Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 30, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | VYCOR MEDICAL INC | ||
Entity Central Index Key | 0001424768 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,482,453 | ||
Entity Common Stock, Shares Outstanding | 27,898,200 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash | $ 46,002 | $ 60,717 |
Trade accounts receivable | 159,238 | 274,551 |
Inventory | 181,096 | 208,353 |
Prepaid expenses and other current assets | 76,988 | 92,694 |
Current assets of discontinued operations | 577 | 20,117 |
Total Current Assets | 463,901 | 656,432 |
Fixed assets, net | 381,087 | 364,953 |
Intangible and Other assets: | ||
Patents, net of accumulated amortization | 11,349 | 23,326 |
Security deposits | 6,000 | 6,000 |
Operating lease - right of use assets | 124,183 | 31,658 |
Long term assets of discontinued operations | 9,574 | |
Total Intangible and Other assets | 141,532 | 70,558 |
TOTAL ASSETS | 986,520 | 1,091,943 |
Current Liabilities | ||
Accounts payable | 179,110 | 245,412 |
Accrued interest: Other | 328,897 | 280,765 |
Accrued interest: Related party | 74,603 | 44,921 |
Accrued liabilities - Other | 117,050 | 233,067 |
Accrued liabilities - Related Party | 1,297,480 | 973,110 |
Notes payable: Other | 384,587 | 328,032 |
Notes payable: Related Party | 310,873 | 230,873 |
Current operating lease liabilities | 44,623 | 28,010 |
Current liabilities of discontinued operations | 3,605 | 82,216 |
Total Current Liabilities | 2,740,828 | 2,446,406 |
Loan Payable - SBA EIDL | 150,000 | |
Operating lease liability - Long term | 77,008 | |
Total Long-term Liabilities | 227,008 | |
STOCKHOLDERS' DEFICIENCY | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 270,307 and 270,307 issued and outstanding as at December 31, 2020 and December 31, 2019 respectively | 27 | 27 |
Common Stock, $0.0001 par value, 55,000,000 shares authorized at December 31, 2020 and December 31, 2019, 27,534,740 and 25,391,884 shares issued and 27,431,406 and 25,288,550 outstanding at December. 31, 2020 and December 31, 2019 respectively | 2,753 | 2,539 |
Additional Paid-in Capital | 28,826,378 | 28,306,592 |
Treasury Stock (103,334 shares of Common Stock as at December 31, 2020 and December 31, 2019 respectively, at cost) | (1,033) | (1,033) |
Accumulated Deficit | (30,937,110) | (29,790,258) |
Accumulated Other Comprehensive Income (Loss) | 127,669 | 127,670 |
Total Stockholders' Deficiency | (1,981,316) | (1,354,463) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY | $ 986,520 | $ 1,091,943 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 270,307 | 270,307 |
Preferred stock, shares outstanding | 270,307 | 270,307 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 27,534,740 | 25,391,884 |
Common stock, shares outstanding | 27,431,406 | 25,288,550 |
Treasury stock, shares | 103,334 | 103,334 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 1,142,045 | $ 1,392,900 |
Cost of Goods Sold | 132,463 | 134,770 |
Gross Profit | 1,009,582 | 1,258,130 |
Operating Expenses: | ||
Depreciation and Amortization | 56,529 | 59,876 |
Selling, general and administrative | 1,680,447 | 1,799,647 |
Total Operating Expenses | 1,736,976 | 1,859,523 |
Operating loss | (727,394) | (601,393) |
Other Income (Expense) | ||
Interest expense: Related Party | (29,682) | (20,647) |
Interest expense: Other | (48,132) | (48,036) |
Loss on foreign currency exchange | (1,102) | (110) |
Grant income - SBA | 6,000 | |
Total Other Income (Expense) | (72,916) | (68,793) |
Loss Before Credit for Income Taxes | (800,310) | (670,186) |
Credit for income taxes | ||
Net Loss from continuing operations | (800,310) | (670,186) |
Loss from discontinued operations, net of tax | (22,172) | (126,016) |
Net Loss | (822,482) | (796,202) |
Preferred stock dividends | (324,370) | (324,370) |
Net Loss Available to Common Stockholders | (1,146,852) | (1,120,572) |
Other Comprehensive Loss | ||
Foreign Currency Translation Adjustment | (1) | 3 |
Comprehensive Loss | $ (822,483) | $ (796,199) |
Net Loss Per Share - basic and diluted | ||
Loss from continuing operations | $ (0.03) | $ (0.03) |
Loss from discontinued operations | 0 | (0.01) |
Net loss available to common stockholders | $ (0.04) | $ (0.05) |
Weighted Average Number of Shares Outstanding - Basic and Diluted | 26,100,903 | 23,958,999 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficiency - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Common Stock [Member] | ||
Balance | $ 2,539 | $ 2,324 |
Balance, shares | 25,391,884 | 23,244,028 |
Issuance of stock for board and consulting fees | $ 214 | $ 215 |
Issuance of stock for board and consulting fees, shares | 2,142,856 | 2,147,856 |
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | ||
Net loss | ||
Balance | $ 2,753 | $ 2,539 |
Balance, shares | 27,534,740 | 25,391,884 |
Preferred C [Member] | ||
Balance | $ 0 | $ 0 |
Balance, shares | 1 | 1 |
Issuance of stock for board and consulting fees | ||
Issuance of stock for board and consulting fees, shares | ||
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | ||
Net loss | ||
Balance | $ 0 | $ 0 |
Balance, shares | 1 | 1 |
Preferred D [Member] | ||
Balance | $ 27 | $ 27 |
Balance, shares | 270,306 | 270,306 |
Issuance of stock for board and consulting fees | ||
Issuance of stock for board and consulting fees, shares | ||
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | ||
Net loss | ||
Balance | $ 27 | $ 27 |
Balance, shares | 270,306 | 270,306 |
Treasury Stock [Member] | ||
Balance | $ (1,033) | $ (1,033) |
Balance, shares | (103,334) | (103,334) |
Issuance of stock for board and consulting fees | ||
Issuance of stock for board and consulting fees, shares | ||
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | ||
Net loss | ||
Balance | $ (1,033) | $ (1,033) |
Balance, shares | (103,334) | (103,334) |
Additional Paid-In Capital [Member] | ||
Balance | $ 28,306,592 | $ 27,771,868 |
Issuance of stock for board and consulting fees | 449,786 | 450,724 |
Directors deferred compensation granted | 70,000 | 84,000 |
Accumulated Comprehensive Loss | ||
Net loss | ||
Balance | 28,826,378 | 28,306,592 |
Accumulated Deficit [Member] | ||
Balance | (29,790,258) | (28,669,686) |
Issuance of stock for board and consulting fees | ||
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | ||
Net loss | (1,146,852) | (1,120,572) |
Balance | (30,937,110) | (29,790,258) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Balance | 127,670 | 127,673 |
Issuance of stock for board and consulting fees | ||
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | (1) | (3) |
Net loss | ||
Balance | 127,669 | 127,670 |
Balance | (1,354,463) | (768,827) |
Issuance of stock for board and consulting fees | 450,000 | 450,939 |
Directors deferred compensation granted | 70,000 | 84,000 |
Accumulated Comprehensive Loss | (1) | (3) |
Net loss | (1,146,852) | (1,120,572) |
Balance | $ (1,981,316) | $ (1,354,463) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (822,482) | $ (796,202) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Amortization of intangible assets | 11,977 | 12,164 |
Depreciation of fixed assets | 45,918 | 49,474 |
Inventory provision | 12,558 | 12,558 |
Stock based compensation | 520,000 | 534,940 |
Changes in assets and liabilities: | ||
Accounts receivable | 115,313 | (19,237) |
Inventory | 14,699 | (21,654) |
Prepaid expenses | 16,802 | (15,489) |
Accrued interest - Related Party | 29,682 | 20,647 |
Accrued interest - Other | 48,132 | 48,000 |
Accounts payable | (66,302) | 159,249 |
Accrued liabilities - Other | (116,017) | 3,146 |
Changes in discontinued operations, net | (59,071) | 6,384 |
Cash used in operating activities | (248,791) | (6,020) |
Cash flows from investing activities: | ||
Purchase of fixed assets | (62,052) | (52,904) |
Changes in investing activities of discontinued operations, net | 9,574 | 2,456 |
Cash used in investing activities | (52,478) | (50,448) |
Cash flows from financing activities: | ||
Proceeds from Notes Payable - Related Party | 80,000 | 37,873 |
Proceeds from Paycheck Protection Program and EIDL | 208,600 | |
Proceeds net of repayments Notes Payable - Other | (2,048) | 2,218 |
Cash provided by financing activities | 286,552 | 40,091 |
Effect of exchange rate changes on cash | 2 | (917) |
Net decrease in cash | (14,715) | (17,294) |
Cash at beginning of year | 60,717 | 78,011 |
Cash at end of year | 46,002 | 60,717 |
Supplemental Disclosures of Cash Flow information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income tax | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business of the Company and Going Concern | 1. BUSINESS OF THE COMPANY AND GOING CONCERN Business Description Vycor Medical, Inc. (the “Company”) designs, develops and markets neurological medical devices and therapies through two operating divisions: Vycor Medical and NovaVision. Vycor Medical focuses on brain and cervical surgical access systems for sale to hospitals and medical professionals; NovaVision focuses on neuro-stimulation therapies and diagnostic devices for the treatment and screening of vision field loss resulting from neurological damage. Ability to continue as a Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred losses since its inception, including a net loss of $822,482 and $796,202 for the years ending December 31, 2020 and 2019, respectively, and has not generated sufficient cash flows from operations. As at December 31, 2020 the Company had a working capital deficiency of $593,971, excluding related party liabilities of $1,682,956. These conditions, among others, raise substantial doubt regarding our ability to continue as a going concern. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. The Company is executing on a plan to achieve a reduction in cash operating losses for both the Vycor Medical and NovaVision divisions. Included within the working capital deficiency above is a term note for $300,000 to EuroAmerican Investment Corp. (“EuroAmerican”), together with accrued interest of $328,897, which has a maturity date of June 30, 2021, having been extended on a number of occasions from its initial due date of June 11, 2011. At this time, it is not known whether any further extension of the note beyond June 30, 2021 will be available. However, the Company believes it may not have sufficient cash to meet its various cash needs through March 31, 2021 unless the Company is able to obtain additional cash from the issuance of debt or equity securities. Fountainhead, the Company’s largest shareholder, has provided working capital funding to the Company on an as-needed basis, although there is no guarantee that this will continue to be the case. The Company may consider seeking additional equity or debt funding, although there is no assurance that this would be available on acceptable terms or at all. If adequate funds are not available, the Company may have to delay or curtail development or commercialization of products, or cease some of its operations |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Vycor Medical, Inc., and its wholly-owned subsidiaries, NovaVision, Inc. (a Delaware corporation), NovaVision GmbH (a German corporation) and Sight Science Limited (a UK corporation), both wholly owned subsidiaries of NovaVision, Inc. The Company is headquartered in Boca Raton, FL. All material inter-company accounts, transactions, and balances have been eliminated in consolidation. Following the decision in April 2020 to close the German office of NovaVision, the activities of NovaVision GmbH have been accounted for as discontinued operations. Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers and all the related amendments (new revenue standard) to all contracts. The adoption of the new accounting standard had no impact on company’s consolidated financial statements. Vycor Medical generates revenue from the sale of its surgical access system to hospitals and other medical professionals. Vycor Medical records revenue from product sales when obligations under the terms of a contract with customers are satisfied. Generally, this occurs with the transfer of control of the goods to customers. Vycor Medical does not provide for product returns or warranty costs. Vycor determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when Vycor satisfy a performance obligation NovaVision generates revenues from various programs, therapy services and other sources such as software license sales. Therapy services revenues represent fees from NovaVision’s vision restoration therapy software, eye movement training software, diagnostic software, clinic set up and training fees, and the professional and support services associated with the therapy. NovaVision provides vision restoration therapy directly to patients. The typical therapy program consists of NeuroEyeCoach, performed over 2-4 weeks, and six modules of Vision Restoration Therapy, performed over 6 months. A patient contract comprises set-up fees and monthly therapy fees. Set-up fees are recognized at the outset of the contract and therapy revenue is recognized ratably over the therapy period. Patient therapy is restricted to being completed by a patient within a specified time frame. Deferred revenue results from patients paying for the therapy in advance of receiving the therapy. As part of the adoption of ASC 606, see Note 7 to the Consolidated Financial Statements for further disaggregation of revenue. Cash and cash equivalents The Company maintains cash balances at various financial institutions. Accounts at each institution in the U.S. are insured by the Federal Deposit Insurance Corporation up to $250,000. Cash balances may at times exceed the FDIC insured limits. Cash also includes a US investment account in a money market backed by government securities up to 105% of the account balance. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Included within cash are deposits paid by patients, held by the Company until the patient returns the VRT device or chinrest at the end of therapy. At December 31, 2020 and 2019 patient deposits amounted to $28,704 and $24,601, respectively, and are included in Accrued Liabilities. Accounts Receivable and Allowance for Doubtful Accounts Receivable The Company’s accounts receivable are due from the hospitals and distributors in the case of Vycor Medical, and from patients directly for therapy or physicians for diagnostic products in the case of NovaVision. Accounts receivable are due once products have been delivered or at the time the therapy is initiated; however, for NovaVision therapy patients sometimes credit is extended through various payment plans based on individual financial conditions, generally not to exceed the therapy period. The outstanding balances are stated net of an allowance for doubtful accounts. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that we should abandon such efforts. Inventories Inventories consist of raw materials, work in process and finished goods that are stated at the lower of cost determined using the weighted average cost method, or net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose of the product. If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. The provision for inventory obsolescence for the years ended December 31, 2020 and 2019 was $12,558, respectively. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s consolidated statements of comprehensive loss. Leases The Company has one leased building in Boca Raton, Florida that is classified as operating lease right-of use (“ROU”) assets and operating lease liabilities in the Company’s consolidated balance sheet as per ASC 842. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of Selling, General and Administrative expenses. The standard was effective for us beginning January 1, 2019. The Company elected the available practical expedients on adoption. The adoption had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated statements of comprehensive loss. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. Discontinued Operations In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. Foreign Currency The Euro is the local currency of the country in which the discontinued operations of NovaVision GmbH conducts its operations and is considered the functional currency of this entity; the GB Pound is the local currency of the country in which Sight Science Limited conducts its operations and is considered the functional currency of this entity. All balance sheet amounts are translated to U.S. dollars using the U.S. exchange rate at the balance sheet date except for the equity section which is translated at historical rates. Operating statement amounts are translated using an average exchange rate for the period of operations. Foreign currency translation effects are accumulated as part of the accumulated other comprehensive income (loss) and included in stockholders’ deficiency in the accompanying Consolidated Balance Sheets. Educational marketing and advertising expenses The Company may incur costs for the education of customers on the uses and benefits of its products. The Company will include education, marketing and advertising expense as a component of selling, general and administrative costs as such costs are incurred. Income taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Accounting for forgivable loan received under the Small Business Administration Paycheck Protection Program During the year ended December 31, 2020 the Company received a loan of $58,600 during the year, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act. Under the terms of the PPP, the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company’s use of the Loan qualifies and the Company intends to apply during 2021. The Company accounts for the loan as a financial liability in accordance with FASB ASC 470 and accrues interest in accordance with the interest method under FASB ASC 835-30. For purposes of derecognition of the liability, FASB ASC 470-50-15-4 refers to guidance in FASB ASC 405-20. Based on this guidance, the proceeds of the loan will remain recorded as a liability until either (1) the loan is, in part or wholly, forgiven and the Company has been “legally released”, or (2) the Company pays off the loan. Once the loan is, in part or wholly, forgiven and legal release is received, the Company will reduce the liability by the amount forgiven and record a gain on the extinguishment. The Company received an additional PPP loan of $58,600 in January 2021. Fixed assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. Expenditures for additions and improvements are capitalized; repairs and maintenance are expensed as incurred. Patents and Other Intangible Assets The Company capitalizes legal and related costs associated with the establishment and enhancement of patents for its products once patents have been applied for. Costs associated with the development of the patented item or processes are charged to research and development costs as incurred. The capitalized costs are amortized over the life of the patent. The Company reviews intangible assets on an annual in accordance with the authoritative guidance. Trademarks have an indefinite life and are reviewed annually by management for impairment in accordance with the authoritative guidance. Impairment of long-lived assets Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. Research and Development The Company expenses all research and development costs as incurred. For the years ended December 31, 2020 and 2019, the amounts charged to research and development expenses were $0 for both years, respectively. Software Development Costs The Company accounts for software development costs in accordance with ASC 350-40, whereby all costs incurred during the preliminary stage of a development project should be charged to expense as incurred. Capitalization of costs begins after the preliminary stage has been completed, management commits to funding the project, it is probable that the project will be completed, and the software will be used for its intended function. All post-implementation costs are charged to expense as incurred. Accordingly, direct internal and external costs associated with the development of the features and functionality of the Company’s software, incurred during the application development stage, are capitalized and amortized using the straight-line method of the estimated life of five years. There was no capitalized for software development during the years ended December 31, 2020 and 2019. Uses of estimates in the preparation of financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimated. To the extent management’s estimates prove to be incorrect, financial results for future periods may be adversely affected. Significant estimates and assumptions contained in the accompanying consolidated financial statements include management’s estimate of the allowance for uncollectible accounts receivable, provision for inventory obsolescence, useful life of intangible assets, and the fair values of options and warrants included in the determination of debt discounts and stock-based compensation. Stock Option Plan Under ASC Topic 718, the Company estimates the fair value of option awards on the date of grant using an option-pricing model. The grant date fair value is recognized over the option-vesting period, the period during which an employee is required to provide service in exchange for the award. No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Under these standards, compensation cost for employee cost for employee stock-based awards is based on the estimated grant-date fair value and recognized over the vesting period of the applicable award on a straight-line basis. Stock Compensation The Company recognizes the cost of all stock -based payments under the relevant authoritative accounting guidance. Stock-based payments include any remuneration paid by the Company in shares of the Company’s common stock or financial instruments that grant the recipient the right to acquire shares of the Company’s common stock. For stock-based payments to employees, which consist only of awards made under the stock option plan described below, the Company accounts for the payments in accordance with the provisions of ASC Topic 718, “Stock Compensation”. Stock-based payments to consultants, service providers and other non-employees are accounted for in accordance with ASC Topic 718, ASC Topic 505, “Equity Payments to Non-Employees” or other applicable authoritative guidance. Convertible Instruments We evaluate and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. We account for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The embedded conversion option in connection with our convertible debt could not be exercised unless and until we completed a Qualifying Financing transaction. Accordingly, we determined based on authoritative guidance that the embedded conversion option is deemed to be a contingent conversion rather than active conversion option that did not require accounting recognition at the commitment dates of the issuances of the Notes. Common Stock Purchase Warrants and Other Derivative Financial Instruments We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other free-standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. Fair Value Measurements We adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long-term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company has no Financial instruments measured at Fair value on a recurring basis. Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock and convertible debt. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. No dilution adjustment has been made to the weighted average outstanding common shares in the periods presented because the assumed exercise of outstanding options and warrants and the conversion of preferred stock and debt would be anti-dilutive. The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share: December 31, 2020 December 31, 2019 Stock options outstanding 680,000 700,000 Warrants to purchase common stock - 3,717,826 Debentures convertible into common stock 2,994,746 2,765,548 Preferred shares convertible into common stock 1,272,052 1,272,052 Directors Deferred Compensation Plan 1,509,237 1,175,907 Total 6,456,035 9,631,333 Recent Accounting Pronouncements From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that other recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. DISCONTINUED OPERATIONS In April 2020, the board of Vycor took the decision to close the German operations of NovaVision, including the German office and NovaVision GmbH, and instead migrate to a licensed business model; in June 2020 Vycor announced that it would be entering into a license agreement and transition agreement (the “Agreements”) with HelferApp GmbH, a cognitive therapy specialist. Under the Agreements, HelferApp is licensed to provide NovaVision’s products and therapies in Germany, Austria and Switzerland to patients and professionals; and has assumed responsibility for the current patients of NovaVision in the territory. The NovaVision German office was closed effective June 30, 2020. The Company will continue to fund the remaining expenses of the German operations, which are non-material, until such a time as NovaVision GmbH will be formally wound up. Reconciliation of the major line items from discontinued operations that are presented in the consolidated balance sheets and consolidated statements of comprehensive loss are as follows: Major line items constituting assets and liabilities in the consolidated balance sheets December 31, December 31, 2020 2019 ASSETS Current Assets Cash $ 577 $ 11,521 Trade accounts receivable - 3,470 Inventory - 2,175 Prepaid expenses and other current assets - 2,951 Total Current Assets 577 20,117 Fixed assets, net - 9,574 TOTAL ASSETS $ 577 $ 29,691 LIABILITIES Current Liabilities Accounts payable $ 422 $ 6,515 Accrued liabilities - Other 3,168 44,792 Other current liabilities 15 30,909 Total Current Liabilities $ 3,605 $ 82,216 Major line items constituting loss from discontinued operations For the years ended December 31, 2020 2019 Revenue $ 41,527 $ 88,851 Cost of Goods Sold 4,986 11,886 Gross Profit 36,541 76,965 Operating Expenses: Depreciation and Amortization - 157 Selling, general and administrative 88,711 200,544 Total Operating Expenses 88,711 200,701 Operating Loss (52,170 ) (123,736 ) Other Income (Expense) Loss on foreign currency exchange (3,209 ) (2,280 ) Other income (loss) 33,207 Total Other Income (Expense) 29,998 (2,280 ) Loss Before Credit for Income Taxes (22,172 ) (126,016 ) Credit for income taxes - - Loss from discontinued operations, net of tax $ (22,172 ) $ (126,016 ) Other income comprises the net of non-cash adjustments made in connection with the Agreements with HelferApp and the closure of the German operation: adjustments for assets and liabilities transferred to HelferApp or NovaVision Inc. or otherwise written off - $10,907; elimination of historic balance for NovaVision GmbH legal expenses funded by NovaVision Inc. - $34,727; and certain accruals for employee costs – ($12,427). |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. INVENTORY December 31, 2020 December 31, 2019 Raw materials and work in process $ 65,192 $ 82,142 Finished goods 115,904 126,211 Total Inventory $ 181,096 $ 208,353 |
Lease
Lease | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease | 5. LEASE The Company recognized the following related to a lease in its consolidated balance sheets: Year Ended December 31, 2020 2019 Operating Lease ROU Assets $ 124,183 $ 31,658 Operating Lease Liabilities Current portion $ 44,623 $ 28,010 Long-term portion 77,008 - $ 121,631 $ 28,010 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | 6. NOTES PAYABLE Related Party Notes Payable consists of: December 31, 2020 December 31, 2019 On June 25, 2018 the Company issued promissory notes to Peter Zachariou for $30,000. The notes bear interest at 10% per annum and are payable on the earlier of one year or five days following the delivery of written demand for payment by the Payee. The note was extended for another twelve months on its due date to June 25, 2021 or on demand by the Payee. $ 30,000 $ 30,000 Between March 26, 2018 and April 24, 2020 the Company issued ten promissory notes to Fountainhead Capital Management Limited for $280,873. The notes bear interest at 10% per annum and are payable on the earlier of one year or five days following the delivery of written demand for payment by the Payee. Nine notes were extended on their due dates for another twelve months. The Notes will be due between April 2021 and March 2022 or on demand by the Payee. 280,873 200,873 Total Related Party Notes Payable $ 310,873 $ 230,873 Other Notes Payable consists of: December 31, 2020 December 31, 2019 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, and has been extended on a number of occasions. On the note’s most recent due date, the note was amended and extended to June 30, 2021. See further note below. $ 300,000 $ 300,000 On May 16, 2020, the Company was granted a loan from Citizens Bank N.A. in the aggregate amount of $58,600, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The Loan, which was in the form of a Note dated May 16, 2020 issued by the Borrower, matures on May 16, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 16, 2020. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Under the terms of the PPP, the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company’s use of the Loan qualifies and the Company intends to apply during 2021. 58,600 - Insurance policy finance agreements. 25,987 28,032 Total Notes Payable: $ 384,587 $ 328,032 Long-Term Notes Payable consists of: December 31, 2020 December 31, 2019 On July 7, 2020, the Company was granted a $150,000 loan under the Economic Injury Disaster Loan Program pursuant to the Coronavirus Aid, Relief and Economic Security (CARES) Act by the Small Business Administration (SBA) (“SBA Loan”) . The SBA Loan, evidenced by a promissory note dated July 7, 2020, has a term of thirty (30) years, bears interest at a fixed rate of three and three-quarters percent (3.75%) per annum, with monthly payments in the amount of $731.00 per month commencing twelve (12) months from the date of the note and is secured by essentially all of the assets of the Company. The proceeds of the SBA Loan will be used for general working capital purposes to alleviate economic injury caused by disaster occurring in the month of January 2020 and continuing thereafter. $ 150,000 $ - Total Long-term Notes Payable: $ 150,000 $ - On January 24, 2018 the Company entered into an amendment agreement (the “Amendment”) with EuroAmerican Investments (“EuroAmerican”) regarding its $300,000 loan note (the “Note”). Under the Amendment, the Note was extended and the conversion terms of the Note reduced to $0.21, the same as the offering price of the 2018 Offering. Conversion of the Note and accrued interest would result in the issuance of 2,994,746 shares of Common Stock. Notwithstanding, EuroAmerican agreed that the Note could not be converted without first offering the Company the right to redeem the Note at principal and accrued interest, and secondly Fountainhead the right to purchase the Note, which cannot be converted prior to such offer and the failure of the Company and Fountainhead to exercise such option in accordance with the amendment terms. The amendment was recognized as a modification, based on the guidance in ASC 470-50. The Company routinely finances all their insurance policies through a third party finance company which requires a down payment and subsequent monthly payments, the time periods vary from 10 months to 12 equal monthly payments. |
Segment Reporting, Geographical
Segment Reporting, Geographical Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting, Geographical Information | 7. SEGMENT REPORTING, GEOGRAPHICAL INFORMATION (a) Business segments The Company operates in two business segments: Vycor Medical, which focuses on devices for neurosurgery; and NovaVision, which focuses on neuro stimulation therapies and diagnostic devices for the treatment and screening of vision field loss. Discontinued operations were part of NovaVision and revenues and assets were in Europe; see Note 3. Set out below are the revenues, gross profits and total assets for each segment. Years Ended December 31, 2020 2019 Revenue: Vycor Medical $ 1,039,562 $ 1,299,830 NovaVision $ 102,483 $ 93,070 $ 1,142,045 $ 1,392,900 Gross Profit Vycor Medical $ 913,245 $ 1,171,149 NovaVision $ 96,337 $ 86,981 $ 1,009,582 $ 1,258,130 December 31, December 31, 2020 2019 Total Assets: Vycor Medical $ 953,730 $ 1,036,857 NovaVision 32,213 25,395 Discontinued operations 577 29,691 Total Assets $ 986,520 $ 1,091,943 (b) Geographic information. The Company operates in two geographic segments, the United States and Europe. Discontinued operations were part of NovaVision and revenues and assets were in Europe; see Note 3. Set out below are the revenues, gross profits and total assets for each segment. Years Ended December 31, 2020 2019 Revenue: United States $ 1,125,226 $ 1,380,209 Europe $ 16,819 $ 12,691 $ 1,142,045 $ 1,392,900 Gross Profit United States $ 992,785 $ 1,246,464 Europe $ 16,797 $ 11,666 $ 1,009,582 $ 1,258,130 December 31, 2020 December 31, 2019 Total Assets: United States $ 980,239 $ 1,055,312 Europe 5,704 6,940 Discontinued operations 577 29,691 Total Assets $ 986,520 $ 1,091,943 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 8. FIXED ASSETS Fixed Assets and the estimated lives used in the computation of depreciation are as follows: Estimated December 31, December 31, Useful Lives 2019 2018 Machinery and equipment 3 years $ 64,762 $ 64,762 Leasehold Improvements 3 years 8,881 8881 Purchased Software 3 years 27,706 27,706 Molds and Tooling 5 years 775,090 715,463 Furniture and fixtures 7 years 11,152 11,152 Therapy Devices 3 years 96,993 94,568 Internally Developed Software 5 years 363,472 363,472 1,348,056 1,286,004 Less: Accumulated depreciation and amortization (966,969 ) (921,051 ) Property and Equipment, net $ 381,087 $ 364,953 Depreciation expense for the years ended December 31, 2020 and 2019 was $45,918 and $49,661 respectively, including $1,366 and $1,762 respectively for Therapy Devices which is allocated to Cost of Sales. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 9. INTANGIBLE ASSETS Intangible Assets consists of: December 31, 2020 2019 Amortized intangible assets: Patent (8 years useful life) Gross carrying Amount $ 865,639 $ 865,639 Accumulated Amortization (854,290 ) (842,313 ) $ 11,349 $ 23,326 Amortized intangible assets: Website (5 years useful life) Gross carrying Amount $ 20,382 $ 20,382 Accumulated Amortization (20,382 ) (20,382 ) $ - $ - Intangible asset amortization expense for the periods ended December 31, 2020 and 2019 was $11,977 and $12,164, respectively. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | 10. EQUITY Equity Transactions During the years ended December 2020 and 2019, the Company granted 333,330 and 399,996 shares, respectively of Common Stock (valued at $70,000 and $84,000 respectively) to non-employee Directors. Under the terms of the Directors Deferred Compensation Plan, the receipt of these shares is deferred until January 15th of the year following termination of their services as a director. As of December 31, 2020 these shares have yet to be issued. During each of the years ended December 31, 2020 and 2019, under the terms of the Consultancy Agreement referred to in Note 14, the Company issued 2,142,856 shares of Common Stock to Fountainhead for fees of $450,000. On April 4, 2019 the Company issued 5,000 shares of Common Stock to Robert Anderson, a consultant, in accordance with the terms of a consulting agreement. Warrants and Options The details of the outstanding rights, options and warrants and value of such rights, options and warrants are as follows: STOCK WARRANTS: Weighted average exercise price Number of shares per share Outstanding at December 31, 2018 3,717,826 $ 0.27 Granted - - Exercised - - Cancelled or expired - - Outstanding at December 31, 2019 3,717,826 $ 0.27 Granted - - Exercised - - Cancelled or expired (3,717,826) 0.27 Outstanding at December 31, 2020 - $ - STOCK OPTIONS: Weighted average exercise price Number of shares per share Outstanding at December 31, 2018 1,380,000 $ 0.53 Granted - - Exercised - - Cancelled or expired (680,000 ) 0.79 Outstanding at December 31, 2019 700,000 $ 0.28 Granted - - Exercised - - Cancelled or expired (20,000 ) 0.27 Outstanding at December 31, 2020 680,000 $ 0.28 As of December 31, 2020, the weighted-average remaining contractual life of outstanding warrants and options is 0 and .49 years, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 11. STOCK-BASED COMPENSATION The Company from time to time issues common stock, stock options or common stock warrants to acquire services or goods from non-employees. Common stock, stock options and common stock warrants issued to other than employees or directors are recorded on the basis of their fair value, which is measured as of the “measurement date” using an option pricing model, or their contractual value if different in the case of common stock. The “measurement date” for options and warrants related to contracts that have substantial disincentives to non-performance is the date of the contract, and for all other contracts is the vesting date. Expense related to the options and warrants is recognized on a straight-line basis over the shorter of the period over which services are to be received or the life of the option or warrant. Non-Employee Stock Compensation Aggregate stock-based compensation for shares of common stock granted to non-employees for the years ended December 31, 2020 and 2019 was $520,000 and $534,940. $450,000 was in respect of the Fountainhead Consulting Agreement (see Notes 14 and 15). The expense related to stock not issued during the years ended December 31, 2020 and 2019 comprise $70,000 and $84,000, respectively for the year ended 2020 and 2019, respectively, related to stock granted but not issued to directors under the Directors Deferred Compensation Plan. As of December 31, 2020, there was $0 of total unrecognized compensation costs related to warrant and stock awards and non-vested options. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES Loss Before Taxes December 31, 2020 December 31, 2019 Domestic $ 801,346 $ 675,687 Foreign 21,136 120,515 $ 822,482 $ 796,202 The reconciliation of income tax expense at the U.S. statutory rate of 21%, to the Company’s effective tax rate is as follows: Year Ended December 31, 2020 2019 US statutory rate $ (172,721 ) $ (167,235 ) Tax difference between foreign and U.S. (2,349 ) (13,341 ) Change in Valuation Allowance (175,070 ) (180,576 ) Tax Provision $ - $ - Deferred Income Taxes The Company has operations in the US, Germany and the UK and incurred net operating losses since inception. The Company has not reflected any tax benefit related to such net operating losses in the financial statements. Prior to August 15, 2007 the Company’s US operating entity was a limited liability company and losses were passed through to the individual members, therefore the Company only has potential tax benefits from the date it became a ‘C’ corporation. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company and its subsidiaries’ deferred tax assets at December 31, 2020 and December 31, 2019 are as follows: December 31, 2020 December 31, 2019 Operating loss carry-forward - US $ 18,975,000 $ 18,600,000 Operating loss carry-forward - Foreign $ 1,796,000 $ 1,636,000 Deferred tax asset before Valuation allowance - US 3,985,000 3,906,000 Deferred tax asset before Valuation allowance - Foreign 542,000 491,000 Valuation allowance (4,527,000 ) (4,397,000 ) Net deferred tax asset $ — $ — In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The authoritative guidance requires a valuation allowance to reduce the deferred tax assets recorded if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Furthermore, in circumstances in which management has determined that existing conditions or events raise substantial doubt about its ability to continue as a going concern the authoritative guidance requires that a valuation allowance should be recorded for all deferred tax assets. Accordingly, management has determined that a 100% valuation allowance is appropriate at December 31, 2020 and December 31, 2019. The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. The Tax Act requires us to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. Since the Company’s foreign subsidiaries have not generated taxable income and have no accumulated earnings, the Company believes that the Tax Act will not have a significant impact on the Company’s consolidated financial statements. Net Operating Loss Carry-Forwards Under the Tax Act, net operating loss carryforwards generated for tax years beginning after December 31, 2018, will have an indefinite carryforward period. As of December 31, 2020 and 2019, the Company had U.S. accumulated losses for tax purposes of approximately $18,975,000 and $18,600,000 respectively, which may be carried forward and offset against U.S. taxable income. $18,430,000 expires during the tax years 2029 through 2039 and $545,000 can be carried forward indefinitely. Federal tax laws impose significant restrictions on the utilization of net operating loss carry-forwards and in the event of a change in ownership of the Company, as defined by the Internal Revenue Code Section 382. The Company’s net operating loss carry-forwards may be subject to the above limitations. As of December 31, 2020 and 2019, the Company had German accumulated losses for tax purposes of approximately $1,595,000 and $1,436,000 respectively, which may be carried forward and offset against German taxable income subject to certain restrictions and limitations in the event of changes in the NovaVision GmbH’s ownership. As disclosed in Note 3, the Company is in the process of winding down the entity, following which these tax losses will no longer be available. As of December 31, 2020 and 2019, the Company had UK accumulated losses for tax purposes of approximately $201,000 and $200,000 respectively, which may be carried forward and offset against UK taxable income subject to certain restrictions and limitations. Tax Rates The applicable US income tax rate for the Company for both of the years ended December 31, 2020 and 2019 was 21% and 21%, respectively. Non-US subsidiaries are taxed according to the tax laws in their respective country of residence. The German applicable rate for both of the years ended December 31, 2020 and 2019 was 31.58%; the UK applicable rate for both the years ended December 31, 2020 and 2019 was 19%. If any earnings were distributed to US in the form of dividends or otherwise, after the repayment of intercompany debt, the Company would be subject to additional US income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Uncertain Tax Position The Company has recorded no liability for income taxes associated with unrecognized tax benefits at the date of adoption and has not recorded any liability associated with unrecognized tax benefits during 2020 and 2019. Accordingly, the Company has not recorded any interest or penalty in regard to any unrecognized benefit. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES Lease Effective August 1, 2017 the Company leased office space located at 951 Broken Sound Parkway, Suite 320, Boca Raton, FL 33487 from WPT Land 2L.P., for a rent of approximately $4,000 per month, plus other charges of approximately $1,500 per month. The lease was renewed in September 2020 for an additional 3 years. Rent expense for the year ended December 31, 2020 and 2019 was $77,357 and $76,464 respectively. The table below provides the future lease payments each year until the lease expiration date: Future Lease Payments Year Liability 2021 $ 49,102 2022 $ 50,575 2023 $ 34,384 Potential German tax liability In June 2012 the Company’s NovaVision German subsidiary received a preliminary assessment for Magdeburg City trade tax of €75,000 (approximately $82,000), with an additional interest charge of €12,000 (approximately $13,200). This assessment is for the 2010 fiscal year and relates to the Company’s acquisition of the assets of the former NovaVision, Inc. An initial assessment for corporate tax for the same period was preliminarily reduced to zero. The Company did not accept this trade tax assessment and appealed against it to the relevant tax authorities with a view to its reduction. The relevant tax authorities agreed to suspend the assessment pending the outcome of certain court hearings and proposed tax legislation, and the Company agreed to make monthly payments on account totaling €75,000 (approximately $82,000) which were completed in October 2016 and fully expensed. At that time the Company appealed against the interest charge of €12,000 (approximately $13,200) which the tax authorities did not accept but also agreed to suspend pending the outcome of the hearings and proposed legislation outlined above. Accordingly, the Company has made no provision for this liability in the year ended December 31, 2020 and 2019 respectively. The Company is in the process of winding down the entity, as disclosed in Note 3. |
Consulting and Other Agreements
Consulting and Other Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Consulting And Other Agreements | |
Consulting and Other Agreements | 14. CONSULTING AND OTHER AGREEMENTS The following agreement remained in force during the year ended December 31, 2020: Consulting Agreement with Fountainhead In March 2017 and effective April 1, 2017, the Company amended the Fountainhead Consulting Agreement (“the Amended Agreement”). Under the Amended Agreement, fees of $450,000 are payable to Fountainhead, with an option to receive $5,000 per month in cash and the remainder payable in Company Common Stock issued at the higher of $0.21 and the average price for the 30 days prior to issuance, and deliverable at the end of each fiscal quarter. The Consulting Agreement also contains provisions for Fountainhead to receive a higher proportion of its fees in cash subject to certain future liquidity events and Board approval. Under the terms of the Amended Agreement, Fountainhead provides the executive management team of the Company, including the positions of CEO, President and CFO, whose employment agreements with the Company stipulate they receive no remuneration from the Company. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. RELATED PARTY TRANSACTIONS AND BALANCES Peter Zachariou and David Cantor, directors of the Company, are investment managers of Fountainhead which owned, at December 31, 2020, 60.5% of the Company’s Common Stock and 95.4% of the Company’s Series D Preferred Stock. Adrian Liddell, Chairman is a consultant to Fountainhead. During January to December 2020 and 2019, under the terms of the Consultancy Agreement referred to in Note 14, the Company issued 2,142,856 shares, respectively, of Common Stock to Fountainhead for fees of $450,000, respectively. During the year ended December 31, 2020 and 2019, respectively, the Company issued unsecured loan notes to Fountainhead for a total of $80,000 and $37,873, respectively. The loan notes bear interest at a rate of 10% and are due on demand or by their one-year anniversary (see Note 6). During each of the years ended December 31, 2020 and 2019, the Company accrued an aggregate of $324,370 of Preferred D Stock dividends, of which $226,037 was in respect of Fountainhead and $83,386 was in respect of Peter Zachariou. There were no other related party transactions during the years ended December 31, 2020 and 2019. |
Concentration
Concentration | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration | 16. CONCENTRATION Vycor Medical sells its neurosurgical devices in the US primarily direct to hospitals, and internationally through distributors who in turn sell to hospitals. Sales Concentration Year ended December 31, 2020 2019 Number of customers over 10% 1 1 Percentage of sales 12 % 10 % Accounts Receivable Concentration At December 31, 2020 2019 Number of customers over 10% 2 1 Percentage of accounts receivable 10 % 37 % We have three sub-contract manufacturers who each represent over 10% of purchased on an annual basis. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. SUBSEQUENT EVENTS In January 2021 we issued 466,794 shares of common stock to Oscar Bronsther in respect of the shares granted under the Directors’ Deferred Compensation plan, following his resignation from the board of directors effective July 1, 2020. In January 2021 the Company also received a second draw PPP loan of $58,600 under Division A, Title I of the CARES Act. On March 30, 2021, Vycor entered into a Consulting Agreement with Ricardo J. Komotar, M.D. (the “Agreement”) to provide certain specified services over the three-year term of the Agreement. Under the Agreement, Dr. Komotar will provide general scientific advisory consultancy services, and will also provide scientific advisory services based around certain specific pre-determined milestones. In consideration of the Consultant’s services, the Company agreed to deliver to the Consultant over the course of the three-year term, a total of 304,989 shares of Company Common Stock in respect of the general consultancy, and up to 1,219,957 shares of Company Common Stock in respect of the milestones, the actual number of shares to be delivered being determined by the achievement of the pre-determined milestones. On April 1, 2021 101,663 shares of Company Common Stock will be issued under the terms of the Agreement. Other than the above stated Subsequent Events, the Company has evaluated the existence of events and transactions subsequent to the balance sheet date through the date the consolidated financial statements were issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Vycor Medical, Inc., and its wholly-owned subsidiaries, NovaVision, Inc. (a Delaware corporation), NovaVision GmbH (a German corporation) and Sight Science Limited (a UK corporation), both wholly owned subsidiaries of NovaVision, Inc. The Company is headquartered in Boca Raton, FL. All material inter-company accounts, transactions, and balances have been eliminated in consolidation. Following the decision in April 2020 to close the German office of NovaVision, the activities of NovaVision GmbH have been accounted for as discontinued operations. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers and all the related amendments (new revenue standard) to all contracts. The adoption of the new accounting standard had no impact on company’s consolidated financial statements. Vycor Medical generates revenue from the sale of its surgical access system to hospitals and other medical professionals. Vycor Medical records revenue from product sales when obligations under the terms of a contract with customers are satisfied. Generally, this occurs with the transfer of control of the goods to customers. Vycor Medical does not provide for product returns or warranty costs. Vycor determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when Vycor satisfy a performance obligation NovaVision generates revenues from various programs, therapy services and other sources such as software license sales. Therapy services revenues represent fees from NovaVision’s vision restoration therapy software, eye movement training software, diagnostic software, clinic set up and training fees, and the professional and support services associated with the therapy. NovaVision provides vision restoration therapy directly to patients. The typical therapy program consists of NeuroEyeCoach, performed over 2-4 weeks, and six modules of Vision Restoration Therapy, performed over 6 months. A patient contract comprises set-up fees and monthly therapy fees. Set-up fees are recognized at the outset of the contract and therapy revenue is recognized ratably over the therapy period. Patient therapy is restricted to being completed by a patient within a specified time frame. Deferred revenue results from patients paying for the therapy in advance of receiving the therapy. As part of the adoption of ASC 606, see Note 7 to the Consolidated Financial Statements for further disaggregation of revenue. |
Cash and Cash Equivalents | Cash and cash equivalents The Company maintains cash balances at various financial institutions. Accounts at each institution in the U.S. are insured by the Federal Deposit Insurance Corporation up to $250,000. Cash balances may at times exceed the FDIC insured limits. Cash also includes a US investment account in a money market backed by government securities up to 105% of the account balance. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Included within cash are deposits paid by patients, held by the Company until the patient returns the VRT device or chinrest at the end of therapy. At December 31, 2020 and 2019 patient deposits amounted to $28,704 and $24,601, respectively, and are included in Accrued Liabilities. |
Accounts Receivable and Allowance for Doubtful Accounts Receivable | Accounts Receivable and Allowance for Doubtful Accounts Receivable The Company’s accounts receivable are due from the hospitals and distributors in the case of Vycor Medical, and from patients directly for therapy or physicians for diagnostic products in the case of NovaVision. Accounts receivable are due once products have been delivered or at the time the therapy is initiated; however, for NovaVision therapy patients sometimes credit is extended through various payment plans based on individual financial conditions, generally not to exceed the therapy period. The outstanding balances are stated net of an allowance for doubtful accounts. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that we should abandon such efforts. |
Inventories | Inventories Inventories consist of raw materials, work in process and finished goods that are stated at the lower of cost determined using the weighted average cost method, or net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose of the product. If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. The provision for inventory obsolescence for the years ended December 31, 2020 and 2019 was $12,558, respectively. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s consolidated statements of comprehensive loss. |
Leases | Leases The Company has one leased building in Boca Raton, Florida that is classified as operating lease right-of use (“ROU”) assets and operating lease liabilities in the Company’s consolidated balance sheet as per ASC 842. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of Selling, General and Administrative expenses. The standard was effective for us beginning January 1, 2019. The Company elected the available practical expedients on adoption. The adoption had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated statements of comprehensive loss. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. |
Discontinued Operations | Discontinued Operations In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. |
Foreign Currency | Foreign Currency The Euro is the local currency of the country in which the discontinued operations of NovaVision GmbH conducts its operations and is considered the functional currency of this entity; the GB Pound is the local currency of the country in which Sight Science Limited conducts its operations and is considered the functional currency of this entity. All balance sheet amounts are translated to U.S. dollars using the U.S. exchange rate at the balance sheet date except for the equity section which is translated at historical rates. Operating statement amounts are translated using an average exchange rate for the period of operations. Foreign currency translation effects are accumulated as part of the accumulated other comprehensive income (loss) and included in stockholders’ deficiency in the accompanying Consolidated Balance Sheets. |
Educational Marketing and Advertising Expenses | Educational marketing and advertising expenses The Company may incur costs for the education of customers on the uses and benefits of its products. The Company will include education, marketing and advertising expense as a component of selling, general and administrative costs as such costs are incurred. |
Income Taxes | Income taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. |
Accounting for Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program | Accounting for forgivable loan received under the Small Business Administration Paycheck Protection Program During the year ended December 31, 2020 the Company received a loan of $58,600 during the year, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act. Under the terms of the PPP, the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company’s use of the Loan qualifies and the Company intends to apply during 2021. The Company accounts for the loan as a financial liability in accordance with FASB ASC 470 and accrues interest in accordance with the interest method under FASB ASC 835-30. For purposes of derecognition of the liability, FASB ASC 470-50-15-4 refers to guidance in FASB ASC 405-20. Based on this guidance, the proceeds of the loan will remain recorded as a liability until either (1) the loan is, in part or wholly, forgiven and the Company has been “legally released”, or (2) the Company pays off the loan. Once the loan is, in part or wholly, forgiven and legal release is received, the Company will reduce the liability by the amount forgiven and record a gain on the extinguishment. The Company received an additional PPP loan of $58,600 in January 2021. |
Fixed Assets | Fixed assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. Expenditures for additions and improvements are capitalized; repairs and maintenance are expensed as incurred. |
Patents and Other Intangible Assets | Patents and Other Intangible Assets The Company capitalizes legal and related costs associated with the establishment and enhancement of patents for its products once patents have been applied for. Costs associated with the development of the patented item or processes are charged to research and development costs as incurred. The capitalized costs are amortized over the life of the patent. The Company reviews intangible assets on an annual in accordance with the authoritative guidance. Trademarks have an indefinite life and are reviewed annually by management for impairment in accordance with the authoritative guidance. |
Impairment of Long-lived Assets | Impairment of long-lived assets Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. |
Research and Development | Research and Development The Company expenses all research and development costs as incurred. For the years ended December 31, 2020 and 2019, the amounts charged to research and development expenses were $0 for both years, respectively. |
Software Development Costs | Software Development Costs The Company accounts for software development costs in accordance with ASC 350-40, whereby all costs incurred during the preliminary stage of a development project should be charged to expense as incurred. Capitalization of costs begins after the preliminary stage has been completed, management commits to funding the project, it is probable that the project will be completed, and the software will be used for its intended function. All post-implementation costs are charged to expense as incurred. Accordingly, direct internal and external costs associated with the development of the features and functionality of the Company’s software, incurred during the application development stage, are capitalized and amortized using the straight-line method of the estimated life of five years. There was no capitalized for software development during the years ended December 31, 2020 and 2019. |
Uses of Estimates in the Preparation of Financial Statements | Uses of estimates in the preparation of financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimated. To the extent management’s estimates prove to be incorrect, financial results for future periods may be adversely affected. Significant estimates and assumptions contained in the accompanying consolidated financial statements include management’s estimate of the allowance for uncollectible accounts receivable, provision for inventory obsolescence, useful life of intangible assets, and the fair values of options and warrants included in the determination of debt discounts and stock-based compensation. |
Stock Option Plan | Stock Option Plan Under ASC Topic 718, the Company estimates the fair value of option awards on the date of grant using an option-pricing model. The grant date fair value is recognized over the option-vesting period, the period during which an employee is required to provide service in exchange for the award. No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Under these standards, compensation cost for employee cost for employee stock-based awards is based on the estimated grant-date fair value and recognized over the vesting period of the applicable award on a straight-line basis. |
Stock Compensation | Stock Compensation The Company recognizes the cost of all stock -based payments under the relevant authoritative accounting guidance. Stock-based payments include any remuneration paid by the Company in shares of the Company’s common stock or financial instruments that grant the recipient the right to acquire shares of the Company’s common stock. For stock-based payments to employees, which consist only of awards made under the stock option plan described below, the Company accounts for the payments in accordance with the provisions of ASC Topic 718, “Stock Compensation”. Stock-based payments to consultants, service providers and other non-employees are accounted for in accordance with ASC Topic 718, ASC Topic 505, “Equity Payments to Non-Employees” or other applicable authoritative guidance. |
Convertible Instruments | Convertible Instruments We evaluate and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. We account for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The embedded conversion option in connection with our convertible debt could not be exercised unless and until we completed a Qualifying Financing transaction. Accordingly, we determined based on authoritative guidance that the embedded conversion option is deemed to be a contingent conversion rather than active conversion option that did not require accounting recognition at the commitment dates of the issuances of the Notes. |
Common Stock Purchase Warrants and Other Derivative Financial Instruments | Common Stock Purchase Warrants and Other Derivative Financial Instruments We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other free-standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. |
Fair Value Measurements | Fair Value Measurements We adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long-term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company has no Financial instruments measured at Fair value on a recurring basis. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock and convertible debt. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. No dilution adjustment has been made to the weighted average outstanding common shares in the periods presented because the assumed exercise of outstanding options and warrants and the conversion of preferred stock and debt would be anti-dilutive. The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share: December 31, 2020 December 31, 2019 Stock options outstanding 680,000 700,000 Warrants to purchase common stock - 3,717,826 Debentures convertible into common stock 2,994,746 2,765,548 Preferred shares convertible into common stock 1,272,052 1,272,052 Directors Deferred Compensation Plan 1,509,237 1,175,907 Total 6,456,035 9,631,333 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that other recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Common Stock Not Included in Calculation of Diluted Net Loss Per Share | The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share: December 31, 2020 December 31, 2019 Stock options outstanding 680,000 700,000 Warrants to purchase common stock - 3,717,826 Debentures convertible into common stock 2,994,746 2,765,548 Preferred shares convertible into common stock 1,272,052 1,272,052 Directors Deferred Compensation Plan 1,509,237 1,175,907 Total 6,456,035 9,631,333 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Loss from Discontinued Operations | Reconciliation of the major line items from discontinued operations that are presented in the consolidated balance sheets and consolidated statements of comprehensive loss are as follows: Major line items constituting assets and liabilities in the consolidated balance sheets December 31, December 31, 2020 2019 ASSETS Current Assets Cash $ 577 $ 11,521 Trade accounts receivable - 3,470 Inventory - 2,175 Prepaid expenses and other current assets - 2,951 Total Current Assets 577 20,117 Fixed assets, net - 9,574 TOTAL ASSETS $ 577 $ 29,691 LIABILITIES Current Liabilities Accounts payable $ 422 $ 6,515 Accrued liabilities - Other 3,168 44,792 Other current liabilities 15 30,909 Total Current Liabilities $ 3,605 $ 82,216 Major line items constituting loss from discontinued operations For the years ended December 31, 2020 2019 Revenue $ 41,527 $ 88,851 Cost of Goods Sold 4,986 11,886 Gross Profit 36,541 76,965 Operating Expenses: Depreciation and Amortization - 157 Selling, general and administrative 88,711 200,544 Total Operating Expenses 88,711 200,701 Operating Loss (52,170 ) (123,736 ) Other Income (Expense) Loss on foreign currency exchange (3,209 ) (2,280 ) Other income (loss) 33,207 Total Other Income (Expense) 29,998 (2,280 ) Loss Before Credit for Income Taxes (22,172 ) (126,016 ) Credit for income taxes - - Loss from discontinued operations, net of tax $ (22,172 ) $ (126,016 ) |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | December 31, 2020 December 31, 2019 Raw materials and work in process $ 65,192 $ 82,142 Finished goods 115,904 126,211 Total Inventory $ 181,096 $ 208,353 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | The Company recognized the following related to a lease in its consolidated balance sheets: Year Ended December 31, 2020 2019 Operating Lease ROU Assets $ 124,183 $ 31,658 Operating Lease Liabilities Current portion $ 44,623 $ 28,010 Long-term portion 77,008 - $ 121,631 $ 28,010 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Notes Payable | Related Party Notes Payable consists of: December 31, 2020 December 31, 2019 On June 25, 2018 the Company issued promissory notes to Peter Zachariou for $30,000. The notes bear interest at 10% per annum and are payable on the earlier of one year or five days following the delivery of written demand for payment by the Payee. The note was extended for another twelve months on its due date to June 25, 2021 or on demand by the Payee. $ 30,000 $ 30,000 Between March 26, 2018 and April 24, 2020 the Company issued ten promissory notes to Fountainhead Capital Management Limited for $280,873. The notes bear interest at 10% per annum and are payable on the earlier of one year or five days following the delivery of written demand for payment by the Payee. Nine notes were extended on their due dates for another twelve months. The Notes will be due between April 2021 and March 2022 or on demand by the Payee. 280,873 200,873 Total Related Party Notes Payable $ 310,873 $ 230,873 Other Notes Payable consists of: December 31, 2020 December 31, 2019 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, and has been extended on a number of occasions. On the note’s most recent due date, the note was amended and extended to June 30, 2021. See further note below. $ 300,000 $ 300,000 On May 16, 2020, the Company was granted a loan from Citizens Bank N.A. in the aggregate amount of $58,600, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The Loan, which was in the form of a Note dated May 16, 2020 issued by the Borrower, matures on May 16, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 16, 2020. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Under the terms of the PPP, the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company’s use of the Loan qualifies and the Company intends to apply during 2021. 58,600 - Insurance policy finance agreements. 25,987 28,032 Total Notes Payable: $ 384,587 $ 328,032 Long-Term Notes Payable consists of: December 31, 2020 December 31, 2019 On July 7, 2020, the Company was granted a $150,000 loan under the Economic Injury Disaster Loan Program pursuant to the Coronavirus Aid, Relief and Economic Security (CARES) Act by the Small Business Administration (SBA) (“SBA Loan”) . The SBA Loan, evidenced by a promissory note dated July 7, 2020, has a term of thirty (30) years, bears interest at a fixed rate of three and three-quarters percent (3.75%) per annum, with monthly payments in the amount of $731.00 per month commencing twelve (12) months from the date of the note and is secured by essentially all of the assets of the Company. The proceeds of the SBA Loan will be used for general working capital purposes to alleviate economic injury caused by disaster occurring in the month of January 2020 and continuing thereafter. $ 150,000 $ - Total Long-term Notes Payable: $ 150,000 $ - |
Segment Reporting, Geographic_2
Segment Reporting, Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Business Segments Information | Discontinued operations were part of NovaVision and revenues and assets were in Europe; see Note 3. Set out below are the revenues, gross profits and total assets for each segment. Years Ended December 31, 2020 2019 Revenue: Vycor Medical $ 1,039,562 $ 1,299,830 NovaVision $ 102,483 $ 93,070 $ 1,142,045 $ 1,392,900 Gross Profit Vycor Medical $ 913,245 $ 1,171,149 NovaVision $ 96,337 $ 86,981 $ 1,009,582 $ 1,258,130 December 31, December 31, 2020 2019 Total Assets: Vycor Medical $ 953,730 $ 1,036,857 NovaVision 32,213 25,395 Discontinued operations 577 29,691 Total Assets $ 986,520 $ 1,091,943 |
Summary of Geographic Information | Discontinued operations were part of NovaVision and revenues and assets were in Europe; see Note 3. Set out below are the revenues, gross profits and total assets for each segment. Years Ended December 31, 2020 2019 Revenue: United States $ 1,125,226 $ 1,380,209 Europe $ 16,819 $ 12,691 $ 1,142,045 $ 1,392,900 Gross Profit United States $ 992,785 $ 1,246,464 Europe $ 16,797 $ 11,666 $ 1,009,582 $ 1,258,130 December 31, 2020 December 31, 2019 Total Assets: United States $ 980,239 $ 1,055,312 Europe 5,704 6,940 Discontinued operations 577 29,691 Total Assets $ 986,520 $ 1,091,943 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed Assets and the estimated lives used in the computation of depreciation are as follows: Estimated December 31, December 31, Useful Lives 2019 2018 Machinery and equipment 3 years $ 64,762 $ 64,762 Leasehold Improvements 3 years 8,881 8881 Purchased Software 3 years 27,706 27,706 Molds and Tooling 5 years 775,090 715,463 Furniture and fixtures 7 years 11,152 11,152 Therapy Devices 3 years 96,993 94,568 Internally Developed Software 5 years 363,472 363,472 1,348,056 1,286,004 Less: Accumulated depreciation and amortization (966,969 ) (921,051 ) Property and Equipment, net $ 381,087 $ 364,953 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible Assets consists of: December 31, 2020 2019 Amortized intangible assets: Patent (8 years useful life) Gross carrying Amount $ 865,639 $ 865,639 Accumulated Amortization (854,290 ) (842,313 ) $ 11,349 $ 23,326 Amortized intangible assets: Website (5 years useful life) Gross carrying Amount $ 20,382 $ 20,382 Accumulated Amortization (20,382 ) (20,382 ) $ - $ - |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock Warrants | STOCK WARRANTS: Weighted average exercise price Number of shares per share Outstanding at December 31, 2018 3,717,826 $ 0.27 Granted - - Exercised - - Cancelled or expired - - Outstanding at December 31, 2019 3,717,826 $ 0.27 Granted - - Exercised - - Cancelled or expired (3,717,826) 0.27 Outstanding at December 31, 2020 - $ - |
Schedule of Stock Options | STOCK OPTIONS: Weighted average exercise price Number of shares per share Outstanding at December 31, 2018 1,380,000 $ 0.53 Granted - - Exercised - - Cancelled or expired (680,000 ) 0.79 Outstanding at December 31, 2019 700,000 $ 0.28 Granted - - Exercised - - Cancelled or expired (20,000 ) 0.27 Outstanding at December 31, 2020 680,000 $ 0.28 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Loss Before Taxes | Loss Before Taxes December 31, 2020 December 31, 2019 Domestic $ 801,346 $ 675,687 Foreign 21,136 120,515 $ 822,482 $ 796,202 |
Schedule of Reconciliation of Income Tax Expense at the U.S. Statutory Rate | The reconciliation of income tax expense at the U.S. statutory rate of 21%, to the Company’s effective tax rate is as follows: Year Ended December 31, 2020 2019 US statutory rate $ (172,721 ) $ (167,235 ) Tax difference between foreign and U.S. (2,349 ) (13,341 ) Change in Valuation Allowance (175,070 ) (180,576 ) Tax Provision $ - $ - |
Schedule of Deferred Tax Assets | Significant components of the Company and its subsidiaries’ deferred tax assets at December 31, 2020 and December 31, 2019 are as follows: December 31, 2020 December 31, 2019 Operating loss carry-forward - US $ 18,975,000 $ 18,600,000 Operating loss carry-forward - Foreign $ 1,796,000 $ 1,636,000 Deferred tax asset before Valuation allowance - US 3,985,000 3,906,000 Deferred tax asset before Valuation allowance - Foreign 542,000 491,000 Valuation allowance (4,527,000 ) (4,397,000 ) Net deferred tax asset $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Lease Payments | Future Lease Payments Year Liability 2021 $ 49,102 2022 $ 50,575 2023 $ 34,384 |
Concentration (Tables)
Concentration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration | Vycor Medical sells its neurosurgical devices in the US primarily direct to hospitals, and internationally through distributors who in turn sell to hospitals. Sales Concentration Year ended December 31, 2020 2019 Number of customers over 10% 1 1 Percentage of sales 12 % 10 % Accounts Receivable Concentration At December 31, 2020 2019 Number of customers over 10% 2 1 Percentage of accounts receivable 10 % 37 % |
Business of the Company and Goi
Business of the Company and Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net loss | $ (822,482) | $ (796,202) |
Working capital deficiency | 593,971 | |
Related party liabilities | 1,682,956 | |
EuroAmerican Investment Corp. [Member] | ||
Term note | 300,000 | |
Accrued interest | $ 328,897 | |
Maturity date | Jun. 30, 2021 |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal deposit insurance corporation | $ 250,000 | ||
Percentage of money market backed by government | 105.00% | ||
Patient deposits | $ 28,704 | $ 24,601 | |
Provision for inventory obsolescence | 12,558 | 12,558 | |
Research and development expenses | $ 0 | 0 | |
Estimated useful life of software | 5 years | ||
Capitalized software development | |||
Paycheck Protection Program [Member] | CARES Act [Member] | |||
Proceeds from loan | $ 58,600 | ||
Paycheck Protection Program [Member] | CARES Act [Member] | Subsequent Event [Member] | |||
Proceeds from loan | $ 58,600 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Common Stock Not Included in Calculation of Diluted Net Loss per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 6,456,035 | 9,631,333 |
Stock Options Outstanding [Member] | ||
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 680,000 | 700,000 |
Warrants to Purchase Common Stock [Member] | ||
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 3,717,826 | |
Debentures Convertible into Common Stock [Member] | ||
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 2,994,746 | 2,765,548 |
Preferred Shares Convertible into Common Stock [Member] | ||
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 1,272,052 | 1,272,052 |
Directors Deferred Compensation Plan [Member] | ||
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 1,509,237 | 1,175,907 |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) | Dec. 31, 2020USD ($) |
Discontinued Operations and Disposal Groups [Abstract] | |
Written off related to assets and liabilities transferred operations | $ 10,907 |
Legal expenses funded | 34,727 |
Accruals employee costs | $ (12,427) |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Loss from Discontinued Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Cash | $ 577 | $ 11,521 |
Trade accounts receivable | 3,470 | |
Inventory | 2,175 | |
Prepaid expenses and other current assets | 2,951 | |
Total Current Assets | 577 | 20,117 |
Fixed assets, net | 9,574 | |
TOTAL ASSETS | 577 | 29,691 |
Accounts payable | 422 | 6,515 |
Accrued liabilities - Other | 3,168 | 44,792 |
Other current liabilities | 15 | 30,909 |
Total Current Liabilities | 3,605 | 82,216 |
Revenue | 41,527 | 88,851 |
Cost of Goods Sold | 4,986 | 11,886 |
Gross Profit | 36,541 | 76,965 |
Depreciation and Amortization | 157 | |
Selling, general and administrative | 88,711 | 200,544 |
Total Operating Expenses | 88,711 | 200,701 |
Operating Loss | (52,170) | (123,736) |
Loss on foreign currency exchange | (3,209) | (2,280) |
Other income (loss) | 33,207 | |
Total Other Income (Expense) | 29,998 | (2,280) |
Loss Before Credit for Income Taxes | (22,172) | (126,016) |
Credit for income taxes | ||
Loss from discontinued operations, net of tax | $ (22,172) | $ (126,016) |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 65,192 | $ 82,142 |
Finished goods | 115,904 | 126,211 |
Total Inventory | $ 181,096 | $ 208,353 |
Lease - Schedule of Supplementa
Lease - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Lease ROU Assets | $ 124,183 | $ 31,658 |
Operating Lease Liabilities Current portion | 44,623 | 28,010 |
Operating Lease Liabilities Long-term portion | 77,008 | |
Operating Lease Liabilities | $ 121,631 | $ 28,010 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | Jan. 24, 2018USD ($)$ / sharesshares |
EuroAmerican Investment Corp. [Member] | |
Debt conversion shares issued | shares | 2,994,746 |
EuroAmerican Investment Corp. [Member] | |
Note payable other | $ | $ 300,000 |
Conversion price | $ / shares | $ 0.21 |
Notes Payable - Summary of Note
Notes Payable - Summary of Notes Payable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total Related Party Notes Payable | $ 310,873 | $ 230,873 |
Total Notes Payable | 384,587 | 328,032 |
Total Long-term Notes Payable | 150,000 | |
Economic Injury Disaster Loan Program [Member] | CARES Act [Member] | ||
Total Long-term Notes Payable | 150,000 | |
EuroAmerican Investment Corp. [Member] | ||
Total Notes Payable | 300,000 | 300,000 |
Citizens Bank [Member] | Paycheck Protection Program [Member] | CARES Act [Member] | ||
Total Notes Payable | 58,600 | |
Peter Zachariou [Member] | ||
Total Related Party Notes Payable | 30,000 | 30,000 |
Fountainhead Capital Management Limited [Member] | ||
Total Related Party Notes Payable | 280,873 | 200,873 |
Insurance Policy Finance Agreements [Member] | ||
Total Notes Payable | $ 25,987 | $ 28,032 |
Notes Payable - Summary of No_2
Notes Payable - Summary of Notes Payable (Details) (Parenthetical) - USD ($) | Jul. 07, 2020 | May 16, 2020 | Jun. 25, 2018 | Mar. 25, 2012 | Mar. 25, 2011 | Apr. 24, 2020 |
Economic Injury Disaster Loan Program [Member] | CARES Act [Member] | ||||||
Value of notes issued | $ 150,000 | |||||
Notes interest rate | 3.75% | |||||
Debt Instrument term | 30 years | |||||
Debt Instrument, Periodic Payment | $ 731 | |||||
EuroAmerican Investment Corp. [Member] | Extended Maturity [Member] | ||||||
Debt due date | Jun. 30, 2021 | |||||
EuroAmerican Investment Corp. [Member] | Term Note [Member] | ||||||
Value of notes issued | $ 300,000 | |||||
Notes interest rate | 16.00% | |||||
Debt due date | Jun. 25, 2011 | |||||
Citizens Bank [Member] | Paycheck Protection Program [Member] | CARES Act [Member] | ||||||
Value of notes issued | $ 58,600 | |||||
Notes interest rate | 1.00% | |||||
Debt due date | May 16, 2022 | |||||
Debt due date description | The Loan, which was in the form of a Note dated May 16, 2020 issued by the Borrower, matures on May 16, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 16, 2020 | |||||
Peter Zachariou [Member] | ||||||
Value of notes issued | $ 30,000 | |||||
Notes interest rate | 10.00% | |||||
Debt due date | Jun. 25, 2020 | |||||
Fountainhead Capital Management Limited [Member] | ||||||
Value of notes issued | $ 200,873 | |||||
Notes interest rate | 10.00% | |||||
Debt due date description | The Notes will be due between April 2021 and March 2022 or on demand by the Payee. |
Segment Reporting, Geographic_3
Segment Reporting, Geographical Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2020Number | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting, Geographic_4
Segment Reporting, Geographical Information - Schedule of Business Segments Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 1,142,045 | $ 1,392,900 |
Gross Profit | 1,009,582 | 1,258,130 |
Total Assets | 986,520 | 1,091,943 |
Discontinued Operations [Member] | ||
Total Assets | 577 | 29,691 |
Vycor Medical [Member] | ||
Revenue | 1,039,562 | 1,299,830 |
Gross Profit | 913,245 | 1,171,149 |
Total Assets | 953,730 | 1,036,857 |
Nova Vision [Member] | ||
Revenue | 102,483 | 93,070 |
Gross Profit | 96,337 | 86,981 |
Total Assets | $ 32,213 | $ 25,395 |
Segment Reporting, Geographic_5
Segment Reporting, Geographical Information - Summary of Geographic Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 1,142,045 | $ 1,392,900 |
Gross Profit | 1,009,582 | 1,258,130 |
Total Assets | 986,520 | 1,091,943 |
Discontinued Operations [Member] | ||
Total Assets | 577 | 29,691 |
United States [Member] | ||
Revenue | 1,125,226 | 1,380,209 |
Gross Profit | 992,785 | 1,246,464 |
Total Assets | 980,239 | 1,055,312 |
Europe [Member] | ||
Revenue | 16,819 | 12,691 |
Gross Profit | 16,797 | 11,666 |
Total Assets | $ 5,704 | $ 6,940 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation expenses | $ 45,918 | $ 49,474 |
Therapy Devices [Member] | ||
Depreciation expenses | $ 1,366 | $ 1,762 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment, Gross | $ 1,348,056 | $ 1,286,004 |
Less: Accumulated depreciation and amortization | (966,969) | (921,051) |
Property and Equipment, net | $ 381,087 | 364,953 |
Machinery and Equipment [Member] | ||
Estimated Useful Lives | 3 years | |
Property, Plant and Equipment, Gross | $ 64,762 | 64,762 |
Leasehold Improvements [Member] | ||
Estimated Useful Lives | 3 years | |
Property, Plant and Equipment, Gross | $ 8,881 | 8,881 |
Purchased Software [Member] | ||
Estimated Useful Lives | 3 years | |
Property, Plant and Equipment, Gross | $ 27,706 | 27,706 |
Molds and Tooling [Member] | ||
Estimated Useful Lives | 5 years | |
Property, Plant and Equipment, Gross | $ 775,090 | 715,463 |
Furniture and Fixtures [Member] | ||
Estimated Useful Lives | 7 years | |
Property, Plant and Equipment, Gross | $ 11,152 | 11,152 |
Therapy Devices [Member] | ||
Estimated Useful Lives | 3 years | |
Property, Plant and Equipment, Gross | $ 96,993 | 94,568 |
Internally Developed Software [Member] | ||
Estimated Useful Lives | 5 years | |
Property, Plant and Equipment, Gross | $ 363,472 | $ 363,472 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 11,977 | $ 12,164 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Net | $ 11,349 | $ 23,326 |
Patent [Member] | ||
Gross carrying Amount | 865,639 | 865,639 |
Accumulated Amortization | (854,290) | (842,313) |
Finite Lived Intangible Assets Net | 11,349 | 23,326 |
Website [Member] | ||
Gross carrying Amount | 20,382 | 20,382 |
Accumulated Amortization | (20,382) | (20,382) |
Finite Lived Intangible Assets Net | $ 0 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Intangible Assets (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Useful life of intangible assets | 5 years | |
Patent [Member] | ||
Useful life of intangible assets | 8 years | 8 years |
Website [Member] | ||
Useful life of intangible assets | 5 years | 5 years |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | Apr. 04, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted-average remaining contractual life of outstanding warrants | 0 days | ||
Weighted-average remaining contractual life of outstanding options | 5 months 27 days | ||
Fountainhead [Member] | Fountainhead Consultancy Agreement [Member] | |||
Number of common stock issued for fees | 2,142,856 | 2,142,856 | |
Number of common stock issued for fees, value | $ 450,000 | $ 450,000 | |
Fountainhead [Member] | Consultancy Agreement [Member] | |||
Number of common stock issued for fees | 2,142,856 | 2,142,856 | |
Number of common stock issued for fees, value | $ 450,000 | $ 450,000 | |
Robert Anderson [Member] | Consultancy Agreement [Member] | |||
Number of common stock issued for fees | 5,000 | ||
Non Employee Directors [Member] | Directors Deferred Compensation Plan [Member] | |||
Shares issued for services | 333,330 | 399,996 | |
Value of shares issued for services | $ 70,000 | $ 84,000 |
Equity - Schedule of Stock Warr
Equity - Schedule of Stock Warrants (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Number of shares Warrants Outstanding, Beginning Balance | 3,717,826 | 3,717,826 |
Number of shares Warrants, Granted | ||
Number of shares Warrants, Exercised | ||
Number of shares Warrants, Cancelled or expired | (3,717,826) | |
Number of shares Warrants Outstanding, Ending Balance | 3,717,826 | |
Weighted average exercise price per share Warrants, Outstanding, Beginning Balance | $ 0.27 | $ 0.27 |
Weighted average exercise price per share Warrants, Granted | ||
Weighted average exercise price per share Warrants, Exercised | ||
Weighted average exercise price per share Warrants, Cancelled or expired | 0.27 | |
Weighted average exercise price per share Warrants, Outstanding, Ending balance | $ 0.27 |
Equity - Schedule of Stock Opti
Equity - Schedule of Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Number of shares Options Outstanding, Beginning Balance | 700,000 | 1,380,000 |
Number of shares Options, Granted | ||
Number of shares Options, Exercised | ||
Number of shares Options, Cancelled or expired | (20,000) | (680,000) |
Number of shares Options Outstanding, Ending Balance | 680,000 | 700,000 |
Weighted average exercise price per share Options, Outstanding, Beginning Balance | $ 0.28 | $ 0.53 |
Weighted average exercise price per share Options, Granted | ||
Weighted average exercise price per share Options, Exercised | ||
Weighted average exercise price per share Options, Cancelled or expired | 0.27 | 0.79 |
Weighted average exercise price per share Options, Outstanding, Ending balance | $ 0.28 | $ 0.28 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Non Employee Directors [Member] | Directors Deferred Compensation Plan [Member] | ||
Stock granted but not issued | $ 70,000 | $ 84,000 |
Total unrecognized compensation costs | 0 | 0 |
Fountainhead Consulting Agreement [Member] | March 2017 and Effective April 1, 2017 [Member] | ||
Payment of fees | 450,000 | |
Non-employees [Member] | ||
Share-based compensation | $ 520,000 | $ 534,940 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Income tax rate percent | 21.00% | 21.00% | |
Deferred tax assets valuation allowance, percent | 100.00% | 100.00% | |
Income tax rate description | The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. | ||
U.S. income tax at a rate | 15.50% | ||
Foreign cash and net current assets percentage | 8.00% | ||
Accumulated losses for tax purposes | $ 18,975,000 | $ 18,600,000 | |
Income tax expiration term | 2029 through 2039 | ||
Unrecognized tax benefits | |||
German [Member] | |||
Income tax rate percent | 31.58% | 31.58% | |
Accumulated losses for tax purposes | $ 1,595,000 | $ 1,436,000 | |
UK [Member] | |||
Income tax rate percent | 19.00% | 19.00% | |
Accumulated losses for tax purposes | $ 201,000 | $ 200,000 | |
Indefinitely [Member] | |||
Accumulated losses for tax purposes | 545,000 | ||
Expires Between Tax Years 2029 Through 2039 [Member] | |||
Accumulated losses for tax purposes | $ 18,430,000 |
Income Taxes - Summary of Loss
Income Taxes - Summary of Loss Before Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ 801,346 | $ 675,687 |
Foreign | 21,136 | 120,515 |
Loss Before Taxes | $ 822,482 | $ 796,202 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Expense at the U.S. Statutory Rate (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
US statutory rate | $ (172,721) | $ (167,235) |
Tax difference between foreign and U.S. | (2,349) | (13,341) |
Change in Valuation Allowance | (175,070) | (180,576) |
Tax Provision |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation allowance | $ (4,527,000) | $ (4,397,000) |
Net deferred tax asset | ||
US [Member] | ||
Operating loss carry-forward | 18,975,000 | 18,600,000 |
Deferred tax asset before Valuation allowance | 3,985,000 | 3,906,000 |
Foreign [Member] | ||
Operating loss carry-forward | 1,796,000 | 1,636,000 |
Deferred tax asset before Valuation allowance | $ 542,000 | $ 491,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | Oct. 31, 2016USD ($) | Oct. 31, 2016EUR (€) | Jun. 30, 2012USD ($) | Jun. 30, 2012EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2012EUR (€) |
Rent expense | $ 77,357 | $ 76,464 | |||||
Trade tax reduced | $ 82,000 | ||||||
Interest expenses | $ 13,200 | $ 13,200 | |||||
Monthly payments | 82,000 | ||||||
Euro Currency [Member] | |||||||
Trade tax reduced | € | € 75,000 | ||||||
Interest expenses | $ 12,000 | € 12,000 | |||||
Monthly payments | € | € 75,000 | ||||||
Office Space [Member] | |||||||
Rent expense | $ 4,000 | ||||||
Renewal term | 3 years | ||||||
Office Space [Member] | Other Charges [Member] | |||||||
Rent expense | $ 1,500 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Lease Payments (Details) | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 49,102 |
2022 | 50,575 |
2023 | $ 34,384 |
Consulting and Other Agreemen_2
Consulting and Other Agreements (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock option cash | $ 520,000 | $ 534,940 |
Fountainhead Consulting Agreement [Member] | March 2017 and Effective April 1, 2017 [Member] | ||
Payment of fees | 450,000 | |
Stock option cash | $ 5,000 | |
Common stock exercise price | $ 0.21 |
Related Party Transactions an_2
Related Party Transactions and Balances (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accrued dividends | $ 324,370 | $ 324,370 |
Fountainhead [Member] | Consultancy Agreement [Member] | ||
Number of common stock issued for fees | 2,142,856 | 2,142,856 |
Number of common stock issued for fees, value | $ 450,000 | $ 450,000 |
Preferred D Stock dividends [Member] | ||
Accrued dividends | 324,370 | 324,370 |
Fountainhead [Member] | ||
Accrued dividends | 226,037 | 226,037 |
Fountainhead [Member] | Unsecured Loan [Member] | ||
Unsecured loan notes issued | $ 80,000 | $ 37,873 |
Unsecured loan notes interest rate | 10.00% | 10.00% |
Unsecured loan maturity description | Due on demand or by their one-year anniversary. | Due on demand or by their one-year anniversary. |
Fountainhead [Member] | Directors [Member] | ||
Equity ownership percentage | 60.00% | |
Fountainhead [Member] | Directors [Member] | Series D Preferred Stock [Member] | ||
Equity ownership percentage | 95.40% | |
Peter Zachariou [Member] | ||
Accrued dividends | $ 83,386 | $ 83,386 |
Concentration (Details Narrativ
Concentration (Details Narrative) - Purchase [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Manufacturer One [Member] | |
Concentration risk, percentage | 10.00% |
Manufacturer Two [Member] | |
Concentration risk, percentage | 10.00% |
Manufacturer Three [Member] | |
Concentration risk, percentage | 10.00% |
Concentration - Schedule of Con
Concentration - Schedule of Concentration (Details) - Number | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Sales Revenue [Member] | ||
Number of customers over 10% | 1 | 1 |
Sales Revenue [Member] | Customer One [Member] | ||
Concentration risk, percentage | 12.00% | 10.00% |
Accounts Receivable [Member] | ||
Number of customers over 10% | 2 | 1 |
Accounts Receivable [Member] | Customer One [Member] | ||
Concentration risk, percentage | 10.00% | 37.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Apr. 01, 2021 | Mar. 30, 2021 | Jan. 31, 2021 | Dec. 31, 2020 |
Paycheck Protection Program [Member] | CARES Act [Member] | ||||
Proceeds from loan | $ 58,600 | |||
Subsequent Event [Member] | Paycheck Protection Program [Member] | CARES Act [Member] | ||||
Proceeds from loan | $ 58,600 | |||
Subsequent Event [Member] | Oscar Bronsther [Member] | ||||
Shares of common stock issued | $ 466,794 | |||
Subsequent Event [Member] | Ricardo J Komotar M D [Member] | General Consultancy [Member] | ||||
Shares issued for services | 304,989 | |||
Subsequent Event [Member] | Ricardo J Komotar M D [Member] | Milestones [Member] | ||||
Shares issued for services | 1,219,957 | |||
Number of common stock issued | 101,663 |