Milestone Scientific Achieves Revenue of $2.7 Million and Provides Business Update for the First Quarter of 2022
ROSELAND, N.J., May 17, 2022 (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 first quarter ended March 31, 2022.
Arjan Haverhals, CEO and President of Milestone Scientific, stated, “We continue to advance our commercial efforts around the CompuFlo® Epidural and CathCheck™ Verification System. As a result of our expanded sales and marketing activities, we have begun to supply our disposables to key hospitals, healthcare systems and pain management clinics. As previously disclosed, during the first quarter of 2022, the pandemic had a disproportionate impact on the labor and delivery departments within hospitals as many pregnant women opted out of the vaccine, which led to restrictions that limited our ability to demo and trial the instruments within operatories. However, with the pandemic waning, our sales initiatives have resumed, and we are making steady progress. As an example, just last month, we signed an agreement and were approved as a vendor within a major Northeast teaching hospital, which is part of one of the leading health systems in the United States. This approval follows an extensive trial and evaluation, which further validates the safety and efficacy of our technology. With the easing of pandemic restrictions, we are advancing discussions with a number of similar healthcare institutions and our sales pipeline continues to grow. We are receiving positive feedback among clinics and physicians based on our ability to achieve better outcomes at lower cost.”
“We achieved solid revenues of $2.7 million for the first quarter of 2022. The slight decline in year-over-year revenue was due in part to significant orders in the first quarter of 2021, related to pent up demand from the pandemic. Importantly, we continue to gain traction in the market and believe our decentralized, multi-channel sales strategy will help further accelerate our growth. Towards this end, we continue to add domestic and global distribution partners as well as large dental groups, also known as Dental Service Organizations (DSOs). Most recently, we added Keystone Dental Group as a strategic channel partner for the STA Single Tooth Anesthesia® System. We also established a partnership with the American Independent Dental Alliance (AIDA), America’s premier DSO network of private practice dentists, as part of a broader initiative to target the DSO market.”
“Overall, we believe we are well positioned for the balance of 2022. We have maintained a solid balance sheet to internally fund our organic growth. Our dental segment remains cash flow positive on a standalone basis and we expect to benefit from economies of scale as we continue to grow revenue due to the recurring nature and high margins on our disposables.”
For the three months ended March 31, 2022 and 2021, revenues were approximately $2.7 million and $2.9 million, respectively. Dental revenues decreased by approximately $160,000. Medical revenue decreased approximately $63,000 due to new restrictions on the labor and delivery departments within hospitals. Gross profit for the first quarter ended March 31, 2022 was $1.7 million or 62% of revenue versus $1.8 million or 62% of revenue for the first quarter ended March 31, 2021. Operating loss for the three months ended March 31, 2022 was approximately $(1.9) million versus approximately $(1.0) million for the first quarter ended March 31, 2021. The increase in operating expenses was due in part to higher sales and marketing expenses, as well as higher R&D expense related to the development of a new instrument. Net loss was approximately $(1.9) million, or $(0.03) per share for the three months ended March 31, 2022, versus net loss of $(1.0) million, or $(0.01) per share, for the comparable period in 2021.
As of March 31, 2022, the Company had cash and cash equivalents of approximately $13.3 million and working capital of approximately $14.4 million.
Conference Call
Milestone Scientific’s executive management team will host a conference call on Tuesday, May 17, 2022 at 8:30 AM Eastern Time to discuss the Company’s financial results for the first quarter ended March 31, 2022, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 1- 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and by entering the access code: 287705. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2306/45599 or on the Investor Relations section of the Company’s website at https://www.milestonescientific.com/investors.
An audio replay of the call will be available through Tuesday, May 31, 2022, 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: 45599.
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, 2021. 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.
(tables follow)
| MILESTONE SCIENTIFIC AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (UNAUDITED) | ||||||||
| March 31, 2021 | December 31, 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 13,254,775 | $ | 14,764,346 | ||||
| Accounts receivable, net | 1,063,613 | 943,272 | ||||||
| Accounts receivable, related party net | 269,973 | – | ||||||
| Prepaid expenses and other current assets | 622,080 | 375,360 | ||||||
| Inventories, net | 1,799,908 | 1,541,513 | ||||||
| Advances on contracts | 1,217,253 | 1,309,260 | ||||||
| Total current assets | 18,227,602 | 18,933,751 | ||||||
| Furniture, fixtures and equipment, net | 20,325 | 23,713 | ||||||
| Intangibles, net | 264,192 | 277,619 | ||||||
| Right of use assets | 528,907 | 550,511 | ||||||
| Other assets | 24,150 | 24,150 | ||||||
| Total assets | $ | 19,065,176 | $ | 19,809,744 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,012,093 | $ | 780,428 | ||||
| Accounts payable, related party | 1,128,919 | 395,857 | ||||||
| Accrued expenses and other payables | 1,335,451 | 1,417,248 | ||||||
| Accrued expenses, related party | 257,815 | 414,241 | ||||||
| Current portion of finance leases liabilities | 8,743 | 8,545 | ||||||
| Current portion of operating lease liabilities | 83,585 | 81,001 | ||||||
| Total current liabilities | 3,826,606 | 3,097,320 | ||||||
| Non-current portion of finance lease liabilities | 17,801 | 20,062 | ||||||
| Non-current portion of operating lease liabilities | 454,857 | 476,980 | ||||||
| Total liabilities | $ | 4,299,264 | $ | 3,594,362 | ||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Common stock, par value $.001; authorized 85,000,000 shares; 66,591,883 shares issued and 66,558,550 shares outstanding as of March 31, 2021; 64,171,435 shares issued and 64,138,102 shares outstanding as of December 31, 2020; | 68,153 | 68,153 | ||||||
| Additional paid in capital | 125,385,315 | 124,915,560 | ||||||
| Accumulated deficit | (109,605,997 | ) | (107,704,274 | ) | ||||
| Treasury stock, at cost, 33,333 shares | (911,516 | ) | (911,516 | ) | ||||
| Total Milestone Scientific, Inc. stockholders’ equity | 14,935,955 | 16,367,923 | ||||||
| Noncontrolling interest | (170,043 | ) | (152,541 | ) | ||||
| Total stockholders’ equity | 14,765,912 | 16,215,382 | ||||||
| Total liabilities and stockholders’ equity | $ | 19,065,176 | $ | 19,809,744 | ||||
| MILESTONE SCIENTIFIC AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (UNAUDITED) | ||||||||
| For the three months ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Product sales, net | $ | 2,700,902 | $ | 2,924,707 | ||||
| Cost of products sold | 1,018,476 | 1,122,413 | ||||||
| Gross profit | 1,682,426 | 1,802,294 | ||||||
| Selling, general and administrative expenses | 3,115,629 | 2,749,299 | ||||||
| Research and development expenses | 464,466 | 16,444 | ||||||
| Depreciation and amortization expense | 16,814 | 20,924 | ||||||
| Total operating expenses | 3,596,909 | 2,786,667 | ||||||
| Loss from operations | (1,914,483 | ) | (984,373 | ) | ||||
| Interest expense, net | (4,742 | ) | (2,535 | ) | ||||
| Loss before provision for income taxes and net of equity investments | (1,919,225 | ) | (986,908 | ) | ||||
| Provision for income taxes | – | (250 | ) | |||||
| Loss before equity in net earnings of equity investments | (1,919,225 | ) | (987,158 | ) | ||||
| Income from China Joint Venture | – | 1,301 | ||||||
| Net loss | (1,919,225 | ) | (985,857 | ) | ||||
| Net loss attributable to noncontrolling interests | (17,502 | ) | (12,988 | ) | ||||
| Net loss attributable to Milestone Scientific Inc. | $ | (1,901,723 | ) | $ | (972,869 | ) | ||
| Net loss per share applicable to common stockholders— | ||||||||
| Basic | (0.03 | ) | (0.01 | ) | ||||
| Diluted | (0.03 | ) | (0.01 | ) | ||||
| Weighted average shares outstanding and to be issued— | ||||||||
| Basic | 69,013,001 | 66,578,435 | ||||||
| Diluted | 69,013,001 | 66,578,435 | ||||||
Contact:
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Crescendo Communications, LLC
Email: [email protected]
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