Notes Payable | 6 Months Ended |
Jun. 30, 2014 |
Notes Payable [Abstract] | ' |
NOTES PAYABLE | ' |
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3. NOTES PAYABLE |
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Related Party Notes Payable |
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As of June 30, 2014 and December 31, 2013 Related Party Notes Payable consists of: |
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| | | June 30, | | | | December 31, | | | |
2014 | 2013 | | |
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. 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 $1.88 per share, subject to adjustment, and does not require bifurcation. These debentures were originally due August 31, 2010 and the due date has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 441,362 | | | | 441,362 | | | |
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| | | June 30, | | | | December 31, | | | |
2014 | 2013 | | | |
On March 31, 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%. 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 $2.63 per share, subject to adjustment and does not require bifurcation. The debentures were originally due August 31, 2011, and the due date has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 175,000 | | | | 175,000 | | | |
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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. These debentures were originally due August 31, 2011 and the due date has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 400,000 | | | | 400,000 | | | |
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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. 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 $2.85 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. The debentures were originally due December 31, 2012 and the due date has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 300,000 | | | | 300,000 | | | |
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In the period July to December 2012 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $300,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. The due date has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 300,900 | | | | 300,900 | | | |
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In the period August to December 2012 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $115,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. The due date has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 115,550 | | | | 115,550 | | | |
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In the period January to September 2013 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $325,744. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. The due date has been extended to January 2, 2017, subject to certain early repayment provisions (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 324,225 | | | | 324,225 | | | |
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| | | June 30, | | | | December 31, | | | |
2014 | 2013 | | | |
In the period August 9 to December 2013 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $91,519. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. These notes were repaid in January and February 2014. | | | — | | | | 91,519 | | | |
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In the period January to September 2013 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $210,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. The due date has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 190,000 | | | | 190,000 | | | |
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In the period August 9 to December 2013 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $20,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. This note was repaid in February 2014 | | | — | | | | 20,000 | | | |
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In the period August 9 to December 2013 the Company issued short term, unsecured notes payable to David Cantor, in the aggregate amount of $15,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. This note was repaid in 2014. | | | — | | | | 15,000 | | | |
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Total Related Party Notes Payable: | | $ | 2,247,037 | | | $ | 2,373,556 | | | |
Other Notes Payable |
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As of June 30, 2014 and December 31, 2013 Other Notes Payable consists of: |
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| | | June 30, | | | | December 31, | | | |
2014 | 2013 | | | |
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 $4.50 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 an adjusted conversion price of $1.80 per share, subject to adjustment and does not require bifurcation. The due date for this note has been extended to January 2, 2015, subject to certain early repayment provisions. | | | 300,000 | | | | 300,000 | | | |
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| | | June 30, | | | | December 31, | | | |
2014 | 2013 | | | |
In the period August to December 2012 the Company issued short term, unsecured notes payable to Craig Kirsch in the aggregate amount of $98,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. The due date for this note has been extended to January 2, 2017, subject to certain early repayment provisions. (On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 98,550 | | | | 98,550 | | | |
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In September 2012 the Company issued short term, unsecured notes payable to Osbaldo Trading Limited in the amount of $42,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. This note was repaid in June 2014. | | | — | | | | 42,900 | | | |
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In the period June to September 2013 the Company issued short term, unsecured notes payable to Craig Kirsch in the aggregate amount of $10,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. The due date for this note has been extended to January 2, 2017, subject to certain early repayment provisions.(On August 5, 2014 the holder agreed to exchange the note into series D convertible preferred stock of Vycor, see Note 11) | | | 10,000 | | | | 10,000 | | | |
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In the period August 9 to December 2013 the Company issued short term, unsecured notes payable to Craig Kirsch in the aggregate amount of $3,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company. This note was repaid in February 2014. | | | — | | | | 3,000 | | | |
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On October 22, 2013 the Company issued a term note for $100,000 to EuroAmerican Investment Corp. (“EuroAmerican”). The term note bears interest at 16% per annum and was due November 30, 2013. This note was repaid in January 2014. | | | — | | | | 100,000 | | | |
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Insurance policy finance agreements. During the six months ended June 30, 2014 the Company received proceeds from Insurance policy finance agreements of $28,525 and made repayments of $40,816 | | | 11,445 | | | | 23,736 | | | |
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Total Other Notes Payable: | | $ | 419,995 | | | $ | 578,186 | | | |
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The following is a schedule of future minimum loan repayments: |
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| Six months ending June 30 | | | | Related Party | | | | Other | |
| 2014 | | | | — | | | | 311,445 | |
| 2015 | | | | — | | | | — | |
| 2016 | | | | — | | | | — | |
| 2017 | | | | 2,247,037 | | | | 108,550 | |
| | | | $ | 2,247,037 | | | $ | 419,995 | |
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The company assesses the value of the beneficial conversion feature of its convertible debt by determining the intrinsic value of such conversion, under ASC 470, at the time of issuance. At the time of issuance of each of the convertible debt instruments set out above, the fair value of the stock was either the same or less than the conversion price, and so there was no value attributable to any beneficial conversion feature. |
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On August 5, 2014, each of the convertible debt instruments set out above were exchanged for Series D convertible preferred stock of Vycor (see Note 11). As a result of this exchange, no future loan payments will be due on account of such convertible debt instruments. |