Milestone Scientific reports Q2 EPS 0c vs. (2c) last year

Reports Q2 revenues $1.9M vs. $2.9M last year. Arjan Haverhals, CEO and President of Milestone Scientific, commented, “We are successfully advancing our reimbursement strategy for the CompuFlo Epidural System, aimed at achieving nationwide coverage. Last month, we reached a significant milestone as we were granted a Medicare Part B Physician payment rate for the CompuFlo Epidural System under the American Medical Association’s technology-specific Category III CPT code CPT0777T. This favorable Medicare pricing for our CompuFlo Epidural System was granted for multiple Jurisdictional Medicare Administrative Contractors regions, which include states such as Florida, Texas, Pennsylvania, New Jersey, Maryland, Colorado, Oklahoma, Louisiana, Arkansas, Mississippi, New Mexico, District of Columbia, and Delaware. We view this achievement as a transformative event for the Company as we advance our efforts to establish CompuFlo technology as the standard of care for epidural procedures nationwide. Immediately following the Medicare price assignment, we announced a strategic partnership with Axial Biologics to accelerate the adoption of our CompuFlo Epidural System. This collaboration significantly extends our reach within the pain management market, leveraging Axial’s established relationships with clinicians in key states such as New Jersey, Texas, and Florida. Within our dental division, U.S. e-commerce sales increased to $1.3 million in Q2 2024, compared to $1.2 million for the same period last year, as a result of our strategic decision to end the agreement with our previous distributor and instead channel sales through our online portal. This shift has enabled us to foster a closer, more direct relationship with our customers, as well as improve our margins. Specifically, gross margins increased to 76.1% in Q2 2024 from 65.0% in the same quarter last year. We expect domestic sales will steadily increase as we continue to promote our new e-commerce platform by reaching out directly to customers and patients through our renewed marketing campaigns. On the international front, we faced some temporary challenges related to the distributor’s freight forwarders, which have since been resolved. Additionally, our decision to pause sales in China impacted year-over-year comparisons. Nevertheless, we currently believe that international sales in the second half of this year will show improvement over both the second half of last year and first half of this year. We remain optimistic about the future and believe we have established a scalable, high-margin dental business that will continue to generate positive cash flow. In addition to our improved gross margins, we have taken steps to further streamline operations across the organization. Most notably, we reduced selling, general, and administrative expenses by over $1.1 million compared to the same period last year, further aligning us with our goal of achieving positive cash flow company-wide. With approximately $5.8 million in cash and cash equivalents at the end of the quarter, we are confident that we have sufficient capital to support our growth within both the dental and medical divisions.”