Milestone Scientific Inc. Announces Year End Results
3/31/99 4:45:18 PM
LIVINGSTON, N.J. (March 31) BUSINESS WIRE -March 31, 1999--Milestone Scientific Inc. (AMEX:MS) today announced its results for the year ended December 31, 1998.
Revenue for the year ended December 31, 1998 increased 208% to $8,804, 235 compared with $2,854,271 for the same period a year ago. The net loss for the year ended December 31, 1998 was $(10,698,354), or $(1.22) per share compared with $(7,438,117), or $(1.21) per share for the same period a year ago. The increase in net sales is mainly attributable to The Wand(TM), including disposable handpieces, offset by a decrease in net sales from the Company's Wisdom product line, which is in line with the Company's planned de-emphasis of Wisdom.
Included in the cost of sales is a $1,244,000 writedown for excess inventory for The Wand, including disposable handpieces, a $269,000 obsolete equipment write-off, and a $1,712,982 writedown of new, yet unused, semi-automation equipment and molds. The semi-automation equipment and molds were purchased for approximately $2,200,000 in anticipation of the ramp up of disposable handpiece sales and are not required for current levels of production.
Leonard Osser, Chairman and CEO of Milestone, stated, "The Company has taken significant steps to grow and strengthen the end user base in order to gain greater acceptance of The Wand. This includes the recent announcement that The Wand received the European CE Mark allowing for the international marketing and distribution of the product, which will commence next month. Also, the Company will continue to develop product enhancements and improvements for The Wand. In early 2000, the Company intends to submit a new application to the FDA for a technologically similar device to The Wand, specifically designed to address the need to deliver widely varying volumes of anesthetic for various medical disciplines, for which a working prototype device has been developed. Management will continually evaluate the raising of additional capital to fund these efforts."
Milestone Scientific Inc. is the developer, manufacturer and marketer of The Wand(TM), a computer activated, precision metered, local anesthetic injection system that enables virtually painless injections to be administered consistently.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.
MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Audited)
Year Ended
December 31,
1998 1997
Revenues $ 8,804,235 $ 2,854,271
Cost of sales 10,144,796 1,857,465
Gross profit (loss) (1,340,561) 996,806
Selling, general and
administrative expenses 9,336,445 5,550,719
Research and development
expenses 436,024 981,078
Compensation - Princeton
PMC purchase -- 2,126,670
(9,772,469) (8,658,467)
Loss from operations (11,113,030) (7,661,661)
Other income
Interest income
(net of interest expense) 414,676 220,877
Other, net -- 2,667
414,676 223,544
Net loss $ (10,698,354) $ (7,438,117)
Loss per common share -
basic and diluted $ (1.22) $ (1.21)
Weighted average shares
outstanding -
basic and diluted 8,736,537 6,130,488
MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Audited)
December 31, December 31,
1998 1997
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 316,706 $ 9,775,019
Investments - treasury bills 3,267,940 5,778,369
Accounts receivable, net of
allowance for doubtful accounts
of $137,870 and $650,030 in
1998 and 1997 respectively 430,907 318,147
Inventories 1,255,262 1,249,628
Prepaid expenses 127,263 97,779
Total current assets 5,398,078 17,218,942
PROPERTY AND EQUIPMENT, NET 2,031,870 762,882
PATENTS, NET 1,736,275 1,980,834
OTHER ASSETS 29,997 33,406
$ 9,196,220 $ 19,996,064
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Line of credit - bank $ 150,000 $ 175,000
Accounts payable 544,705 1,053,955
Accrued expenses 165,302 247,433
Total current liabilities 860,007 1,476,388
STOCKHOLDERS' EQUITY
Common stock, par value $.001;
authorized, 25,000,000 shares;
issued and outstanding, 8,817,882
shares in 1998 and 8,661,866
shares in 1997 8,818 8,662
Additional paid-in capital 30,111,734 28,685,483
Accumulated deficit (20,872,823) (10,174,469)
Treasury stock, at cost,
100,000 shares (911,516) --
Total stockholders' equity 8,336,213 18,519,676
Total liabilities and
stockholders' equity $ 9,196,220 $ 19,996,064
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