10-Q 1 form10-q.htm
false Q3 --12-31 0001424768 0001424768 2023-01-01 2023-09-30 0001424768 2023-11-13 0001424768 2023-09-30 0001424768 2022-12-31 0001424768 us-gaap:NonrelatedPartyMember 2023-09-30 0001424768 us-gaap:NonrelatedPartyMember 2022-12-31 0001424768 us-gaap:RelatedPartyMember 2023-09-30 0001424768 us-gaap:RelatedPartyMember 2022-12-31 0001424768 2023-07-01 2023-09-30 0001424768 2022-07-01 2022-09-30 0001424768 2022-01-01 2022-09-30 0001424768 us-gaap:RelatedPartyMember 2023-07-01 2023-09-30 0001424768 us-gaap:RelatedPartyMember 2022-07-01 2022-09-30 0001424768 us-gaap:RelatedPartyMember 2023-01-01 2023-09-30 0001424768 us-gaap:RelatedPartyMember 2022-01-01 2022-09-30 0001424768 us-gaap:NonrelatedPartyMember 2023-07-01 2023-09-30 0001424768 us-gaap:NonrelatedPartyMember 2022-07-01 2022-09-30 0001424768 us-gaap:NonrelatedPartyMember 2023-01-01 2023-09-30 0001424768 us-gaap:NonrelatedPartyMember 2022-01-01 2022-09-30 0001424768 us-gaap:CommonStockMember 2023-06-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2023-06-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2023-06-30 0001424768 us-gaap:TreasuryStockCommonMember 2023-06-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001424768 us-gaap:RetainedEarningsMember 2023-06-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-06-30 0001424768 2023-06-30 0001424768 us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2023-07-01 2023-09-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2023-07-01 2023-09-30 0001424768 us-gaap:TreasuryStockCommonMember 2023-07-01 2023-09-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-09-30 0001424768 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-07-01 2023-09-30 0001424768 us-gaap:CommonStockMember 2023-09-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2023-09-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2023-09-30 0001424768 us-gaap:TreasuryStockCommonMember 2023-09-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001424768 us-gaap:RetainedEarningsMember 2023-09-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-09-30 0001424768 us-gaap:CommonStockMember 2022-12-31 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2022-12-31 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-12-31 0001424768 us-gaap:TreasuryStockCommonMember 2022-12-31 0001424768 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001424768 us-gaap:RetainedEarningsMember 2022-12-31 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001424768 us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2023-01-01 2023-09-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2023-01-01 2023-09-30 0001424768 us-gaap:TreasuryStockCommonMember 2023-01-01 2023-09-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-09-30 0001424768 us-gaap:RetainedEarningsMember 2023-01-01 2023-09-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-09-30 0001424768 us-gaap:CommonStockMember 2022-06-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2022-06-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-06-30 0001424768 us-gaap:TreasuryStockCommonMember 2022-06-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001424768 us-gaap:RetainedEarningsMember 2022-06-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001424768 2022-06-30 0001424768 us-gaap:CommonStockMember 2022-07-01 2022-09-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2022-07-01 2022-09-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-07-01 2022-09-30 0001424768 us-gaap:TreasuryStockCommonMember 2022-07-01 2022-09-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0001424768 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-07-01 2022-09-30 0001424768 us-gaap:CommonStockMember 2022-09-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2022-09-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-09-30 0001424768 us-gaap:TreasuryStockCommonMember 2022-09-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0001424768 us-gaap:RetainedEarningsMember 2022-09-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-09-30 0001424768 2022-09-30 0001424768 us-gaap:CommonStockMember 2021-12-31 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2021-12-31 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-12-31 0001424768 us-gaap:TreasuryStockCommonMember 2021-12-31 0001424768 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001424768 us-gaap:RetainedEarningsMember 2021-12-31 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001424768 2021-12-31 0001424768 us-gaap:CommonStockMember 2022-01-01 2022-09-30 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2022-01-01 2022-09-30 0001424768 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-01-01 2022-09-30 0001424768 us-gaap:TreasuryStockCommonMember 2022-01-01 2022-09-30 0001424768 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-09-30 0001424768 us-gaap:RetainedEarningsMember 2022-01-01 2022-09-30 0001424768 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-09-30 0001424768 VYCO:EuroAmericanInvestmentCorpMember 2023-09-30 0001424768 VYCO:EuroAmericanInvestmentCorpMember 2023-01-01 2023-09-30 0001424768 VYCO:DebenturesConvertibleIntoCommonStockMember 2023-01-01 2023-09-30 0001424768 VYCO:DebenturesConvertibleIntoCommonStockMember 2022-01-01 2022-09-30 0001424768 VYCO:PreferredSharesConvertibleIntoCommonStockMember 2023-01-01 2023-09-30 0001424768 VYCO:PreferredSharesConvertibleIntoCommonStockMember 2022-01-01 2022-09-30 0001424768 VYCO:PeterZachariouMember 2023-09-30 0001424768 VYCO:PeterZachariouMember 2022-12-31 0001424768 VYCO:FountainheadCapitalManagementLimitedMember 2023-09-30 0001424768 VYCO:FountainheadCapitalManagementLimitedMember 2022-12-31 0001424768 VYCO:EuroAmericanInvestmentCorpMember 2022-12-31 0001424768 VYCO:CurrentLongTermNotesPayableMember 2023-09-30 0001424768 VYCO:CurrentLongTermNotesPayableMember 2022-12-31 0001424768 VYCO:InsurancePolicyFinanceAgreementsMember 2023-09-30 0001424768 VYCO:InsurancePolicyFinanceAgreementsMember 2022-12-31 0001424768 VYCO:EconomicInjuryDisasterLoanProgramMember VYCO:CaresActMember 2023-09-30 0001424768 VYCO:EconomicInjuryDisasterLoanProgramMember VYCO:CaresActMember 2022-12-31 0001424768 VYCO:PeterZachariouMember 2018-06-25 0001424768 VYCO:PeterZachariouMember 2018-06-24 2018-06-25 0001424768 VYCO:FountainheadCapitalManagementLimitedMember 2022-11-17 0001424768 VYCO:FountainheadCapitalManagementLimitedMember 2018-03-26 2022-11-17 0001424768 VYCO:EuroAmericanInvestmentCorpMember 2011-03-25 0001424768 VYCO:EuroAmericanInvestmentCorpMember us-gaap:ExtendedMaturityMember 2011-03-24 2011-03-25 0001424768 VYCO:EconomicInjuryDisasterLoanProgramMember VYCO:CaresActMember 2020-07-07 0001424768 VYCO:EconomicInjuryDisasterLoanProgramMember VYCO:CaresActMember 2020-07-06 2020-07-07 0001424768 VYCO:EuroAmericanInvestmentCorpMember VYCO:AmendmentAgreementMember 2018-01-24 0001424768 VYCO:EuroAmericanInvestmentCorpMember VYCO:AmendmentAgreementMember 2023-01-01 2023-09-30 0001424768 VYCO:BusinessSegmentMember 2023-01-01 2023-09-30 0001424768 VYCO:GeographicSegmentsMember 2023-01-01 2023-09-30 0001424768 VYCO:VycorMedicalMember 2023-07-01 2023-09-30 0001424768 VYCO:VycorMedicalMember 2022-07-01 2022-09-30 0001424768 VYCO:VycorMedicalMember 2023-01-01 2023-09-30 0001424768 VYCO:VycorMedicalMember 2022-01-01 2022-09-30 0001424768 VYCO:NovaVisionMember 2023-07-01 2023-09-30 0001424768 VYCO:NovaVisionMember 2022-07-01 2022-09-30 0001424768 VYCO:NovaVisionMember 2023-01-01 2023-09-30 0001424768 VYCO:NovaVisionMember 2022-01-01 2022-09-30 0001424768 us-gaap:CorporateMember 2023-07-01 2023-09-30 0001424768 us-gaap:CorporateMember 2022-07-01 2022-09-30 0001424768 us-gaap:CorporateMember 2023-01-01 2023-09-30 0001424768 us-gaap:CorporateMember 2022-01-01 2022-09-30 0001424768 VYCO:VycorMedicalMember 2023-09-30 0001424768 VYCO:VycorMedicalMember 2022-12-31 0001424768 VYCO:NovaVisionMember 2023-09-30 0001424768 VYCO:NovaVisionMember 2022-12-31 0001424768 us-gaap:SegmentDiscontinuedOperationsMember 2023-09-30 0001424768 us-gaap:SegmentDiscontinuedOperationsMember 2022-12-31 0001424768 country:US 2023-07-01 2023-09-30 0001424768 country:US 2022-07-01 2022-09-30 0001424768 country:US 2023-01-01 2023-09-30 0001424768 country:US 2022-01-01 2022-09-30 0001424768 srt:EuropeMember 2023-07-01 2023-09-30 0001424768 srt:EuropeMember 2022-07-01 2022-09-30 0001424768 srt:EuropeMember 2023-01-01 2023-09-30 0001424768 srt:EuropeMember 2022-01-01 2022-09-30 0001424768 country:US 2023-09-30 0001424768 country:US 2022-12-31 0001424768 srt:EuropeMember 2023-09-30 0001424768 srt:EuropeMember 2022-12-31 0001424768 VYCO:ConsultingAgreementMember VYCO:FountainheadMember 2023-01-01 2023-09-30 0001424768 VYCO:ConsultingAgreementMember VYCO:FountainheadMember 2022-01-01 2022-09-30 0001424768 VYCO:ConsultantMember VYCO:RicardoKomotarMember VYCO:ConsultingAgreementMember 2022-04-01 2022-04-02 0001424768 us-gaap:SeriesCPreferredStockMember us-gaap:SubsequentEventMember 2023-11-13 0001424768 us-gaap:SeriesDPreferredStockMember us-gaap:SubsequentEventMember 2023-11-13 0001424768 VYCO:SeriesConvertibleCPreferredStockMember 2023-01-01 2023-09-30 0001424768 VYCO:SeriesConvertibleCPreferredStockMember 2023-09-30 0001424768 VYCO:SeriesConvertibleDPreferredStockMember 2023-09-30 0001424768 VYCO:SeriesConvertibleDPreferredStockMember 2023-01-01 2023-09-30 0001424768 VYCO:NonemployeesMember 2023-01-01 2023-09-30 0001424768 VYCO:NonemployeesMember 2022-01-01 2022-09-30 0001424768 VYCO:OfficeSpaceMember 2023-01-01 2023-09-30 0001424768 2012-06-30 0001424768 2012-06-29 2012-06-30 0001424768 2016-10-31 0001424768 2016-10-29 2016-10-31 0001424768 VYCO:ConsultingAgreementMember 2017-03-01 2017-03-31 0001424768 VYCO:ConsultingAgreementMember 2017-03-31 0001424768 VYCO:EffectiveJanuaryOneTwoThousandTwentyOneMember VYCO:ConsultingAgreementMember 2023-01-01 2023-09-30 0001424768 VYCO:EffectiveJanuaryOneTwoThousandTwentyOneMember VYCO:ConsultingAgreementMember 2023-09-30 0001424768 VYCO:EffectiveJanuaryOneTwoThousandTwentyOneMember VYCO:AmendedAgreementMember 2023-01-01 2023-09-30 0001424768 VYCO:GeneralConsultancyMember VYCO:RicardoJ.KomotarMDMember 2021-03-24 2021-03-30 0001424768 VYCO:MilestonesMember VYCO:RicardoJ.KomotarMDMember 2021-03-24 2021-03-30 0001424768 VYCO:MilestonesMember VYCO:RicardoJ.KomotarMDMember 2022-04-01 2022-04-01 0001424768 VYCO:DirectorsMember VYCO:FountainheadMember us-gaap:CommonStockMember 2023-09-30 0001424768 VYCO:DirectorsMember VYCO:FountainheadMember us-gaap:SeriesDPreferredStockMember 2023-09-30 0001424768 VYCO:PeterZachariouMember VYCO:FountainheadMember us-gaap:CommonStockMember 2023-09-30 0001424768 VYCO:PeterZachariouMember VYCO:FountainheadMember us-gaap:SeriesDPreferredStockMember 2023-09-30 0001424768 us-gaap:SeriesDPreferredStockMember 2023-01-01 2023-09-30 0001424768 VYCO:FountainheadMember us-gaap:SeriesDPreferredStockMember 2023-01-01 2023-09-30 0001424768 VYCO:PeterZachariouMember us-gaap:SeriesDPreferredStockMember 2023-01-01 2023-09-30 0001424768 us-gaap:SeriesDPreferredStockMember 2023-09-30 0001424768 us-gaap:SeriesDPreferredStockMember 2022-09-30 0001424768 VYCO:FountainheadMember us-gaap:SeriesDPreferredStockMember 2023-09-30 0001424768 VYCO:FountainheadMember us-gaap:SeriesDPreferredStockMember 2022-09-30 0001424768 VYCO:PeterZachariouMember us-gaap:SeriesDPreferredStockMember 2023-09-30 0001424768 VYCO:PeterZachariouMember us-gaap:SeriesDPreferredStockMember 2022-09-30 0001424768 VYCO:UnsecuredLoanMember VYCO:FountainheadMember 2023-01-01 2023-09-30 0001424768 VYCO:UnsecuredLoanMember VYCO:FountainheadMember 2022-01-01 2022-09-30 0001424768 VYCO:UnsecuredLoanMember VYCO:FountainheadMember 2023-09-30 0001424768 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-07-01 2023-09-30 0001424768 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-07-01 2022-09-30 0001424768 VYCO:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-07-01 2023-09-30 0001424768 VYCO:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-07-01 2022-09-30 0001424768 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001424768 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-09-30 0001424768 VYCO:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001424768 VYCO:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-09-30 0001424768 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001424768 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-12-31 0001424768 VYCO:CustomerOneMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001424768 VYCO:CustomerOneMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-12-31 0001424768 VYCO:ManufacturerThreeMember VYCO:PurchaseMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure iso4217:EUR VYCO:Integer

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

  For the fiscal quarter ended September 30, 2023

 

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 Incorporation)

 

(Commission

File Number)

 

(IRS Employer

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 ☒ 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

 

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”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer ☐ Accelerated Filer ☐
Non-accelerated Filer Smaller Reporting Company
Emerging Growth Company  

 

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

 

There were 32,628,835 shares outstanding of registrant’s common stock, par value $0.0001 per share, as of November 13, 2023.

 

Transitional Small Business Disclosure Format (check one): Yes ☐ No ☒

 

 

 

 
 

 

TABLE OF CONTENTS

 

    Page
  PART I  
     
Item 1. Financial Statements 3
     
  Unaudited Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 3
     
  Unaudited Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023 and 2022. 4
     
  Unaudited Consolidated Statement of Stockholders’ Deficiency for the three and nine months ended September 30, 2023 and 2022. 5
     
  Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022. 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 22
     
Item 4. Controls and Procedures 22
     
  PART II  
     
Item 1. Legal Proceedings 23
     
Item 1A. Risk Factors 23
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23
     
Item 3. Defaults Upon Senior Securities 23
     
Item 4. Mine Safety Disclosures 23
     
Item 5. Other Information 23
     
Item 6. Exhibits 23
     
SIGNATURES 24

 

2
 

 

PART 1

 

ITEM 1. FINANCIAL STATEMENTS

 

VYCOR MEDICAL, INC.

Consolidated Balance Sheets

(Unaudited)

 

   September 30,
2023
   December 31,
2022
 
ASSETS          
Current Assets          
Cash  $69,055   $37,035 
Trade accounts receivable   255,266    156,204 
Inventory   204,739    248,874 
Prepaid expenses and other current assets   95,932    74,438 
Current assets of discontinued operations   896    1,212 
Total Current Assets   625,888    517,763 
           
Fixed assets, net   261,602    303,770 
           
Intangible and Other assets:          
Security deposits   6,000    6,000 
Operating lease - right of use assets   160,979    32,645 
Total Intangible and Other assets   166,979    38,645 
TOTAL ASSETS  $1,054,469   $860,178 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY          
Current Liabilities          
Accounts payable  $113,729   $200,044 
Accrued interest: Other   460,798    424,897 
Accrued interest: Related party   183,087    146,007 
Accrued liabilities - Other   126,890    91,352 
Accrued liabilities - Related Party   2,270,590    1,946,220 
Notes payable: Other   338,786    324,711 
Notes payable: Related Party   493,373    493,373 
Current operating lease liabilities   44,759    29,591 
Current liabilities of discontinued operations   (800)   (1,399)
Total Current Liabilities   4,031,212    3,654,796 
           
Long term lease liabilities  $111,922    - 
Loan Payable - SBA EIDL   143,756    146,253 
           
Total Liabilities   4,286,890    3,801,049 
           
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, 2023 and December 31, 2022 respectively   27    27 
Common Stock, $0.0001 par value, 55,000,000 shares authorized at September 30, 2023 and December 31, 2022, 32,732,169 and 32,630,506 shares issued and 32,628,835 and 32,527,172 outstanding at September 30, 2023 and December 31, 2022 respectively   3,273    3,263 
Additional Paid-in Capital   29,365,070    29,355,626 
Treasury Stock (103,334 shares of Common Stock as at September 30, 2023 and December 31, 2022 respectively, at cost)   (1,033)   (1,033)
Accumulated Deficit   (32,727,435)   (32,426,429)
Accumulated Other Comprehensive Income (Loss)   127,677    127,675 
Total Stockholders’ Deficiency   (3,232,421)   (2,940,871)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY  $1,054,469   $860,178 

 

See accompanying notes to consolidated financial statements

 

3
 

 

VYCOR MEDICAL, INC.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

 

   2023   2022   2023   2022 
   For the three months ended
September 30,
   For the nine months ended
September 30,
 
   2023   2022   2023   2022 
                 
Revenue  $308,593   $309,969   $1,152,355   $951,725 
Cost of Goods Sold   32,334    42,199    102,930    103,493 
Gross Profit   276,259    267,770    1,049,425    848,232 
                     
Operating Expenses:                    
Research and development   7,250    -    20,308    - 
Depreciation and amortization   14,377    14,559    43,126    43,857 
Selling, general and administrative   280,113    341,256    881,744    1,019,693 
Total Operating expenses   301,740    355,815    945,178    1,063,550 
Operating income (loss)   (25,481)   (88,045)   104,247    (215,318)
                     
Other Income (Expense)                    
Interest expense: Related Party   (12,436)   (10,351)   (37,080)   (28,257)
Interest expense: Other   (13,484)   (13,511)   (40,077)   (39,195)
Loss on foreign currency exchange   (78)   (405)   (209)   (1,065)
Total Other Income (expense)   (25,998)   (24,267)   (77,366)   (68,517)
                     
Income (Loss) Before Provision for Income Taxes   (51,479)   (112,312)   26,881    (283,835)
Provision for income taxes   -    -    -    - 
Net Income (Loss) from continuing operations   (51,479)   (112,312)   26,881    (283,835)
Loss from discontinued operations   (425)   (2,495)   (3,517)   (4,534)
Net Income (Loss)   (51,904)   (114,807)   23,364    (288,369)
                     
Preferred stock dividends   (162,185)   (162,185)   (324,370)   (324,370)
Net Loss Available to Common Stockholders  $(214,089)  $(276,992)  $(301,006)  $(612,739)
                     
Other Comprehensive Income (Loss)                    
Foreign Currency Translation Adjustment   -    1    2    1 
Comprehensive Income (Loss)  $(51,904)  $(114,806)  $23,366   $(288,368)
                     
Net Income (Loss) Per Share - basic and diluted:                    
Net Income (Loss) from continuing operations  $(0.00)  $(0.00)  $0.00   $(0.01)
Loss from discontinued operations  $(0.00)  $(0.00)  $(0.00)  $(0.00)
Net Loss available to common stockholders  $(0.01)  $(0.01)  $(0.01)  $(0.02)
                     
Weighted Average Number of Shares Outstanding – Basic and Diluted   32,628,835    31,997,281    32,595,320    31,432,040 

 

See accompanying notes to consolidated financial statements

 

4
 

 

VYCOR MEDICAL, INC.

Consolidated Statement of Stockholders’ Deficiency

(Unaudited)

 

   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
   Common Stock   Preferred C   Preferred D   Treasury Stock   Additional Paid-in   Accumulated   Accum
OCI
     
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
                                                 
Balance at June 30, 2023   32,732,169   $3,273    1   $0    270,306   $27    (103,334)  $(1,033)  $29,365,070   $(32,513,346)  $127,677   $(3,018,332)
Comprehensive Income                                                     -   -
Net loss for three months ended September 30, 2023        -          -          -          -     -     (214,089)        (214,089)
Balance at Sepember 30, 2023   32,732,169   $3,273    1   $0    270,306   $27    (103,334)  $(1,033)  $29,365,070   $(32,727,435)  $127,677   $(3,232,421)

 

   Common Stock   Preferred C   Preferred D   Treasury Stock   Additional Paid-in   Accumulated   Accum OCI     
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
                                                 
Balance at December 31, 2022   32,630,506   $3,263    1   $0    270,306   $27    (103,334)  $(1,033)  $29,355,626   $(32,426,429)  $127,675   $(2,940,871)
Issuance of stock for board and consulting fees   101,663    10    -    -                        9,444              9,454 
Comprehensive Income                                                     2    2 
Net loss for nine months ended September 30, 2023                  -          -          -          (301,006)        (301,006)
Balance at Sepember 30, 2023   32,732,169   $3,273    1   $0    270,306   $27    (103,334)  $(1,033)  $29,365,070   $(32,727,435)  $127,677   $(3,232,421)

 

   Common Stock   Preferred C   Preferred D   Treasury Stock   Additional Paid-in   Accumulated   Accum OCI     
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
Balance at June 30, 2022   32,094,792   $3,209    1   $0    270,306   $27    (103,334)  $(1,033)  $29,303,715   $(32,032,889)  $127,674   $(2,599,297)
Issuance of stock for board and consulting fees   535,714    54                                  56,732              56,786 
Comprehensive Income                                                     1    1 
Net loss for three months ended September 30, 2022                  -          -          -          (276,992)        (276,992)
Balance at September 30, 2022   32,630,506   $3,263    1   $0    270,306   $27    (103,334)  $(1,033)  $29,360,447   $(32,309,881)  $127,675   $(2,819,502)

 

   Common Stock   Preferred C   Preferred D   Treasury Stock   Additional Paid-in   Accumulated   Accum OCI     
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Capital   Deficit   (Loss)   Total 
Balance at December 31, 2021   30,921,701   $3,092    1   $0    270,306   $27    (103,334)  $(1,033)  $29,172,169   $(31,697,142)  $127,674   ($2,395,213)
Issuance of stock for board and consulting fees   1,607,142    161                                  176,089              176,250 
Issuance of stock for consulting fees   101,663    10                                  12,189              12,199 
Comprehensive Income                                                     1    1 
Net loss for nine months ended September 30, 2022                  -          -          -          (612,739)        (612,739)
Balance at September 30, 2022   32,630,506   $3,263    1   $0    270,306   $27    (103,334)  $(1,033)  $29,360,447   $(32,309,881)  $127,675   $(2,819,502)

 

See accompanying notes to consolidated financial statements

 

5
 

 

VYCOR MEDICAL, INC.

Consolidated Statement of Cash Flows

(Unaudited)

 

   September 30,
2023
   September 30,
2022
 
   For the nine months ended 
   September 30,
2023
   September 30,
2022
 
Cash flows from operating activities:          
Net Income (Loss)  $23,364   $(288,369)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:          
Depreciation of fixed assets   45,650    46,073 
Inventory provision   -    11,360 
Stock based compensation   7,777    187,381 
           
Changes in assets and liabilities:          
Accounts receivable   (99,062)   (54,462)
Inventory   44,135    (71,381)
Prepaid expenses   (15,519)   (32,638)
Accrued interest - Related Party   37,080    28,257 
Accrued interest – Other   35,901    29,681 
Accounts payable   (86,315)   (8,713)
Accrued liabilities - Other   29,996    (29,514)
Changes in discontinued operations, net   915    (1,337)
Cash provided by (used in) in operating activities   23,922    (183,662)
Cash flows from investing activities:          
Purchase of fixed assets   (3,482)   (3,102)
Cash used in investing activities   (3,482)   (3,102)
Cash flows from financing activities:          
Proceeds from Notes Payable - Related Party   -    110,000 
Proceeds net of Repayments - Notes Payable - Other   11,578    18,392 
Cash provided by financing activities   11,578    128,392 
Effect of exchange rate changes on cash   2    1 
Net increase (decrease) in cash   32,020    (58,371)
Cash at beginning of period   37,035    90,941 
Cash at end of period  $69,055   $32,570 
           
Supplemental Disclosures of Cash Flow information:          
Cash paid for interest  $4,176   $6,579 
Cash paid for income tax  $0   $0 

 

See accompanying notes to consolidated financial statements

 

6
 

 

VYCOR MEDICAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023

(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, 2022 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, 2022.

 

The unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2023 and 2022, 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 and nine months ended September 30, 2023 and 2022 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 available to common stockholders of $301,006 for the nine months ended September 30, 2023 and since inception has not generated sufficient positive cash flows from operations, although did generate positive cash flows from operations for the nine months ended September 30, 2023. As of September 30, 2023 the Company had a working capital deficiency of $458,274, excluding related party liabilities of $2,947,050. 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 $460,798 which has a maturity date of December 31, 2023, 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, 2023 will be available. However, the Company believes it may not have sufficient cash to meet its various cash needs through November 30, 2024 unless the Company is able to obtain additional cash from the issuance of debt or equity securities. Fountainhead Capital Management Limited (“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 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.

 

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 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.

 

Revenue Recognition

 

On January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers and all the related amendments (new revenue standard) to all contracts. The adoption of the new accounting standard had no impact on company’s consolidated financial statements.

 

Vycor Medical generates revenue from the sale of its surgical access system to hospitals and other medical professionals. Vycor Medical records revenue from product sales when obligations under the terms of a contract with customers are satisfied. Generally, this occurs with the transfer of control of the goods to customers. Vycor Medical does not provide for product returns or warranty costs.

 

Vycor determines revenue recognition through the following steps:

 

  Identification of the contract, or contracts, with a customer
     
  Identification of the performance obligations in the contract
     
  Determination of the transaction price
     
  Allocation of the transaction price to the performance obligations in the contract
     
  Recognition of revenue when Vycor satisfy a performance obligation

 

NovaVision generates revenues from various programs, therapy services and other sources such as software license sales. Therapy services revenues represent fees from NovaVision’s vision restoration therapy software, eye movement training software, diagnostic software, clinic set up and training fees, and the professional and support services associated with the therapy. NovaVision provides vision restoration therapy directly to patients. The typical therapy program consists of NeuroEyeCoach, performed over 2-4 weeks, and six modules of Vision Restoration Therapy, performed over 6 months. A patient contract comprises set-up fees and monthly therapy fees. Set-up fees are recognized at the outset of the contract and therapy revenue is recognized ratably over the therapy period. Patient therapy is restricted to being completed by a patient within a specified time frame.

 

Deferred revenue results from patients paying for the therapy in advance of receiving the therapy.

 

The Company disaggregates its revenue by division – Vycor and NovaVision – and by geography – United States and Europe – and presents the disaggregation in Note 6.

 

Net Income (Loss) Per Share

 

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (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.

 

8
 

 

The following table sets forth the potential shares of common stock that are included in the calculation of diluted net income per share where a net income is reported:

 

  

September 30,
2023

 

September 30,
2022

Debentures convertible into common stock   3,622,848    3,394,276 
Preferred shares convertible into common stock   1,272,052    1,272,052 
Total   4,894,900    4,666,328 

 

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; effective July 1, 2020 ,Vycor entered into a license agreement with a German-based partner. 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 income (loss) are as follows:

 

Major line items constituting assets and liabilities in the unaudited consolidated balance sheets

 

   September 30,
2023
   December 31,
2022
 
ASSETS          
Current Assets          
Cash  $896   $1,212 
Total Current Assets   896    1,212 
           
TOTAL ASSETS  $896   $1,212 
           
LIABILITIES          
Current Liabilities          
Accounts payable  $4   $693 
Other current liabilities   (804)   (2,092)
Total Current Liabilities  $(800)  $(1,399)

 

9
 

 

Major line items constituting loss from discontinued operations

 

   2023   2022   2023   2022 
   For the three months ended
September 30,
   For the nine months ended
September 30,
 
   2023   2022   2023   2022 
                 
Revenue  $-   $-   $-   $- 
Cost of Goods Sold   -    -    -    - 
Gross Profit   -    -    -    - 
                     
Operating Expenses:                    
Selling, general and administrative   425    2,420    3,365    4,413 
Total Operating expenses   425    2,420    3,365    4,413 
Operating Loss   (425)   (2,420)   (3,365)   (4,413)
                     
Other Income (Expense)                    
Loss on foreign currency exchange   -    (75)   (152)   (121)
Total Other Income (Expense)   -    (75)   (152)   (121)
                     
Loss Before Provision for Income Taxes   (425)   (2,495)   (3,517)   (4,534)
Provision for income taxes   -    -    -    - 
Loss from discontinued operations, net of tax  $(425)  $(2,495)  $(3,517)  $(4,534)

 

4. NOTES PAYABLE

 

Related Parties Notes Payable

 

Related Party Notes Payable consists of:

 

   September 30,
2023
   December 31,
2022
 
         
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, 2024 or on demand by the Payee.  $30,000   $30,000 
Between March 26, 2018 and November 17, 2022 the Company issued fifteen promissory notes to Fountainhead Capital Management Limited for $463,373. 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. All of the notes were extended on their due dates for another twelve months. The Notes will be due between December 2023 and November 2024 or on demand by the Payee.   463,373    463,373 
Total Related Party Notes Payable  $493,373   $493,373 

 

10
 

 

Other Notes Payable

 

Other Notes Payable consists of:

 

   September 30,
2023
   December 31,
2022
 
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 December 31, 2023. See further note below.  $300,000   $300,000 
Current portion of Long-Term Notes payable, see below   3,313    3,222 
Insurance policy finance agreements.   35,473    21,489 
Total Notes Payable:  $338,786   $324,711 

 

Long-Term Notes Payable consists of:

 

   September 30,
2023
   December 31,
2022
 
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 July 7, 2021 and is secured by essentially all of the assets of the Company. The proceeds of the Loan have been used for general working capital purposes to alleviate economic injury caused by disaster occurring in the month of January 2020 and continuing thereafter.  $143,756   $146,253 
Total Long-Term Notes Payable:  $143,756   $146,253 

 

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 3,622,848 shares of Common Stock as of September 30, 2023. 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.

 

5. LEASE

 

The Company recognized the following related to a lease in its unaudited consolidated balance sheet at September 30, 2023 and December 31, 2022:

 

   September 30
2023
   December 31,
2022
 
         
Operating Lease ROU Assets  $160,979   $32,645 
Operating Lease ROU Assets  $160,979   $32,645 
           
Operating Lease Liabilities          
Current portion  $44,759   $29,591 
Long-term portion   111,922    - 
Operating Lease Liabilities  $156,681   $29,591 

 

11
 

 

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:

 

   2023   2022   2023   2022 
   Three Months Ended
September 30,
   Nine Months Ended
September 30,
 
   2023   2022   2023   2022 
Revenue:                    
Vycor Medical  $287,559   $289,706   $1,087,758   $875,785 
NovaVision  $21,034   $20,263   $64,597   $75,940 
 Revenue  $308,593   $309,969   $1,152,355   $951,725 
Gross Profit                    
Vycor Medical  $256,435   $249,141   $989,288   $777,963 
NovaVision  $19,824   $18,629   $60,137   $70,269 
 Gross Profit  $276,259   $267,770   $1,049,425   $848,232 
                     
Operating Income (Loss)                    
Vycor Medical  $60,373   $65,042   $366,360   $238,751 
NovaVision  $(41,868)  $(69,557)  $(146,592)  $(169,051)
Corporate  $(43,986)  $(83,530)  $(115,521)  $(285,018)
 Operating Income (Loss)  $(25,481)  $(88,045)  $(104,247)  $(215,318)

 

   September 30,   December 31, 
   2023   2022 
Total Assets:          
Vycor Medical  $1,004,421   $822,174 
NovaVision   49,152    36,792 
Discontinued operations   896    1,212 
Total Assets  $1,054,469   $860,178 

 

12
 

 

(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.

 

   2023   2022   2023   2022 
   Three Months Ended
September 30,
   Nine Months Ended
September 30,
 
   2023   2022   2023   2022 
Revenue:                    
United States  $306,929   $308,368   $1,147,054   $944,480 
Europe  $1,664   $1,601   $5,301   $7,245 
 Revenue  $308,593   $309,969   $1,152,355   $951,725 
Gross Profit                    
United States  $274,620   $266,168   $1,044,223   $841,012 
Europe  $1,639   $1,602   $5,202   $7,220 
 Gross Profit  $276,259   $267,770   $1,049,425   $848,232 
Operating Income (Loss)                    
United States  $(19,758)  $(82,645)  $119,088   $(203,415)
Europe  $(5,723)  $(5,400)  $(14,841)  $(11,903)
 Operating Income (Loss)  $(25,481)  $(88,045)  $104,247   $(215,318)

 

   September 30,   December 31, 
   2023   2022 
Total Assets:          
United States  $1,046,219   $854,236 
Europe   7,354    4,730 
Discontinued operations   896    1,212 
Total Assets  $1,054,469   $860,178 

 

7. EQUITY

 

Equity Transactions

 

During January to September 2023 and 2022, under the terms of the Consulting Agreement referred to in Note 10, the Company issued 0 and 1,607,142 of Common Stock to Fountainhead valued at $0 and $176,250, respectively.

 

On April 1, 2023 and April 1, 2022 the Company issued 101,663 shares of Common Stock to Ricardo Komotar (RJK Consulting), a consultant, in accordance with the terms of a consulting agreement.

 

13
 

 

Equity Classes

 

Our authorized capital stock consists of 55,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share, the rights and preferences of which may be established from time to time by our board. As of November 13, 2023, there were 32,628,835 shares of common stock, one (1) share of Series C Preferred Stock and 270,306 shares of Series D Preferred Stock outstanding.