● expanding the global footprint of our compuflo epidural device by partnering with distribution companies worldwide ' and ● continuing the development of our proprietary cosmetic injection device or delivery of botulinum toxin ( such as botox® and dysport® ) wand sta dental instrument growth since its market introduction in early 2007 , the wand/sta instrument and prior c-clad products have been used to deliver over 66 million safe , effective , and comfortable injections . the instrument has also been favorably evaluated in numerous peer-reviewed , published clinical studies and associated articles . moreover , there appears to be a growing consensus among users that the sta instrument is proving to be a valuable and beneficial instrument that is positively impacting the practice of dentistry worldwide . global distribution network beginning january 1 , 2016 , milestone scientific entered into a non-exclusive distribution agreement with henry schein , inc. ( “ henry schein ” ) . in june 2016 , that agreement was replaced with an exclusive distribution arrangement for our dental products for the united states and canada with henry schein . under this arrangement we have a semi-dedicated independent sales force visiting dentists . in december 2020 , the henry schein exclusive distribution agreement was replaced with a non-exclusive distribution agreement in the usa and canada . beginning in january 2021 , the company began enrollment of new dental non-exclusive regional distributors throughout the usa and canada . as of this report date the company has signed non-exclusive distributor agreements with eight regional dental distributors . on the global front , we have granted exclusive marketing and distribution rights for the wand/sta instrument to select dental suppliers in various international regions in asia , africa , south america , and europe . they include fm produkty dla stomatologii in poland and unident ab in the countries of denmark , sweden , norway , and iceland . 28 the following table shows a breakdown of milestone scientific 's product sales ( net ) , domestically and internationally , by business segment product category : replace_table_token_1_th replace_table_token_2_th replace_table_token_3_th replace_table_token_4_th replace_table_token_5_th replace_table_token_6_th current product platform 29 see item 1. description of business . summary of critical accounting policies and significant judgments and estimates the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an on-going basis , milestone scientific evaluates its estimates , including those related to accounts receivable , inventories , stock-based compensation , and contingencies . milestone scientific bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not clear from other sources . actual results may differ from those estimates under different assumptions or conditions . while significant accounting policies are more fully described in note c to the consolidated financial statements included elsewhere in this report , milestone scientific believes that the following accounting policies and significant judgment and estimates are most critical in understanding and evaluating the reported financial results . principles of consolidation milestone scientific 's discussion and analysis of the financial condition and results of operations is based upon its consolidated financial statements that have been prepared in accordance with accounting principles generally accepted in the united states ( `` gaap `` ) and include the accounts of its wholly-owned and majority-owned subsidiaries including , wand dental , milestone advanced cosmetic and milestone medical . all significant , intra-entity transactions and balances are eliminated in the consolidation . variable interest entities a variable interest entity ( `` vie `` ) is an entity that either ( i ) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or ( ii ) has equity investors who lack the characteristics of a controlling financial interest . a vie is consolidated by its primary beneficiary . the primary beneficiary has both the power to direct the activities that most significantly impact the entity 's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the vie . because milestone scientific has a variable interest in milestone china it considered the guidance in asc 810 , “ consolidation ” as it relates to determining whether milestone china is a vie and , if so , identifying the primary beneficiary . milestone scientific would be considered the primary beneficiary of the vie if it has both of the following characteristics : ● power criterion : the power to direct the activities that most significantly impact the entity 's economic performance ; and ● losses/benefits criterion : the obligation to absorb losses that could potentially be significant or the right to receive benefits that could potentially be significant to the vie . in first quarter 2020 , milestone china and certain marketing affiliates entered into a plan to merge ( the transaction ) into an affiliated manufacturing company , anhui maishida medical technology , co. ltd. ( anhui ) . anhui will be the surviving entity after the merger and will have complete responsibility for sales , marketing , and distribution for the company 's dental products in china . however , as of the filing date of this quarterly report , due to the covid-19 pandemic , the regulatory documentation for the planned merger has been placed in suspense since applicable government offices are still closed in china and hong kong . after completion of the transaction , milestone scientific is expected to have an approximate 28.4 % direct ownership in anhui . story_separator_special_tag a performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in asc 606. the company derives its revenues from the sale of its products , primarily dental instruments , handpieces , and other related products . the company sells its products through a global distribution network and that includes both exclusive and non-exclusive distribution agreements with related and third parties . revenue from product sales is recognized upon transfer of control of a product to a customer , generally upon date of shipment . for certain arrangements where the shipping terms are fob destination , revenue is recognized upon delivery . the company has no obligation on product sales for any installation , set-up , or maintenance , these being the responsibility of the buyer . milestone scientific 's only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period . results of operations . the following table sets forth the consolidated results of operations for the year ended december 31 , 2020 compared to 2019 . the trends suggested by this table may not be indicative of future operating results : replace_table_token_7_th replace_table_token_8_th 32 year ended december 31 , 2020 compared to year ended december 31 , 2019. net sales for 2020 and 2019 were as follows : replace_table_token_9_th consolidated revenue for the twelve months ended december 31 , 2020 and 2019 were approximately $ 5.4 million and $ 8.3 million , respectively . dental revenue for the twelve months ended december 31 , 2020 and 2019 were approximately $ 5.4 million and $ 8.4 million , respectively . dental revenues decreased by approximately $ 2.9 million , which is related to covid-19 pandemic affecting the company 's customers and other business partners . as a result of the reduced hours and closings of dental offices throughout the country and the rest of the world due to the continuing spread of covid-19 , our revenue for the year ending december 31,2020 was materially and adversely affected . in december 2020 , the exclusive distribution arrangement with henry schein was replaced with a non-exclusive distribution arrangement . under the non-exclusive arrangement , henry schein will purchase dental instruments and handpieces in the united states and canada . beginning in january 2021 , the company began a process of signing non-exclusive dental distribution arrangements with dental distributors in specific geographical locations in the united states and canada . to date there are eight ( 8 ) new non-exclusive dental distributors engaged in the usa and canada . the goal is to add additional non-exclusive distributors in three main cities in the usa . the goal of changing our marketing plan from a sole exclusive distributor in the usa and canada , to a large number of non-exclusive distributors is to increase placement of our wand/sta instrument and thus the expansion of our dental disposables . medical revenue for the twelve months ended december 31 , 2020 and 2019 , were approximately $ 16,000 and $ 38,000 , respectively . in june 2017 , the company announced that the compuflo epidural system received 510 ( k ) marketing clearances from the u.s. food and drug administration ( fda ) . milestone is in the process of attending virtual medical device trade shows and attending introductory meetings with medical facilities and medical device distributors within the united states and european markets . the company is focusing the marketing its epidural devices principally in the united states . in 2020 , the company began to build an internal sales force to market the epidural devices to hospitals and medical center throughout the united states . the 2020 covid - 19 pandemic has substantially reduced access to many medical facilities for further research projects and as such , trade shows were cancelled through 2020. the company is now in the process of re-energizing its direct sales efforts with select hospitals and end user meetings as the pandemic surge has slowed in the usa . the company 's focus will be on marketing the epidural medical instruments in the united states . gross profit for 2020 and 2019 were as follows : replace_table_token_10_th consolidated gross profit for the twelve months ended december 31 , 2020 and 2019 were approximately 67 % and 68 % , respectively . selling , general and administrative expenses for 2020 and 2019 were as follows : replace_table_token_11_th 33 consolidated selling , general and administrative expenses for the twelve months ended december 31 , 2020 and 2019 were approximately $ 10.7 million and $ 9.5 million , respectively . this increase of approximately $ 1.2 million is categorized in several areas . employee salaries , and benefits expenses increased approximately $ 1.0 million for twelve months s ended december 31 , 2020 , as the company hired additional employees to work on the commercialization of the compufl o® epidural system . during the twelve months ended december 31 , 2020 d & o insurance increased approximately $ 169,000 due to the increase of premiums . the company expensed approximately $ 370,000 of bad debt related to a settlement with united systems , see note f. office expense increased approximately $ 143,000 for the relocation of the company 's office and other related costs . due to covid-19 pandemic , the company 's travel expenses , marketing , trade shows , quality control , and general expenses decreased approximately $ 560,000 while professional and consulting expense increased approximately $ 75,000. research and development for 2020 and 2019 were as follows : replace_table_token_12_th consolidated research and development expenses for the twelve months ended december 31 , 2020 and 2019 , were approximately $ 308,000 and $ 190,000 , respectively . the increase approximately $ 118,000 is associated with the company developing software upgrades and enhancement for the compuflo ® epidural system and handpieces . profit ( loss

liquidity and capital resources milestone scientific has incurred annual operating losses and negative cash flows from operating activities since its inception . milestone scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business and the medical business worldwide , and a reduction in operating expenses . 34 in the second quarter of 2020 the company completed two capital raises . in april 2020 , the company completed a common stock offering generating gross proceeds of approximately $ 5.1 million ( 5,420,000 common shares and 2,710,000 warrants ) . the combined price of the shares and warrants was $ 0.95 per share . the warrants are exercisable at a price of $ 1.20 per share and have an expiration of three years from the issue date . in june 2020 , the company completed a second common stock offering generating gross proceeds of approximately $ 14.6 million ( 6,770,000 common shares and 3,749,000 warrants ) . the combined price of shares and warrants of was $ 2.15 per share . the warrants are exercisable at a of $ 2.60 and expire three years from the issue date . see note i. with the combination of these two common stock offerings , the company has sufficient liquidity to support operations for at least a year after the consolidated financial statements issue date .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources milestone scientific has incurred annual operating losses and negative cash flows from operating activities since its inception . milestone scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business and the medical business worldwide , and a reduction in operating expenses . 34 in the second quarter of 2020 the company completed two capital raises . in april 2020 , the company completed a common stock offering generating gross proceeds of approximately $ 5.1 million ( 5,420,000 common shares and 2,710,000 warrants ) . the combined price of the shares and warrants was $ 0.95 per share . the warrants are exercisable at a price of $ 1.20 per share and have an expiration of three years from the issue date . in june 2020 , the company completed a second common stock offering generating gross proceeds of approximately $ 14.6 million ( 6,770,000 common shares and 3,749,000 warrants ) . the combined price of shares and warrants of was $ 2.15 per share . the warrants are exercisable at a of $ 2.60 and expire three years from the issue date . see note i. with the combination of these two common stock offerings , the company has sufficient liquidity to support operations for at least a year after the consolidated financial statements issue date .
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 Suspicious Activity Report : ● expanding the global footprint of our compuflo epidural device by partnering with distribution companies worldwide ' and ● continuing the development of our proprietary cosmetic injection device or delivery of botulinum toxin ( such as botox® and dysport® ) wand sta dental instrument growth since its market introduction in early 2007 , the wand/sta instrument and prior c-clad products have been used to deliver over 66 million safe , effective , and comfortable injections . the instrument has also been favorably evaluated in numerous peer-reviewed , published clinical studies and associated articles . moreover , there appears to be a growing consensus among users that the sta instrument is proving to be a valuable and beneficial instrument that is positively impacting the practice of dentistry worldwide . global distribution network beginning january 1 , 2016 , milestone scientific entered into a non-exclusive distribution agreement with henry schein , inc. ( “ henry schein ” ) . in june 2016 , that agreement was replaced with an exclusive distribution arrangement for our dental products for the united states and canada with henry schein . under this arrangement we have a semi-dedicated independent sales force visiting dentists . in december 2020 , the henry schein exclusive distribution agreement was replaced with a non-exclusive distribution agreement in the usa and canada . beginning in january 2021 , the company began enrollment of new dental non-exclusive regional distributors throughout the usa and canada . as of this report date the company has signed non-exclusive distributor agreements with eight regional dental distributors . on the global front , we have granted exclusive marketing and distribution rights for the wand/sta instrument to select dental suppliers in various international regions in asia , africa , south america , and europe . they include fm produkty dla stomatologii in poland and unident ab in the countries of denmark , sweden , norway , and iceland . 28 the following table shows a breakdown of milestone scientific 's product sales ( net ) , domestically and internationally , by business segment product category : replace_table_token_1_th replace_table_token_2_th replace_table_token_3_th replace_table_token_4_th replace_table_token_5_th replace_table_token_6_th current product platform 29 see item 1. description of business . summary of critical accounting policies and significant judgments and estimates the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an on-going basis , milestone scientific evaluates its estimates , including those related to accounts receivable , inventories , stock-based compensation , and contingencies . milestone scientific bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not clear from other sources . actual results may differ from those estimates under different assumptions or conditions . while significant accounting policies are more fully described in note c to the consolidated financial statements included elsewhere in this report , milestone scientific believes that the following accounting policies and significant judgment and estimates are most critical in understanding and evaluating the reported financial results . principles of consolidation milestone scientific 's discussion and analysis of the financial condition and results of operations is based upon its consolidated financial statements that have been prepared in accordance with accounting principles generally accepted in the united states ( `` gaap `` ) and include the accounts of its wholly-owned and majority-owned subsidiaries including , wand dental , milestone advanced cosmetic and milestone medical . all significant , intra-entity transactions and balances are eliminated in the consolidation . variable interest entities a variable interest entity ( `` vie `` ) is an entity that either ( i ) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or ( ii ) has equity investors who lack the characteristics of a controlling financial interest . a vie is consolidated by its primary beneficiary . the primary beneficiary has both the power to direct the activities that most significantly impact the entity 's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the vie . because milestone scientific has a variable interest in milestone china it considered the guidance in asc 810 , “ consolidation ” as it relates to determining whether milestone china is a vie and , if so , identifying the primary beneficiary . milestone scientific would be considered the primary beneficiary of the vie if it has both of the following characteristics : ● power criterion : the power to direct the activities that most significantly impact the entity 's economic performance ; and ● losses/benefits criterion : the obligation to absorb losses that could potentially be significant or the right to receive benefits that could potentially be significant to the vie . in first quarter 2020 , milestone china and certain marketing affiliates entered into a plan to merge ( the transaction ) into an affiliated manufacturing company , anhui maishida medical technology , co. ltd. ( anhui ) . anhui will be the surviving entity after the merger and will have complete responsibility for sales , marketing , and distribution for the company 's dental products in china . however , as of the filing date of this quarterly report , due to the covid-19 pandemic , the regulatory documentation for the planned merger has been placed in suspense since applicable government offices are still closed in china and hong kong . after completion of the transaction , milestone scientific is expected to have an approximate 28.4 % direct ownership in anhui . story_separator_special_tag a performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in asc 606. the company derives its revenues from the sale of its products , primarily dental instruments , handpieces , and other related products . the company sells its products through a global distribution network and that includes both exclusive and non-exclusive distribution agreements with related and third parties . revenue from product sales is recognized upon transfer of control of a product to a customer , generally upon date of shipment . for certain arrangements where the shipping terms are fob destination , revenue is recognized upon delivery . the company has no obligation on product sales for any installation , set-up , or maintenance , these being the responsibility of the buyer . milestone scientific 's only obligation after sale is the normal commercial warranty against manufacturing defects if the alleged defective unit is returned within the warranty period . results of operations . the following table sets forth the consolidated results of operations for the year ended december 31 , 2020 compared to 2019 . the trends suggested by this table may not be indicative of future operating results : replace_table_token_7_th replace_table_token_8_th 32 year ended december 31 , 2020 compared to year ended december 31 , 2019. net sales for 2020 and 2019 were as follows : replace_table_token_9_th consolidated revenue for the twelve months ended december 31 , 2020 and 2019 were approximately $ 5.4 million and $ 8.3 million , respectively . dental revenue for the twelve months ended december 31 , 2020 and 2019 were approximately $ 5.4 million and $ 8.4 million , respectively . dental revenues decreased by approximately $ 2.9 million , which is related to covid-19 pandemic affecting the company 's customers and other business partners . as a result of the reduced hours and closings of dental offices throughout the country and the rest of the world due to the continuing spread of covid-19 , our revenue for the year ending december 31,2020 was materially and adversely affected . in december 2020 , the exclusive distribution arrangement with henry schein was replaced with a non-exclusive distribution arrangement . under the non-exclusive arrangement , henry schein will purchase dental instruments and handpieces in the united states and canada . beginning in january 2021 , the company began a process of signing non-exclusive dental distribution arrangements with dental distributors in specific geographical locations in the united states and canada . to date there are eight ( 8 ) new non-exclusive dental distributors engaged in the usa and canada . the goal is to add additional non-exclusive distributors in three main cities in the usa . the goal of changing our marketing plan from a sole exclusive distributor in the usa and canada , to a large number of non-exclusive distributors is to increase placement of our wand/sta instrument and thus the expansion of our dental disposables . medical revenue for the twelve months ended december 31 , 2020 and 2019 , were approximately $ 16,000 and $ 38,000 , respectively . in june 2017 , the company announced that the compuflo epidural system received 510 ( k ) marketing clearances from the u.s. food and drug administration ( fda ) . milestone is in the process of attending virtual medical device trade shows and attending introductory meetings with medical facilities and medical device distributors within the united states and european markets . the company is focusing the marketing its epidural devices principally in the united states . in 2020 , the company began to build an internal sales force to market the epidural devices to hospitals and medical center throughout the united states . the 2020 covid - 19 pandemic has substantially reduced access to many medical facilities for further research projects and as such , trade shows were cancelled through 2020. the company is now in the process of re-energizing its direct sales efforts with select hospitals and end user meetings as the pandemic surge has slowed in the usa . the company 's focus will be on marketing the epidural medical instruments in the united states . gross profit for 2020 and 2019 were as follows : replace_table_token_10_th consolidated gross profit for the twelve months ended december 31 , 2020 and 2019 were approximately 67 % and 68 % , respectively . selling , general and administrative expenses for 2020 and 2019 were as follows : replace_table_token_11_th 33 consolidated selling , general and administrative expenses for the twelve months ended december 31 , 2020 and 2019 were approximately $ 10.7 million and $ 9.5 million , respectively . this increase of approximately $ 1.2 million is categorized in several areas . employee salaries , and benefits expenses increased approximately $ 1.0 million for twelve months s ended december 31 , 2020 , as the company hired additional employees to work on the commercialization of the compufl o® epidural system . during the twelve months ended december 31 , 2020 d & o insurance increased approximately $ 169,000 due to the increase of premiums . the company expensed approximately $ 370,000 of bad debt related to a settlement with united systems , see note f. office expense increased approximately $ 143,000 for the relocation of the company 's office and other related costs . due to covid-19 pandemic , the company 's travel expenses , marketing , trade shows , quality control , and general expenses decreased approximately $ 560,000 while professional and consulting expense increased approximately $ 75,000. research and development for 2020 and 2019 were as follows : replace_table_token_12_th consolidated research and development expenses for the twelve months ended december 31 , 2020 and 2019 , were approximately $ 308,000 and $ 190,000 , respectively . the increase approximately $ 118,000 is associated with the company developing software upgrades and enhancement for the compuflo ® epidural system and handpieces . profit ( loss

