GlobeNewswire Inc | Aug 16, 2021 07:30AM EDT

August 16, 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 $2.4millionand $168,000, respectively. Dental revenues increased approximately $2.3million, due in part to the re-opening of dental offices throughout the country andthe 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 Scientifics executive management team will host a conference call at 11:00 A.M. Eastern Time on Monday, August 16, 2021 to discuss the Companys financial results for the second quarter ended June 30, 2021, as well as the Companys 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 Companys 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 Scientifics computer-controlled systems are designed to make injections precise, efficient and increase the overall patient comfort and safety. Milestone Scientifics 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 Scientifics 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 SUBSIDIARIESCONDENSED 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 8,162 7,796 liabilitiesCurrent portion of operating lease 76,008 72,031 right-of-use liabilitiesDeferred 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; authorized100,000,000 shares; 67,055,869 sharesissued and 67,022,536 shares outstanding 67,055 64,171 as of June 30, 2021; 64,171,435 sharesissued and 64,138,102 shares outstandingas of December 31, 2020?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. 17,691,909 16,201,394 stockholders' equityNoncontrolling interest (123,739 ) (94,426 )Total stockholders? equity 17,568,170 16,106,968 Total liabilities and stockholders? $ 21,059,666 $ 19,571,450 equity

MILESTONE SCIENTIFIC AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)

For the Three Months Ended For the Six Months Ended June June 30, 30, 2021 2020 2021 2020 Product sales, net $ 2,425,738 $ 167,674 $ 5,350,445 $ 1,979,060 Cost of products 1,056,384 55,626 2,178,797 615,326 soldGross profit 1,369,354 112,048 3,171,648 1,363,734 Selling, generaland administrative 4,011,672 3,155,630 6,760,968 5,875,123 expensesResearch anddevelopment 14,834 108,170 35,760 215,650 expensesDepreciation andamortization 215,420 21,138 231,864 54,457 expenseTotal operating 4,241,926 3,284,938 7,028,592 6,145,230 expensesLoss from (2,872,572 ) (3,172,890 ) (3,856,944 ) (4,781,496 )operationsInterest expense (4,461 ) (4,062 ) (6,996 ) (8,159 )Gain on debt 276,180 - 276,180 - extinguishment-PPPLoss beforeprovision forincome taxes and (2,600,853 ) (3,176,952 ) (3,587,760 ) (4,789,655 )net of equityinvestmentsProvision for (83 ) (1,250 ) (333 ) (1,500 )income taxesLoss before equityin net earnings (2,600,936 ) (3,178,202 ) (3,588,093 ) (4,791,155 )(losses) of equityinvestmentsLoss from China (95,857 ) - (94,556 ) - Joint VentureNet loss (2,696,793 ) (3,178,202 ) (3,682,649 ) (4,791,155 )Net lossattributable to (16,325 ) (11,738 ) (29,313 ) (24,476 )noncontrollinginterestsNet lossattributable to $ (2,680,468 ) $ (3,166,464 ) $ (3,653,336 ) $ (4,766,679 )MilestoneScientific Inc. Net loss per shareapplicable to commonstockholders?Basic (0.04 ) (0.06 ) (0.05 ) (0.09 )Diluted (0.04 ) (0.06 ) (0.05 ) (0.09 ) Weighted averageshares 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 RudmanCrescendo Communications, LLCEmail: mlss@crescendo-ir.comTel: 212-671-1020