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Milestone Scientific Achieves 77% Year-Over-Year Increase in Revenue to $2.9 Million for the Second Quarter of 2023

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Milestone Scientific Inc. reports a 77% increase in revenue for the second quarter of 2023, reaching $2.9 million. Gross profit also increased by 178% compared to the same period last year. The company attributes this growth to the success of their new online store, which has improved margins and provided a closer relationship with customers. The medical division has received positive reimbursement from commercial payers for patients involved in motor vehicle accidents, validating their technology and reimbursement strategy.
Positive
  • Revenue for the second quarter increased by 77% to $2.9 million.
  • Gross profit increased by 178% compared to the same period last year.
  • The new online store has improved margins and provided a closer relationship with customers.
  • Positive reimbursement was received from commercial payers for patients involved in motor vehicle accidents, validating the technology and reimbursement strategy.
Negative
  • None.

Gross profit increases 178% compared to the same period last year

New online store providing greater interaction with dentists and improved margins

Medical division reports positive reimbursement from first commercial payers

ROSELAND, N.J., Aug. 15, 2023 (GLOBE NEWSWIRE) -- Milestone Scientific Inc. (NYSE: MLSS), a leading developer of computerized drug delivery instruments that provide painless and precise injections, today provided a business update and announced financial results for the second quarter ended June 30, 2023.

Arjan Haverhals, CEO and President of Milestone Scientific, stated, “I am pleased to report that we achieved strong year-over-year and sequential revenue growth for the second quarter of 2023. Revenue for the second quarter increased 77% to $2.9 million, while gross profit increased 178% over the same period last year. We attribute this strong performance to the success of our new online store, which has provided us a closer and more direct relationship with our customers. In addition, we saw a meaningful increase in international dental sales.”

“Turning to our medical division, we continue to advance the rollout of the CompuFlo® Epidural System. Most importantly, we announced positive reimbursement was received from commercial payers for patients who were involved in motor vehicle accidents. Although receipt of reimbursement is encouraging and opens the door to approval for other use cases, on its own, these initial payments do not yet confer broad coverage for other epidural procedures. We believe these approvals represent an important validation of our technology and reimbursement strategy. Although this process takes time, we continue to expand the foundation of physicians utilizing our technology, which is building support for the appropriate level of reimbursement from insurance providers.”

For the three months ended June 30, 2023 and 2022, revenues were approximately $2.9 million and $1.6 million, respectively, driven by an increase in domestic dental sales of $444 thousand, an increase in international dental sales of $589 thousand, and dental revenue from China of $270 thousand. Gross profit for the second quarter ended June 30, 2023, was $1.9 million, or 65% of revenue, versus $681 thousand, or 41% of revenue, for the second quarter ended June 30, 2022. The increase in gross profit was due to higher margin sales with the launch of the new online store. Operating loss for the three months ended June 30, 2023, was approximately $(2.3) million versus approximately $(2.9) million for the second quarter ended June 30, 2022. The reduction in operating loss reflects the increase in revenue and gross profit, partially offset by an increase in selling, general and administrative expenses. Net loss was approximately $(2.2) million, or $(0.03) per share for the three months ended June 30, 2023, versus net loss of $(2.9) million, or $(0.04) per share, for the comparable period in 2022.

For the six months ended June 30, 2023 and 2022, revenues were approximately $5.5 million and $4.3 million, respectively. Gross profit for the first six months of 2023 was $3.8 million, or 69% of revenue, versus $2.4 million, or 54% of revenue, for the first six months of 2022. Operating loss for the first six months of 2023 was approximately $(3.6) million versus approximately $(4.8) million for the first six months of 2022. Net loss for the first six months of 2022 was $(3.5) million, or $(0.05) per share, versus net loss of $(4.8) million, or $(0.07) per share, for the comparable period in 2022.

As of June 30, 2023, the Company had cash, cash equivalents and short-term securities of approximately $5.7 million and working capital of approximately $7.4 million.

Conference Call

Milestone Scientific’s executive management team will host a conference call today, Tuesday, August 15, 2023, at 8:30 AM Eastern Time to discuss the Company’s financial results for the second quarter ended June 30, 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: 612343. A webcast and replay of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2306/48912.

An audio replay of the call will be available through August 29, 2023 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: 48912.

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, dental and cosmetic 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)
 
  June 30, 2023  December 31, 2022 
   (Unaudited)     
ASSETS        
Current assets:        
Cash and cash equivalents $3,701,453  $8,715,279 
Marketable securities  1,981,180   - 
Accounts receivable, net  789,584   693,717 
Prepaid expenses and other current assets  551,990   443,872 
Inventories  2,193,063   1,792,335 
Advances on contracts  1,282,806   1,325,301 
Total current assets  10,500,076   12,970,504 
Furniture, fixtures and equipment, net  11,867   18,146 
Intangibles, net  201,529   227,956 
Right of use assets finance lease  13,319   17,645 
Right of use assets operating lease  400,511   443,685 
Other assets  24,150   24,150 
Total assets $11,151,452  $13,702,086 
         
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable $674,587  $1,102,729 
Accounts payable, related party  626,690   803,492 
Accrued expenses and other payables  1,422,506   1,124,839 
Accrued expenses, related party  278,339   167,549 
Current portion of finance lease liabilities  9,805   9,365 
Current portion of operating lease liabilities  97,429   91,701 
Total current liabilities  3,109,356   3,299,675 
Non-current portion of finance lease liabilities  5,683   10,698 
Non-current portion of operating lease liabilities  334,750   385,279 
Total liabilities $3,449,789  $3,695,652 
         
Commitments        
         
Stockholders’ equity        
Common stock, par value $.001;authorized 100,000,000 shares; 70,107,739 shares issued and 70,074,406 shares outstanding as of June 30, 2023; 69,306,497 shares issued and 69,273,164 shares outstanding as of December 31, 2022;  70,108   69,306 
Additional paid in capital  128,720,911   127,478,325 
Accumulated deficit  (119,934,388)  (116,410,405)
Treasury stock, at cost, 33,333 shares  (911,516)  (911,516)
Total Milestone Scientific, Inc. stockholders' equity  7,945,115   10,225,710 
Noncontrolling interest  (243,452)  (219,276)
Total stockholders’ equity  7,701,663   10,006,434 
         
Total liabilities and stockholders’ equity $11,151,452  $13,702,086 
 



MILESTONE SCIENTIFIC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                 
  For the three months ended June 30, 2023  For the three months ended June 30, 2022  For the six months ended June 30, 2023  For the six months ended June 30, 2022 
                 
Product sales, net $2,909,966  $1,648,368  $5,507,564  $4,349,270 
Cost of products sold  1,019,907   967,720   1,728,882   1,986,196 
Gross profit  1,890,059   680,648   3,778,682   2,363,074 
                 
Selling, general and administrative expenses  3,937,281   3,282,322   7,011,012   6,397,948 
Research and development expenses  213,647   266,560   353,994   731,027 
Depreciation and amortization expense  16,681   16,645   33,902   33,460 
Total operating expenses  4,167,609   3,565,527   7,398,908   7,162,435 
                 
Loss from operations  (2,277,550)  (2,884,879)  (3,620,226)  (4,799,361)
Interest income (expense)  48,722   3,550   72,067   (1,193)
Loss before provision for income taxes  (2,228,828)  (2,881,329)  (3,548,159)  (4,800,554)
Net loss  (2,228,828)  (2,881,329)  (3,548,159)  (4,800,554)
Net loss attributable to noncontrolling interests  (12,511)  (22,848)  (24,176)  (40,350)
Net loss attributable to Milestone Scientific Inc. $(2,216,317) $(2,858,481) $(3,523,983) $(4,760,204)
                 
Net loss per share applicable to common stockholders—                
Basic and Diluted  (0.03)  (0.04)  (0.05)  (0.07)
                 
Weighted average shares outstanding and to be issued—                
Basic and Diluted  72,333,656   70,356,796   72,048,223   70,585,590 

 


FAQ

What are the financial results of Milestone Scientific Inc. for the second quarter of 2023?

For the second quarter of 2023, Milestone Scientific Inc. reported a 77% increase in revenue, reaching $2.9 million. Gross profit also increased by 178% compared to the same period last year.

What contributed to the revenue growth?

The revenue growth was attributed to the success of Milestone Scientific Inc.'s new online store, which improved margins and provided a closer relationship with customers.

Has the medical division received any positive reimbursement?

Yes, the medical division of Milestone Scientific Inc. has received positive reimbursement from commercial payers for patients involved in motor vehicle accidents, validating their technology and reimbursement strategy.

What is the cash position of Milestone Scientific Inc. as of June 30, 2023?

As of June 30, 2023, Milestone Scientific Inc. had cash, cash equivalents, and short-term securities of approximately $5.7 million.

Milestone Scientific, Inc.

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