Vycor Medical, Inc. Reports First Quarter 2014 Results
Revenue up 55% Over First Quarter 2013; Vycor Medical Division
Revenue up 102% Over Same Period 2013; Non-GAAP Net Operating Loss
Reduced by 29%
BOCA RATON, FL--(Marketwired - May 15, 2014) - Vycor Medical,
Inc. ("Vycor") (OTCQB: VYCO), today announced financial results for
the first quarter of 2014.
Company Highlights - First Quarter
- ViewSite Brain Access System (VBAS) gained
further traction through product approval in 12 new U.S.
hospitals during the quarter and is now approved in more than
170 hospitals in the U.S. with additional hospitals in the
approval process.
- Additional US distributors were added, bringing the total
number of sales reps covering VBAS in the US to
approximately 101.
- Internationally, Vycor Medical entered into evaluation
agreements with distributors in France and Russia with
advanced discussions with distributors in Brazil and
India.
- Presentation of two abstracts by Weill Cornell Medical
Center at the North American Skull Base Society 24th Annual
Meeting in San Diego, further confirming the clinical
superiority of the VBAS device.
- NovaVision soft-launched the first commercial release of
its new saccadic eye training therapy, to be marketed in
the U.S. as NeuroEyeCoach™, the first commercially available
saccadic therapy deliverable via the web to patients'
computers in their own homes. The therapy is now available
through the web site www.NeuroEyeCoach.com.
- The Company was granted 2 additional patents and now has
40 issued patents and 15 pending patents. Furthermore, it
enforced its patent rights invalidating an international
competitor's previously issued patent.
- The Company completed its largest fundraise to date.
During the first quarter Vycor raised $4,070,140 with net
proceeds of $3,635,651, and subsequent to the quarter end
closed the Offering at the maximum gross amount of $5,000,000,
including exercising an overallotment due to investor demand.
The Company is now well capitalized to execute on its clearly
articulated strategic plan for both divisions.
Financial Results - First Quarter
For the first quarter of 2014, the Company reported revenue of
$358,122, a 55% increase compared to $231,674 for the same period
in 2013. The Vycor Medical division (VBAS) generated revenue of
$263,711, a 102% increase compared to the same period in 2013,
reflecting growth both in the US and internationally. Gross profit
for 2014 was $315,165 compared to $201,655 in 2013, a margin of 88%
in 2014 compared to 87% in 2013.
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Three months ended March 31, |
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% |
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2014 |
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2013 |
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change |
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| Revenue |
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|
|
|
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|
|
|
|
| |
Vycor Medical |
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$ |
263,711 |
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$ |
130,665 |
|
102 |
% |
| |
NovaVision |
|
|
94,411 |
|
|
101,009 |
|
-7 |
% |
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|
|
|
|
|
|
|
|
|
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Total Revenue |
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$ |
358,122 |
|
$ |
231,674 |
|
55 |
% |
| |
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|
|
|
|
|
|
|
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| Gross Profit |
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|
|
|
|
|
|
|
|
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Vycor Medical |
|
$ |
233,408 |
|
$ |
116,279 |
|
101 |
% |
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NovaVision |
|
|
81,757 |
|
|
85,377 |
|
-4 |
% |
| |
|
|
|
|
|
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Total Gross Profit |
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$ |
315,165 |
|
$ |
201,656 |
|
56 |
% |
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On a non-GAAP basis (see below), the Company reported Operating
Expenses for the first quarter of 2014 of $635,893 compared to
$654,535 in 2013, a non-GAAP net operating loss for the quarter of
$320,728 compared to $452,879 in 2013, a reduction of 29%, and a
non-GAAP net comprehensive loss of $368,851 compared to $495,772 in
2013.
Cash and cash equivalents were $2,707,089 at March 31, 2014,
with additional net proceeds of $837,190 from the final Offering
close on April 24, 2014. Non-GAAP Shareholder's Equity was
$1,263,701.
Peter Zachariou, Chief Executive Officer of Vycor, commented:
"Vycor continues to grow its base of hospitals and surgeons using
our VBAS system, and we made solid progress in expanding our sales
channels, positioning us to deliver our articulated growth and
marketing strategy. Vycor Medical's plan is focused on: further
penetration of the U.S. market; securing additional clinical and
scientific data to support our technology; growing our
international footprint; and new product development, in particular
two smaller VBAS models and a suite of image-guided system fully
compatible devices. NovaVision's is centered around enabling
penetration of its very significant target market by: finalising
development to allow the provision of the therapy at a greatly
reduced cost and allow for much greater scalability; and the
introduction of a new therapy module, NeuroEyeCoach, into the
patient's overall visual therapy rehabilitation regime, thereby
broadening the overall benefits to them. We are also focused on
rolling out our VRT diagnostic licensing model with rehabilitation
centers."
Reconciliation of Non-GAAP Information Management uses certain
non-GAAP financial measures (including non-GAAP operating expenses
and non-GAAP net loss and loss per share), which exclude non-cash
amortization of acquired intangible assets, non-cash stock-based,
one-time Offering costs and the change in value of derivative
warrant liability. Management does not consider these costs in
evaluating the continuing operations of the Company. Therefore,
management calculates the non-GAAP financial measures provided in
this earnings release excluding these costs and uses these non-GAAP
financial measures to enable it to analyze further, and more
consistently, the period-to-period financial performance of its
core business operations. Management believes that providing
investors with these non-GAAP measures gives them additional
important information to enable them to assess, in the same way
management assesses, the Company's current and future continuing
operations. There are limitations in using these non-GAAP financial
measures because they are not prepared in accordance with GAAP and
may be different from non-GAAP financial measures used by other
companies. These non-GAAP financial measures should not be
considered in isolation or as a substitute for GAAP financial
measures. Investors and potential investors should consider
non-GAAP financial measures only in conjunction with the Company's
consolidated financial statements prepared in accordance with GAAP.
Set forth below are reconciliations of the non-GAAP financial
measures to the comparable GAAP financial measures.
On a GAAP basis the Company reported Operating Expenses for the
first quarter of 2014 of $1,307,704, a net operating loss of
$992,539 and a net comprehensive loss of $788,010, or $0.09 per
share.
Vycor's GAAP operating costs for the first quarter of 2014
include non-cash amortization of acquired intangible assets
($58,617), non-cash stock compensation charges ($168,655), and
one-time offering costs ($444,539). Vycor's other income includes
change in the value of warrant derivative liability ($253,284) and
Vycor's Comprehensive Loss includes foreign currency translation
adjustment ($632). The Company is providing additional non-GAAP
financial measures that exclude these charges and expenses, and
reconciliation of GAAP to non-GAAP results is provided in the
tables included in this release.
On a non-GAAP basis, taking into account these adjustments, the
Company reported Operating Expenses for the first quarter of 2014
of $635,893, a non-GAAP net operating loss of $320,728 and a
non-GAAP net comprehensive loss of $369,851, or $0.04 per
share.
On a GAAP basis the Company reported Shareholders' Deficiency of
$247,332. This includes the recording of a derivative liability
related to the issuance of Series A Warrants and Placement Warrants
in connection with the Offering of $1,511,033. The Company is
providing additional non-GAAP financial measures that exclude this
derivative liability, and reconciliation of GAAP to non-GAAP
results is provided in the tables included in this release. On a
non-GAAP basis, taking into account this adjustment, the Company
reported Shareholders' Equity of $1,263,701.
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| VYCOR MEDICAL, INC. |
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| Consolidated Statements of Comprehensive Loss |
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| (unaudited) |
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For the year ended March 31, |
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2014 |
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2013 |
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|
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| Revenue |
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$ |
358,122 |
|
|
$ |
231,674 |
|
| |
|
|
|
|
|
|
|
|
| Cost of Goods Sold |
|
|
42,957 |
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|
|
30,018 |
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|
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|
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| Gross Profit |
|
|
315,165 |
|
|
|
201,656 |
|
| |
|
|
|
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|
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| Operating expenses: |
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|
|
|
|
|
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Research and development |
|
|
15,356 |
|
|
|
31,350 |
|
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Depreciation and Amortization |
|
|
94,096 |
|
|
|
86,269 |
|
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General and administrative |
|
|
1,198,252 |
|
|
|
683,658 |
|
| |
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|
|
|
|
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Total Operating expenses |
|
|
1,307,704 |
|
|
|
801,277 |
|
| |
|
|
|
|
|
|
|
|
| Operating loss |
|
|
(992,539 |
) |
|
|
(599,621 |
) |
| |
|
|
|
|
|
|
|
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| Other income (expense) |
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|
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Interest expense: Related Party |
|
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(33,829 |
) |
|
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(28,967 |
) |
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Interest expense: Other |
|
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(14,294 |
) |
|
|
(13,926 |
) |
| |
Unrealized gain in change in value of derivative
liability |
|
|
253,284 |
|
|
|
- |
|
| |
|
Total Other Income (expense) |
|
|
205,161 |
|
|
|
(42,893 |
) |
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|
|
|
|
|
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| |
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|
|
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| Net Loss |
|
|
(787,378 |
) |
|
|
(642,514 |
) |
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|
|
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|
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| Comprehensive Income (Loss) |
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|
|
|
|
|
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|
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Foreign Currency Translation Adjustment |
|
|
(632 |
) |
|
|
(20,158 |
) |
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|
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|
|
|
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| Net Comprehensive Loss |
|
$ |
(788,010 |
) |
|
$ |
(662,672 |
) |
| |
|
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|
|
|
|
|
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| Comprehensive Loss Per Share |
|
|
|
|
|
|
|
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| |
|
Basic and diluted |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
| |
|
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|
|
|
|
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| Weighted Average Number of Shares Outstanding |
|
|
8,995,082 |
|
|
|
5,947,998 |
|
| |
|
| |
|
| VYCOR MEDICAL, INC. |
|
| Non-GAAP Reconciliation of Operating Loss and Net
Comprehensive Loss |
|
| |
|
|
|
|
|
|
| |
|
For the three months ended March 31, |
|
| |
|
2014 |
|
|
2013 |
|
| |
|
|
|
|
|
|
|
|
| GAAP Operating Expenses |
|
$ |
1,307,704 |
|
|
$ |
801,277 |
|
| |
|
|
|
|
|
|
|
|
| |
Non-cash amortization of acquired intangible assets (1) |
|
|
(58,617 |
) |
|
|
(58,617 |
) |
| |
Non-cash stock-based compensation (2) |
|
|
(168,655 |
) |
|
|
(88,125 |
) |
| |
Offering Costs (3) |
|
|
(444,539 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
| |
Total Non-GAAP Operating Expense Adjustments |
|
|
(671,811 |
) |
|
|
(146,742 |
) |
| |
|
|
|
|
|
|
|
|
| Non-GAAP Operating Expenses |
|
$ |
635,893 |
|
|
$ |
654,535 |
|
| |
|
|
|
|
|
|
|
|
| GAAP Operating Loss |
|
$ |
(992,539 |
) |
|
$ |
(599,621 |
) |
| |
|
|
|
|
|
|
|
|
| |
Non-GAAP Operating Expense Adjustments, as above |
|
|
671,811 |
|
|
|
146,742 |
|
| |
|
|
|
|
|
|
|
|
| Non-GAAP Operating Loss |
|
$ |
(320,728 |
) |
|
$ |
(452,879 |
) |
| |
|
|
|
|
|
|
|
|
| GAAP Net Comprehensive Loss |
|
$ |
(788,010 |
) |
|
$ |
(662,672 |
) |
| |
|
|
|
|
|
|
|
|
| |
Non-GAAP Operating Expense Adjustments, as above |
|
|
671,811 |
|
|
|
146,742 |
|
| |
Change in value of derivative liability (4) |
|
|
(253,284 |
) |
|
|
- |
|
| |
Foreign currency translation adjustment (5) |
|
|
632 |
|
|
|
20,158 |
|
| |
|
|
|
|
|
|
|
|
| Non-GAAP Net Comprehensive Loss |
|
$ |
(368,851 |
) |
|
$ |
(495,772 |
) |
| |
|
|
|
|
|
|
|
|
| Non-GAAP Loss Per Share |
|
|
|
|
|
|
|
|
| |
Basic and diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.08 |
) |
| |
|
|
|
|
|
|
|
|
| Weighted Average Number of Shares Outstanding |
|
|
8,995,082 |
|
|
|
5,947,998 |
|
| |
| |
| Non-GAAP Reconciliation of Shareholder's Equity
(Deficiency) |
|
|
|
|
|
|
|
|
|
March 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
GAAP Additional Paid-in Capital |
|
$ |
17,617,736 |
|
|
|
|
|
|
Derivative Liability: Warrants (4) |
|
|
1,511,033 |
|
|
|
|
|
|
Non-GAAP Additional Paid-in Capital |
|
$ |
19,128,769 |
|
|
|
|
|
|
GAAP Shareholder's Deficiency |
|
$ |
(247,332) |
|
|
|
|
|
|
Derivative Liability: Warrants, as above |
|
|
1,511,033 |
|
|
|
|
|
|
Non-GAAP Shareholder's Equity |
|
$ |
1,263,701 |
|
|
|
|
|
| |
| (1) Non-Cash Amortization on acquired intangible
assets. These are non-cash charges related to
acquired intangible assets such patents and software which can be
impacted by the timing and magnitude of acquisitions. We consider
our operating results without these charges when evaluating our
ongoing costs and performance, and therefore exclude such charges
when presenting non-GAAP financial measures. |
|
|
|
|
|
| (2) Non-Cash Stock-based compensation expense
consists of expense relating to stock-based awards issued to
employees, outside directors and non employees including stock
options, restricted common stock, and warrants. Because of varying
available valuation methodologies, subjective assumptions and the
fact that these amounts vary in size and timing, we believe that
the exclusion of stock-based compensation expense allows for a more
accurate comparison of our financial results to previous periods.
In addition, we believe it is useful to investors to understand the
specific impact of stock-based compensation expenses on our
operating results. |
|
|
|
|
|
| (3) Offering Costs comprises the broker
commissions, banking fees, legal fees and other costs associated
with the four separate closings of an offering of units of Common
Stock and Warrants (the "Offering") during the three months ended
March 31, 2014. These costs are one-time for the period of the
Offering and are disregarded by management in evaluating and
predicting earnings trends and are therefore excluded by us when
presenting non-GAAP financial measures. |
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|
|
|
|
| (4) Derivative Liability: Warrant. The Company
accounts for the 2,062,108 Series A Warrants and Placement Agent
Warrants issued in connection with or as a result of the Offering
(all as defined in Note 6) in accordance with the guidance
contained in ASC 815-40-15-7D, whereby under that provision,
because they have anti-dilution rights, they do not meet the
criteria for equity treatment and must be recorded as a liability.
Accordingly, the Company classifies the warrant instrument as a
liability at its fair value and adjusts the instrument to fair
value at each reporting period. This liability is subject to
re-measurement at each balance sheet date until exercised or until
the anti-dilution provisions contained within the warrant
agreements expire, and is classified in the balance sheet as a
current liability. Because this treatment is limited in time and is
calculated using subjective valuation assumptions, we believe that
the exclusion of the derivative liability on the balance sheet, and
the change in valuation on the statement of operations, allows for
a more accurate reflection of our financial result, and has
therefore been excluded by us when presenting non-GAAP financial
measures. |
|
|
|
|
|
| (5) Foreign currency translation adjustment
comprises the difference in period-to-period translation of
intercompany loans to foreign subsidiaries. We consider our
operating results without these translation adjustments when
evaluating our ongoing costs and performance, and therefore exclude
these adjustments when presenting non-GAAP financial measures. |
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About Vycor Medical, Inc. With corporate headquarters in Boca
Raton, FL, Vycor Medical, Inc. ("Vycor") is a publicly traded
company (OTCQB: VYCO) dedicated to providing the medical community
with innovative and superior neurosurgical and neurotherapeutic
solutions and has a growing portfolio of FDA-cleared medical
solutions that are changing and improving lives every day. The
Company operates two business units: Vycor Medical and NovaVision,
both of which adopt a minimally or non-invasive approach. Both
technologies have exceptional sales growth potential, address large
potential markets, have the requisite regulatory approvals and are
commercialized and generating revenue.
Vycor Medical's flagship, ViewSite™ Surgical Access Systems
(VBAS) is a suite of clear cylindrical minimally invasive
disposable devices that hold the potential for speedier, safer and
more economical brain surgeries and a quicker patient
discharge. VBAS is designed to optimize neurosurgical site
access, reduce patient risk, accelerate recovery and add tangible
value to the professional medical community. The company is ISO
13485:2003 compliant, has U.S. FDA 510(k) clearance for brain and
spine surgeries and full regulatory approvals for brain in
Australia, Canada, China, Europe (EU - Class III), and Japan and is
seeking or has partial regulatory approvals in India, Korea,
Russia, Taiwan and Vietnam. For an overview of Vycor Medical's VBAS
see http://player.vimeo.com/video/39766887
NovaVision develops and provides science-driven neurostimulation
therapy and other medical technologies that help improve and
partially restore sight in patients with neurological vision
impairments. The company's proprietary Visual Restoration
Therapy® (VRT) platform is clinically supported to improve lost
vision resulting from stroke, traumatic brain injury ("TBI"), or
other acquired brain injuries. VRT is the only FDA 510K cleared
medical device in the U.S. aimed at the restoration of vision for
neurologically induced vision loss and can be prescribed by any
ophthalmologist, optometrist, neurologist or physiatrist. VRT
also has CE Marking for the EU. NovaVision also provides Neuro-Eye
Therapy (NeET) in the EU, aimed at increasing visual sensitivity
deep within the field defect.
In March 2014 the Company soft-launched NeuroEyeCoach™ in the
US, which is the first commercially available saccadic therapy
deliverable via the web to patients' computers at their own homes.
The program is supported by more than four decades of scientific
findings and was developed as collaboration between the Company,
and Josef Zihl, a NovaVision Scientific Advisor and world thought
leader in saccadic training and the pioneer of this computer based
training technique. The program is designed to result in a
meaningful improvement in the patients visual search performance
resulting in improvements in their navigation and object finding
skills. Given that NeuroEyeCoach™ addresses the patient's
difficulty with their eye movements and their ability to integrate
visual information while VRT focuses on the restoration of lost
vision the two therapies are highly complementary. For an overview
of NovaVision see http://player.vimeo.com/video/39765566
For the latest information on the company, including media and
other coverage, and to learn more, please go online at
www.vycormedical.com or www.novavision.com.
Safe Harbor Statement
Information in this document constitute forward-looking
statements or statements which may be deemed or construed to be
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The words "forecast",
"anticipate", "estimate", "project", "intend", "expect", "should",
"believe", and similar expressions are intended to identify
forward-looking statements. These forward-looking statements
involve, and are subject to known and unknown risks, uncertainties
and other factors which could cause Vycor Medical's actual results,
performance (financial or operating) or achievements to differ from
the future results, performance (financial or operating) or
achievements expressed or implied by such forward-looking
statements. The risks, uncertainties and other factors are more
fully discussed in Vycor Medical's filings with the U.S. Securities
and Exchange Commission. All forward-looking statements
attributable to Vycor Medical herein are expressly qualified in
their entirety by the above-mentioned cautionary statement. Vycor
Medical disclaims any obligation to update forward-looking
statements contained in this estimate, except as may be required by
law.
Vycor Medical (QB) (USOTC:VYCO)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Vycor Medical (QB) (USOTC:VYCO)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
