Milestone Scientific Reports Fourteen-Fold Increase in Revenue for Second Quarter of 2021

ROSELAND, N.J., Aug. 16, 2021 (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, 2021.

Arjan Haverhals, President and Chief Executive Officer of Milestone Scientific, commented, “We achieved a fourteen-fold increase in revenue to $2.4 million versus $168,000 for the same period last year, reflecting the strong recovery in our dental business, as well as the initial impact of our new sales and marketing initiatives. Importantly, our dental segment remains cash flow positive on a standalone basis with continued growth opportunities. In terms of our CompuFlo® Epidural and CathCheck™ Systems, we are beginning to see the positive effect of our commercial efforts and are encouraged by the traction we are gaining with healthcare institutions. We have significantly expanded our direct sales force with the addition of 9 new sales executives this year, as well as a new Vice President of Sales for our Medical segment. These initiatives are taking hold and our sales pipeline is robust. We are in late stage discussions with a number of hospitals, and the feedback from both anesthesiologists and the healthcare institutions has been positive, given the safety and economic benefits of our instruments. We are also in the process of adding new international distributors to build upon the traction we are gaining in the domestic market. We continue to maintain a strong balance sheet with approximately $16.0 million in cash and cash equivalents as we drive forward our commercial initiatives, while continuing to carefully manage our expenses. Although we faced challenges during the pandemic, we are back on a strong growth trajectory and I am encouraged by the outlook for the balance of 2021 and beyond.”

For the three months ended June 30, 2021 and 2020, revenues were approximately $2.4 million and $168,000, respectively. Dental revenues increased approximately $2.3 million, due in part to the re-opening of dental offices throughout the country and the rest of the world. Gross profit for the second quarter ended June 30, 2021 was $1.4 million versus $112,000 for second quarter ended June 30, 2020. Operating loss for the three months ended June 30, 2021 was approximately $(2.9) million versus approximately $(3.2) million for the second quarter ended June 30, 2020. Net loss was approximately $(2.7) million, or $(0.04) per share for the three months ended June 30, 2021, versus net loss of $(3.2) million, or $(0.06) per share, for the comparable period in 2020.

For the six months ended June 30, 2021 and 2020, revenues were approximately $5.3 million and $2.0 million, respectively. Dental revenues increased by approximately $3.4 million due in part to the re-opening of dental offices throughout the country and the rest of the world. Gross profit for the first six months of 2021 was $3.2 million versus $1.4 million for the first six months of 2020. Operating loss for the first six months of 2021 was approximately $(3.9) million versus approximately $(4.7) million for the first six months of 2020. Net loss for the first six months of 2021 was $(3.7) million, or $(0.05) per share, versus net loss of $(4.8) million, or $(0.09) per share, for the comparable period in 2020.

Conference Call

Milestone Scientific’s executive management team will host a conference call at 11:00 A.M. Eastern Time on Monday, August 16, 2021 to discuss the Company’s financial results for the second quarter ended June 30, 2021, as well as the Company’s corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 1- 844-369-8770 for U.S. callers or 862-298-0840 for international callers. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2306/42492 or on the Company’s website at https://www.milestonescientific.com/investors/news-events.

An audio replay of the call will be available through August 30, 2021 and can be accessed by dialing 877-481-4010 for U.S callers or 919-882-2331 for international callers and by entering the access code: 42492.

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. Milestone Scientific’s 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 Milestone Scientific’s 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, 2020. 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.

MILESTONE SCIENTIFIC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

    June 30, 2021     December 31, 2020  
                 
ASSETS                
Current assets:                
Cash and cash equivalents   $ 15,977,330     $ 14,223,917  
Accounts receivable, net     812,341       1,080,656  
Accounts receivable, related party net     -       -  
Prepaid expenses and other current assets     442,295       415,915  
Inventories, net     1,479,391       2,420,179  
Advances on contracts     1,393,817       414,202  
Total current assets     20,105,174       18,554,869  
Furniture, fixtures and equipment, net     30,749       30,729  
Intangibles, net     306,544       329,249  
Right of use assets     593,049       632,453  
Other assets     24,150       24,150  
Total assets   $ 21,059,666     $ 19,571,450  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 582,684     $ 482,972  
Accounts payable, related party     201,887       385,138  
Accrued expenses and other payables     1,390,560       824,454  
Accrued expenses, related party     352,209       586,734  
Current portion of finance leases liabilities     8,162       7,796  
Current portion of operating lease right-of-use liabilities     76,008       72,031  
Deferred profit, related party     337,145       242,589  
Note payable     -       276,180  
Total current liabilities     2,948,655       2,877,894  
Finance lease liabilities     24,433       28,607  
Operating lease liabilities     518,408       557,981  
Total liabilities   $ 3,491,496     $ 3,464,482  
                 
Commitments and contingencies                
                 
Stockholders’ equity                
Common stock, par value $.001; authorized 100,000,000 shares; 67,055,869 shares issued and 67,022,536 shares outstanding as of June 30, 2021; 64,171,435 shares issued and 64,138,102 shares outstanding as of December 31, 2020;     67,055       64,171  
Additional paid in capital     123,075,664       117,934,696  
Accumulated deficit     (104,539,294 )     (100,885,957 )
Treasury stock, at cost, 33,333 shares     (911,516 )     (911,516 )
Total Milestone Scientific Inc. stockholders' equity     17,691,909       16,201,394  
Noncontrolling interest     (123,739 )     (94,426 )
Total stockholders’ equity     17,568,170       16,106,968  
Total liabilities and stockholders’ equity   $ 21,059,666     $ 19,571,450  

MILESTONE SCIENTIFIC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

    For the Three Months Ended June 30,     For the Six Months Ended June 30,  
    2021     2020     2021     2020  
Product sales, net   $ 2,425,738     $ 167,674     $ 5,350,445     $ 1,979,060  
Cost of products sold     1,056,384       55,626       2,178,797       615,326  
Gross profit     1,369,354       112,048       3,171,648       1,363,734  
                                 
Selling, general and administrative expenses     4,011,672       3,155,630       6,760,968       5,875,123  
Research and development expenses     14,834       108,170       35,760       215,650  
Depreciation and amortization expense     215,420       21,138       231,864       54,457  
Total operating expenses     4,241,926       3,284,938       7,028,592       6,145,230  
Loss from operations     (2,872,572 )     (3,172,890 )     (3,856,944 )     (4,781,496 )
Interest expense     (4,461 )     (4,062 )     (6,996 )     (8,159 )
Gain on debt extinguishment-PPP     276,180       -       276,180       -  
Loss before provision for income taxes and net of equity investments     (2,600,853 )     (3,176,952 )     (3,587,760 )     (4,789,655 )
Provision for income taxes     (83 )     (1,250 )     (333 )     (1,500 )
Loss before equity in net earnings (losses) of equity investments     (2,600,936 )     (3,178,202 )     (3,588,093 )     (4,791,155 )
Loss from China Joint Venture     (95,857 )     -       (94,556 )     -  
Net loss     (2,696,793 )     (3,178,202 )     (3,682,649 )     (4,791,155 )
Net loss attributable to noncontrolling interests     (16,325 )     (11,738 )     (29,313 )     (24,476 )
Net loss attributable to Milestone Scientific Inc.   $ (2,680,468 )   $ (3,166,464 )   $ (3,653,336 )   $ (4,766,679 )
                                 
Net loss per share applicable to common stockholders—                                
Basic     (0.04 )     (0.06 )     (0.05 )     (0.09 )
Diluted     (0.04 )     (0.06 )     (0.05 )     (0.09 )
                                 
Weighted average shares outstanding and to be issued—                                
Basic     69,220,795       56,694,793       68,286,033       51,728,806  
Diluted     69,220,795       56,694,793       68,286,033       51,728,806  

Contact:
David Waldman or Natalya Rudman
Crescendo Communications, LLC
Email: mlss@crescendo-ir.com
Tel: 212-671-1020


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Source: Milestone Scientific, Inc.