Delaware | 20-3369218 | |||||||||
(State or Other Jurisdiction of Incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||||
3651 FAU Boulevard, Suite 300, Boca Raton, FL | 33434 | |||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class of securities to be registered | Amount to be registered | Proposed maximum offering price per share(1) | Proposed maximum aggregate offering price | Amount of registration fee | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Common Stock, $0.0001 par value | 93,602,221 | $ | 0.04 | $ | 3,744,089 | $ | 435.38 | |||||||||||
Total | 93,602,221 | $ | 0.04 | $ | 3,744,089 | $ | 435,38 |
(1) | Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(e) under the Securities Act of 1933. |
PAGE | |||||||||||
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PART I. INFORMATION REQUIRED IN A PROSPECTUS | |||||||||||
ITEM 3. | SUMMARY INFORMATION AND RISK FACTORS | 1 | |||||||||
ITEM 4. | USE OF PROCEEDS | 20 | |||||||||
ITEM 5. | DETERMINATION OF OFFERING PRICE | 20 | |||||||||
ITEM 6. | DILUTION | 20 | |||||||||
ITEM 7. | SELLING STOCKHOLDERS | 20 | |||||||||
ITEM 8. | PLAN OF DISTRIBUTION | 21 | |||||||||
ITEM 9. | DESCRIPTION OF SECURITIES TO BE REGISTERED | 23 | |||||||||
ITEM 10. | INTEREST OF NAMED COUNSEL AND EXPERT | 28 | |||||||||
ITEM 11. | INFORMATION WITH RESPECT TO THE REGISTRANT | 28 | |||||||||
BACKGROUND | 28 | ||||||||||
LEGAL PROCEEDINGS | 33 | ||||||||||
DESCRIPTION OF PROPERTY | 33 | ||||||||||
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 34 | ||||||||||
CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | 45 | ||||||||||
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS | 45 | ||||||||||
EXECUTIVE COMPENSATION | 48 | ||||||||||
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 49 | ||||||||||
TRANSACTIONS WITH RELATED PERSONS, PROMOTERS AND CERTAIN CONTROL PERSONS AND DIRECTOR INDEPENENCE | 50 | ||||||||||
EXPERTS | 52 | ||||||||||
WHERE YOU CAN FIND ADDITIONAL INFORMATION | 52 | ||||||||||
ITEM 12. | INCORPORATION OF CERTAIN MATERIAL BY REFERENCE | 52 | |||||||||
ITEM 12A. | DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES | 52 | |||||||||
PART II: INFORMATION NOT REQUIRED IN PROSPECTUS | |||||||||||
ITEM 13. | OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION | II-1 | |||||||||
ITEM 14. | INDEMNIFICATION OF DIRECTORS AND OFFICERS | II-1 | |||||||||
ITEM 15. | RECENT SALES OF UNREGISTERED SECURITIES | II-1 | |||||||||
ITEM 16. | EXHIBITS | II-5 | |||||||||
ITEM 17. | UNDERTAKINGS | II-6 | |||||||||
SIGNATURES | II-8 | ||||||||||
EXHIBIT LIST | II-10 |
• | Less Invasive Procedure: The VBAS’ shape and minimal footprint enables the surgeon to access a specific target with a smaller incision, resulting in a smaller corticotomy and less disruption to surrounding tissues. |
• | Reduction of Venous Pressure: Normal surgical procedures utilizing standard retractors require the pulling away of tissue to expose the target site. Current retractors have low surface areas and edges that in turn may lead to focal pressure on the delicate tissue of the brain. The lack of edges on the VBAS device, and the way in which the elliptical introducer retracts the tissue reduces pressure on the tissue. |
• | Superior Field of View: Made of polished transparent polycarbonate, the VBAS increases a surgeon’s field of vision through a clear, visible and stable channel, allowing for continual monitoring of surrounding tissue and structures during surgery. |
• | More Accurate Navigation: The VBAS device when inserted into the brain retracts tissue as the surgeon navigates to the surgical site; standard retractors do not. The VBAS product when used with a navigational pointer allows the surgeon to see on the surgical monitor, in real-time, exactly where the retractor is in relation to critical brain structures and underlying pathologies. This helps the surgeon to accurately reach the target site with minimum healthy tissue trauma. |
• | Minimizes target shift: When standard retractors are utilized to access the target site, they pull on the brain’s soft tissue. This may cause the target area to shift from the location shown on the navigational system. This shifting of the target requires the surgeon to spend time repositioning the retractors as they work towards re-locating the target, exposing the delicate tissue to additional potential pressure. As a result of the VBAS’ elliptical shape there is even distribution of pressure and therefore less pulling of the tissue in one direction. |
• | Potential ability to address previously difficult or inoperable procedures: Through its design, VBAS potentially allows the surgeon to address previously difficult or inoperable conditions, such as tumors seated too deeply or very close to critical structures. |
• | As compared to existing blade retractors diameter of our device is fixed as opposed to variable which might give the surgeon less flexibility once he is at the desired location. |
• | The diameters and lengths of our devices are set to specific measurements, which may limit the surgeon to these specific sizes. |
• | Depending on the case, usage of a disposable product may be viewed as more costly and may not be accepted by our potential end users. |
• | Our device uses an ellipitical channel which potentially limits the working area compared to a round channel |
• | Certain procedures such as aneurysms require greater site access and therefore are less appropriate for VBAS’ minimal approach. |
• | There are certain conditions for which VRT may not be suitable, including: those with a light sensitive seizure disorder such as epilepsy; those with acute central nervous system or eye disease; those with significant cognitive difficulties that would preclude understanding the instructions or maintaining attention for the daily therapy sessions; and those with best corrected visual acuity worse than 20/200, and therefore with an inability to detect the stimuli reliably. |
• | Results can vary significantly, and some patients who have been treated have had little to no improvement in their vision field. |
• | There may be side effects. The majority of patients who undergo VRT do not experience any noticeable side effects, though a small number of patients have reported infrequent headaches. |
• | Fully Quality Assurance System Directive 93/42/EEC for Medical Devices, Annex II (3) |
• | EC Design-Examination Certificate Directive 93/42/EEC for Medical Devices, Annex II (4) |
• | ISO 13485.2003 |
• | HPB Licensing for Canada |
• | quality system regulation, which requires manufacturers to follow design, testing, control, documentation and other quality assurance procedures during the manufacturing process; |
• | labeling regulations, which prohibit the promotion of products for unapproved or “off-label” uses and impose other restrictions on labeling; and |
• | medical device reporting regulations, which require that manufacturers report to the FDA if their device may have caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious injury if it were to recur. |
• | fines, injunctions, and civil penalties; |
• | recall or seizure of our products; |
• | operating restrictions, partial suspension or total shutdown of production; |
• | Refusing a request for 510(k) clearance or premarket approval of new products; |
• | withdrawing 510(k) clearance or premarket approvals that are already granted; and |
• | criminal prosecution. |
Common stock currently outstanding | 806,157,246 shares(1) | |||||
Common stock offered by the selling stockholders | 93,602,221 shares | |||||
Use of proceeds | We will not receive any proceeds from the sale of common stock offered by this prospectus. |
(1) | Shares of common stock outstanding as of October 21, |
12/31/10 (as restated) | 12/31/09 (as restated) | 12/31/08 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenues | $ | 316,450 | $ | 199,046 | $ | 129,947 | ||||||||
Net loss | $ | (1,983,822 | ) | $ | (1,164,036 | ) | $ | (2,381,295 | ) | |||||
Net loss per share | $ | (0.003 | ) | $ | (0.040 | ) | $ | (0.108 | ) | |||||
Weighted average no. shares | 663,168,900 | 29,183,482 | 21,977,954 | |||||||||||
Stockholders’ equity (deficit) | $ | 88,714 | $ | (1,245,940 | ) | $ | (921,427 | ) | ||||||
Total assets | $ | 2,153,694 | $ | 400,960 | $ | 633,437 | ||||||||
Total liabilities | $ | 2,064,980 | $ | 1,646,900 | $ | 1,554,864 |
As of June 30, 2011 | As of June 30, 2010 (restated) | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Balance Sheet Data: | ||||||||||
Assets | $ | 4,760,602 | $ | 2,153,694 | ||||||
Liabilities | $ | 2,816,966 | $ | 2,064,980 | ||||||
Total Stockholders’ Equity | $ | 4,760,602 | $ | 2,153,694 | ||||||
Statement of Operations Data | ||||||||||
Revenue | $ | 142,331 | $ | 74,817 | ||||||
Operating Expenses | $ | 1,912,851 | $ | 477,021 | ||||||
Net Loss | $ | (1,835,258 | ) | $ | (420,185 | ) | ||||
Basis and Diluted Loss Per Share | $ | (0.002 | ) | $ | (0.001 | ) | ||||
Weighted Average Number of Shares Outstanding | 780,845,969 | 649,281,287 |
• | competition; |
• | need for acceptance of products and therapies — there can be no assured market for our products and therapies and there is no guarantee of orders or surgeon and patient acceptance; |
• | ability to continue to develop and extend brand identity; |
• | ability to anticipate and adapt to a competitive market; |
• | ability to effectively manage rapidly expanding operations; |
• | amount and timing of operating costs and capital expenditures relating to expansion of our business, operations, and infrastructure; and |
• | dependence upon key personnel to market and sell our products and the loss of one of our key managers may adversely affect the marketing of our products. |
• | warning letters or untitled letters; |
• | fines and civil penalties; |
• | unanticipated expenditures; |
• | withdrawal or suspension of approval by the FDA or other regulatory bodies; |
• | product recall or seizure; |
• | orders for physician notification or device repair, replacement or refund; |
• | interruption of production; |
• | operating restrictions; |
• | injunctions; and |
• | criminal prosecution. |
Name(1) | Shares of common stock owned prior to the offering | Shares of common stock to be sold(2) | Shares of common stock owned after the offering | Percentage of common stock owned after this offering | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
MKM Opportunity Master Fund, Limited | 5,555,556 | 5,555,556 | 0 | 0.00 | % | |||||||||||||
Andrew Mitchell | 555,556 | 555,556 | 0 | 0.00 | % | |||||||||||||
Matthew Balk | 3,589,333 | 3,589,333 | 0 | 0.00 | % | |||||||||||||
Daniel Balk | 1,222,222 | 1,222,222 | 0 | 0.00 | % | |||||||||||||
David Balk | 1,222,222 | 1,222,222 | 0 | 0.00 | % | |||||||||||||
Daniel Schneiderman | 885,778 | 885,778 | 0 | 0.00 | % | |||||||||||||
Jonathan Balk | 555,556 | 555,556 | 0 | 0.00 | % | |||||||||||||
Richard L. Hoffman | 500,000 | 500,000 | 0 | 0.00 | % | |||||||||||||
Robert I and Sandra S Neborsky Living Trust | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Skriloff Family Irrevocable Trust for benefit of Samuel Skriloff | 111,111 | 111,111 | 0 | 0.00 | % | |||||||||||||
Skriloff Family Irrevocable Trust for benefit of Olivia Skriloff | 111,111 | 111,111 | 0 | 0.00 | % | |||||||||||||
Jason Adelman | 2,771,556 | 2,771,556 | 0 | 0.00 | % | |||||||||||||
Robert and Amy Bernstein | 555,556 | 555,556 | 0 | 0.00 | % | |||||||||||||
Dick F. Chase, Jr. | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Boris and Alexandra Smirnov | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Nadegda Kassatkina | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Irina Pavlova | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Jeffrey J and Jennifer S. Clayton | 1,111,111 | 1,111,111 | 0 | 0.00 | % |
Name(1) | Shares of common stock owned prior to the offering | Shares of common stock to be sold(2) | Shares of common stock owned after the offering | Percentage of common stock owned after this offering | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Greenbridge Capital Partners IV, L.L.C | 1,666,667 | 1,666,667 | 0 | 0.00 | % | |||||||||||||
Core Capital IV Trust | 1,666,667 | 1,666,667 | 0 | 0.00 | % | |||||||||||||
Rolant Investments Limited | 6,666,667 | 6,666,667 | 0 | 0.00 | % | |||||||||||||
David Wiener | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
One East Partners Opportunity L.P. | 3,000,000 | 3,000,000 | 0 | 0.00 | % | |||||||||||||
One East Partners Master L.P. | 5,888,889 | 5,888,889 | 0 | 0.00 | % | |||||||||||||
Narang Family Partnership, L.P. | 555,556 | 555,556 | 0 | 0.00 | % | |||||||||||||
Hugh Scott Campbell | 222,222 | 222,222 | 0 | 0.00 | % | |||||||||||||
Fraser Campbell | 222,222 | 222,222 | 0 | 0.00 | % | |||||||||||||
Sean Campbell | 555,556 | 555,556 | 0 | 0.00 | % | |||||||||||||
Dr. Wayne Fleischacker | 4,444,444 | 4,444,444 | 0 | 0.00 | % | |||||||||||||
Dr. Glenn Fleischacker | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Jane Ellis | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Duane Renfro | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Guri Dauti | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Matteo Joseph Rosselli | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Sarah Benveniste | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Steven Reichbach | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Myles Wittenstein | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Neil Weiss | 3,333,333 | 3,333,333 | 0 | 0.00 | % | |||||||||||||
Randolf Kahn | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Marc S Cohen | 6,666,666 | 6,666,666 | 0 | 0.00 | % | |||||||||||||
Millennium Capital Corporation | 2,300,000 | 2,300,000 | 0 | 0.00 | % | |||||||||||||
Ilex Investments, L.P. | 4,444,444 | 4,444,444 | 0 | 0.00 | % | |||||||||||||
Carol Tambor | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Stephen Nicholas Bunzl | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Jack Lens | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Robert Crames | 1,111,111 | 1,111,111 | 0 | 0.00 | % | |||||||||||||
Sal & Kathryn DeMarco | 555.556 | 555,556 | 0 | 0.00 | % | |||||||||||||
Maurice Reissman | 2,222,222 | 2,222,222 | 0 | 0.00 | % | |||||||||||||
Dashka Solanky | 444,445 | 444,445 | 0 | 0.00 | % | |||||||||||||
Total | 93,602,221 | 93,602,221 | 0 | 0.00 | % |
(1) | All shares are owned of record and beneficially unless otherwise indicated. Beneficial ownership information for the selling stockholders is provided as of October 21, |
(2) | Assumes the sale of all shares of common stock registered pursuant to this prospectus. The selling stockholders are under no obligation known to us to sell any shares of common stock at this time. |
• | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
• | block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction; |
• | purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
• | an exchange distribution in accordance with the rules of the applicable exchange; |
• | privately negotiated transactions; |
• | short sales |
• | through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
• | broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; |
• | a combination of any such methods of sale; and |
• | any other method permitted pursuant to applicable law. |
• | Restricting dividends on the common stock; |
• | diluting the voting power of the common stock; |
• | impairing the liquidation rights of the common stock; or |
• | delaying or preventing a change in control without further action by the stockholders. |
Period | | High | | Low | | High | | Low | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
March 30, 2009–June 30, 2009 | $ | 0.35 | $ | 0.33 | $ | 0.35 | $ | 0.33 | ||||||||||||
July 1, 2009–September 30, 2009 | $ | 0.33 | $ | 0.01 | $ | 0.33 | $ | 0.01 | ||||||||||||
October 1, 2009–December 31, 2009 | $ | 0.07 | $ | 0.01 | $ | 0.07 | $ | 0.01 | ||||||||||||
January 1, 2010–March 31, 2010 | $ | 0.15 | $ | 0.04 | $ | 0.15 | $ | 0.04 | ||||||||||||
April 1, 2010–June 30, 2010 | $ | 0.06 | $ | 0.01 | $ | 0.06 | $ | 0.01 | ||||||||||||
July 1, 2010–September 30, 2010 | $ | 0.03 | $ | 0.01 | $ | 0.03 | $ | 0.01 | ||||||||||||
October 1, 2010–December 31, 2010 | $ | 0.04 | $ | 0.01 | $ | 0.04 | $ | 0.01 | ||||||||||||
January 1, 2011–March 31, 2011 | $ | 0.03 | $ | 0.015 | $ | 0.03 | $ | 0.015 | ||||||||||||
April 1, 2011–June 30, 2011 | $ | 0.048 | $ | 0.019 | $ | 0.048 | $ | 0.019 | ||||||||||||
July 1, 2011 – September 30, 2011 | $ | 0.05 | $ | 0.02 | ||||||||||||||||
July 1, 2011–September 30, 2011 | $ | 0.05 | $ | 0.02 |
2010 (restated) | 2009 (restated) | % Change | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue: | ||||||||||||||
Vycor Medical | $ | 307,582 | $ | 199,046 | 55 | % | ||||||||
NovaVision | $ | 8,868 | $ | — | NM | |||||||||
$ | 316,450 | $ | 199,046 | 59 | % | |||||||||
Cost of Revenue: | ||||||||||||||
Vycor Medical | $ | (47,607 | ) | $ | (22,482 | ) | 114 | % | ||||||
NovaVision | $ | (1,130 | ) | $ | — | NM | ||||||||
$ | (48,737 | ) | $ | (22,482 | ) | 100 | % | |||||||
Gross Profit | ||||||||||||||
Vycor Medical | $ | 259,975 | $ | 176,564 | 49 | % | ||||||||
NovaVision | $ | 7,738 | $ | — | NM | |||||||||
$ | 267,713 | $ | 176,564 | 54 | % |
Total G&A expenses for the year ended December 31, 2009 | $ | 1,101,167 | ||||
Increase in marketing expenditure and travel costs | 249,182 | |||||
Increase in personnel costs | 228,599 | |||||
Decrease in personnel costs — non-cash stock compensation (1) | (324,954 | ) | ||||
Increase in fundraising costs | 72,500 | |||||
Increase in consulting fees | 90,768 | |||||
Increase in consulting fees — non-cash stock compensation (1) | 273,769 | |||||
Increase in professional and regulatory costs | 127,910 | |||||
Increase in other operating expenses | 191,233 | |||||
Total G&A expenses year ended December 31, 2010 | $ |
December 31, 2010 (restated) | December 31, 2009 (restated) | $ Change | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash | $ | 127,081 | $ | 12,771 | $ | 114,310 | ||||||||
Accounts receivable, inventory and other current assets | 235,601 | 94,084 | 141,517 | |||||||||||
Total current liabilities | (2,064,980 | ) | (1,646,900 | ) | (418,080 | ) | ||||||||
Working capital (deficit) | $ | (1,163,777 | ) | $ | (1,540,045 | ) | $ | (376,268 | ) | |||||
Cash provided by financing activities | $ | 2,489,500 | $ | 422,552 | $ | 2,066,948 |
Net cash loss adjusted for change in accrued interest | $ | (1,446,086 | ) | |||
Reduction in Vycor Medical accounts payable | (242,011 | ) | ||||
Increase in accounts receivable and inventory | (36,124 | ) | ||||
Increase in accrued liabilities | 294,306 | |||||
Net Change in other assets and liabilities | (20,355 | ) | ||||
$ | (1,450,270 | ) |
2011 | 2010 | % Change | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue: | ||||||||||||||
Vycor Medical | $ | 82,239 | $ | 74,817 | 10 | % | ||||||||
NovaVision | 60,092 | — | NM | |||||||||||
Total Revenue | $ | 142,331 | $ | 74,817 | 90 | % | ||||||||
Cost of Revenue: | ||||||||||||||
Vycor Medical | (21,349 | ) | $ | (6,184 | ) | 245 | % | |||||||
NovaVision | (13,843 | ) | $ | — | NM | |||||||||
Total Cost of Revenue | $ | (35,192 | ) | $ | (6,184 | ) | 469 | % | ||||||
Gross Profit | ||||||||||||||
Vycor Medical | 60,890 | 68,633 | –11 | % | ||||||||||
NovaVision | 46,249 | $ | — | NM | ||||||||||
Total Gross Profit | $ | 107,139 | $ | 68,633 | 56 | % |
2011 | 2010 | % Change | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue: | ||||||||||||||
Vycor Medical | $ | 182,081 | $ | 139,103 | 31 | % | ||||||||
NovaVision | $ | 105,372 | $ | — | NM | |||||||||
$ | 287,453 | $ | 139,103 | 107 | % | |||||||||
Cost of Revenue: | ||||||||||||||
Vycor Medical | $ | (28,467 | ) | $ | (18,772 | ) | 52 | % | ||||||
NovaVision | $ | (29,098 | ) | $ | — | NM | ||||||||
$ | (57,565 | ) | $ | (18,772 | ) | 207 | % | |||||||
Gross Profit | ||||||||||||||
Vycor Medical | $ | 153,614 | $ | 120,331 | 28 | % | ||||||||
NovaVision | $ | 76,274 | $ | — | NM | |||||||||
$ | 229,888 | $ | 120,331 | 91 | % |
June 30, 2011 | December 31, 2010 | $ Change | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash | $ | 2,206,616 | $ | 127,081 | $ | 2,079,535 | ||||||||
Accounts receivable, inventory and other current assets | 1,338,297 | 774,122 | 564,175 | |||||||||||
Total current liabilities | (1,500,604 | ) | (2,064,980 | ) | 564,376 | |||||||||
Working capital surplus (deficit) | $ | 2,041,327 | $ | (1,163,777 | ) | $ | 3,205,104 | |||||||
Cash provided by financing activities | $ | 3,556,194 | $ | 889,500 | $ | 2,666,694 |
Directors and Executive Officers | Position/Title | Age | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Adrian Christopher Liddell | Chairman of the Board and a Director | 53 | ||||||||
David Marc Cantor | President and a Director | 45 | ||||||||
Peter C. Zachariou | Executive Vice President and a Director | 50 | ||||||||
Kenneth T. Coviello | Chief Executive and a Director | 60 | ||||||||
Heather N. Vinas | Director | 32 | ||||||||
Pascale Mangiardi | Director | 39 | ||||||||
Steven Girgenti | Director | 66 |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) (1) | Option Awards ($) | Non-Equity Incentive Plan Compensation | Non-Qualified Deferred Compensation Earnings ($) | All other Compensation ($) | Total ($) | |||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Kenneth T. Coviello | 2010 | $ | 153,989 | — | — | $ | 29,212 | — | — | $ | 12,578 | $ | 195,779 | |||||||||||||||||||||||||
(Chief Executive Officer) | 2009 | $ | 102,230 | — | $ | 162,477 | $ | 29,212 | — | — | $ | 21,813 | $ | 315,732 | ||||||||||||||||||||||||
Heather N. Vinas | 2010 | $ | 72,739 | — | — | $ | 29,212 | — | — | $ | 9,184 | $ | 111,135 | |||||||||||||||||||||||||
(Former President) | 2009 | $ | 102,230 | — | $ | 162,477 | $ | 29,212 | — | — | $ | 26,644 | $ | 320,563 | ||||||||||||||||||||||||
David Cantor | 2010 | $ | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
(President) |
(1) | Management Warrants |
Option Awards | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Number of Securities Underlying Unexercised Options (#) Unexercisable (1) | Option Exercise Price ($) | Option Expiration Date | |||||||||||||||||||||
Kenneth T. Coviello | 2/15/2008 | — | — | 500,000 | $ | 0.135 | 2/12/2018 | ||||||||||||||||||||
Heather N. Vinas | 2/15/2008 | — | — | 333,333 | $ | 0.135 | 2/12/2018 |
Equity Compensation Plan Information | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a) | |||||||||||||
Equity compensation plans approved by security holders | 1,000,000 | $ | 0.135 | 2,651,345 | ||||||||||||
Equity compensation plans not approved by security holders | 50,000 | 0.19 | — | |||||||||||||
Total | 1,050,000 | $ | 0.138 | 2,651,345 |
(1) | As of December 31, 2010 |
Name | Grant Date | Number of Securities Underlying Unexercised Exercisable Warrants (1) | Number of Securities Underlying Unexercised Exercisable Warrants (1) | Warrant Exercise Price ($) | Warrant Expiration Date | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Kenneth T. Coviello | 12/29/2009 | — | 16,450,066 | $ | 0.00717 | 12/29/2014 | ||||||||||||||||
Heather N. Vinas | 12/29/2009 | — | 8,225,063 | $ | 0.00717 | 12/29/2014 | ||||||||||||||||
Total | — | 24,675,129 | $ | 0.00717 |
(1) | As of December 31, 2010 |
Title of Class | Name and Address of Beneficial Owner | Amount and Nature of Beneficial Owner (1) | Percent of Class (2) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Common Stock | Kenneth Coviello | 5,284,587 | * | |||||||||||
Common Stock | Heather N. Vinas | 5,284,587 | * | |||||||||||
Common Stock | Pascale Mangiardi | — | 0.00 | % | ||||||||||
Common Stock | Steven Girgenti | 1,378,948 | * | |||||||||||
Common Stock | Adrian Christopher Liddell | — | 0.00 | % | ||||||||||
Common Stock | Marc David Cantor | — | 0.00 | % | ||||||||||
Common Stock | Peter C. Zachariou | — | 0.00 | % | ||||||||||
Common Stock | All executive officers and directors as a group | 11,947,462 | 1.5 | % | ||||||||||
Common Stock | Fountainhead Capital Management Limited Portman House Hue Street, St. Helier, Jersey JB4 5RP | 531,376,500 | 66.0 | % |
* | Less than 1% |
(1) | In determining beneficial ownership of our common stock, the number of shares shown includes shares which the beneficial owner may acquire upon exercise of debentures, warrants and options which may be acquired within 60 days. In determining the percent of common stock owned by a person or entity on August 31, 2011, (a) the numerator is the number of shares of the class beneficially owned by such person or entity, including shares which the beneficial ownership may acquire within 60 days of exercise of debentures, warrants and options, and (b) the denominator is the sum of (i) the total shares of that class outstanding on October 21, |
(2) | In addition, in determining the percent of common stock owned by a person or entity on October 21, |
Index to Financial Statements | ||||||
Fiscal years ended December 31, 2010 (restated) and December 31, 2009 (restated) (audited) | F-3 | |||||
Three and Six Months ended June 30, 2011 and June 30, 2010 (restated) (unaudited) | F-32 |
Paritz & Company, P.A. | 15 Warren Street, Suite 25 Hackensack, New Jersey 07601 (201)342-7753 Fax: (201) 342-7598 E-Mail: paritz @paritz.com |
December 31, 2010 (restated) | December 31, 2009 (restated) | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash | $ | 127,081 | $ | 12,771 | |||||||
Accounts receivable | 76,460 | 29,748 | |||||||||
Inventory | 52,360 | 41,967 | |||||||||
Prepaid expenses | 645,302 | 22,369 | |||||||||
Total Current Assets | 901,203 | 106,855 | |||||||||
Fixed assets, net | 773,188 | 191,009 | |||||||||
Intangible and Other assets: | |||||||||||
Trademarks | 130,000 | — | |||||||||
Patents, net of accumulated amortization | 333,072 | 93,704 | |||||||||
Website, net of accumulated amortization | 3,932 | 7,042 | |||||||||
Security deposits | 12,299 | 2,350 | |||||||||
479,303 | 103,096 | ||||||||||
TOTAL ASSETS | $ | 2,153,694 | $ | 400,960 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | 114,447 | $ | 336,942 | |||||||
Accrued interest | 36,992 | 2,904 | |||||||||
Accrued liabilities | 406,998 | 62,002 | |||||||||
Other current liabilities | 106,162 | — | |||||||||
Notes payable | 1,400,381 | 1,245,052 | |||||||||
TOTAL LIABILITIES | 2,064,980 | 1,646,900 | |||||||||
STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding | — | — | |||||||||
Common Stock, $0.0001 par value, 1,500,000,000 shares authorized, 724,488,929 and 557,798,599 shares issued and outstanding at December 31, 2010 and 2009, respectively | 72,449 | 55,780 | |||||||||
Additional Paid-in Capital | 6,902,427 | 3,597,621 | |||||||||
Accumulated Deficit | (6,883,163 | ) | (4,899,341 | ) | |||||||
Accumulated Other Comprehensive Income | (2,999 | ) | — | ||||||||
88,714 | (1,245,940 | ) | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,153,694 | $ | 400,960 |
For the year ended December 31, | For the year ended December 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2010 (restated) | 2009 (restated) | 2010 (restated) | 2009 (restated) | |||||||||||||||||||
Revenue | $ | 316,450 | $ | 199,046 | $ | 316,450 | $ | 199,046 | ||||||||||||||
Cost of Goods Sold | 48,737 | 22,482 | 48,737 | 22,482 | ||||||||||||||||||
Gross Profit | 267,713 | 176,564 | 267,713 | 176,564 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 15,208 | 4,761 | 15,208 | 4,761 | ||||||||||||||||||
Depreciation and Amortization | 56,801 | 36,995 | 56,801 | 36,995 | ||||||||||||||||||
General and administrative | 1,919,174 | 1,101,167 | 1,919,174 | 1,101,167 | ||||||||||||||||||
Goodwill on Acquisition of Subsidiary | 58,027 | — | 58,027 | — | ||||||||||||||||||
Costs related to Acquisition of Subsidiary | 154,203 | — | 154,203 | — | ||||||||||||||||||
Total Operating expenses | 2,203,413 | 1,142,923 | 2,203,413 | 1,142,923 | ||||||||||||||||||
Operating loss | (1, 935,700 ) | (966,359 | ) | (1,935,700) | (966,359 | ) | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||||
Interest income | 8 | 257 | 8 | 257 | ||||||||||||||||||
Interest expense | (45,882 | ) | (248,659 | ) | (45,882 | ) | (248,659 | ) | ||||||||||||||
Forgiveness of previously accrued salaries | — | 50,725 | — | 50,725 | ||||||||||||||||||
Total Other Income (expense) | ( 45,874 ) | (197,677 | ) | (45,874) | (197,677 | ) | ||||||||||||||||
Net Loss Before Taxes | (1,981,574 | ) | (1,164,036 | ) | (1,981,574 | ) | (1,164,036 | ) | ||||||||||||||
Taxes | (2,248 | ) | — | (2,248 | ) | — | ||||||||||||||||
Net Loss | $ | (1,983,822 | ) | $ | (1,164,036 | ) | $ | (1,983,822 | ) | $ | (1,164,036 | ) | ||||||||||
Loss Per Share | ||||||||||||||||||||||
Basic and diluted | $ | (0.003 | ) | $ | (0.040 | ) | $ | (0.003 | ) | $ | (0.040 | ) | ||||||||||
Weighted Average Number of Shares Outstanding | 663,168,900 | 29,183,482 | 663,168,900 | 29,183,482 |
Shares | Common Stock | Preferred Stock – Series B | Additional Paid-in Capital | Accumulated Deficit | Total | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at January 1, 2009 | 25,463,455 | $ | 25,463 | $ | — | $ | 2,788,415 | $ | (3,735,305 | ) | $ | (921,427 | ) | |||||||||||||
Common stock issued in conjunction with Altcar Investments note payable | 866,867 | $ | 867 | $ | 105,758 | $ | 106,625 | |||||||||||||||||||
Issuance of stock for consulting fees | 91,777 | 92 | 17,345 | 17,437 | ||||||||||||||||||||||
Share-based compensation for consulting services | 32,667 | 32,667 | ||||||||||||||||||||||||
Share-based compensation – employee options vesting | 57,840 | 57,840 | ||||||||||||||||||||||||
Share-based compensation – Coviello and Vinas, in accordance with FHC recapitalization transaction | 324,954 | 324,954 | ||||||||||||||||||||||||
Retroactive change to par value (see Note 10) | (23,780 | ) | 23,780 | — | ||||||||||||||||||||||
Retroactive reflection of conversion of Series A Preferred Shares in accordance with FHC recapitalization transaction (see Note 9) | 531,376,500 | 53,138 | 246,862 | 300,000 | ||||||||||||||||||||||
Net loss for twelve months ended December 31, 2009 | $ | (1,164,036 | ) | (1,164,036 | ) | |||||||||||||||||||||
Balance at December 31, 2009 | 557,798,599 | $ | 55,780 | $ | — | $ | 3,597,621 | $ | (4,899,341 | ) | $ | (1,245,940 | ) | |||||||||||||
Issuance of stock for consulting fees | 2,612,500 | 261 | 40,364 | 40,625 | ||||||||||||||||||||||
Share-based compensation for consulting services | 823,693 | 823,693 | ||||||||||||||||||||||||
Share-based compensation – employee options vesting | 57,840 | 57,840 | ||||||||||||||||||||||||
Purchases of equity – Series B preferred | 14 | 139,986 | 140,000 | |||||||||||||||||||||||
Common stock issuance for conversion of Series B preferred and interest | 11,768,197 | 1,177 | (14 | ) | 5,939 | 7,102 | ||||||||||||||||||||
Common stock issuance for conversion of debt | 64,295,200 | 6,430 | 797,260 | 803,690 | ||||||||||||||||||||||
Purchases of equity – Common stock | 87,079,447 | 8,708 | 1,425,792 | 1,434,500 | ||||||||||||||||||||||
Common stock issuance for satisfaction of accounts payable | 934,986 | 93 | 13,932 | 14,025 | ||||||||||||||||||||||
Net loss for twelve months ended December 31, 2010 | $ | (1,983,822 | ) | (1,983,822 | ) | |||||||||||||||||||||
Accumulated Comprehensive Loss | $ | (2,999 | ) | |||||||||||||||||||||||
Balance at December 31, 2010 | 724,488,929 | $ | 72,449 | $ | — | $ | 6,902,427 | $ | (6,883,163 | ) | $ | 88,714 |
For the twelve months ended December 31 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2010 (restated) | 2009 (restated) | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (1,983,822 | ) | $ | (1,164,036 | ) | |||||
Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||
Amortization of intangible assets | 21,539 | 14,046 | |||||||||
Depreciation of fixed assets | 35,262 | 22,949 | |||||||||
Amortization of debt discount expense | — | 145,302 | |||||||||
Share based compensation | 342,864 | 415,462 | |||||||||
Shares issued for consulting services | 38,854 | 17,437 | |||||||||
Interest satisfied with stock conversion | 7,102 | 6,625 | |||||||||
Goodwill written off on acquisition of subsidiary | 58,027 | — | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (40,032 | ) | 60,017 | ||||||||
Inventory | 3,908 | 29,560 | |||||||||
Prepaid expenses | (39,262 | ) | (15,329 | ) | |||||||
Security deposit | (9,949 | ) | — | ||||||||
Accounts payable | (247,163 | ) | 23,331 | ||||||||
Accounts payable satisfied with common stock | 14,025 | — | |||||||||
Accrued interest | 34,088 | (85,684 | ) | ||||||||
Accrued liabilities | 294,306 | (13,466 | ) | ||||||||
Other current liabilities | 19,983 | — | |||||||||
Cash used in operating activities | (1,450,270 | ) | (543,786 | ) | |||||||
Cash flows used in investing activities: | |||||||||||
Acquisition of subsidiary, net of cash acquired | (898,017 | ) | — | ||||||||
Purchase of fixed assets | (21,521 | ) | — | ||||||||
Acquisition of patents | (8,575 | ) | (62,133 | ) | |||||||
Cash used in investing activities | (928,113 | ) | (62,133 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Proceeds from sale of equity — Common stock | 1,434,500 | 300,000 | |||||||||
Proceeds from sale of equity — Series B preferred | 140,000 | — | |||||||||
Proceeds from short term Notes Payable | 1,276,500 | 1,449,052 | |||||||||
Repayment of short term Notes Payable | (361,500 | ) | (1,326,500 | ) | |||||||
Cash provided by financing activities | 2,489,500 | 422,552 | |||||||||
Foreign currency translation adjustment | 3,193 | — | |||||||||
Net increase (decrease) in cash | 114,310 | (183,367 | ) | ||||||||
Cash at beginning of period | 12,771 | 196,138 | |||||||||
Cash at end of period | $ | 127,081 | $ | 12,771 | |||||||
Supplemental Disclosures of Cash Flow information: | |||||||||||
Interest paid: | $ | — | $ | — | |||||||
Taxes paid | $ | 2,248 | $ | — | |||||||
Non-Cash Transactions: | |||||||||||
Warrants, options and common stock issued for debt financing | $ | 803,690 | $ | 400,000 |
As of November 30, 2010 | Amount | |||||
US | ||||||
Purchased Software | 10,000 | |||||
Therapy Devices | 31,000 | |||||
Internally Developed Software | 540,000 | |||||
Inventory | 9,179 | |||||
Trademarks | 130,000 | |||||
Patents | 250,000 | |||||
Germany | ||||||
Therapy Devices, Machinery and Office Equipment | 14,378 | |||||
Current Assets | 57,756 | |||||
Current Liabilities | (200,340 | ) | ||||
841,973 | ||||||
Goodwill on acquisition | $ | 58,027 | ||||
Purchase Price | $ | 900,000 |
a) | Market approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Prices may be indicated by pricing guides, sale transactions, market trades, or other sources; |
b) | Cost approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost); and |
c) | Income approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about the future amounts (includes present value techniques and option-pricing models). Net present value is an income approach where a stream of expected cash flows is discounted at an appropriate market interest rate. |
December 31, 2010 | December 31, 2009 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Stock options outstanding | 833,333 | 1,050,000 | ||||||||
Warrants to purchase common stock | 90,191,077 | 38,510,584 | ||||||||
Debentures convertible into common stock | 47,414,223 | 99,604,160 | ||||||||
Total | 138,438,633 | 139,164,744 |
(i) | for the year ended December 31, 2009, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2010; |
(ii) | for the three months ended March 31, 2010, included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 12, 2010; |
(iii) | for the three and six months ended June 30, 2010, included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 16, 2010; |
(iv) | for the three and nine months ended September 30, 2010 included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 15, 2010; and |
(v) | for the three months ended March 31, 2011 included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 14, 2010 |
December 31, 2010 | December 31, 2009 | ||||||||||||||||||||||||||
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As Reported | Adjustment | Restated | As Reported | Adjustment | Restated | ||||||||||||||||||||||
Prepaid Expenses | 106,782 | 538,520 | a | 645,302 | 22,369 | — | a | 22,369 | |||||||||||||||||||
Total Current Assets | 362,683 | 538,520 | 901,203 | 106,855 | — | 106,855 | |||||||||||||||||||||
Total Assets | 1,615,174 | 538,520 | 2,153,694 | 400,960 | — | 400,960 | |||||||||||||||||||||
Notes Payable | 1,344,300 | 56,081 | b | 1,400,381 | 1,111,053 | 133,999 | b | 1,245,052 | |||||||||||||||||||
Total Liabilities | 2,008,899 | 56,081 | 2,064,980 | 1,512,901 | 133,999 | 1,646,900 | |||||||||||||||||||||
Additional Paid-in Capital | 6,375,175 | 527,252 | a,b | 6,902,427 | 3,708,967 | (111,346 | ) a,b,e | 3,597,621 | |||||||||||||||||||
Accumulated Deficit | (6,838,350 | ) | (44,813 | ) c,d | (6,883,163 | ) | (4,876,688 | ) | (22,653 | ) d,e | (4,899,341 | ) | |||||||||||||||
Total Stockholders’ Equity (Deficit) | (393,725 | ) | 482,439 | 88,714 | (1,111,941 | ) | (133,999 | ) | (1,245,940 | ) | |||||||||||||||||
Total Liabilities and Stockholders’ Equity | 1,615,174 | 538,520 | 2,153,694 | 400,960 | — | 400,960 |
For the Years Ended | For the Years Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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December 31, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | Adjustment | Restated | As Reported | Adjustment | Restated | As Reported | Adjustment | Restated | As Reported | Adjustment | Restated | |||||||||||||||||||||||||||||||||||||||||||
General and administrative | 1,728,227 | 190,947 | c | 1,919,174 | 1,077,411 | 23,756 | 1,101,167 | 1,728,227 | 190,947 | c | 1,919,174 | 1,077,411 | 23,756 | 1,101,167 | ||||||||||||||||||||||||||||||||||||||||
Goodwill on Acquisition of Subsidiary | — | (58,027 | ) f | (58,027 | ) | — | (58,027 | ) f | (58,027 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Costs related to Acquisition of Subsidiary | — | (154,203 | ) f | (154,203 | ) | — | (154,203 | ) f | (154,203 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total Operating Expenses | 1,800,236 | 403,177 | 2,203,413 | 1,119,167 | 23,756 | 1,142,923 | 1,800,236 | 403,177 | 2,203,413 | 1,119,167 | 23,756 | 1,142,923 | ||||||||||||||||||||||||||||||||||||||||||
Total Operating Loss | (1,532,523 | ) | (403,177 | ) | (1,935,700 | ) | (942,603 | ) | (23,756 | ) | (966,359 | ) | (1,532,523 | ) | (403,177 | ) | (1,935,700 | ) | (942,603 | ) | (23,756 | ) | (966,359 | ) | ||||||||||||||||||||||||||||||
Interest Expense | (214,661 | ) | 168,787 | d | (45,874 | ) | (249,505 | ) | (1,103 | ) d | (248,402 | ) | (214,661 | ) | 168,787 | d | (45,874 | ) | (249,505 | ) | (1,103 | ) d | (248,402 | ) | ||||||||||||||||||||||||||||||
Goodwill on Acquisition of Subsidiary | (58,027 | ) | — | f | 58,027 | (58,027 | ) | — | f | 58,027 | ||||||||||||||||||||||||||||||||||||||||||||
Costs related to Acquisition of Subsidiary | (154,203 | ) | — | f | 154,203 | (154,203 | ) | — | f | 154,203 | ||||||||||||||||||||||||||||||||||||||||||||
Total Other Income (Expense) | (426,891 | ) | 381,017 | (45,874 | ) | (198,780 | ) | 1,103 | (197,677 | ) | (426,891 | ) | 381,017 | (45,874 | ) | (198,780 | ) | 1,103 | (197,677 | ) | ||||||||||||||||||||||||||||||||||
Net Loss | (1,961,662 | ) | (22,160 | ) | (1,983,822 | ) | (1,141,383 | ) | (22,653 | ) | (1,164,036 | ) | (1,961,662 | ) | (22,160 | ) | (1,983,822 | ) | (1,141,383 | ) | (22,653 | ) | (1,164,036 | ) | ||||||||||||||||||||||||||||||
Net Loss per share | (0.003 | ) | (0.000 | ) | (0.003 | ) | (0.039 | ) | (0.001 | ) | (0.040 | ) | (0.003 | ) | (0.000 | ) | (0.003 | ) | (0.039 | ) | (0.001 | ) | (0.040 | ) |
For the Years Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
December 31, 2010 | December 31, 2009 | ||||||||||||||||||||||||||
As Reported | Adjustment | Restated | As Reported | Adjustment | Restated | ||||||||||||||||||||||
Net Loss | (1,961,662 | ) | (22,160 | ) | (1,983,822 | ) | (1,141,383 | ) | (22,653 | ) | (1,164,036 | ) | |||||||||||||||
Amortization of Debt Discount Expense | 168,785 | (168,785 | ) d | — | 146,405 | (1,103 | ) d | 145,302 | |||||||||||||||||||
Share-based compensation | 152,069 | 190,795 | c | 342,864 | 391,706 | 23,756 | e | 415,462 | |||||||||||||||||||
Shares issued for consulting services | 40,625 | (1,771 | ) | 38,854 | 17,437 | — | 17,437 | ||||||||||||||||||||
Changes in Accrued liabilities | 292,385 | 1,921 | 294,306 | (13,466 | ) | — | (13,466 | ) | |||||||||||||||||||
Cash used in operating activities | (1,450,270 | ) | — | (1,450,270 | ) | (543,786 | ) | — | (543,786 | ) | |||||||||||||||||
Cash used in investing activities | (928,113 | ) | — | (928,113 | ) | (62,133 | ) | — | (62,133 | ) | |||||||||||||||||
Cash provided by financing activities | 2,489,500 | — | 2,489,500 | 422,552 | — | 422,552 | |||||||||||||||||||||
Foreign currency translation adjustments | 3,193 | — | 3,193 | — | — | — | |||||||||||||||||||||
Net Increase (Decrease) in Cash | 114,310 | (0 | ) | 114,310 | (183,367 | ) | — | (183,367 | ) | ||||||||||||||||||
a | Grant date fair value of warrants issued for consulting services |
b | Elimination debt discount where no Beneficial Conversion Feature exists |
c | Net change in expense from converting amortization period from life of warrant to life of service agreement |
d | Reversal of BCF amortization where no Beneficial Conversion Feature exists |
e | Write-off of unamortized balance of share-based consulting fees for terminated agreements |
f | Re-presentation of Goodwill and Costs related to Acquisition of Subsidiary as operating expenses rather than non-operating expenses |
December 31, 2010 | December 31, 2009 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
On December 29, 2009, in conjunction with a debt restructuring, the Company issued a convertible debenture in the amount of $70,000 payable to Fountainhead Capital Management Limited (“Fountainhead”). This debenture accrues interest rate of 6% per annum, is due August 31, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. On May 14, 2010, this loan was repaid | — | 70,000 | |||||||||
On December 29, 2009, in conjunction with a debt restructuring, the Company issued a convertible debenture in the amount of $371,362 payable to Fountainhead. This debenture accrues interest rate of 6% per annum, was due August 31, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. On May 14, 2010, the due date for satisfaction was extended to March 30, 2011 and on March 28, 2011 this was further extended to August 31, 2011. | 371,362 | 371,362 | |||||||||
On December 29, 2009, the Company issued a convertible debenture in the amount of $350,000 payable Regent Private Capital, LLC (“Regent”). This debenture accrues interest rate of 6% per annum, is due August 31, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. On December 29, 2009, this debenture was amended to provide for automatic conversion, subject to the Company authorizing sufficient shares to convert this, and other existing instruments, and transferred to three parties. On January 11, 2010 (see Note 10), these notes were satisfied in accordance with the automatic conversion clause. | — | 350,000 |
December 31, 2010 | December 31, 2009 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
On December 29, 2009, the Company issued a convertible debenture in the amount of $453,690 payable Regent Private Capital, LLC (“Regent”). This debenture accrues interest rate of 6% per annum, is due August 31, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. On December 29, 2009, this debenture was amended to provide for automatic conversion, subject to the Company authorizing sufficient shares to convert this, and other existing instruments, and transferred to five parties. On January 11, 2010, these notes were satisfied in accordance with the automatic conversion clause. | — | 453,690 | |||||||||
On February 3, 2010, the Company issued a convertible debenture in the amount of $70,000 payable to Fountainhead. This debenture accrues interest rate of 6% per annum, was due August 31, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. On May 14, 2010, the due date for satisfaction was extended to March 30, 2011 and on March 28, 2011 this was further extended to August 31, 2011. | 70,000 | — | |||||||||
On September 30, 2010, the Company issued a convertible debenture in the amount of $85,000 payable to Fountainhead. This debenture accrues interest rate of 6% per annum, is due August 31, 2011, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.0175 per share, subject to adjustment and does not require bifurcation. | 85,000 | — | |||||||||
On October 14, 2010, the Company issued a convertible debenture in the amount of $90,000 payable to Fountainhead. This debenture accrues interest rate of 6% per annum, is due August 31, 2011, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.0175 per share, subject to adjustment and does not require bifurcation. | 90,000 | — |
December 31, 2010 | December 31, 2009 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
On October 26, 2010, the Company issued a debenture in the amount of $77,500 payable to Fountainhead. This debenture accrues interest rate of 6% per annum, is due on the earlier of August 31, 2011 or the date of receipt by the Company of cash from fundraisings in excess of a cumulative $3 million from October 26, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. | 77,500 | — | |||||||||
On November 15, 2010, the Company issued a debenture in the amount of $322,500 payable to Fountainhead. This debenture accrues interest rate of 6% per annum, is due on the earlier of August 31, 2011 or the date of receipt by the Company of cash from fundraisings in excess of a cumulative $3 million from October 26, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. | 322,500 | — | |||||||||
On November 15, 2010, the Company issued a convertible debenture in the amount of $350,000 payable to Peter Zachariou, a Director of the Company. This debenture accrues interest rate of 6% per annum, is due on the earlier of August 31, 2011 or the date of receipt by the Company of cash from fundraisings in excess of a cumulative $3 million from October 26, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.019 per share, subject to adjustment and does not require bifurcation. On December 20, the Company repaid $50,000 of this debenture and removed the convertible rights. | 300,000 | — | |||||||||
On December 3, 2010, the Company issued a debenture in the amount of $40,000 payable to Berardino Investment Group. This debenture accrues interest rate of 6% per annum, is due June 30, 2011, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.019 per share, subject to adjustment and does not require bifurcation. | 40,000 | — | |||||||||
e33,000 unsecured, non-interest bearing loan from the chief executive of NovaVision AG, advanced a total of to NovaVision AG, which is being repaid in monthly installments to December 31, 2011 | 44,019 | — | |||||||||
Total Notes Payable: | $ | 1,400,381 | $ | 1,245,052 |
Twelve months ending December 31, | Amount | |||||
2011 | $ | 1,400,381 | ||||
2012 | — | |||||
2013 | — | |||||
2014 | — | |||||
2015 | — | |||||
Thereafter | — | |||||
$ | 1,400,381 |
(a) | Business segments |
December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2010 | 2009 | ||||||||||
Revenue: | |||||||||||
Vycor Medical | $ | 307,582 | $ | 199,046 | |||||||
NovaVision | 8,868 | — | |||||||||
Total Revenue | $ | 316,450 | $ | 199,046 | |||||||
Gross Profit: | |||||||||||
Vycor Medical | 259,975 | 176,564 | |||||||||
NovaVision | 7,738 | — | |||||||||
Total Gross Profit | $ | 267,713 | $ | 176,564 | |||||||
Total Assets: | • (restated) | • (restated) | |||||||||
Vycor Medical | 1,085,680 | 400,960 | |||||||||
NovaVision | 1,068,014 | — | |||||||||
Total Assets | $ | 2,153,694 | $ | 400,960 |
(b) | Geographic information. The Company operates in two geographic segments, the United States and Germany. Set out below are the revenues, gross profits and total assets for each segment. |
December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2010 | 2009 | ||||||||||
Revenue: | |||||||||||
United States | $ | 307,582 | $ | 199,046 | |||||||
Germany | 8,868 | — | |||||||||
Total Revenue | $ | 316,450 | $ | 199,046 | |||||||
Gross Profit: | |||||||||||
United States | 259,975 | 176,564 | |||||||||
Germany | 7,738 | — | |||||||||
Total Gross Profit | $ | 267,713 | $ | 176,564 | |||||||
Total Assets: | • (restated) | • (restated) | |||||||||
United States | 2,084,029 | 400,960 | |||||||||
Germany | 69,665 | — | |||||||||
Total Assets | $ | 2,153,694 | $ | 400,960 |
2010 | 2009 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Machinery and equipment | $ | 93,764 | $ | 9,125 | ||||||
Purchased Software | 10,000 | — | ||||||||
Molds and Tooling | 230,830 | 211,240 | ||||||||
Furniture and fixtures | 18,288 | — | ||||||||
Therapy Devices | 44,412 | — | ||||||||
Internally Developed Software | 540,000 | — | ||||||||
937,294 | 220,365 | |||||||||
Less: Accumulated depreciation and amortization | (164,106 | ) | (29,356 | ) | ||||||
Property and Equipment, net | $ | 773,188 | $ | 191,009 |
Therapy devices | 3 years | |||||
Computer equipment and software | 3 years | |||||
Furniture and fixtures | 7 years | |||||
Machinery and office equipment | 5 years | |||||
Internally Developed Software | 5 years |
December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2009 | 2008 | ||||||||||
Amortized intangible assets: Patent (8 years useful life) | |||||||||||
Gross carrying Amount | $ | 381,740 | $ | 123,166 | |||||||
Accumulated Amortization | (48,668 | ) | (29,462 | ) | |||||||
$ | 333,072 | $ | 93,704 | ||||||||
Intangible assets not subject to amortization | |||||||||||
Trademarks | 130,000 | — |
Number of shares | Weighted average exercise price per share | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Outstanding at January 1, 2009 | 6,460,920 | $ | 0.39 | |||||||
Granted | 32,900,132 | 0.007 | ||||||||
Exercised | — | — | ||||||||
Cancelled or expired | (3,867,880 | ) | 0.26 | |||||||
Outstanding at January 1, 2010 | 35,493,172 | $ | 0.03 | |||||||
Granted | 90,191,077 | 0.015 | ||||||||
Exercised | — | — | ||||||||
Cancelled or expired | (9,079,473 | ) | 0.015 | |||||||
Outstanding at December 31, 2010 | 116,604,776 | $ | 0.019 |
Number of shares | Weighted average exercise price per share | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Outstanding at January 1, 2009 | 1,050,000 | $ | 0.14 | |||||||
Granted | — | — | ||||||||
Exercised | — | — | ||||||||
Cancelled or expired | (50,000 | ) | 0.14 | |||||||
Outstanding at January 1, 2010 | 1,000,000 | $ | 0.14 | |||||||
Granted | — | — | ||||||||
Exercised | — | — | ||||||||
Cancelled or expired | (166,667 | ) | 0.14 | |||||||
Outstanding at December 31, 2010 | 833,333 | $ | 0.14 |
Year ended December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2010 | 2009 | ||||||||||
Risk-free interest rates | 0.10–2.39% | 0.10% | |||||||||
Expected life | 3 years | 3 years | |||||||||
Expected dividends | 0% | 0% | |||||||||
Expected volatility | 96% | 96% | |||||||||
Vycor Common Stock fair value | $0.0125–$0.019 | $0.0125 |
December 31, 2010 | December 31, 2009 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Gross deferred tax assets | 1,573,000 | 1,032,500 | ||||||||
Valuation allowance | (1,573,000 | ) | (1,032,500 | ) | ||||||
Net deferred tax asset | — | — |
June 30, 2011 | December 31, 2010 (restated, refer to Note 5) | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||||
Current Assets | ||||||||||
Cash | $ | 2,206,616 | $ | 127,081 | ||||||
Accounts receivable, net | 106,249 | 76,460 | ||||||||
Inventory | 67,234 | 52,360 | ||||||||
Prepaid expenses and other current assets | 1,164,832 | 645,302 | ||||||||
Total Current Assets | 3,541,931 | 901,203 | ||||||||
Fixed assets, net | 711,662 | 773,188 | ||||||||
Intangible and Other assets: | ||||||||||
Trademarks | 130,000 | 130,000 | ||||||||
Patents, net of accumulated amortization | 359,822 | 333,072 | ||||||||
Website, net of accumulated amortization | 5,935 | 3,932 | ||||||||
Security deposits | 11,252 | 12,299 | ||||||||
507,009 | 479,303 | |||||||||
TOTAL ASSETS | $ | 4,760,602 | $ | 2,153,694 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current Liabilities | ||||||||||
Accounts payable | $ | 233,010 | $ | 114,447 | ||||||
Accrued interest | 93,261 | 36,992 | ||||||||
Accrued liabilities | 514,934 | 406,998 | ||||||||
Other current liabilities | 154,574 | 90,881 | ||||||||
Notes payable — current | 504,825 | 1,415,662 | ||||||||
1,500,604 | 2,064,980 | |||||||||
Notes payable — long-term | 1,316,362 | — | ||||||||
TOTAL LIABILITIES | 2,816,966 | 2,064,980 | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 46.8 and none issued and outstanding as at June 30, 2011 and December 31, 2010 respectively | — | — | ||||||||
Common Stock, $0.0001 par value, 1,500,000,000 shares authorized, 804,985,775 and 724,488,929 shares issued and outstanding at June 30, 2011 and December 31, 2010 respectively | 80,499 | 72,449 | ||||||||
Additional Paid-in Capital | 11,537,350 | 6,902,427 | ||||||||
Accumulated Deficit | (9,654,121 | ) | (6,883,163 | ) | ||||||
Accumulated Other Comprehensive Income | (20,092 | ) | (2,999 | ) | ||||||
1,943,636 | 88,714 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,760,602 | $ | 2,153,694 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 | 2010 (restated, refer to Note 5) | 2011 | 2010 (restated, refer to Note 5) | ||||||||||||||||
Revenue | $ | 142,331 | $ | 74,817 | $ | 287,453 | $ | 139,103 | |||||||||||
Cost of Goods Sold | 35,192 | 6,184 | 57,565 | 18,772 | |||||||||||||||
Gross Profit | 107,139 | 68,633 | 229,888 | 120,331 | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 37,484 | 762 | 61,336 | 5,648 | |||||||||||||||
Depreciation and Amortization | 52,348 | 10,051 | 101,753 | 19,824 | |||||||||||||||
General and administrative | 1,823,019 | 466,208 | 2,783,748 | 830,181 | |||||||||||||||
Total Operating expenses | 1,912,851 | 477,021 | 2,946,837 | 855,653 | |||||||||||||||
Operating loss | (1,805,712 | ) | (408,388 | ) | (2,716,949 | ) | (735,322 | ) | |||||||||||
Other income (expense) | |||||||||||||||||||
Other income | 10,067 | — | 10,067 | — | |||||||||||||||
Interest expense | (39,613 | ) | (11,797 | ) | (63,534 | ) | (24,402 | ) | |||||||||||
Total Other expense | (29,546 | ) | (11,797 | ) | (53,467 | ) | (24,402 | ) | |||||||||||
Net Loss Before Taxes | (1,835,258 | ) | (420,185 | ) | (2,770,416 | ) | (759,724 | ) | |||||||||||
Taxes | — | — | 542 | 2,078 | |||||||||||||||
Net Loss | $ | (1,835,258 | ) | $ | (420,185 | ) | $ | (2,770,958 | ) | $ | (761,802 | ) | |||||||
Loss Per Share | |||||||||||||||||||
Basic and diluted | $ | (0.002 | ) | $ | (0.001 | ) | $ | (0.004 | ) | $ | (0.001 | ) | |||||||
Weighted Average Number of Shares Outstanding | 780,845,969 | 649,281,287 | 753,940,244 | 631,918,392 |
For the six months ended June 30 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2011 | 2010 (restated, refer to Note 5) | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (2,770,958 | ) | $ | (761,802 | ) | |||||
Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||
Amortization of intangible assets | 83,685 | 8,253 | |||||||||
Depreciation of fixed assets | 17,989 | 11,571 | |||||||||
Amortization of debt discount expense | 4,884 | — | |||||||||
Share based compensation | 1,164,600 | 146,367 | |||||||||
Foreign currency gain | (4,156 | ) | — | ||||||||
Net loss | (1,504,156 | )) | (595,612 | ) | |||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (29,592 | ) | (32,864 | ) | |||||||
Inventory | (14,467 | ) | (12,894 | ) | |||||||
Prepaid expenses | (187,517 | ) | (29,120 | ) | |||||||
Security deposit | 1,047 | (1,283 | ) | ||||||||
Accounts payable | 116,485 | (170,079 | ) | ||||||||
Accrued interest | 57,459 | 20,743 | |||||||||
Accrued liabilities | 102,909 | 51,497 | |||||||||
Other current liabilities | 56,535 | — | |||||||||
Cash used in operating activities | (1,401,297 | ) | (769,611 | ) | |||||||
Cash flows used in investing activities: | |||||||||||
Purchase of fixed assets | (16,071 | ) | (1,931 | ) | |||||||
Purchase of website | (3,360 | ) | — | ||||||||
(Acquisition of)/reduction of patents | (56,435 | ) | 2,387 | ||||||||
Cash used in investing activities | (75,866 | ) | 456 | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of Common stock | 889,000 | 749,500 | |||||||||
Net proceeds from issuance of Series B preferred stock | — | 140,000 | |||||||||
Net proceeds from issuance of Series C preferred stock | 2,218,200 | — | |||||||||
Net proceeds from issuance of Notes Payable | 530,576 | 291,500 | |||||||||
Repayment of Notes Payable | (81,582 | ) | (291,500 | ) | |||||||
Cash provided by financing activities | 3,556,194 | 889,500 | |||||||||
Effect of exchange rate changes on cash | 504 | — | |||||||||
Net increase in cash | 2,079,535 | 120,345 | |||||||||
Cash at beginning of period | 127,081 | 12,771 | |||||||||
Cash at end of period | $ | 2,206,616 | $ | 133,116 | |||||||
Supplemental Disclosures of Cash Flow information: | |||||||||||
Interest paid: | $ | — | $ | — | |||||||
Taxes paid | $ | — | $ | 2,078 | |||||||
Non-Cash Transactions: | |||||||||||
Warrants, options and common stock issued for debt financing | 40,000 | $ | 803,690 |
a) | Market approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Prices may be indicated by pricing guides, sale transactions, market trades, or other sources; |
b) | Cost approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost); and |
c) | Income approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about the future amounts (includes present value techniques and option-pricing |
models). Net present value is an income approach where a stream of expected cash flows is discounted at an appropriate market interest rate. |
June 30, 2011 | June 30, 2010 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Stock options outstanding | 833,333 | 833,333 | ||||||||
Warrants to purchase common stock | 243,142,310 | 66,139,264 | ||||||||
Debentures convertible into common stock | 55,308,960 | 35,308,960 | ||||||||
Preferred shares convertible into common stock | 103,999,993 | — | ||||||||
Total | 403,284,596 | 102,281,557 |
(i) | for the year ended December 31, 2009 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2010; |
(ii) | for the three months ended March 31, 2010, included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 12, 2010; |
(iii) | for the three and six months ended June 30, 2010, included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 16, 2010; |
(iv) | for the three and nine months ended September 30, 2010 included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 15, 2010; and |
(v) | for the three months ended March 31, 2011 included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 14, |
Year Ended December 31, 2010 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
As Previously Reported | As Restated | ||||||||||
ASSETS | |||||||||||
Prepaid expenses and other current assets | 106,782 | 645,302 | |||||||||
Total Current Assets | 362,683 | 901,203 | |||||||||
Total Assets | $ | 1,615,174 | $ | 2,153,694 | |||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||
Notes payable | 1,344,300 | 1,415,662 | |||||||||
Total Liabilities | 2,008,899 | 2,064,980 | |||||||||
Additional Paid-in Capital | 6,375,175 | 6,902,427 | |||||||||
Accumulated Deficit | (6,838,350 | ) | (6,883,163 | ) | |||||||
Total Stockholder’s (Deficit) Equity | (393,725 | ) | 88,714 | ||||||||
Total Liabilities and Stockholders’ Deficit | $ | 1,615,174 | $ | 2,153,694 |
For the three months ended June 30, 2010 | For the six months ended June 30, 2010 | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
As Previously Reported | As Restated | As Previously Reported | As Restated | ||||||||||||||||
Operating expenses: | |||||||||||||||||||
General and administrative | 491,851 | 466,208 | 833,677 | 830,181 | |||||||||||||||
Total Operating expenses | 502,664 | 477,021 | 859,149 | 855,653 | |||||||||||||||
Operating loss | (434,031 | ) | (408,338 | ) | (738,818 | ) | (735,322 | ) | |||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense | (27,047 | ) | (11,797 | ) | (96,184 | ) | (24,402 | ) | |||||||||||
Total Other Income (expense) | (27,047 | ) | (11,797 | ) | (96,184 | ) | (24,402 | ) | |||||||||||
Net Loss | $ | (461,078 | ) | $ | (420,185 | ) | $ | (837,080 | ) | $ | (761,802 | ) | |||||||
Loss Per Share | |||||||||||||||||||
Basic and diluted | $ | (0.001 | ) | $ | (0.001 | ) | $ | (0.001 | ) | $ | (0.001 | ) | |||||||
Weighted Average Number of Shares Outstanding | 649,281,287 | 649,281,287 | 631,918,392 | 631,918,392 |
For the six months ended June 30, 2010 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
As Previously Reported | As Restated | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (837,080 | ) | $ | (761,802 | ) | |||||
Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||
Amortization of debt discount expense | 71,781 | — | |||||||||
Share based compensation | 149,863 | 146,367 | |||||||||
Cash used in operating activities | (769,611 | ) | (769,611 | ) | |||||||
Cash provided by / (used in) investing activities | 456 | 456 | |||||||||
Cash provided by financing activities | 889,500 | 889,500 | |||||||||
Net increase (decrease) in cash | 120,345 | 120,345 | |||||||||
Cash at beginning of period | 12,771 | 12,771 | |||||||||
Cash at end of period | $ | 133,116 | $ | 133,116 |
June 30, 2011 | December 31, 2010 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
On December 29, 2009 and February 3, 2010, the Company issued convertible debentures in the amount of $371,362 and $70,000, respectively, payable to Fountainhead Capital Management (“Fountainhead”), the beneficial owner of more than 50% of the Company’s common stock. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. These debentures were originally due August 31, 2010. On May 14, 2010, the due date for satisfaction was extended to March 30, 2011, on March 28, 2011 the due date was further extended to August 31, 2011 and on June 6, 2011 the due date was further extended to December 31, 2012. | 441,362 | 441,362 | |||||||||
June 30, 2011 | December 31, 2010 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
On September 30, 2010 and October 14, 2010, the Company issued convertible debentures payable to Fountainhead in the amount of $85,000 and $90,000, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $0.0175 per share, subject to adjustment and does not require bifurcation. The debentures were originally due August 31, 2011, however the due date for satisfaction was extended on June 6, 2011 to December 31, 2012. | 175,000 | 175,000 | |||||||||
On October 26, 2010 and November 15, 2010, the Company issued debentures payable to Fountainhead in the amount of $77,500 and $322,500, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The debentures were originally due August 31, 2011, however the due date for satisfaction was extended on June 6, 2011 to December 31, 2012. | 400,000 | 400,000 | |||||||||
On November 15, 2010, the Company issued a convertible debenture in the amount of $350,000 payable to Peter Zachariou, a Director of the Company. This debenture accrues interest rate of 6% per annum, is due on the earlier of August 31, 2011 or the date of receipt by the Company of cash from fundraisings in excess of a cumulative $3 million from October 26, 2010, is secured by a first priority security interest in all of the assets of the Company, and is senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.019 per share, subject to adjustment and does not require bifurcation. On December 20, 2010, the Company repaid $50,000 of this debenture and removed the convertible rights. On June 6, 2011 the due date for satisfaction was extended to December 31, 2012. | 300,000 | 300,000 | |||||||||
On December 3, 2010, the Company issued a debenture in the amount of $40,000 payable to Berardino Investment Group. This debenture accrued interest at a rate of 6% per annum, was due June 30, 2011, was secured by a first priority security interest in all of the assets of the Company, and was senior to orpari passu with, all other obligations of the Company, subject to certain conditions. The Holder was entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $0.019 per share, subject to adjustment and did not require bifurcation. On June 30, 2011, the entire principal and unpaid interest on this debenture was converted into 2,167,902 shares of the Company’s Common Stock at the conversion price of $0.019 per share. | — | 40,000 | |||||||||
June 30, 2011 | December 31, 2010 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
In January, February and March 2011 the Company issued short term, unsecured notes payable to Fountainhead in the amount of $15,000, $64,000 and $20,000, respectively. The notes accrue interest at a rate of 6% per annum, are due on demand and are junior to the secured convertible and non-convertible debentures of the Company. | 99,000 | — | |||||||||
In January and February 2011 the Company issued short term, unsecured notes payable to Peter Zachariou in the amount of $15,000 and $40,000, respectively. The notes accrue interest rate of 6% per annum, are due on demand and are junior to the secured convertible and non-convertible debentures of the Company. | 55,000 | — | |||||||||
In February 2011 the Company issued short term, unsecured notes in the amount of $10,000 payable to David Cantor, a Director of the Company. The notes accrue interest rate of 6% per annum, are due on demand and are junior to the secured convertible and non-convertible debentures of the Company. | 10,000 | — | |||||||||
On March 25, 2011 the Company issued a term note for $300,000 to EuroAmerican Investment Corp. (“EuroAmerican”). The term note bears interest at 16% per annum and was due June 25, 2011. In connection with the loan the Company also issued EuroAmerican warrants to purchase 400,000 shares of the Company’s common stock at an exercise price of $0.03 per share for a period of three (3) years. On June 25, 2011 the due date for this note was extended to September 25, 2011 and the Holder was granted the right to convert all or any amount of the principal face amount of the debenture then outstanding and accrued interest into shares of common stock of the Company at the conversion price of $0.03 per share, subject to adjustment and does not require bifurcation. | 300,000 | — | |||||||||
Unsecured, non-interest bearing loan from the chief executive of NovaVision AG, advanced a total of to NovaVision AG, which is being repaid in monthly installments to December 31, 2011. As of June 30, and December 31, 2010 the remaining balance is e19,500 and e33,000, respectively. | 27,701 | 44,019 | |||||||||
Insurance policy finance agreements | 13,124 | 15,281 | |||||||||
Total Notes Payable: | $ | 1,821,187 | $ | 1,415,662 |
Twelve months ending June 30, | Amount | |||||
2011 | $ | 504,825 | ||||
2012 | 1,316,362 | |||||
2013 | — | |||||
2014 | — | |||||
2015 | — | |||||
Thereafter | — | |||||
Total | $ | 1,821,187 |
(a) | Business segments |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Revenue: | |||||||||||||||||||
Vycor Medical | $ | 82,239 | $ | 74,817 | $ | 182,081 | $ | 139,103 | |||||||||||
NovaVision | 60,092 | — | 105,372 | — | |||||||||||||||
Total Revenue | $ | 142,331 | $ | 74,817 | $ | 287,453 | $ | 139,103 | |||||||||||
Gross Profit: | |||||||||||||||||||
Vycor Medical | 60,890 | 68,633 | 153,615 | 120,331 | |||||||||||||||
NovaVision | 46,249 | — | 76,273 | — | |||||||||||||||
Total Gross Profit | $ | 107,139 | $ | 68,633 | $ | 229,888 | $ | 120,331 |
June 30, 2011 | December 31, 2010 (restated, refer to Note 5) | June 30, 2011 | December 31, 2010 (restated, refer to Note 5) | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Assets: | ||||||||||||||||||||
Vycor Medical | 3, 319,053 | 1,085,680 | 3,319,053 | 1,085,680 | ||||||||||||||||
NovaVision | 1,441,549 | 1,068,014 | 1,441,549 | 1,068,014 | ||||||||||||||||
Total Assets | $ | 4, 760,602 | $ | 2,153,694 | $ | 4,760,602 | $ | 2,153,694 |
(b) | Geographic information |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Revenue: | |||||||||||||||||||
United States | $ | 105,193 | $ | 74,817 | $ | 209,202 | $ | 139,103 | |||||||||||
Germany | 37,138 | — | 78,251 | — | |||||||||||||||
Total Revenue | $ | 142,331 | $ | 74,817 | $ | 287,453 | $ | 139,103 | |||||||||||
Gross Profit: | |||||||||||||||||||
United States | 79,767 | 68,633 | 173,658 | 120,331 | |||||||||||||||
Germany | 27,372 | — | 56,230 | — | |||||||||||||||
Total Gross Profit | $ | 107,139 | $ | 68,633 | $ | 229,888 | $ | 120,331 |
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 | 2010 (restated, refer to Note 5) | 2011 | 2010 (restated, refer to Note 5) | |||||||||||||||||
Total Assets: | ||||||||||||||||||||
United States | 4,69 1,472 | 2,084,029 | 4,691,472 | 2,084,029 | ||||||||||||||||
Germany | 69,130 | 69,665 | 69,130 | 69,665 | ||||||||||||||||
Total Assets | $ | 4, 760,602 | $ | 2,153,694 | $ | 4,760,602 | $ | 2,153,694 |
June 30, 2011 | December 31, 2010 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Machinery and equipment | $ | 103,993 | $ | 93,764 | ||||||
Purchased Software | 15,608 | 10,000 | ||||||||
Molds and Tooling | 230,830 | 230,830 | ||||||||
Furniture and fixtures | 19,729 | 18,288 | ||||||||
Therapy Devices | 52,219 | 44,412 | ||||||||
Internally Developed Software | 540,000 | 540,000 | ||||||||
962,379 | 937,294 | |||||||||
Less: Accumulated depreciation and amortization | (250,717 | ) | (164,106 | ) | ||||||
Property and Equipment, net | $ | 711,662 | $ | 773,188 |
Therapy devices | 3 years | |||||
Computer equipment and software | 3 years | |||||
Furniture and fixtures | 7 years | |||||
Machinery and office equipment | 5 years | |||||
Internally Developed Software | 5 years |
June 30, | December 31, | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
2011 | 2010 | |||||||||
Amortized intangible assets: Patent (8 years useful life) | ||||||||||
Gross carrying Amount | $ | 430,679 | $ | 381,740 | ||||||
Accumulated Amortization | (78,353 | ) | (48,668 | ) | ||||||
$ | 352,326 | $ | 333,072 | |||||||
Intangible assets not subject to amortization | ||||||||||
Trademarks | $ | 130,000 | $ | 130,000 |
Number of shares | Weighted average exercise price per share | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Outstanding at December 31, 2009 | 35,493,172 | $ | 0.030 | ||||||||
Granted | 90,191,077 | 0.015 | |||||||||
Exercised | |||||||||||
Cancelled or expired | (9,079,473 | ) | 0.015 | ||||||||
Outstanding at December 31, 2010 | 116,604,776 | $ | 0.019 | ||||||||
Granted | 126,587,534 | 0.025 | |||||||||
Exercised | — | — | |||||||||
Cancelled or expired | (50,000 | ) | 0.500 | ||||||||
Outstanding at June 30, 2011 | 243,142,310 | $ | 0.022 |
Number of shares | Weighted average exercise price per share | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Outstanding at December 31, 2009 | 1,000,000 | $ | 0.14 | ||||||||
Granted | |||||||||||
Exercised | |||||||||||
Cancelled or expired | (166,667 | ) | 0.14 | ||||||||
Outstanding at December 31, 2010 | 833,333 | $ | 0.14 | ||||||||
Granted | — | — | |||||||||
Exercised | — | — | |||||||||
Cancelled or expired | — | — | |||||||||
Outstanding at June 30, 2011 | 833,333 | $ | 0.14 |
Six months ended June 30, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2011 | 2010 | ||||||||||
Risk-free interest rates | 0.57–1.60% | 2.39% | |||||||||
Expected life | 3 years | 3 years | |||||||||
Expected dividends | 0% | 0% | |||||||||
Expected volatility | 96% | 96% | |||||||||
Vycor Common Stock fair value | $0.0125 | $0.019–$0.0225 |
June 30, 2011 | December 31, 2010 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Gross deferred tax assets | 1,900,000 | 1,573,000 | ||||||||
Valuation allowance | (1,900,000 | ) | (1,573,000 | ) | ||||||
Net deferred tax asset | — | — |
Nature of expense | Amount | |||||
---|---|---|---|---|---|---|
SEC Registration fee | $ | 435.00 | ||||
Accounting fees and expenses | $ | 5,000.00 | ||||
Legal fees and expenses | $ | 5,000.00 | ||||
Printing expenses | $ | 2,000.00 | ||||
Miscellaneous | $ | 1,000.00 | ||||
TOTAL | $ | 13,435.00 |
Name of Purchaser | Date of Sale | Title of Security | Amount of Securities Sold | Consideration | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fountainhead Capital Management Limited | January 11, 2010 | Common Stock | 531,376,500 | Debenture Exchange | ||||||||||||||
Jodi Yeager | January 11, 2010 | Common Stock | 4,000,000 | Debenture Conv. | ||||||||||||||
Panamerica Capital Group, Inc. | January 11, 2010 | Common Stock | 8,787,600 | Debenture Conv. | ||||||||||||||
Hyperlink Media, LLC | January 11, 2010 | Common Stock | 9,187,600 | Debenture Conv. | ||||||||||||||
Karen Ginder | January 11, 2010 | Common Stock | 10,320,000 | Debenture Conv. | ||||||||||||||
Accessible Development Corp. | January 11, 2010 | Common Stock | 4,000,000 | Debenture Conv. |
Name of Purchaser | Date of Sale | Title of Security | Amount of Securities Sold | Consideration | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Altitude Group, LLC | January 11, 2010 | Common Stock | 16,000,000 | Debenture Conv. | ||||||||||||||
Mario Zachariou | January 11, 2010 | Common Stock | 6,000,000 | Debenture Conv. | ||||||||||||||
Anthony Cantor | January 11, 2010 | Common Stock | 6,000,000 | Debenture Conv. | ||||||||||||||
SLJ Consulting Corp | January 12, 2010 | Series B. Pref. | 80,000 | $80,000 | ||||||||||||||
Joseph Simone | January 12, 2010 | Series B. Pref. | 80,000 | $35,000 | ||||||||||||||
Steven Girgenti | February 23, 2010 | Common Stock | 800,000 | Professional services | ||||||||||||||
Kenneth D. Watkins | March 11, 2010 | Series B. Pref. | 25,000 | $25,000 | ||||||||||||||
Jane G. Ellis | April, 2010 | Common Stock | 6,666,667 | $100,000 | ||||||||||||||
Gregory Sichenzia | April 2010 | Common Stock | 934,986 | Professional Services | ||||||||||||||
Joe Simone | April 2010 | Common Stock | 750,000 | Professional services | ||||||||||||||
Myles F. Wittenstein | May 2010 | Common Stock | 3,300,000 | $49,500 | ||||||||||||||
Guri Dauti | May 2010 | Common Stock | 2,333,333 | $35,000 | ||||||||||||||
Stanley Katz | May 2010 | Common Stock | 3,000,000 | $45,000 | ||||||||||||||
Stanley Katz | May 2010 | Common Stock | 3,000,000 | $45,000 | ||||||||||||||
Duane John Renfro | May 2010 | Common Stock | 3,333,333 | $50,000 | ||||||||||||||
Glenn Fleischacker | May 2010 | Common Stock | 3,333,333 | $50,000 | ||||||||||||||
Datavision Computer Video, Inc. | May 2010 | Common Stock | 1,666,667 | $25,000 | ||||||||||||||
Thomas Ambrose | May 2010 | Common Stock | 3,333,333 | $50,000 | ||||||||||||||
Jack Lens | May 2010 | Common Stock | 3,333,333 | $50,000 | ||||||||||||||
IRA Services Trust Company | May 2010 | Common Stock | 13,333,333 | $200,000 | ||||||||||||||
Falcon Partners BVBA | May 2010 | Common Stock | 3,333,333 | $50,000 | ||||||||||||||
Konstantin Slavin | July 2010 | Common Stock | 262,500 | Professional services | ||||||||||||||
Ramon Rak | July 2010 | Common Stock | 300,000 | Professional Services | ||||||||||||||
Steven Girgenti | July 2010 | Common Stock | 250,000 | Professional services | ||||||||||||||
Sal & Kathryn DeMarco | July 2010 | Common Stock | 4,241,072 | $76,250 | ||||||||||||||
Jarvis D & Molly Littlefield | August 2010 | Common Stock | 2,857,143 | $50,000 | ||||||||||||||
Berardino Investment Group | August 2010 | Common Stock | 1,428,571 | $25,000 | ||||||||||||||
Panayiotis Panayiotou | August 2010 | Common Stock | 571,429 | $10,000 | ||||||||||||||
Simon Becker | August 2010 | Common Stock | 6,285,714 | $110,000 | ||||||||||||||
Richard H. Lawson | September 2010 | Common Stock | 1,428,571 | $25,000 | ||||||||||||||
SLJ Consulting | September 2010 | Common Stock | 6,548,515 | Preferred Conversion | ||||||||||||||
Joe Simone | September 2010 | Common Stock | 3,139,463 | Preferred Conversion | ||||||||||||||
Kenny Watkins | September 2010 | Common Stock | 2,080,219 | Preferred Conversion | ||||||||||||||
Sal & Kathryn DeMarco | October 2010 | Common Stock | 2,285,714 | $40,000 | ||||||||||||||
Sal & Kathryn DeMarco | November 2010 | Common Stock | 1,714,286 | $30,000 | ||||||||||||||
Steven Girgenti | November 2010 | Common Stock | 250,000 | Professional services | ||||||||||||||
Myles F. Wittenstein | November 2010 | Common Stock | 2,631,579 | $50,000 | ||||||||||||||
Brunella Jacs LLC | November 2010 | Common Stock | 2,631,579 | $50,000 | ||||||||||||||
Dr. Sam Fox | November 2010 | Common Stock | 2,631,579 | $50,000 | ||||||||||||||
Neil A. Weiss | December 2010 | Common Stock | 5,263,158 | $100,000 | ||||||||||||||
Stephen Nicholas Bunzl | December 2010 | Common Stock | 7,894,737 | $150,000 | ||||||||||||||
Peter Lawrence | December 2010 | Common Stock | 2,631,579 | $50,000 |
Name of Purchaser | Date of Sale | Title of Security | Amount of Securities Sold | Consideration | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Stephen Rathkopf | January 2011 | Common Stock | 1,000,000 | $19,000 | ||||||||||||||
Steven Girgenti | January 2011 | Common Stock | 250,000 | Professional services | ||||||||||||||
Datavision Computer Video, Inc. | February 2011 | Common Stock | 1,315,789 | $25,000 | ||||||||||||||
Dr. Wayne Fleischacker | February 2011 | Common Stock | 5,263,158 | $100,000 | ||||||||||||||
Jerrald Ginder | April 2011 | Common Stock | 18,000,000 | $360,000 | ||||||||||||||
Ilex Investments, LP | April 2011 | Common Stock | 8,888,888 | $200,000 | ||||||||||||||
Carol Tambor | April 2011 | Common Stock | 2,222,222 | $50,000 | ||||||||||||||
Neil Weiss | April 2011 | Common Stock | 4,444,444 | $100,000 | ||||||||||||||
Myles Wittenstein | April 2011 | Common Stock | 2,222,222 | $50,000 | ||||||||||||||
Duane John Renfro | April 2011 | Common Stock | 2,222,222 | $50,000 | ||||||||||||||
Stephen Nicholas Bunzl | April 2011 | Common Stock | 2,222,222 | $50,000 | ||||||||||||||
Jack Lens | April 2011 | Common Stock | 2,222,222 | $50,000 | ||||||||||||||
Robert Crames | May 2011 | Common Stock | 2,222,222 | $50,000 | ||||||||||||||
Sal & Kathryn DeMarco | May 2011 | Common Stock | 1,111,111 | $25,000 | ||||||||||||||
Steven Girgenti | May 2011 | Common Stock | 222,222 | Professional Services | ||||||||||||||
Maurice Reissman | May 2011 | Common Stock | 4,444,444 | $100,000 | ||||||||||||||
GreenBridge Capital Partners IV, LLC | June 2011 | Common Stock | 15,500,000 | Consulting Services | ||||||||||||||
Matthew Balk | June 2011 | Common Stock | 700,000 | Financial Advisory Services | ||||||||||||||
Jason Adelman | June 2011 | Common Stock | 200,000 | Financial Advisory Services | ||||||||||||||
Daniel Schneiderman | June 2011 | Common Stock | 100,000 | Financial Advisory Services | ||||||||||||||
Dashka Solanky | June 2011 | Common Stock | 888,889 | $20,000 | ||||||||||||||
Berardino Investment Group | June 2011 | Common Stock | 2,167,902 | Debenture Conversion | ||||||||||||||
Jerrald Ginder | June 2011 | Common Stock | 2,666,667 | Debt Conversion | ||||||||||||||
Alvaro Pascale Leone | August 2011 | Common Stock | 78,300 | Services | ||||||||||||||
Steven Girgenti | August 2011 | Common Stock | 154,600 | Professional Services | ||||||||||||||
McCombie Group, LLC | August 2011 | Common Stock | 428,571 | Consulting Services | ||||||||||||||
MKM Opportunity Master Fund, Ltd | June 7, 2011 | Series C Preferred Stock | 3.0 | * | $250,000 | |||||||||||||
Andrew Mitchell | June 7, 2011 | Series C Preferred Stock | .5 | * | $25,000 | |||||||||||||
Matthew Balk | June 7, 2011 | Series C Preferred Stock | .8 | * | $40,000 | |||||||||||||
Daniel Balk | June 7, 2011 | Series C Preferred Stock | 1.1 | * | $55,000 | |||||||||||||
David Balk | June 7, 2011 | Series C Preferred Stock | 1.1 | * | $55,000 | |||||||||||||
Daniel Schneiderman | June 7, 2011 | Series C Preferred Stock | .45 | * | $22,500 | |||||||||||||
Jonathan Balk | June 7, 2011 | Series C Preferred Stock | .5 | * | $25,000 |
Name of Purchaser | Date of Sale | Title of Security | Amount of Securities Sold | Consideration | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Richard L. Hoffman | June 7, 2011 | Series C Preferred Stock | .45 | * | $22,500 | |||||||||||||
Robert I and Sandra S Neborsky Living Trust | June 7, 2011 | Series C Preferred Stock | 2.0 | * | $100,000 | |||||||||||||
Skriloff Family Irrevocable Trust F/B/O Samuel Skriloff | June 7, 2011 | Series C Preferred Stock | .1 | * | $5,000 | |||||||||||||
Skriloff Family Irrevocable Trust F/B/O Olivia Skriloff | June 7, 2011 | Series C Preferred Stock | .1 | * | $5,000 | |||||||||||||
Jason Adelman | June 7, 2011 | Series C Preferred Stock | 1.8 | * | $90,000 | |||||||||||||
Robert and Amy Bernstein | June 7, 2011 | Series C Preferred Stock | .5 | * | $25,000 | |||||||||||||
Dick F. Chase, Jr. | June 7, 2011 | Series C Preferred Stock | 2 | * | $100,000 | |||||||||||||
Boris and Alexandra Smirnov | June 7, 2011 | Series C Preferred Stock | 2 | * | $100,000 | |||||||||||||
Nadegda Kassatkina | June 7, 2011 | Series C Preferred Stock | 2 | * | $100,000 | |||||||||||||
Irina Pavlova | June 7, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Jeffrey J and Jennifer S. Clayton | June 7, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Greenbridge Capital Partners IV, LLC | June 7, 2011 | Series C Preferred Stock | 1.5 | * | $75,000 | |||||||||||||
Core Capital IV Trust | June 7, 2011 | Series C Preferred Stock | 1.5 | * | $75,000 | |||||||||||||
Rolant Investments Limited | June 7, 2011 | Series C Preferred Stock | 6 | * | $300,000 | |||||||||||||
David Wiener | June 28, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
One East Partners Opportunity L.P. | June 28, 2011 | Series C Preferred Stock | 2.7 | * | $135,000 | |||||||||||||
One East Partners Master L.P. | June 28, 2011 | Series C Preferred Stock | 5.3 | * | $265,000 | |||||||||||||
Narang Family Partnership, LP | June 28, 2011 | Series C Preferred Stock | .5 | * | $25,000 | |||||||||||||
Hugh Scott Campbell | June 28, 2011 | Series C Preferred Stock | .2 | * | $10,000 | |||||||||||||
Fraser Campbell | June 28, 2011 | Series C Preferred Stock | .2 | * | $10,000 | |||||||||||||
Sean Campbell | June 28, 2011 | Series C Preferred Stock | .5 | * | $25,000 | |||||||||||||
Dr. Wayne Fleischacker | June 28, 2011 | Series C Preferred Stock | 2 | * | $100,000 |
Name of Purchaser | Date of Sale | Title of Security | Amount of Securities Sold | Consideration | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dr. Glenn Fleischacker | June 28, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Jane Ellis | June 28, 2011 | Series C Preferred Stock | 2 | * | $100,000 | |||||||||||||
Duane Renfro | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Guri Dauti | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Matteo Joseph Rosselli | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Sarah Benveniste | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Steven Reichbach | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Dr. Glenn Fleischacker | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Myles Wittenstein | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Neil Weiss | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Randolf Kahn | August 4, 2011 | Series C Preferred Stock | 1 | * | $50,000 | |||||||||||||
Dr. Wayne Fleischacker | August 4, 2011 | Series C Preferred Stock | 2 | * | $100,000 | |||||||||||||
Marc S Cohen | August 4, 2011 | Series C Preferred Stock | 2.2 | * | $110,000 | |||||||||||||
Marc S Cohen | August 26, 2011 | Series C Preferred Stock | 3.8 | * | $190,000 | |||||||||||||
Joseph Simone | September 30, 2011 | Common Stock | 510,000 | Consulting Services |
* | Units comprising one share of Series C Convertible Preferred Stock convertible into 2,222,222 shares of common stock and a warrant to purchase 1,111,111 shares of common stock at $0.0225 per share |
Exhibit No. | Description | |||||
---|---|---|---|---|---|---|
3.1(a) | Certificate of Incorporation of Vycor Medical, Inc. (filed with Form S-1 on September 7, 2011) | |||||
3.1(b) | Certificate of Amendment to Certificate of Incorporation of Vycor Medical, Inc. dated as of January 11, 2010 (filed with Form S-1 on September 7, 2011) | |||||
3.1(c) | Certificate of Amendment to Certificate of Incorporation of Vycor Medical, Inc. dated as of July 20, 2010 (filed with Form S-1 on September 7, 2011) | |||||
3.2 | Bylaws of Vycor Medical, Inc. (filed with Form S-1 on September 7, 2011) | |||||
5.1* | Legal Opinion of Legal Robert Diener, Esq. |
Exhibit No. | Description | |||||
---|---|---|---|---|---|---|
23.1* | Legal Opinion of Legal Robert Diener, Esq. (included with Exhibit 5.1) | |||||
23.2 | Consent of Independent Auditors (filed with Form S-1 on September 7, 2011) |
* | filed herewith |
1. | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
i. | To include any prospectus required by section 10(a)(3) of the Securities Act of 1933; |
ii. | To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement. |
iii. | To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; Provided however, That: |
(A) | Paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the registration statement is on Form S-8, and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement; and |
(B) | Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement. |
2. | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
3. | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
4. | If the registrant is a foreign private issuer, to file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A. of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished,provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3, a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of |
the Act or Rule 3-19 of this chapter if such financial statements and information are contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F-3. |
5. | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser: |
i. | If the registrant is relying on Rule 430B: |
A. | Each prospectus filed by the registrant pursuant to Rule 424(b)(3)shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and |
B. | Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or |
ii. | If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
6. | That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
i. | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
ii. | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
iii. | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
iv. | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
Vycor Medical, Inc. | ||||||||||
(Registrant) | ||||||||||
By: | /s/ Kenneth T. Coviello | |||||||||
Kenneth T. Coviello | ||||||||||
Chief Executive and Director (Principal Executive Officer) | ||||||||||
Date | October 26, | |||||||||
By: | /s/ Adrian Liddell | |||||||||
Adrian Liddell | ||||||||||
Chairman of the Board and Director | ||||||||||
(Principal Financial and Accounting Officer) | ||||||||||
Date | October 26, |
By: | /s/ Kenneth T. Coviello | |||||||||
Kenneth T. Coviello | ||||||||||
Chief Executive and Director (Principal Executive Officer) | ||||||||||
Date | October 26, | |||||||||
By: | /s/ Heather Vinas | |||||||||
Heather Vinas | ||||||||||
Director | ||||||||||
Date | October 26, | |||||||||
By: | /s/ Pascale Mangiardi | |||||||||
Pascale Mangiardi | ||||||||||
Director | ||||||||||
Date | October 26, | |||||||||
By: | Steven Girgenti | |||||||||
Director | ||||||||||
Date | October 26, | |||||||||
By: | /s/ Adrian Christopher Liddell | |||||||||
Adrian Christopher Liddell | ||||||||||
Chairman of the Board and Director (Principal Financial and Accounting Officer) | ||||||||||
Date | October 26, |
By: | /s/ David Marc Cantor | |||||||||
David Marc Cantor | ||||||||||
President and Director | ||||||||||
Date | October 26, | |||||||||
By: | /s/ Peter C. Zachariou | |||||||||
Peter C. Zachariou | ||||||||||
Executive Vice President and Director | ||||||||||
Date | October 26, |
Exhibit No. | Description | |||||
---|---|---|---|---|---|---|
3.1(a) | Certificate of Incorporation of Vycor Medical, Inc. (filed with Form S-1 on September 7, 2011) | |||||
3.1(b) | Certificate of Amendment to Certificate of Incorporation of Vycor Medical, Inc. dated as of January 11, 2010 (filed with Form S-1 on September 7, 2011) | |||||
3.1(c) | Certificate of Amendment to Certificate of Incorporation of Vycor Medical, Inc. dated as of July 20, 2010 (filed with Form S-1 on September 7, 2011) | |||||
3.2 | Bylaws of Vycor Medical, Inc. (filed with Form S-1 on September 7, 2011) | |||||
Legal Opinion of Legal Robert Diener, Esq. | ||||||
Legal Opinion of Legal Robert Diener, Esq. (included with Exhibit 5.1) | ||||||
23.2 | Consent of Independent Auditors (filed with Form S-1 on September 7, 2011) |
* | filed herewith |