Good day and welcome to the Milestone Scientific Incorporated Third Quarter 2014 Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to David Waldman with Crescendo Communications. Please go ahead, sir.

Good afternoon and thank you for joining Milestone Scientific’s third quarter 2014 financial results conference call. On the call with us today is Joseph D’Agostino, Chief Financial Officer and Chief Operating Officer. The company issued a press release this morning containing third quarter 2014 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 212-671-1020. The company’s management will now provide prepared remarks, reviewing the financial and operational results for the third quarter ended September 30, 2014. 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 plan, 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 December 31st report on Form-K for the year ended December 31, 2013 and September 30th report on Form 10-Q for the quarter ended September 30, 2014. The forward-looking statements made during this call are based upon management’s reasonable belief as of today’s date,…

Thank you. [Operator Instructions]. We do have a question from [Maria Coffman with Lyndon] Joseph D’Agostino: Yes Maria.

Yes. Congratulations on receipt of approval in Europe. Joseph D’Agostino: Thank you.

And can you just please comment on discussion with distributors and maybe the next step forward of data approval? Joseph D’Agostino: Okay. Can I put you on speaker right now on the phone? And I think the confusion or at least the communication problem is there. So, hold on one second. Hello, can you hear me?

Yes, I can hear you. Joseph D’Agostino: Okay. So, I apologize for the interruption and the globalness in the communication. Can you repeat your question?

Yes, certainly. Can you just comment on discussions with distributors in Europe and the next step for FDA approval? Joseph D’Agostino: Sure. We’re moving forward in Europe on the medical instrument. I think that’s what you’re referring to…

Yes. Joseph D’Agostino: Both the epidural and intra-articular. We’ve had several meetings and we -- as recently as last week. And we’re moving forward on trying to pick the correct, the most appropriate, the most opportunistic distributor in each of the territories in Europe. So, that’s moving forward and we hope that in the first quarter, we’ll be able to announce some of those distributors in various countries. On the FDA side, as I mentioned in the prepared remarks, we’re moving forward on the FDA approvals and each step is a short step, but a monumental step on moving forward. And we believe, as mentioned in the presentation that we have positive steps, positive communications from the FDA although they could change, because we can’t control totally that process. But we’re looking forward for the intra-articular instrument to be approved in the first quarter of 2015 and for the epidural by the third quarter of 2015, both of which are incrementally important for our business, but at the same time we’re looking forward for our first real deal in Europe which is significant for us and especially since we now have the CE approval.

Okay. Joseph D’Agostino: Thank you very much, Maria.

Thank you.

[Operator Instructions]. We have a question from [Ed Agitian], Private Investor.

Yes, hi Joe. I saw in the 10-Q and trying to find again as we’re speaking, but something to the effect that that very long term advance that you had made to your contract manufacturer for instruments is very close to winding itself down and -- or at least with respect to the instruments. And just trying to understand anything that you could color that you can give beyond that, because it seems like to wind that down you’d be building up inventory quite significantly. Is this related to the stocking of China or is there anything behind this that you could help me understand a little bit better? Joseph D’Agostino: I think there is two items that are in there. One item is the FDA instruments, now I think that’s you’re referring to. As you know, we purchased those parts in advance over a longer period of time to create a fixing of our cost of sales for those parts. At this point, we are moving down the line because some of those parts we have purchased a while ago need to be put into a finished unit, tested and make sure they’re working so that we don’t void any of our agreements and/or any of the opportunities for replacements for parts under warranty. So, those instruments are being put together. We look at our production and also our distribution over the next two years in the dental side and we believe that we’ll be utilizing most of those instruments in that period of time. This year to-date, we have as mentioned in our prepared remarks, we have reduced the price of our instruments to accelerate the sale of handpieces and that has become beneficial for us in moving more instruments through. At the same time you noted, which is important to us is the China business. And we have already started to move some of those instruments into our affiliate, which is Milestone China who is now going to be our number one distributor, exclusive distributor in Asia and China. So that market is moving forward and we hope to utilize most of these instruments within the next 18 month period.

Okay. That’s great, that’s great. It’s good to see that finally winded itself down there. And then from here forward, do you just going to go on as needed basis or do you think you will enter into another substantial advance once this thing winds down? Joseph D’Agostino: Yes. Our typical approach both for all our instruments is to advance for the raw materials necessary, not the labor, to prepare the instruments and that will be in the medical and the dental side with our capitalization, the $10 million we received in May of 2014. That gives us an opportunity to increase our marketing efforts, which have here [indiscernible] been sketchy in the U.S. as you know. And more direct overseas and that’s why we’re seeing the bubbling of our international business. But the quick answer is that, yes, we will look at doing at purchasing additional parts for a longer time production; three years, four year production period so that we can walk in the prices and make sure that we have the instruments capable and available for sale. Now remember, since we are also the manufacturer, we have an opportunity to redirect the manufacturing to go from international to domestic to Chinese. So, depending on which of those markets are moving forward faster, we will just divert the production; with very little cost and produce the other instruments. So, the short answer is, yes, we intend to continue doing that. Yes, we will with the best effort that we have project out what we think we need over next two to three year period and purchase those parts, which will represent a fixing of our costs for the instruments that also give us the immediate availability to fulfill orders as they come in and that’s both in medical and in the dental side. Thank you for your question.

Thank you. Just a couple of more if I may. Given the fact that you have all the cash that you have now, is there any thought to discontinuing the practice that made a lot of sense in the past of issuing stock to consultants and all those sorts of things, paying them in cash versus using stock at this point? Joseph D’Agostino: Yes, we’ve discussed that, it’s a very good point too, because now with our cash position, we do not want to dilute the shareholders any further in that side and we talked about that recently and we are moving forward on a positioning where outsiders will not receive stock, but perhaps continue with, as you know, our commitments and contracts with our CEO and some other officers in the company. But the major point for outsiders that will come to an end.

Excellent. And then last question. MM, the Milestone Medical, if my estimations are correct, they are probably not too far away from needing more money. If and when that period that time should come, can you tell me anything about what your thinking is again given your cash position now? Are you considering in lieu of having them go out to the market to try to raise more money at least with respect to your 45% interest that you would fund that yourselves with your own cash? Joseph D’Agostino: That’s a very good question. Let me just give you an update, because there was a recent press release where Milestone Scientific actually purchased some additional shares from one of the founding shareholders. So, we now own 49.8% of the company, that’s the first point. So, we’ve increased our shareholders’ position. We believe that there is value there and we are moving forward aggressively on that. We’ve also released, put out a press release not too distant past where Milestone Medical is in fact preparing a prospectus for two reasons; one to raise $6 million to $7 million, right now we’re on the new connect exchange on the Warsaw Exchange and we plan to move up to the full Warsaw Stock Exchange that will be done sometime in the second quarter of 2015. The prospectus is in with the post SEC and we’re waiting for approval to move that forward. So the answer is, as Leonard has directed, which make sense, we’re trying not to burden Milestone Scientific with any cash requirements for these joint ventures. So, the joint venture will be financed through the $6 million to $7 million that we raise. And if you look at the stock, the way it’s trading right now, it’s doing very well. So, we believe we’ll be able to sell those shares and sell out that offering in the second quarter, by the second quarter of 2015 and not cause cash drain on Milestone Scientific.

Okay, very good. Thank you very much, Joe. Joseph D’Agostino: My pleasure, Ed.

[Operator Instructions]. And there are no more questions in queue. Joseph D’Agostino: Okay everybody. I’d like to give a closing comment and to thank the shareholders of the company. They’ve stuck with us through thick and thin and the future looks encouraging for us both on the dental side, as well as our joint ventures in some or more exclusive transactions in the future. So, thank you very much for being here with us and signing off now. Thank you very much. Bye, bye.

This concludes today’s conference. And thank you for your participation.