Milestone Scientific (MLSS) Q2 2024 earnings summary

Executive summary

• Achieved Medicare Part B physician payment rate assignment for CompuFlo Epidural System, covering major states and representing a $250 million addressable Medicare market.

• Formed a strategic partnership with Axial Biologics to accelerate commercial rollout in key JMAC states.

• Received regulatory approval to market CompuFlo in Brazil, opening access to a large Latin American market.

• Q2 2024 revenue was $1.85 million, down from $2.91 million in Q2 2023, mainly due to lower international sales and the absence of China revenue.

• Net income for Q2 2024 was $224,000, compared to a net loss of $2.2 million in Q2 2023, driven by a $2.0 million gain from the sale of New Jersey net operating losses.

Financial highlights

• Q2 2024 revenue was $1.85 million, down from $2.91 million in Q2 2023, mainly due to lower international sales.

• Gross profit margin improved to 76% in Q2 2024 from 65% in Q2 2023, due to higher-margin e-commerce sales.

• Operating loss reduced to $1.78 million in Q2 2024 from $2.3 million in Q2 2023, due to reduced SG&A expenses.

• Net income was $224,000 in Q2 2024, compared to a net loss of $2.2 million in Q2 2023, aided by a $2.0 million NOL sale.

• E-commerce accounted for 66% of Q2 2024 net product sales, up from 43% in Q2 2023.

Outlook and guidance

• Management expects improved international and domestic sales in the second half of 2024, with a strong July already reported.

• Focus remains on disciplined commercial rollout and expanding reimbursement coverage.

• Current cash and liquidity are sufficient to finance operations for at least the next 12 months.

• The company is pursuing positive cash flow through increased dental and medical device sales and continued cost reductions.