Company Quick10K Filing
Vycor Medical
Price0.14 EPS-0
Shares25 P/E-6
MCap3 P/FCF41
Net Debt-0 EBIT-1
TEV3 TEV/EBIT-6
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-13
10-Q 2020-06-30 Filed 2020-08-17
10-Q 2020-03-31 Filed 2020-05-12
10-K 2019-12-31 Filed 2020-03-27
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-13
10-K 2018-12-31 Filed 2019-03-29
10-Q 2018-09-30 Filed 2018-11-13
10-Q 2018-06-30 Filed 2018-08-10
10-Q 2018-03-31 Filed 2018-05-11
10-K 2017-12-31 Filed 2018-03-30
10-Q 2017-09-30 Filed 2017-11-13
10-Q 2017-06-30 Filed 2017-08-11
10-Q 2017-03-31 Filed 2017-05-11
10-K 2016-12-31 Filed 2017-03-31
10-Q 2016-09-30 Filed 2016-11-14
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-04-28
10-K 2015-12-31 Filed 2016-03-30
10-Q 2015-09-30 Filed 2015-11-13
10-Q 2015-06-30 Filed 2015-08-14
10-Q 2015-03-31 Filed 2015-05-15
10-K 2014-12-31 Filed 2015-03-31
10-Q 2014-09-30 Filed 2014-11-12
10-Q 2014-06-30 Filed 2014-08-12
10-Q 2014-03-31 Filed 2014-05-15
10-K 2013-12-31 Filed 2014-04-07
10-Q 2013-09-30 Filed 2013-11-15
10-Q 2013-06-30 Filed 2013-08-14
10-Q 2013-03-31 Filed 2013-05-15
10-K 2012-12-31 Filed 2013-04-01
10-Q 2012-09-30 Filed 2012-11-14
10-Q 2012-06-30 Filed 2012-08-14
10-Q 2012-03-31 Filed 2012-05-15
10-K 2011-12-31 Filed 2012-03-30
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-22
10-Q 2011-03-31 Filed 2011-05-13
10-K 2010-12-31 Filed 2011-03-31
10-Q 2010-09-30 Filed 2010-11-15
10-Q 2010-06-30 Filed 2010-08-16
10-Q 2010-03-31 Filed 2010-05-12
10-K 2009-12-31 Filed 2010-03-31
8-K 2020-06-30
8-K 2020-03-23
8-K 2019-03-29
8-K 2018-10-09
8-K 2018-03-30

VYCO 10Q Quarterly Report

Part 1
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II
Item 1. Legal Proceedings
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
EX-31.1 ex31-1.htm
EX-31.2 ex31-2.htm
EX-32.1 ex32-1.htm
EX-32.2 ex32-2.htm

Vycor Medical Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
4.93.21.6-0.1-1.7-3.42012201420172020
Assets, Equity
0.50.1-0.2-0.6-0.9-1.32012201420172020
Rev, G Profit, Net Income
3.92.91.90.8-0.2-1.22012201420172020
Ops, Inv, Fin

10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q

 

(Mark One)

 

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
  For the fiscal quarter ended September 30, 2020
   
[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
   
  For the transition period from to

 

VYCOR MEDICAL, INC.

(Exact name of small business issuer as specified in its charter)

 

Delaware   001-34932   20-3369218
(State of   (Commission   (IRS Employer
Incorporation)   File Number)   Identification No.)

 

951 Broken Sound Parkway, Suite 320, Boca Raton, FL 33487

(Address of principal executive offices) (Zip code)

 

Issuer’s telephone number: (561) 558-2020

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol   Name of each exchange on which registered
Common Stock   VYCO   OTCQB

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [  ] No [X]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer [  ]   Accelerated Filer [  ]
Non-accelerated Filer [  ] (Do not check if a smaller reporting company)   Smaller Reporting Company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [  ] Yes [X] No

 

There were 26,895,692 shares outstanding of registrant’s common stock, par value $0.0001 per share, as of November 13, 2020.

 

Transitional Small Business Disclosure Format (check one): Yes [  ] No [X]

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
  PART I  
     
Item 1. Financial Statements 3
     
  Unaudited Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 3
     
  Unaudited Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2020 and 2019. 4
     
  Unaudited Consolidated Statement of Stockholders’ Deficiency for the three and nine months ended September 30, 2020 and 2019. 5
     
  Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019. 6
     
  Notes to Unaudited Consolidated Financial Statements 7
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation 17
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 24
     
Item 4. Controls and Procedures 24
     
  PART II  
     
Item 1. Legal Proceedings 25
     
Item 1A. Risk Factors 25
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25
     
Item 3. Defaults Upon Senior Securities 25
     
Item 4. Mine Safety Disclosures 25
     
Item 5. Other Information 25
     
Item 6. Exhibits 25
     
SIGNATURES 26

 

 2 

 

 

PART 1

 

ITEM 1. FINANCIAL STATEMENTS

VYCOR MEDICAL, INC.

Consolidated Balance Sheets

(Unaudited)

 

   September 30, 2020   December 31, 2019 
ASSETS          
Current Assets          
Cash  $74,935   $60,717 
Trade accounts receivable   137,397    274,551 
Inventory   179,714    208,353 
Prepaid expenses and other current assets   90,854    92,694 
Current assets of discontinued operations   2,004    20,117 
Total Current Assets   484,904    656,432 
           
Fixed assets, net   389,146    364,953 
           
Intangible and Other assets:          
Patents, net of accumulated amortization   14,343    23,326 
Security deposits   6,000    6,000 
Operating lease - right of use assets   135,003    31,658 
Long term assets of discontinued operations   -    9,574 
Total Intangible and Other assets   155,346    70,558 
TOTAL ASSETS  $1,029,396   $1,091,943 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY          
Current Liabilities          
Accounts payable  $131,117   $245,412 
Accrued interest: Other   316,798    280,765 
Accrued interest: Related party   66,767    44,921 
Accrued liabilities - Other   116,085    233,067 
Accrued liabilities - Related Party   1,297,480    973,110 
Notes payable: Other   555,666    328,032 
Notes payable: Related Party   310,873    230,873 
Current operating lease liabilities   44,079    28,010 
Current liabilities of discontinued operations   9,884    82,216 
Total Current Liabilities   2,848,749    2,446,406 
           
Operating lease liability - Long term   88,097    - 
           
STOCKHOLDERS’ DEFICIENCY          
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 270,307 and 270,307 issued and outstanding as at September 30, 2020 and December 31, 2019 respectively   27    27 
Common Stock, $0.0001 par value, 55,000,000 shares authorized at September 30, 2020 and December 31, 2019, 26,999,026 and 25,391,884 shares issued and 26,895,692 and 25,288,550 outstanding at September. 30, 2020 and December 31, 2019 respectively   2,700    2,539 
Additional Paid-in Capital   28,699,931    28,306,592 
Treasury Stock (103,334 shares of Common Stock as at September 30, 2020 and December 31, 2019 respectively, at cost)   (1,033)   (1,033)
Accumulated Deficit   (30,736,750)   (29,790,258)
Accumulated Other Comprehensive Income   127,675    127,670 
Total Stockholders’ Deficiency   (1,907,450)   (1,354,463)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY  $1,029,396   $1,091,943 

 

See accompanying notes to consolidated financial statements

 

 3 

 

 

VYCOR MEDICAL, INC.

Consolidated Statements of Comprehensive Loss

(Unaudited)

 

   For the three months ended
September 30,
   For the nine months ended
September 30,
 
   2020   2019   2020   2019 
                 
Revenue  $275,925   $322,884   $850,430   $1,061,393 
Cost of Goods Sold   40,551    28,962    98,338    97,446 
Gross Profit   235,374    293,922    752,092    963,947 
                     
Operating expenses:                    
Depreciation and Amortization   14,495    15,218    43,780    44,855 
General and administrative   427,250    444,371    1,260,742    1,344,853 
Total Operating expenses   441,745    459,589    1,304,522    1,389,708 
Operating loss   (206,371)   (165,667)   (552,430)   (425,761)
                     
Other income (expense)                    
Interest expense: Related Party   (7,836)   (5,315)   (21,846)   (15,331)
Interest expense: Other   (12,099)   (12,109)   (36,033)   (36,074)
Loss on foreign currency exchange   (484)   (3)   (829)   (207)
Gain on other income   6,000    -    6,000    - 
Total Other Income (expense)   (14,419)   (17,427)   (52,708)   (51,612)
                     
Loss Before Credit for Income Taxes   (220,790)   (183,094)   (605,138)   (477,373)
Credit for income taxes   -    -    -    - 
Net Loss from continuing operations   (220,790)   (183,094)   (605,138)   (477,373)
Income (Loss) from discontinued operations, net of tax   22,503    (26,515)   (16,984)   (97,838)
Net loss   (198,287)   (209,609)   (622,122)   (575,211)
                     
Preferred stock dividends   (162,185)   (162,185)   (324,370)   (324,370)
Net Loss available to common stockholders  $(360,472)  $(371,794)  $(946,492)  $(899,581)

Other Comprehensive Loss

                    
Foreign Currency Translation Adjustment   3    7    5    2 
Comprehensive Loss   (198,284)   (209,602)   (622,117)   (575,209)
                     

Net Loss Per Share – basic and diluted

                    
Loss from continuing operations  $(0.01)  $(0.01)  $(0.02)  $(0.02)
Income (Loss) from discontinued operations  $0.00   $(0.00)  $(0.00)  $(0.00)

Net loss available to common stockholders

  $(0.01)  $(0.02)  $(0.04)  $(0.04)
                     
Weighted Average Number of Shares Outstanding – Basic and Diluted   26,365,801    24,222,946    25,832,084    23,689,516 

`

 

See accompanying notes to consolidated financial statements

 

 4 

 

 

VYCOR MEDICAL, INC.

Consolidated Statement of Stockholders’ Deficiency

(Unaudited)

 

                                   Additional       Accum     
   Common Stock   Preferred  C   Preferred  D   Treasury Stock   Paid-in   Accumulated   OCI    
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
                                                 
Balance at June 30, 2020   26,463,312   $2,646    1   $0    270,306   $27    (103,334)  $(1,033)  $28,573,484   $(30,376,278)  $127,672   $(1,673,482)
Issuance of stock for board and consulting fees   535,714    54                                  112,447              112,501 
Directors deferred compensation granted   -                                       14,000              14,000 
Issuance of shares pursuant to exercise of warrants                                                          - 
Accumulated Comprehensive Loss                                                     3    3 
Net loss for period ended September 30, 2020                                                (360,472)        (360,472)
Balance at September 30, 2020   26,999,026   $2,700    1   $0    270,306   $27    (103,334)  $(1,033)  $28,699,931   $(30,736,750)  $127,675   $(1,907,450)

 

                                   Additional       Accum     
   Common Stock   Preferred  C   Preferred  D   Treasury Stock   Paid-in   Accumulated   OCI    
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total  
                                                 
Balance at December 31, 2019   25,391,884   $2,539    1   $0    270,306   $27    (103,334)  $(1,033)  $28,306,592   $(29,790,258)  $127,670   $(1,354,463)
Issuance of stock for board and consulting fees   1,607,142    161                                  337,339              337,500 
Directors deferred compensation granted   -                                       56,000              56,000 
Issuance of shares pursuant to exercise of warrants                                                          - 
Accumulated Comprehensive Loss                                                     5    5 
Net loss for period ended September 30, 2020                                                (946,492)        (946,492)
Balance at September 30, 2020   26,999,026   $2,700    1   $0    270,306   $27    (103,334)  $(1,033)  $28,699,931   $(30,736,750)  $127,675   $(1,907,450)

 

                                   Additional       Accum     
   Common Stock   Preferred  C   Preferred  D   Treasury Stock   Paid-in   Accumulated   OCI    
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
                                                 
Balance at June 30, 2019   24,320,456   $2,432    1   $0    270,306   $27    (103,334)  $(1,033)  $28,039,699   $(29,197,473)  $127,668   $(1,028,680)
Issuance of stock for board and consulting fees   535,714    54                                  112,447              112,501 
Directors deferred compensation granted   -                                       21,000              21,000 
Issuance of shares pursuant to exercise of warrants                                                          - 
Accumulated Comprehensive Loss                                                     7    7 
Net loss for period ended September 30, 2019                                                (371,794)        (371,794)
Balance at Setember 30, 2019   24,856,170   $2,486    1   $0    270,306   $27    (103,334)  $(1,033)  $28,173,146   $(29,569,267)  $127,675   $(1,266,966)

 

                                   Additional       Accum     
   Common Stock   Preferred  C   Preferred  D   Treasury Stock   Paid-in   Accumulated   OCI     
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
                                                 
Balance at December 31, 2018   23,244,028   $2,324    1   $0    270,306   $27    (103,334)  $(1,033)  $27,771,868   $(28,669,686)  $127,673   $(768,827)
Issuance of stock for board and consulting fees   1,612,142    162                                  338,278              338,440 
Directors deferred compensation granted   -                                       63,000              63,000 
Issuance of shares pursuant to exercise of warrants                                                          - 
Accumulated Comprehensive Loss                                                     2    2 
Net loss for period ended September 30, 2019                                                (899,581)        (899,581)
Balance at September 30, 2019   24,856,170   $2,486    1   $0    270,306   $27    (103,334)  $(1,033)  $28,173,146   $(29,569,267)  $127,675   $(1,266,966)

 

See accompanying notes to consolidated financial statements

 

 5 

 

 

VYCOR MEDICAL, INC.

Consolidated Statement of Cash Flows

(Unaudited)

 

   For the nine months ended 
   September 30, 
   2020   2019 
Cash flows from operating activities:          
Net loss  $(622,121)  $(575,211)
Adjustments to reconcile net loss to cash used in operating activities:          
Amortization of intangible assets   8,983    9,170 
Depreciation of fixed assets   35,939    37,201 
Inventory provision   9,418    9,418 
Stock based compensation   393,500    401,440 
           
Changes in assets and liabilities:          
Accounts receivable   137,154    44,521 
Inventory   19,221    (34,455)
Prepaid expenses   2,661    (33,309)
Accrued interest - Related Party   21,846    15,332 
Accrued interest - Other   36,033    35,901 
Accounts payable   (114,295)   104,518 
Accrued liabilities - Other   (116,982)   (25,818)
Changes in discontinued operations, net   (54,218)   497 
Cash used in operating activities   (242,862)   (10,795)
Cash flows from investing activities:          
Purchase of fixed assets   (60,132)   (21,560)
Changes in investing activities of discontinued operations, net   9,574    2,496 
Cash used in investing activities   (50,558)   (19,064)
Cash flows from financing activities:          
Proceeds from Notes Payable - Related Party   80,000    17,873 
Proceeds from Paycheck Protection Program and EIDL   208,600    - 
Proceeds net of repayments Notes Payable - Other   19,034    25,244 
Cash provided by financing activities   307,634    43,117 
Effect of exchange rate changes on cash   4    (1,093) 
Net increase (decrease) in cash   14,218    12,165 
Cash at beginning of period   60,717    78,011 
Cash at end of period  $74,935   $90,176 
           
Non-Cash Transactions:          
Common stock issued to related party for payment of accrued liabilities  $0   $0 

 

See accompanying notes to consolidated financial statements

 

 6 

 

 

VYCOR MEDICAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2020

(Unaudited)

 

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, 2019 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, 2019.

 

The unaudited consolidated financial statements as of and for the nine months ended September 30, 2020 and 2019, 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 nine months ended September 30, 2020 and 2019 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 $946,492 for the nine months ended September 30, 2020 and has not generated sufficient positive cash flows from operations. As of September 30, 2020 the Company had a working capital deficiency of $688,725, excluding related party liabilities of $1,675,120. 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 $316,798, which has a maturity date of December 31, 2020, 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 December 31, 2020 will be available. However, the Company believes it may not have sufficient cash to meet its various cash needs through November 30, 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.

 

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 accounts, 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.

 

 7 

 

 

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 than as disclosed above, such 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.

 

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 unaudited 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 unaudited consolidated balance sheets, but did not have a material impact on our unaudited consolidated statements of comprehensive loss. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases.

 

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.

 

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The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share:

 

   September 30, 2020   September 30, 2019 
Stock options outstanding   680,000    700,000 
Warrants to purchase common stock   -    3,717,826 
Debentures convertible into common stock   2,937,133    2,707,933 
Preferred shares convertible into common stock   1,272,052    1,272,052 
Directors Deferred Compensation Plan   1,442,571    1,075,908 
Total   6,331,756    9,473,719 

 

Covid-19

 

In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) originated in Wuhan, China, and has since spread to a number of other countries, including the United States. On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. In addition, as of the time of the filing of this Form 10-Q, several states in the United States remain in states of emergency, and travel restrictions continue to be applied in several countries around the world, including the United States. Vycor Medical experienced a reduction in demand during the nine months ended September 30, 2020 in the US and Internationally. 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 nine months ended September 30, 2020 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 the existence of a worldwide pandemic, the fear associated with COVID-19, or any, pandemic, and the reactions of governments around the world in response to COVID-19, or any, pandemic, to regulate the flow of labor and products and impede the travel of personnel, 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 the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, personnel absences, 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.

 

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.

 

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Reconciliation of the Major Line Items constituting Loss from discontinued operations, net of tax, that are presented in the Consolidated Statements of Comprehensive Loss

 

   For the three months ended
September 30,
   For the nine months ended
September 30,
 
   2020   2019   2020   2019 
Major line items constituting loss from discontinued operations                    
Revenue  $2,851   $23,424   $41,527   $65,471 
Cost of Goods Sold   616    2,565    4,835    9,188 
Gross Profit   2,235    20,859    36,692    56,283 
                     
Operating expenses:                    
Depreciation and Amortization   -    (103)   -    156 
Selling, general and administrative   15,304    47,045    87,986    152,240 
Total Operating expenses   15,304    46,942    87,986    152,396 
Operating loss   (13,069)   (26,083)   (51,294)   (96,113)
                     
Other income (expense)                    
Loss on foreign currency exchange   (879)   (432)   (2,141)   (1,725)
Other income (loss)   36,451         36,451      
Total Other Income (expense)   35,572    (432)   34,310    (1,725)
                     
Income (loss) Before Credit for Income Taxes   22,503    (26,515)   (16,984)   (97,838)
Credit for income taxes   -    -    -    - 
Loss from discontinued operations, net of tax  $ 22,503   $ (26,515)  $ (16,984)  $ (97,838)

 

Other income comprises the net of non-cash adjustments made in connection with the Agreements with HeflerApp and the closure of the German operation: adjustments for assets and liabilities transferred to HelferApp or NovaVision Inc. or otherwise written off - $12,308; elimination of historic balance for NovaVision GmbH legal expenses funded by NovaVision Inc. - $34,727; and certain accruals for employee costs – ($10,584).

 

4. NOTES PAYABLE

 

Related Parties Notes Payable

 

Related Party Notes Payable consists of:

 

   September 30, 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 various 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. Six notes were extended on their due dates for another twelve months. The Notes will be due between December 2020 and July 2021 or on demand by the Payee.   280,873    200,873 
Total Related Party Notes Payable  $310,873   $230,873 

 

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Other Notes Payable

 

Other Notes Payable consists of:

 

   September 30, 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 extended to December 31, 2020. The note is personally guaranteed by certain officers and directors of the Company. 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 intends to apply once the forgiveness program commences.   58,600    - 
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    - 
Insurance policy finance agreements and other.   47,066    28,032 
Total Other Notes Payable:  $555,666   $328,032 

 

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 2,937,133 shares of Common Stock as of September 30, 2020. 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. In addition, the Company agreed to issue warrants to purchase 2,308,405 shares of Common Stock at $0.27, the same terms as the 2018 Offering, exercisable for three years from January 1, 2018, if and when the conversion option is exercised. 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.

 

5. 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 $5,700 plus sales tax per month that will expire on September 30, 2020. Based on the original lease agreement, the Company had the one-time option to renew the lease for another three years with minimum annual rent at market price, not less than the original lease payment amount. In January 2020, the Company exercised the option to extend the original lease for another three years with the expiration date of August 31, 2023. In accordance with ASC 842-10-35, the Company considered this lease extension as the modification of the original lease and re-measured the lease liability and the right-of-use assets on the commencement date of the lease extension.

 

The Company recognized the following in its unaudited consolidated balance sheet at September 30, 2020 and December 31, 2019:

 

   September 30, 2020   December 31, 2019 
         
Operating Lease ROU Assets  $135,003   $31,658 
   $135,003   $31,658 
           
Operating Lease Liabilities          
 Current portion   44,079    28,010 
 Long-term portion  $88,097   $- 
   $132,176   $28,010 

 

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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 September 30,   Nine Months Ended September 30, 
   2020   2019   2020   2019 
Revenue:                    
Vycor Medical  $250,648   $301,053   $776,932   $988,786 
NovaVision  $25,277   $21,831   $73,498   $72,607 
   $275,925   $322,884   $850,430   $1,061,393 
Gross Profit                    
Vycor Medical  $211,089   $273,146   $683,125   $895,484 
NovaVision  $24,285   $20,776   $68,967   $68,463 
   $235,374   $293,922   $752,092   $963,947 

 

  

September 30,

2020

  

December 31,

2019

 
Total Assets:          
Vycor Medical  $990,852   $1,036,857 
NovaVision   36,540    25,395 
Discontinued operations   2,004    29,691 
Total Assets  $1,029,396   $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.

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2020   2019   2020   2019 
Revenue:                
United States  $270,851   $320,476   $839,992   $1,051,237 
Europe  $5,074   $2,408   $10,438   $10,156 
   $275,925   $322,884   $850,430   $1,061,393 
Gross Profit                    
United States  $230,321   $291,536   $741,675   $953,861 
Europe  $5,053   $2,386   $10,417   $10,086 
   $235,374   $293,922   $752,092   $963,947 

 

  

September 30,

2020

  

December 31,

2019

 
Total Assets:          
United States  $1,014,817   $1,055,312 
Europe   12,575    6,940 
Discontinued operations   2,004    29,691 
Total Assets  $1,029,396   $1,091,943 

 

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7. EQUITY

 

Common Stock and Stock Grants

 

During January to September 2020 and 2019, the Company granted 266,664 shares of Common Stock (valued at $56,000) to non-employee Directors. Under the terms of the Directors Deferred Compensation Plan, the receipt of these shares is deferred until the January 15th following the termination of their services as a director. As of September 30, 2020 these shares have yet to be issued.

 

During January to September 2020 and 2019, under the terms of the Consulting Agreement referred to in note 10, the Company issued 1,607,142 of Common Stock to Fountainhead for fees of $337,500 in each period respectively.

 

Warrants and Options

 

The details of the outstanding warrants and options are as follows:

 

STOCK WARRANTS:

 

          Weighted average  
    Number of shares     exercise price
per share
 
Outstanding at December 31, 2019     3,717,826     $ 0.27  
Granted     -       -  
Exercised     -       -  
Cancelled or expired     (3,717,826 )   $ 0.27  
Outstanding at September 30, 2020     -     $ 0.00  

 

STOCK OPTIONS:

 

          Weighted average  
    Number of shares     exercise price
per share
 
Outstanding at December 31, 2019     700,000     $ 0.28  
Granted     -       -  
Exercised     -       -  
Cancelled or expired     (20,000 )     (0.27 )
Outstanding at September 30, 2020     680,000     $ 0.28  

 

As of September 30, 2020, the weighted-average remaining contractual life of outstanding warrants and options is 0 and 0.74 years, respectively.

 

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8. SHARE-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.

 

For each of the nine months ended September 30, 2020 and 2019, the Company recognized share-based compensation of $0 for employee stock options.

 

Stock appreciation rights may be granted either on a stand-alone basis or in conjunction with all or part of any other stock options granted under the plan. As of September 30, 2020 there were no awards of any stock appreciation rights.

 

Non-Employee Stock 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”. 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.

 

Aggregate stock-based compensation for stock granted to non-employees for each of the nine months ended September 30, 2020 and 2019 was $266,664 and $299,997. The expense related to stock not issued during each of the periods ended September 30, 2020 and 2019 comprises $56,000 and $63,000, related to stock granted but not issued to directors under the Directors Deferred Compensation Plan. As of September 30, 2020, there was $0 of total unrecognized compensation costs related to warrant and stock awards and non-vested options.

 

Stock-based Compensation Valuation Methodology

 

Stock-based compensation resulting from the issuance of Common Stock is calculated by reference to the valuation of the Stock on the date of issuance, the expense being recognized as the compensation is earned. Stock-based compensation expenses related to employee options and warrants granted to non-employees are recognized as the stock options and warrants are earned. The fair value of the stock options or warrants granted is estimated at the grant date, using the Black-Scholes option pricing model, and the expense 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. The grant date fair value of employee share options and similar instruments is estimated using the Black-Scholes option pricing model on the basis of the fair value of the underlying common stock on the measurement date, adjusted for the unique characteristics of those equity instruments, using the assumptions noted in the table below. Expected volatility is based on the historical volatility of a peer group of publicly traded companies. The expected term of options and warrants was based upon the expected life of the option or warrant, and the risk-free rate is based on the U.S. Treasury Constant Maturity rate.

 

There were no options or warrants issued during either of the periods ending September 30, 2020 and 2019.

 

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 $5,700 plus sales tax per month. The lease terminates September 30, 2020 and has been 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 nine months ended September 30, 2020 and 2019 for the continuing operations was $59,008 and $57,202 respectively. See Note 5.

 

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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 nine months ended September 30, 2020 and the year ended December 31, 2019 respectively.

 

10. CONSULTING AND OTHER AGREEMENTS

 

The following agreements were entered into or remained in force during the period ended September 30, 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.

 

During the nine months ended September 30, 2020 and September 30, 2019, under the terms of the Amended Agreement, Fountainhead received total fees of $337,500, which were paid through the issuance of 1,607,142 shares of Company Common Stock.

 

11. RELATED PARTY TRANSACTIONS

 

Peter Zachariou and David Cantor, directors of the Company, are investment managers of Fountainhead which owned, at September 30, 2020, 59.7% 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 nine months ended September 30, 2020 and September 30, 2019, under the terms of the Consulting Agreement referred to in note 10, the Company issued 1,607,142 shares of Common Stock to Fountainhead for fees of $337,500.

 

During each of the nine months ended September 30, 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.

 

During the nine months ended September 30, 2020 and 2019 the Company issued unsecured loan notes to Fountainhead for a total of $80,000 and $17,873, respectively. The loan notes bear interest at a rate of 10% and are due on demand or by their one-year anniversary.

 

There were no other related party transactions during the nine months ended September 30, 2020 and 2019.

 

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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 September 30,     Nine Months Ended September 30,  
    2020     2019     2020     2019  
Number of customers over 10%     0       1       1       1  
Percentage of sales     0 %     12 %     14 %     10 %

 

Accounts Receivable Concentration

 

    At September 30,     At December 31,  
    2020     2019  
             
Number of customers over 10%     2       1  
Percentage of accounts receivable      11% and 15 %     37 %

 

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.

 

13. 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.

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

Forward Looking Statements

 

This Interim Report on Form 10-Q contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PLSRA”), Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) regarding Vycor Medical, Inc. (the “Company” or “Vycor,” also referred to as “us”, “we” or “our”). Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements involve risks and uncertainties. Forward-looking statements include statements regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategies, (c) anticipated trends in our industries, (d) our future financing plans and (e) our anticipated needs for working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plans,” “potential,” “projects,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend” or the negative of these words or other variations on these words or comparable terminology. These statements may be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Description of Business,” as well as in this Form 10-Q generally. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results.

 

Any or all of our forward-looking statements in this report may turn out to be inaccurate. They can be affected by inaccurate assumptions we might make or by known or unknown risks or uncertainties. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially as a result of various factors, including, without limitation, the risks outlined under “Risk Factors” and matters described in this Form 10-Q generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to publicly update any forward-looking statements, whether as the result of new information, future events, or otherwise. We intend that all forward-looking statements be subject to the safe harbor provisions of the PSLRA.

 

1. Organizational History

 

The Company was formed as a limited liability company under the laws of the State of New York on June 17, 2005 as “Vycor Medical LLC”. On August 14, 2007, we converted into a Delaware corporation and changed our name to “Vycor Medical, Inc.”. The Company’s listing went effective on February 2009 and on November 29, 2010 Vycor completed the acquisition of substantially all of the assets of NovaVision, Inc. (“NovaVision”) and on January 4, 2012 Vycor, through its wholly-owned NovaVision subsidiary, completed the acquisition of all the shares of Sight Science Limited (“Sight Science”).

 

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2. Overview of Business

 

Vycor is dedicated to providing the medical community with innovative and superior surgical and therapeutic solutions and operates two distinct business units within the medical device industry. Vycor Medical designs, develops and markets medical devices for use in neurosurgery. NovaVision provides non-invasive rehabilitation therapies for those who have vision disorders resulting from neurological brain damage such as that caused by a stroke. Both businesses adopt a minimally or non-invasive approach. Both technologies have strong sales growth potential, address large potential markets and have the requisite regulatory approvals. The Company has 65 issued or allowed patents and a further 9 pending. The Company leverages joint resources across the divisions to operate in a cost-efficient manner.

 

The Company periodically engages in discussions with potential strategic partners for or purchasers of each or both of our operating divisions. 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.

 

Vycor Medical

 

Vycor Medical designs, develops and markets medical devices for use in neurosurgery. Vycor Medical’s ViewSite Brain Access System (“VBAS”) is a next generation retraction and ac