollout of the CompuFlo® Epidural System. Specifically, we have made progress penetrating key hospitals, and pain management clinics, including our most recent addition of Omaha Pain Physicians. We are also witnessing existing customers expand their use of CompuFlo. An important example is UTMB Health Clear Lake Campus Hospital, which has commenced use of the CompuFlo Epidural beyond labor & delivery, to now include neurostimulation spinal cord stimulator implantation procedures, illustrating the versatility and broad potential of our instrument. We also announced a distribution agreement with Bioline Supply to distribute the CompuFlo and disposables across Spain. We look forward to announcing additional distributors as we expand our global footprint.”
“Most importantly, we are making progress advancing our reimbursement strategy through a carefully staged approach. We are working closely with key pain management providers in the use of the new CPT code (0777T) for accurate and timely CompuFlo claims submission. Use of our system by these providers followed successful evaluation periods by the clinics and physicians, and in each case, they reported
“In addition to our revenue growth and improved margins, we also reduced our loss from operations by over
For the years ended December 31, 2023 and 2022, revenue was approximately
Gross profit for the year ended December 31, 2023, was
As of December 31, 2023, the Company had cash, cash equivalents and marketable securities of
Conference Call
Milestone Scientific’s executive management team will host a conference call today, Monday, April 1, 2024, at 8:30 AM Eastern Time to discuss the Company’s financial results for 2023, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and by entering the access code: 222156. A webcast and replay of the call may be accessed at Webcast URL: https://www.webcaster4.com/Webcast/Page/2306/50281.
An audio replay of the call will be available through April 15, 2024, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and by entering the access code: 50281.
About Milestone Scientific Inc.
Milestone Scientific Inc. (MLSS), a technology focused medical research and development company that patents, designs and develops innovative injection technologies and instruments for medical and dental applications. Milestone Scientific’s computer-controlled systems are designed to make injections precise, efficient and increase the overall patient comfort and safety. Their proprietary DPS Dynamic Pressure Sensing Technology® instruments is the platform to advance the development of next-generation devices, regulating flow rate and monitoring pressure from the tip of the needle, through platform extensions of subcutaneous drug delivery, including local anesthetic. To learn more, view the MLSS brand video or visit milestonescientific.com.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues, timing of regulatory approvals and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions, future business decisions and regulatory developments, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2022. The forward-looking statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Contact:
Crescendo Communications, LLC
Email: mlss@crescendo-ir.com
Tel: 212-671-1020
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| MILESTONE SCIENTIFIC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,977,713 | $ | 8,715,279 | ||||
| Marketable securities | 2,976,573 | - | ||||||
| Accounts receivable (net of allowance for credit losses of | 312,664 | 693,717 | ||||||
| Prepaid expenses and other current assets | 517,785 | 443,872 | ||||||
| Inventories | 2,638,186 | 1,792,335 | ||||||
| Advances on contracts | 1,371,548 | 1,325,301 | ||||||
| Total current assets | 10,794,469 | 12,970,504 | ||||||
| Furniture, fixtures and equipment, net | 10,024 | 18,146 | ||||||
| Intangibles, net | 178,636 | 227,956 | ||||||
| Right of use assets finance lease | 8,998 | 17,645 | ||||||
| Right of use assets operating lease | 355,235 | 443,685 | ||||||
| Other assets | 24,150 | 24,150 | ||||||
| Total assets | $ | 11,371,512 | $ | 13,702,086 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 689,604 | $ | 1,102,729 | ||||
| Accounts payable, related party | 410,512 | 803,492 | ||||||
| Accrued expenses and other payables | 1,511,717 | 1,124,839 | ||||||
| Accrued expenses, related party | 137,189 | 167,549 | ||||||
| Accrued liabilities noncontrolling interests | 214,000 | - | ||||||
| Current portion of finance lease liabilities | 10,264 | 9,365 | ||||||
| Current portion of operating lease liabilities | 103,427 | 91,701 | ||||||
| Total current liabilities | 3,076,713 | 3,299,675 | ||||||
| Non-current portion of finance lease liabilities | 434 | 10,698 | ||||||
| Non-current portion of operating lease liabilities | 281,853 | 385,279 | ||||||
| Total liabilities | $ | 3,359,000 | $ | 3,695,652 | ||||
| Stockholders’ equity | ||||||||
| Common stock, par value $.001; authorized 100,000,000 shares; 75,881,840 shares issued and 75,848,507 shares outstanding as of December 31, 2023 shares; 69,306,497 shares issued and 69,273,164 shares outstanding as of December 31, 2022; | 75,881 | 69,306 | ||||||
| Additional paid in capital | 132,187,656 | 127,478,325 | ||||||
| Accumulated deficit | (123,339,509 | ) | (116,410,405 | ) | ||||
| Treasury stock, at cost, 33,333 shares | (911,516 | ) | (911,516 | ) | ||||
| Total Milestone Scientific, Inc. stockholders' equity | 8,012,512 | 10,225,710 | ||||||
| Noncontrolling interest | - | (219,276 | ) | |||||
| Total stockholders’ equity | 8,012,512 | 10,006,434 | ||||||
| Total liabilities and stockholders’ equity | $ | 11,371,512 | $ | 13,702,086 | ||||
| MILESTONE SCIENTIFIC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR YEARS ENDED DECEMBER 31, (UNAUDITED) | ||||||||
| 2023 | 2022 | |||||||
| Product sales, net | $ | 9,827,444 | $ | 8,805,906 | ||||
| Cost of products sold | 3,034,832 | 3,905,092 | ||||||
| Gross profit | 6,792,612 | 4,900,814 | ||||||
| Selling, general and administrative expenses | 13,135,796 | 12,514,323 | ||||||
| Research and development expenses | 701,378 | 1,150,209 | ||||||
| Depreciation and amortization expense | 61,912 | 63,755 | ||||||
| Total operating expenses | 13,899,086 | 13,728,287 | ||||||
| Loss from operations | (7,106,474 | ) | (8,827,473 | ) | ||||
| Interest income (expense) | 125,527 | 54,607 | ||||||
| Provision for income Taxes | - | - | ||||||
| Loss before provision for income taxes | (6,980,947 | ) | (8,772,866 | ) | ||||
| Net loss | (6,980,947 | ) | (8,772,866 | ) | ||||
| Net loss attributable to noncontrolling interests | (51,843 | ) | (66,735 | ) | ||||
| Net loss attributable to Milestone Scientific Inc. | $ | (6,929,104 | ) | $ | (8,706,131 | ) | ||
| Net loss per share applicable to common stockholders— | ||||||||
| Basic and Diluted | (0.10 | ) | (0.12 | ) | ||||
| Weighted average shares outstanding and to be issued— | ||||||||
| Basic and Diluted | 72,775,781 | 70,607,338 | ||||||
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