Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | VYCOR MEDICAL INC | |
Entity Central Index Key | 0001424768 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 Common Stock, Shares Outstanding | 29,678,019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 39,044 | $ 46,002 |
Trade accounts receivable | 143,856 | 159,238 |
Inventory | 199,634 | 181,096 |
Prepaid expenses and other current assets | 60,660 | 76,988 |
Current assets of discontinued operations | 3,257 | 577 |
Total Current Assets | 446,451 | 463,901 |
Fixed assets, net | 393,860 | 381,087 |
Patents, net of accumulated amortization | 8,355 | 11,349 |
Security deposits | 6,000 | 6,000 |
Operating lease - right of use assets | 113,232 | 124,183 |
Total Intangible and Other assets | 127,587 | 141,532 |
TOTAL ASSETS | 967,898 | 986,520 |
Current Liabilities | ||
Accounts payable | 215,148 | 179,110 |
Accrued interest: Other | 345,015 | 328,897 |
Accrued interest: Related party | 82,268 | 74,603 |
Accrued liabilities - Other | 121,441 | 117,050 |
Accrued liabilities - Related Party | 1,459,665 | 1,297,480 |
Notes payable: Other | 425,717 | 384,587 |
Notes payable: Related Party | 320,873 | 310,873 |
Current operating lease liabilities | 45,178 | 44,623 |
Current liabilities of discontinued operations | 802 | 3,605 |
Total Current Liabilities | 3,016,107 | 2,740,828 |
Loan Payable - SBA EIDL | 150,000 | 150,000 |
Operating lease liability - Long term | 65,774 | 77,008 |
Total Long-term Liabilities | 215,774 | 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 March 31, 2021 and December 31, 2020 respectively | 27 | 27 |
Common Stock, $0.0001 par value, 55,000,000 shares authorized at March 31, 2021 and December 31, 2020, 28,537,248 and 27,534,740 shares issued and 28,433,914 and 27,431,406 outstanding at March 31, 2021 and December 31, 2020 respectively | 2,854 | 2,753 |
Additional Paid-in Capital | 28,948,707 | 28,826,378 |
Treasury Stock (103,334 shares of Common Stock as at March 31, 2021 and December 31, 2020 respectively, at cost) | (1,033) | (1,033) |
Accumulated Deficit | (31,342,214) | (30,937,110) |
Accumulated Other Comprehensive Income | 127,676 | 127,669 |
Total Stockholders' Deficiency | (2,263,983) | (1,981,316) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY | $ 967,898 | $ 986,520 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 28,537,248 | 27,534,740 |
Common stock, shares outstanding | 28,433,914 | 27,431,406 |
Treasury stock, shares | 103,334 | 103,334 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 295,749 | $ 330,239 |
Cost of Goods Sold | 28,477 | 37,294 |
Gross Profit | 267,272 | 292,945 |
Operating Expenses: | ||
Research and development | 2,700 | |
Depreciation and Amortization | 13,945 | 14,642 |
Selling, general and administrative | 457,476 | 424,980 |
Total Operating Expenses | 474,121 | 439,622 |
Operating loss | (206,849) | (146,677) |
Other Income (Expense) | ||
Interest expense: Related Party | (7,665) | (6,425) |
Interest expense: Other | (16,118) | (11,967) |
Loss on foreign currency exchange | (115) | (144) |
Total Other Income (Expense) | (23,898) | (18,536) |
Loss Before Credit for Income Taxes | (230,747) | (165,213) |
Credit for income taxes | ||
Net Loss from continuing operations | (230,747) | (165,213) |
Loss from discontinued operations, net of tax | (12,172) | (9,735) |
Net Loss | (242,919) | (174,948) |
Preferred stock dividends | (162,185) | (162,185) |
Net Loss Available to Common Stockholders | (405,104) | (337,133) |
Other Comprehensive Loss | ||
Foreign Currency Translation Adjustment | 7 | 2 |
Comprehensive Loss | $ (242,912) | $ (174,946) |
Net Loss Per Share - basic and diluted | ||
Loss from continuing operations | $ (0.01) | $ (0.01) |
Loss from discontinued operations | 0 | 0 |
Net loss available to common stockholders | $ (0.01) | $ (0.01) |
Weighted Average Number of Shares Outstanding - Basic and Diluted | 27,831,540 | 25,294,437 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficiency (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Common Stock [Member] | ||
Balance | $ 2,753 | $ 2,539 |
Balance, shares | 27,534,740 | 25,391,884 |
Issuance of stock for board and consulting fees | $ 54 | $ 54 |
Issuance of stock for board and consulting fees, shares | 535,714 | 535,714 |
Issuance of stock related to deferred compensation of directors | $ 47 | |
Issuance of stock related to deferred compensation of directors, shares | 466,794 | |
Directors deferred compensation granted | ||
Net loss | ||
Balance | $ 2,854 | $ 2,593 |
Balance, shares | 28,537,248 | 25,927,598 |
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 | ||
Issuance of stock related to deferred compensation of directors | ||
Issuance of stock related to deferred compensation of directors, shares | ||
Directors deferred compensation granted | ||
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 | ||
Issuance of stock related to deferred compensation of directors | ||
Issuance of stock related to deferred compensation of directors, shares | ||
Directors deferred compensation granted | ||
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 | ||
Issuance of stock related to deferred compensation of directors | ||
Issuance of stock related to deferred compensation of directors, shares | ||
Directors deferred compensation granted | ||
Net loss | ||
Balance | $ (1,033) | $ (1,033) |
Balance, shares | (103,334) | (103,334) |
Additional Paid-In Capital [Member] | ||
Balance | $ 28,826,378 | $ 28,306,592 |
Issuance of stock for board and consulting fees | 101,376 | $ 112,446 |
Issuance of stock for board and consulting fees, shares | ||
Issuance of stock related to deferred compensation of directors | (47) | |
Issuance of stock related to deferred compensation of directors, shares | ||
Directors deferred compensation granted | 21,000 | $ 21,000 |
Net loss | (337,133) | |
Balance | 28,948,707 | 28,440,038 |
Accumulated Deficit [Member] | ||
Balance | (30,937,110) | (29,790,258) |
Issuance of stock for board and consulting fees | ||
Issuance of stock related to deferred compensation of directors | ||
Issuance of stock related to deferred compensation of directors, shares | ||
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | $ 2 | |
Net loss | (405,104) | |
Balance | (31,342,214) | (30,127,391) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Balance | 127,669 | 127,670 |
Issuance of stock for board and consulting fees | ||
Issuance of stock related to deferred compensation of directors | ||
Directors deferred compensation granted | ||
Accumulated Comprehensive Loss | 7 | |
Net loss | ||
Balance | 127,676 | 127,672 |
Balance | (1,981,316) | (1,354,463) |
Issuance of stock for board and consulting fees | 101,430 | 112,500 |
Issuance of stock related to deferred compensation of directors | ||
Directors deferred compensation granted | 21,000 | 21,000 |
Accumulated Comprehensive Loss | 7 | 2 |
Net loss | (405,104) | (337,133) |
Balance | $ (2,263,983) | $ (1,558,094) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (242,919) | $ (174,948) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Amortization of intangible assets | 2,994 | 2,994 |
Depreciation of fixed assets | 11,162 | 11,649 |
Inventory provision | 3,090 | 3,139 |
Stock based compensation | 122,430 | 133,500 |
Changes in assets and liabilities: | ||
Accounts receivable | 15,382 | 120,606 |
Inventory | (21,628) | 5,573 |
Prepaid expenses | 16,600 | (11,134) |
Accrued interest - Related Party | 7,665 | 6,424 |
Accrued interest - Other | 16,118 | 11,967 |
Accounts payable | 36,038 | (214) |
Accrued liabilities - Other | 4,391 | (101,000) |
Changes in discontinued operations, net | (5,483) | (43,163) |
Cash used in operating activities | (34,160) | (34,607) |
Cash flows from investing activities: | ||
Purchase of fixed assets | (23,935) | (46,621) |
Changes in investing activities of discontinued operations, net | 850 | |
Cash used in investing activities | (23,935) | (45,771) |
Cash flows from financing activities: | ||
Proceeds from Notes Payable - Related Party | 10,000 | 60,000 |
Proceeds from Paycheck Protection Program | 58,600 | |
Proceeds net of repayments Notes Payable - Other | (17,470) | 18,853 |
Cash provided by financing activities | 51,130 | 78,853 |
Effect of exchange rate changes on cash | 7 | 985 |
Net decrease in cash | (6,958) | (540) |
Cash at beginning of period | 46,002 | 60,718 |
Cash at end of period | 39,044 | 60,178 |
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 | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Vycor Medical, Inc. (the “Company” or “Vycor”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in consolidated financial statements have been omitted pursuant to such rules and regulations. The consolidated balance sheet as of December 31, 2020 derives from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The unaudited consolidated financial statements as of and for the three months ended March 31, 2021 and 2020, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition, results of operations and cash flows. The results of operations for the three months ended March 31, 2021 and 2020 are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Certain prior period amounts on the unaudited consolidated financial statements have been reclassified to conform to the current period presentation. Ability to continue as a Going Concern The accompanying unaudited 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 $242,919 for the three months ended March 31, 2021 and has not generated sufficient positive cash flows from operations. As of March 31, 2021 the Company had a working capital deficiency of $706,850, excluding related party liabilities of $1,862,806. These conditions, among others, raise substantial doubt regarding our ability to continue as a going concern. The unaudited 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. Included within the working capital deficiency above is a term note for $300,000 to EuroAmerican Investment Corp. (“EuroAmerican”), together with accrued interest of $340,732, 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 May 31, 2022 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 | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The unaudited 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 account balances, transactions, and profits 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. 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 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 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. 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, 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 has applied for forgiveness. During the three months ended March 31, 2021 the Company received an additional PPP loan of $58,600. The Company accounts for the loans 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 loans will remain recorded as a liability until either (1) the loans are, in part or wholly, forgiven and the Company has been “legally released”, or (2) the Company pays off the loans. Once the loans are, 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. Net Loss Per Share Basic net loss per share is computed by dividing net loss available to common stockholders 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: March 31, 2021 March 31, 2020 Stock options outstanding 660,000 680,000 Debentures convertible into common stock 3,051,106 2,822,535 Preferred shares convertible into common stock 1,272,052 1,272,052 Directors Deferred Compensation Plan 1,142,442 1,275,906 Total 6,125,600 6,050,493 Covid-19 Vycor Medical experienced a reduction in demand during the twelve months ended December 31, 2020 in the US and Europe, particularly in the second quarter, with some recovery in the third and fourth quarters. This recovery continued during the three months ended March 31, 2021 such that sales for the Vycor Medical division increased slightly over the same period in 2020, when adjusted for the shipment of an advance order during the 2020 period to one international customer to ensure protection of its supply chain. Although neurosurgery is not considered an elective procedure, general hospital dislocation and diversion of resources away from non-emergency surgeries, or surgeries that can be postponed for a short period without harm, has impacted our revenues during the twelve months ended December 31, 2020 and the three months ended March 31, 2021 and could continue to do so. In addition, sales and marketing efforts by Vycor’s representatives have been disrupted or curtailed due to lockdown and social distancing, and this has and may continue to hinder the recovery of revenues. While our operations are principally located in the United States, and our sub-contract manufacturers are located in the United States, we participate in a global supply chain, and COVID-19 may impact our ability to conduct normal business operations, which could adversely affect our results of operations and liquidity. Disruptions to our supply chain and business operations, or to our suppliers’ or customers’ supply chains and business operations, could include disruptions from supplier staff absences due to COVID-19 illness or isolation requirements, the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, or restrictions on the shipment of our or our suppliers’ or customers’ products, any of which could have adverse ripple effects on our manufacturing output and delivery schedule. Although we have implemented business continuity plans for our offices and personnel to enable continuity of service remotely, if a critical number of our employees become too ill to work, or we are not able to access a sufficient quantity of our inventory for shipment due to enforced office closures, our production ability could be materially adversely affected in a rapid manner. Similarly, if our customers experience adverse business consequences due to COVID-19, or any other, pandemic, demand for our products could also be materially adversely affected in a rapid manner. Global health concerns, such as COVID-19, could also result in social, economic, and labor instability in the countries and localities in which we or our suppliers and customers operate. Any of these uncertainties could have a material adverse effect on our business, financial condition or results of operations. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
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 unaudited consolidated balance sheets and unaudited consolidated statements of comprehensive loss are as follows: Major line items constituting assets and liabilities in the unaudited consolidated balance sheets March 31,2020 December 31,2020 ASSETS Current Assets Cash $ 3,257 $ 577 Total Current Assets 3,257 577 TOTAL ASSETS $ 3257 $ 577 LIABILITIES Current Liabilities Accounts payable $ 732 $ 422 Accrued liabilities - Other - 3,168 Other current liabilities 70 15 Total Current Liabilities $ 802 $ 3,605 Major line items constituting loss from discontinued operations For the three months ended March 31, 2021 2020 Revenue $ - $ 20,812 Cost of Goods Sold - 1,601 Gross Profit - 19,211 Operating Expenses: Selling, general and administrative 11,569 28,902 Total Operating expenses 11,569 28,902 Operating Loss (11,569 ) (9,691 ) Other Income (Expense) Loss on foreign currency exchange (603 ) (44 ) Total Other Income (Expense) (603 ) (44 ) Loss Before Credit for Income Taxes (12,172 ) (9,735 ) Credit for income taxes - - Loss from discontinued operations, net of tax $ (12,172 ) $ (9,735 ) |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | 4. NOTES PAYABLE Related Parties Notes Payable Related Party Notes Payable consists of: March 31, 2021 December 31, 2020 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 March 12, 2021 the Company issued eleven promissory notes to Fountainhead Capital Management Limited for $290,873. 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. Ten notes were extended on their due dates for another twelve months. The Notes will be due between July 2021 and May 2022 or on demand by the Payee. 290,873 280,873 Total Related Party Notes Payable $ 320,873 $ 310,873 Other Notes Payable Other Notes Payable consists of: March 31, 2021 December 31, 2020 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 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 issued by the Borrower, matures on May 16, 2022 and bears interest at a rate of 1% per annum. 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 has applied for forgiveness. 58,600 58,600 On January 1, 2021, the Company was granted a second PPP loan from Citizens Bank N.A. in the amount of $58,600. The Loan, which was in the form of a Note issued by the Borrower, matures on January 1, 2026 and bears interest at a rate of 1% per annum. 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 intends to use the Loan for qualifying expenses. 58,600 - Insurance policy finance agreements. 8,517 25,987 Total Notes Payable: $ 425,717 $ 384,587 Long-Term Notes Payable consists of: March 31, 2021 December 31, 2020 On July 7, 2020, the Company was advised that the Small Business Administration (SBA) had approved a $150,000 loan under the Economic Injury Disaster Loan Program pursuant to the Coronavirus Aid, Relief and Economic Security (CARES) Act (“Loan”). The 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 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 $ 150,000 Total Long-Term Notes Payable: $ 150,000 $ 150,000 In January 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 were 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 3,051,106 shares of Common Stock as of March 31, 2021. 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. |
Lease
Lease | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease | 5. LEASE The Company recognized the following related to a lease in its unaudited consolidated balance sheet at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Operating Lease ROU Assets $ 113,232 $ 124,183 $ 113,232 $ 124,183 Operating Lease Liabilities Current portion 45,178 44,623 Long-term portion $ 65,774 $ 77,008 $ 110,952 $ 121,631 |
Segment Reporting, Geographical
Segment Reporting, Geographical Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting, Geographical Information | 6. 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 and which includes Sight Science. 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: Three Months Ended March 31, 2021 2020 Revenue: Vycor Medical $ 262,714 $ 307,287 NovaVision $ 33,035 $ 22,952 $ 295,749 $ 330,239 Gross Profit Vycor Medical $ 235,932 $ 270,857 NovaVision $ 31,340 $ 22,088 $ 267,272 $ 292,945 March 31, December 31, 2021 2020 Total Assets: Vycor Medical $ 938,507 $ 953,730 NovaVision 26,134 32,213 Discontinued operations 3,257 577 Total Assets $ 967,898 $ 986,520 (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. Three Months Ended March 31, 2021 2020 Revenue: United States $ 288,780 $ 327,815 Europe $ 6,969 $ 2,424 $ 295,749 $ 330,239 Gross Profit United States $ 260,371 $ 290,521 Europe $ 6,901 $ 2,424 $ 267,272 $ 292,945 March 31, December 31, 2021 2020 Total Assets: United States $ 960,051 $ 980,239 Europe 4,590 5,704 Discontinued operations 3,257 577 Total Assets $ 967,898 $ 986,520 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Equity | 7. EQUITY Common Stock Grants During January to March 2021 and 2020, the Company granted 99,999 shares of Common Stock (valued at $21,000) to non-employee Directors, respectively. Under the terms of the Directors Deferred Compensation Plan, the receipt of these shares is deferred until the January 15 th In January 2021 the Company 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. During January to March 2021 and 2020, under the terms of the Consulting Agreement referred to in note 10, the Company issued 535,714 of Common Stock to Fountainhead valued at $101,430 and $112,500, respectively. Stock Options The details of the outstanding stock options are as follows: Weighted average Number of shares exercise price Outstanding at December 31, 2020 680,000 $ 0.28 Granted - - Exercised - - Cancelled or expired (20,000 ) (0.48 ) Outstanding at March 31, 2021 660,000 $ 0.27 As of March 31, 2021, the weighted-average remaining contractual life of outstanding options is 0.25 years. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 8. 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 stock granted to non-employees for each of the three months ended March 31, 2021 and 2020 was $122,430 and $133,500, respectively. The expense related to stock not issued during each of the periods ended March 31, 2021 and 2020 comprises $21,000, related to stock granted but not issued to directors under the Directors Deferred Compensation Plan. As of March 31, 2021, there was $0 of total unrecognized compensation costs related to warrant and stock awards and non-vested options. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES Lease The Company leases office space located at 951 Broken Sound Parkway, Suite 320, Boca Raton, FL 33487 from WPT Land 2 L.P., for a gross rent of approximately $4,000 per month, plus other charges of approximately $1,500 per month. The lease terminated September 30, 2020 and was extended for a further three years to August 31, 2023. The Company’s subsidiary in Germany occupied premises on a rolling 12 month lease agreement with a 3 month notice period of EUR1,650 per month (approximately $1,815), which was terminated effective June 30, 2020. Rent expense for the three months ended March 31, 2021 and 2020 for the continuing operations was $19,477 and $19,658 respectively. See Note 5. 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 three months ended March 31, 2021 and the year ended December 31, 2020 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 | 3 Months Ended |
Mar. 31, 2021 | |
Consulting And Other Agreements | |
Consulting and Other Agreements | 10. CONSULTING AND OTHER AGREEMENTS The following agreements were entered into or remained in force during the period ended March 31, 2021: Consulting Agreement with Fountainhead Effective January 1, 2021, the Company made a slight amendment to the Fountainhead Consulting Agreement (“the Amended Agreement”). Under the Amended Agreement, fees are payable to Fountainhead, with an option to receive $5,000 per month in cash, and the remainder payable in Company Common Stock (“Shares”) as follows: 1) 535,714 Shares on the last day of each quarter; to the extent there are cash retainer payments during the quarter, the Shares shall be reduced by a number calculated by dividing the cash amount by the average closing price of the Shares for the 30 trading days prior to issuance; or 2) if the average closing price of the Shares for the 30 trading days prior to issuance is above $0.21, a number of Shares calculated by dividing $112,500 by the average closing price of the Shares for the 30 trading days prior to issuance. 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 continues to provide 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. During the three months ended March 31, 2021 and March 31, 2020, under the terms of the Amended Agreement, Fountainhead received 535,714 shares of Company Common Stock, valued at $101,430 and $112,500, respectively. 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 were issued under the terms of the Agreement (see Note 13). |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. RELATED PARTY TRANSACTIONS Peter Zachariou and David Cantor, directors of the Company, are investment managers of Fountainhead, which owned, at March 31, 2021, 60.2% of the Company’s Common Stock and 70% of the Company’s Preferred D Stock. Peter Zachariou owns 26% of the Company’s Preferred D Stock. Adrian Liddell, Chairman, is a consultant for Fountainhead. During each of the three months ended March 31, 2021 and March 31, 2020, under the terms of the Consulting Agreement referred to in note 10, the Company issued 535,714 shares of Common Stock to Fountainhead valued at $101,430 and $112,500, respectively. During each of the three months ended March 31, 2021 and 2020, the Company accrued an aggregate of $162,185 of Preferred D Stock dividends, of which $113,019 was in respect of Fountainhead and $41,693 was in respect of Peter Zachariou. During the three months ended March 31, 2021 and 2020 the Company issued unsecured loan notes to Fountainhead for a total of $10,000 and $60,000, respectively. The loan notes bear interest at a rate of 10% and are due on demand or by their one-year anniversary (see Note 4). There were no other related party transactions during the three months ended March 31, 2021 and 2020. |
Concentration
Concentration | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration | 12. 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: Three Months Ended March 31, 2021 2020 Number of customers over 10% 0 1 Percentage of sales 0 % 25 % Accounts Receivable Concentration At March 31, At December 31, 2021 2020 Number of customers over 10% 0 2 Percentage of accounts receivable 0 % 10 % The Company has three sub-contract manufacturers from which it purchases, respectively, VBAS injection molded parts, completed and sterilized VBAS units, and VBAS extension arms. Purchases from these manufacturers vary from quarter to quarter, with no purchases in some quarters, however on an annual basis purchases from each manufacturer represent over 10% of total annual purchases. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. SUBSEQUENT EVENTS On April 1 the Company terminated its Directors’ Deferred Compensation Plan and issued all the granted shares in the Plan, comprising 575,649 shares to Steven Girgenti and 566,793 shares to Lowell Rush. On April 1, 2021 101,663 shares of Company common stock were issued to Dr. Richard Komotar under the terms of an agreement described in Note 10. 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 unaudited consolidated financial statements were issued and has determined that there were no significant subsequent events or transactions which would require recognition or disclosure in the financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The unaudited 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 account balances, transactions, and profits 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. |
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 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 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. |
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, 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 has applied for forgiveness. During the three months ended March 31, 2021 the Company received an additional PPP loan of $58,600. The Company accounts for the loans 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 loans will remain recorded as a liability until either (1) the loans are, in part or wholly, forgiven and the Company has been “legally released”, or (2) the Company pays off the loans. Once the loans are, 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. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss available to common stockholders 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: March 31, 2021 March 31, 2020 Stock options outstanding 660,000 680,000 Debentures convertible into common stock 3,051,106 2,822,535 Preferred shares convertible into common stock 1,272,052 1,272,052 Directors Deferred Compensation Plan 1,142,442 1,275,906 Total 6,125,600 6,050,493 |
Covid-19 | Covid-19 Vycor Medical experienced a reduction in demand during the twelve months ended December 31, 2020 in the US and Europe, particularly in the second quarter, with some recovery in the third and fourth quarters. This recovery continued during the three months ended March 31, 2021 such that sales for the Vycor Medical division increased slightly over the same period in 2020, when adjusted for the shipment of an advance order during the 2020 period to one international customer to ensure protection of its supply chain. Although neurosurgery is not considered an elective procedure, general hospital dislocation and diversion of resources away from non-emergency surgeries, or surgeries that can be postponed for a short period without harm, has impacted our revenues during the twelve months ended December 31, 2020 and the three months ended March 31, 2021 and could continue to do so. In addition, sales and marketing efforts by Vycor’s representatives have been disrupted or curtailed due to lockdown and social distancing, and this has and may continue to hinder the recovery of revenues. While our operations are principally located in the United States, and our sub-contract manufacturers are located in the United States, we participate in a global supply chain, and COVID-19 may impact our ability to conduct normal business operations, which could adversely affect our results of operations and liquidity. Disruptions to our supply chain and business operations, or to our suppliers’ or customers’ supply chains and business operations, could include disruptions from supplier staff absences due to COVID-19 illness or isolation requirements, the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, or restrictions on the shipment of our or our suppliers’ or customers’ products, any of which could have adverse ripple effects on our manufacturing output and delivery schedule. Although we have implemented business continuity plans for our offices and personnel to enable continuity of service remotely, if a critical number of our employees become too ill to work, or we are not able to access a sufficient quantity of our inventory for shipment due to enforced office closures, our production ability could be materially adversely affected in a rapid manner. Similarly, if our customers experience adverse business consequences due to COVID-19, or any other, pandemic, demand for our products could also be materially adversely affected in a rapid manner. Global health concerns, such as COVID-19, could also result in social, economic, and labor instability in the countries and localities in which we or our suppliers and customers operate. Any of these uncertainties could have a material adverse effect on our business, financial condition or results of operations. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: March 31, 2021 March 31, 2020 Stock options outstanding 660,000 680,000 Debentures convertible into common stock 3,051,106 2,822,535 Preferred shares convertible into common stock 1,272,052 1,272,052 Directors Deferred Compensation Plan 1,142,442 1,275,906 Total 6,125,600 6,050,493 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 unaudited consolidated balance sheets and unaudited consolidated statements of comprehensive loss are as follows: Major line items constituting assets and liabilities in the unaudited consolidated balance sheets March 31,2020 December 31,2020 ASSETS Current Assets Cash $ 3,257 $ 577 Total Current Assets 3,257 577 TOTAL ASSETS $ 3257 $ 577 LIABILITIES Current Liabilities Accounts payable $ 732 $ 422 Accrued liabilities - Other - 3,168 Other current liabilities 70 15 Total Current Liabilities $ 802 $ 3,605 Major line items constituting loss from discontinued operations For the three months ended March 31, 2021 2020 Revenue $ - $ 20,812 Cost of Goods Sold - 1,601 Gross Profit - 19,211 Operating Expenses: Selling, general and administrative 11,569 28,902 Total Operating expenses 11,569 28,902 Operating Loss (11,569 ) (9,691 ) Other Income (Expense) Loss on foreign currency exchange (603 ) (44 ) Total Other Income (Expense) (603 ) (44 ) Loss Before Credit for Income Taxes (12,172 ) (9,735 ) Credit for income taxes - - Loss from discontinued operations, net of tax $ (12,172 ) $ (9,735 ) |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Notes Payable | Related Party Notes Payable consists of: March 31, 2021 December 31, 2020 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 March 12, 2021 the Company issued eleven promissory notes to Fountainhead Capital Management Limited for $290,873. 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. Ten notes were extended on their due dates for another twelve months. The Notes will be due between July 2021 and May 2022 or on demand by the Payee. 290,873 280,873 Total Related Party Notes Payable $ 320,873 $ 310,873 Other Notes Payable Other Notes Payable consists of: March 31, 2021 December 31, 2020 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 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 issued by the Borrower, matures on May 16, 2022 and bears interest at a rate of 1% per annum. 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 has applied for forgiveness. 58,600 58,600 On January 1, 2021, the Company was granted a second PPP loan from Citizens Bank N.A. in the amount of $58,600. The Loan, which was in the form of a Note issued by the Borrower, matures on January 1, 2026 and bears interest at a rate of 1% per annum. 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 intends to use the Loan for qualifying expenses. 58,600 - Insurance policy finance agreements. 8,517 25,987 Total Notes Payable: $ 425,717 $ 384,587 Long-Term Notes Payable consists of: March 31, 2021 December 31, 2020 On July 7, 2020, the Company was advised that the Small Business Administration (SBA) had approved a $150,000 loan under the Economic Injury Disaster Loan Program pursuant to the Coronavirus Aid, Relief and Economic Security (CARES) Act (“Loan”). The 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 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 $ 150,000 Total Long-Term Notes Payable: $ 150,000 $ 150,000 |
Lease (Tables)
Lease (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | The Company recognized the following related to a lease in its unaudited consolidated balance sheet at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Operating Lease ROU Assets $ 113,232 $ 124,183 $ 113,232 $ 124,183 Operating Lease Liabilities Current portion 45,178 44,623 Long-term portion $ 65,774 $ 77,008 $ 110,952 $ 121,631 |
Segment Reporting, Geographic_2
Segment Reporting, Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: Three Months Ended March 31, 2021 2020 Revenue: Vycor Medical $ 262,714 $ 307,287 NovaVision $ 33,035 $ 22,952 $ 295,749 $ 330,239 Gross Profit Vycor Medical $ 235,932 $ 270,857 NovaVision $ 31,340 $ 22,088 $ 267,272 $ 292,945 March 31, December 31, 2021 2020 Total Assets: Vycor Medical $ 938,507 $ 953,730 NovaVision 26,134 32,213 Discontinued operations 3,257 577 Total Assets $ 967,898 $ 986,520 |
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. Three Months Ended March 31, 2021 2020 Revenue: United States $ 288,780 $ 327,815 Europe $ 6,969 $ 2,424 $ 295,749 $ 330,239 Gross Profit United States $ 260,371 $ 290,521 Europe $ 6,901 $ 2,424 $ 267,272 $ 292,945 March 31, December 31, 2021 2020 Total Assets: United States $ 960,051 $ 980,239 Europe 4,590 5,704 Discontinued operations 3,257 577 Total Assets $ 967,898 $ 986,520 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock Options | The details of the outstanding stock options are as follows: Weighted average Number of shares exercise price Outstanding at December 31, 2020 680,000 $ 0.28 Granted - - Exercised - - Cancelled or expired (20,000 ) (0.48 ) Outstanding at March 31, 2021 660,000 $ 0.27 |
Concentration (Tables)
Concentration (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: Three Months Ended March 31, 2021 2020 Number of customers over 10% 0 1 Percentage of sales 0 % 25 % Accounts Receivable Concentration At March 31, At December 31, 2021 2020 Number of customers over 10% 0 2 Percentage of accounts receivable 0 % 10 % |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net loss | $ (242,919) | $ (174,948) |
Working capital deficiency | 706,850 | |
Related party liabilities | 1,862,806 | |
EuroAmerican Investment Corp. [Member] | ||
Term note | 300,000 | |
Accrued interest | $ 340,732 | |
Maturity date | Jun. 30, 2021 |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Paycheck Protection Program [Member] | CARES Act [Member] | ||
Proceeds from loan | $ 58,600 | $ 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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 6,125,600 | 6,050,493 |
Stock Options Outstanding [Member] | ||
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 660,000 | 680,000 |
Debentures Convertible into Common Stock [Member] | ||
Potential shares of common stock that are not included in the calculation of diluted net loss per share | 3,051,106 | 2,822,535 |
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 | 1,142,442 | 1,275,906 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Loss from Discontinued Operations (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Cash | $ 3,257 | $ 577 | |
Total Current Assets | 3,257 | 577 | |
TOTAL ASSETS | 3,257 | 577 | |
Accounts payable | 732 | 422 | |
Accrued liabilities - Other | 3,168 | ||
Other current liabilities | 70 | 15 | |
Total Current Liabilities | 802 | $ 3,605 | |
Revenue | $ 20,812 | ||
Cost of Goods Sold | 1,601 | ||
Gross Profit | 19,211 | ||
Selling, general and administrative | 11,569 | 28,902 | |
Total Operating Expenses | 11,569 | 28,902 | |
Operating Loss | (11,569) | (9,691) | |
Loss on foreign currency exchange | (603) | (44) | |
Total Other Income (Expense) | (603) | (44) | |
Loss Before Credit for Income Taxes | (12,172) | (9,735) | |
Credit for income taxes | |||
Loss from discontinued operations, net of tax | $ (12,172) | $ (9,735) |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Mar. 31, 2021 | Jan. 31, 2018 |
EuroAmerican Investment Corp. [Member] | ||
Debt conversion shares issued | 3,051,106 | |
EuroAmerican Investment Corp. [Member] | ||
Note payable other | $ 300,000 | |
Conversion price | $ 0.21 |
Notes Payable - Summary of Note
Notes Payable - Summary of Notes Payable (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Total Related Party Notes Payable | $ 320,873 | $ 310,873 |
Total Notes Payable | 425,717 | 384,587 |
Total Long-term Notes Payable | 150,000 | 150,000 |
Economic Injury Disaster Loan Program [Member] | CARES Act [Member] | ||
Total Long-term Notes Payable | 150,000 | 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 | 58,600 |
Citizens Bank [Member] | Second 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 | 290,873 | 280,873 |
Insurance Policy Finance Agreements [Member] | ||
Total Notes Payable | $ 8,517 | $ 25,987 |
Notes Payable - Summary of No_2
Notes Payable - Summary of Notes Payable (Details) (Parenthetical) - USD ($) | Jan. 02, 2021 | Jul. 07, 2020 | May 16, 2020 | Jun. 25, 2018 | Mar. 25, 2011 | Mar. 31, 2021 | Mar. 12, 2021 |
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 issued by the Borrower, matures on May 16, 2022 and bears interest at a rate of 1% per annum. | ||||||
Citizens Bank [Member] | Second Paycheck Protection Program [Member] | CARES Act [Member] | |||||||
Value of notes issued | $ 58,600 | ||||||
Notes interest rate | 1.00% | ||||||
Debt due date | Jan. 1, 2026 | ||||||
Debt due date description | The Loan, which was in the form of a Note issued by the Borrower, matures on January 1, 2026 and bears interest at a rate of 1% per annum. | ||||||
Peter Zachariou [Member] | |||||||
Value of notes issued | $ 30,000 | ||||||
Notes interest rate | 10.00% | ||||||
Debt due date | Jun. 25, 2021 | ||||||
Fountainhead Capital Management Limited [Member] | |||||||
Value of notes issued | $ 290,873 | ||||||
Notes interest rate | 10.00% | ||||||
Debt due date description | The Notes will be due between July 2021 and May 2022 or on demand by the Payee. |
Lease - Schedule of Supplementa
Lease - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating Lease ROU Assets | $ 113,232 | $ 124,183 |
Operating Lease Liabilities Current portion | 45,178 | 44,623 |
Operating Lease Liabilities Long-term portion | 65,774 | 77,008 |
Operating Lease Liabilities | $ 110,952 | $ 121,631 |
Segment Reporting, Geographic_3
Segment Reporting, Geographical Information (Details Narrative) | 3 Months Ended |
Mar. 31, 2021Number | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting, Geographic_4
Segment Reporting, Geographical Information - Schedule of Business Segments Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue | $ 295,749 | $ 330,239 | |
Gross Profit | 267,272 | 292,945 | |
Total Assets | 967,898 | $ 986,520 | |
Discontinued Operations [Member] | |||
Total Assets | 3,257 | 577 | |
Vycor Medical [Member] | |||
Revenue | 262,714 | 307,287 | |
Gross Profit | 235,932 | 270,857 | |
Total Assets | 938,507 | 953,730 | |
Nova Vision [Member] | |||
Revenue | 33,035 | 22,952 | |
Gross Profit | 31,340 | $ 22,088 | |
Total Assets | $ 26,134 | $ 32,213 |
Segment Reporting, Geographic_5
Segment Reporting, Geographical Information - Summary of Geographic Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue | $ 295,749 | $ 330,239 | |
Gross Profit | 267,272 | 292,945 | |
Total Assets | 967,898 | $ 986,520 | |
Discontinued Operations [Member] | |||
Total Assets | 3,257 | 577 | |
United States [Member] | |||
Revenue | 288,780 | 327,815 | |
Gross Profit | 260,371 | 290,521 | |
Total Assets | 960,051 | 980,239 | |
Europe [Member] | |||
Revenue | 6,969 | 2,424 | |
Gross Profit | 6,901 | $ 2,424 | |
Total Assets | $ 4,590 | $ 5,704 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Number of shares issued, value | |||
Weighted-average remaining contractual life of outstanding options | 2 months 30 days | ||
Fountainhead [Member] | Fountainhead Consulting Agreement [Member] | |||
Number of common stock issued | 535,714 | 535,714 | |
Number of common stock issued, value | $ 101,430 | $ 112,500 | |
Directors Deferred Compensation Plan [Member] | Oscar Bronsther [Member] | |||
Number of common stock issued | 466,794 | ||
Non Employee Directors [Member] | Directors Deferred Compensation Plan [Member] | |||
Number of shares issued | 99,999 | 99,999 | |
Number of shares issued, value | $ 21,000 | $ 21,000 |
Equity - Schedule of Stock Opti
Equity - Schedule of Stock Options (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Equity [Abstract] | |
Number of shares Options Outstanding, Beginning Balance | shares | 680,000 |
Number of shares Options, Granted | shares | |
Number of shares Options, Exercised | shares | |
Number of shares Options, Cancelled or expired | shares | (20,000) |
Number of shares Options Outstanding, Ending Balance | shares | 660,000 |
Weighted average exercise price per share Options, Outstanding, Beginning Balance | $ / shares | $ 0.28 |
Weighted average exercise price per share Options, Granted | $ / shares | |
Weighted average exercise price per share Options, Exercised | $ / shares | |
Weighted average exercise price per share Options, Cancelled or expired | $ / shares | (0.48) |
Weighted average exercise price per share Options, Outstanding, Ending balance | $ / shares | $ 0.27 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Non Employee Directors [Member] | Directors Deferred Compensation Plan [Member] | ||
Expense related to unissued stock | $ 21,000 | $ 21,000 |
Total unrecognized compensation costs | 0 | |
Non-employees [Member] | ||
Share-based compensation | $ 122,430 | $ 133,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Oct. 31, 2016USD ($) | Oct. 31, 2016EUR (€) | Jun. 30, 2012USD ($) | Jun. 30, 2012EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2020USD ($) | Oct. 31, 2016EUR (€) | Jun. 30, 2012EUR (€) |
Rent expense | $ 19,477 | $ 19,658 | |||||||
Trade tax reduced | $ 82,000 | $ 82,000 | |||||||
Interest expenses | $ 13,200 | $ 13,200 | |||||||
Euro Currency [Member] | |||||||||
Trade tax reduced | € | € 75,000 | € 75,000 | |||||||
Interest expenses | € | € 12,000 | € 12,000 | |||||||
German [Member] | |||||||||
Rent expense | 1,815 | ||||||||
German [Member] | Euro Currency [Member] | |||||||||
Rent expense | € | € 1,650 | ||||||||
Office Space [Member] | |||||||||
Rent expense | 4,000 | ||||||||
Other charges | $ 1,500 | ||||||||
Lease termination date | Sep. 30, 2020 | Sep. 30, 2020 | |||||||
Lease description | The lease terminated September 30, 2020 and was extended for a further three years to August 31, 2023. | The lease terminated September 30, 2020 and was extended for a further three years to August 31, 2023. |
Consulting and Other Agreemen_2
Consulting and Other Agreements (Details Narrative) - USD ($) | Apr. 01, 2021 | Mar. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Stock option cash | $ 122,430 | $ 133,500 | ||
General Consultancy [Member] | Ricardo J Komotar M D [Member] | ||||
Shares issued for services | 304,989 | |||
Milestones [Member] | Ricardo J Komotar M D [Member] | ||||
Shares issued for services | 1,219,957 | |||
Milestones [Member] | Ricardo J Komotar M D [Member] | Subsequent Event [Member] | ||||
Number of common stock issued | 101,663 | |||
Fountainhead Consulting Agreement [Member] | Fountainhead [Member] | ||||
Number of common stock issued | 535,714 | 535,714 | ||
Number of common stock issued, value | $ 101,430 | $ 112,500 | ||
Fountainhead Consulting Agreement [Member] | January 1, 2021 [Member] | ||||
Stock option cash | $ 5,000 | |||
Number of common stock issued | 535,714 | |||
Common stock exercise price | $ 0.21 | |||
Amended Agreement [Member] | Fountainhead [Member] | ||||
Number of common stock issued | 535,714 | 535,714 | ||
Number of common stock issued, value | $ 101,430 | $ 101,430 | ||
Amended Agreement [Member] | January 1, 2021 [Member] | ||||
Number of common stock issued, value | $ 112,500 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accrued dividends | $ 162,185 | $ 162,185 |
Fountainhead [Member] | Consulting Agreement [Member] | ||
Number of common stock issued | 535,714 | 535,714 |
Number of common stock issued, value | $ 101,430 | $ 112,500 |
Fountainhead [Member] | ||
Accrued dividends | 113,019 | 113,019 |
Fountainhead [Member] | Unsecured Loan [Member] | ||
Unsecured loan notes issued | $ 10,000 | $ 60,000 |
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 | 60.20% | |
Fountainhead [Member] | Directors [Member] | Series D Preferred Stock [Member] | ||
Equity ownership percentage | 70.00% | |
Peter Zachariou [Member] | ||
Accrued dividends | $ 41,693 | $ 41,693 |
Peter Zachariou [Member] | Series D Preferred Stock [Member] | ||
Equity ownership percentage | 26.00% |
Concentration (Details Narrativ
Concentration (Details Narrative) - Purchase [Member] | 3 Months Ended |
Mar. 31, 2021 | |
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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales Revenue [Member] | ||
Number of customers over 10% | 0 | 1 |
Sales Revenue [Member] | Customer One [Member] | ||
Concentration risk, percentage | 0.00% | 25.00% |
Accounts Receivable [Member] | ||
Number of customers over 10% | 0 | 2 |
Accounts Receivable [Member] | Customer One [Member] | ||
Concentration risk, percentage | 0.00% | 10.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | Apr. 01, 2021shares |
Dr. Richard Komotar [Member] | |
Number of common stock issued | 101,663 |
Directors Deferred Compensation Plan [Member] | Steven Girgenti [Member] | |
Number of common stock issued | 575,649 |
Directors Deferred Compensation Plan [Member] | Lowell Rush [Member] | |
Number of common stock issued | 566,793 |