Good day, and welcome to the Milestone Scientific Incorporated Third Quarter 2018 Investor Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to you, David Waldman, Investor Relations. Please go ahead, sir.

Good morning. And thank you for joining Milestone Scientific's third quarter 2018 financial results conference call. On the call with us today are Leonard Osser, Interim Chief Executive Officer; and Joseph D’Agostino, Chief Financial Officer and Chief Operating Officer. The company issued a press release last week, Thursday, November 15, containing third quarter 2018 financial results, which is also posted on the company’s website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1021. The company’s management will now provide prepared remarks, reviewing the financial and operational results for the third quarter ended September 30, 2018. Before we get started, we would like to remind everyone that during this conference call we may make forward-looking statements regarding timing and financial impact of Milestone’s ability to implement its business plans, expected revenues 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 and future business decisions. 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 report on Form 10-K for the year ended December 31, 2017, and Milestone’s report on Form 10-Q for the third quarter ended September 30, 2018. These forward-looking statements made during this call are based upon management’s reasonable beliefs as of today’s date, November 21, 2018. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason. With that, we’ll now turn the call over to Leonard Osser, Chief Executive Officer. Please go ahead, Leonard.

Good morning, and thank you, David, and thanks to everyone joining us on the call today. Starting first with the commercialization of the CompuFlo Epidural system, we continue to sign independent distributors that cover markets in the United States. Most recently, we signed a distribution agreement with Clinical Technology, a leading specialty distributor of medical products in the mid-western region of the United States. They had several instruments on loan with top anesthesiologists and have received positive feedback from both providers and patients. We believe CTI will be a valuable asset to Milestone as we educate medical professionals on the benefits of objective, quantifiable and real time confirmation of assessing the epidural space and strive to build a new standard of care with the CompuFlo Epidural System. Last week, we announced that a new clinical study was published in the International Journal of Obstetric Anesthesia that found the CompuFlo Epidural system to be successful in objectively identifying the epidural space, even in difficult patients. Accurate epidural space identification can build physician and resident confidence, while reducing the number of attempts per capita placement and accidental dural functions that can be costly to the hospital and patients -- painful to the patients. The study authors from the Citta di Roma Hospital and Careggi Hospital in Italy included "we have validated the CompuFlo device as a means of adequately identifying the ligamentum flavum and the epidural space. And our preliminary findings suggest that it could assist the physician in training while performing epidural insertion". This has been validated in a number of different university hospitals and by a number of luminaries throughout the world over the past couple of years actually. This study further validates that the CompuFlo Epidural system is able to safely and effectively identify the epidural space giving providers…

Thank you, Joseph. Within our medical division, we’re adding new distributors, and have received very favorable feedback in the market from luminaries and key opinion leaders, physicians, and most importantly, hospital networks. We expect to start seeing sales ramping up in our medical division next year as the initiatives we have put in place begin to take hold. So to wrap it up, we are encouraged by the outlook for the business and look forward to announcing additional developments as they unfold. I’d like to thank you for joining the call today. At this point, we would like to open the call up for questions. Operator?

Thank you. [Operator Instructions] Our first question comes from Keith Goodman with Maxim Group.

Hey Len, a couple quick questions for you. One is on the timing of the dental orders. If they got pushed off into Q4, do you expect a second order in Q4? Or do you think that that entire sequence of orders just keeps getting pumped out? Joseph D’Agostino: Yes, this is Joseph D’Agostino responding to Keith. The answer for that is we anticipate to receive an order in the fourth quarter. As you know, we do have minimum starting in 2018, and part of those minimums would be the delivery of an order in 2018 fourth quarter.

So the order from Q3 got pumped to Q4. But you expect the order from that -- should have been in Q4 being pumped pushed to Q1 of next year. What do you think the second order comes in 2018?

We anticipate -- we have received an order already, which we just spoke off for $773,000. That order was received unfortunately. If we received about 10 days later then -- so we didn’t make it into the third quarter, but it already made into the fourth quarter. We do anticipate more orders in this quarter in addition to that with this quarter. Does that answer the question?

Yes, it does. Thank you. And on the previous call you said that your model is not to replicate distribution that you'd be looking for licensing with joint ventures are now right sale of different technologies as it pertains to the different areas of medical. Can you give any update on that?

Yes, you're absolutely right, Keith. And thank you for bringing that up. We are putting all of our energy into our epidural instrument. The dental business is something that we have unfortunately started over the last number of years. We put very little money into it. We have taken money out of it to support our efforts with the epidural instrument. As you may be aware we have hired, about nine months ago, a senior sales marketing executive for worldwide distribution of the product. We have hired another executive for the United States. We have hired a marketing person in that area. And we are bringing on [indiscernible] trainers to train these sales people and doctors as we move forward. So that has been, for our company, very costly. And it’s a big -- it's part of our use of whatever money we have been earning from the dental division. It is our strategy going forward, being a research and development company, to produce many different instruments for the medical market all with their related disposables. Because we view ourselves so there every say device which we make money on, we view ourselves as being in the disposable business. So as look forward to the company sales, we will -- we believe to do better for the dental in 2019 and 2018, but we are not putting energy into that. All of our energy is being placed into the medical area. As you know, we have developed a Botox instrument that is finalized and it's designed. We need another six months for that, but we are taking that capital and put it into the epidural area. Now the way this basically works is, you have the invention, you patented and you get -- you rewarded the patents, you introduced the…

Everything you just said there is exactly well on board better for the healthcare system, better for the doctors, cost-wise, patient, safety, I don't -- I'm just surprised how long it's taken to either make sales or refine someone who agrees with you and wants to own this thing and take it to the next level. And I'm glad to hear that you're going through that evaluation process. Any idea how long something like that would take?

Well, unfortunately, it's taking us no longer than it takes any of the company. If you look at the pharma companies, they invest about $1 billion, 10 years, and quite often the product is not approved then they just write it off. Devices could take 4 years to 8 years to reach their number. We are considerably ahead of where we thought we would be at this point as far as key opinion leaders, luminaries and studies and have, in fact because of the level of the KOLs that are involved found yet another area that we would be going into with this instrument for epidurals. So there’s no timing that I could give you, but I can tell you that the epidural instrument is being now tested and trialed in various institutions. We will have our cost factor analysis within the next 10 days or so, which will help us enormously. And we feel that we have the right team of people to make this happen. So the important thing to look at is that the product is working as advertised perfectly, I mean, certainly when we give 1 million injections, it’s not going to be a 100% success, but thus for it is. And we have the right team and we’re in the right institutions for trial. So the next thing we should look at is our sales to those institutions. And then we want to look at what is the usage, what is the disposables being sold to them. But there’s no way I can tell you, if those announcements or announcements of licensing arrangements, of joint ventures, of sales, of different areas, of medicine, obviously, we’re talking to companies that are in totally different areas of medicine where the product may be a value to them from the broad platform of technology. When the deal is closed, we will announce them. But to give you timing, it’s just impossible to do that. I can tell you that we’re working [indiscernible] on that, but cannot give you timing Keith is to when that will happen.

[Operator Instructions] And I’m showing no further questions in the queue. We did have one joined. Anthony Vendetti with Maxim Group.

I just kind of focus a little bit on the China outstanding receivables with the Milestone China. What’s your recourse if they continue to not pay? What is the -- yes, I guess, what’s your recourse? Or how are you -- how do you expect to pursue payment and what do you think the likely outcome at this point?

Well, at this point, they are, in fact paying. We have an arrangement with them where they’re paying $200,000 a month, I think, at this point in the quarter. Joseph D’Agostino: Two months through December.

Yes, $200,000 a month that presently down to 18, isn't? Joseph D’Agostino: 21.

21. Okay. So the debt has come down to $2.1 million. They’re paying $200,000 a month. They have been late but paid, I think, within two or three weeks of the time that was supposed to be for the last two months. And they're now paid up through October. Is that correct? Joseph D’Agostino: Correct.

Okay. So we're waiting for the November payment. I just got it back on Monday from China. They are in the process of raising capital, but they are also selling extraordinarily well. They are, by far, a best distributor we have in the world. Their model which was put together by [indiscernible] who was one of the original people in Sinopharm, who headed up to very large companies for them over 15 years. He has gone through many, many different models where his present model both in clinics, which have much room throughout the country, and in hospitals has been to stress safety. So they have symposiums throughout China on safety. They go through all the shows. And of course, the safety they feature are instruments. So they're not selling it based on pain, they're selling it based on practicing medicine from the 21st century not the 19th century and a much safer delivery of anesthesia to the patient. And while I was there they reported two large sales and -- I'll go over with you see have an understanding, one sale to a major hospital -- the major hospital in [indiscernible] province of 100 STAs at $4,000 each to that hospital. And the model for Milestone China in that case is to have five people from Milestone China to spend six months in the hospital, working with all of the doctors and staff, training them. Keeping in mind that in China, it's a profit center, they charge for the use of the disposables. So there is a reason for the provider to consume more disposables. So what happens is, by having the people in the hospital, the doctors are perfectly trained, but so as the staff. So the devices is set up when the doctor walks in, the patient…

[Operator Instructions] I’m showing no further questions in the queue at this time, sir.

Yes, I’d like to thank everyone for joining us on the call. And we look forward to reporting the events that I described on this call, and hopefully in the near rather than the further future. Thanks again.

Thank you everyone. This concludes today’s teleconference. You may now disconnect.