Vycor Medical Reports Financial Results for the Year Ended December 31st, 2018

BOCA RATON, FL / ACCESSWIRE / March 29, 2018 / Vycor Medical, Inc. (Vycor) (OTCQB: VYCO), a provider of innovative and superior surgical and therapeutic solutions, reported financial results for the year ended December 31, 2018.

Highlights

  • Vycor has been working on improving how its VBAS integrates with the most common Image Guidance System (”IGS”) pointers on the market; the first phase of this was completed and the Company started shipping its enhanced VBAS model at the end of September. Vycor took the decision in February 2018, based on surgeon feedback, to cease shipment of its previous model. As a result, manufacturing of the enhanced model needed to be accelerated and this caused some delays, which resulted in lost revenue through the first six months of the year, at which point sales had decreased by 15% over the same period in 2017. However, as the delays were reversed and with positive surgeon adoption of the newly enhanced VBAS, sales accelerated in the second half of the year by 40% compared to the same period in 2017, and actually ended the year with revenues increasing 11% over 2017.
  • The second phase of development of the VBAS IGS device is now well advanced with product being manufactured for further testing and regulatory submission, and we will also be exploring with surgeons and complementary product manufacturers additional selected development work targeted at increasing the ease and applicability of our VBAS range.
  • NovaVision currently has approximately 260 patients undergoing its therapies in the US and internationally. Patient compliance continues to be strong, with 75% of patients who have started since the introduction of the Internet model completing the full 6 months of VRT, and over 30% of patients extending their therapy period beyond 6 months. NovaVision has also placed its Professional Model with 17 clinics or rehabilitation centers since it started the soft marketing of this model.
  • Under Vycor’s ownership, NovaVision has gone from a business with a prototype therapy to one with a broad suite of proven patient and professional therapies and diagnostic products, utilizing a flexible range of delivery technologies. The therapies are protected by 45 patents and have a significant body of clinical data that is being added to and which demonstrates their efficacy. Management has made clear over the last year, however, that given the company’s resources, and the large size and diversity of NovaVision’s end markets, it believes the most efficient way to fulfill NovaVision’s potential is through partnerships. The range of alternatives for NovaVision could comprise distribution and marketing partnerships, licensing, merger or sale.

Management Commentary

”The enhanced VBAS model that we released in the fourth quarter of 2017 has been well received by the market” said Peter Zachariou, CEO of Vycor Medical. ”The strong performance of the division in the second half demonstrates that the IGS development work we are carrying out for our VBAS product will position the business well for the future, and we look forward to completing that development during 2019, subject to regulatory clearances”.

”Our stated focus on the reduction of cash burn has continued. Our Cash Operating Loss [1] despite our investment in manufacturing and new products, reduced to $207,000 for the year compared to $463,000 for 2017, and the Company generated a Cash Operating Profit1 in both the third and fourth quarters of the year.”

Year ended December 31, 20178 Financial Results

Revenue totaled $1,509,000 in the year ended December 31, 2018, as compared to $1, 385,000 for the prior year, an increase of 9%. Vycor Medical’s revenue increased by $133,000 or 11% and generated a gross margin of 88% compared to 83% in 2017. NovaVision recorded revenues of $198,019 for the year ended December 31, 2018, a decrease of $8,889 from 2017, and gross margin of 91%, compared to 89% for 2017.

Operating Expenses in the year ended December 31, 2018 totaled $2,657,000 as compared to $2,470,000 in 2017, of which $308,000 was in respect of the impairment charge against NovaVision’s assets. Cash Operating Expenses [2] were $1,547,000 as compared to $1,620,000. Operating Loss was $1,318,000, compared to $1,313,000 for 2017, and Cash Operating Loss2 was $207,000, as compared to $463,000, a reduction of 55%.

Net Loss for the year ended December 31, 2018 was $1,379,000 as compared to $1, 477,000 in 2017.

About Vycor Medical, Inc.

Vycor Medical (OTCQB: VYCO) is dedicated to providing the medical community with innovative and superior surgical and therapeutic solutions. The company has a 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.

For the latest information on the company, including media and other coverage, and to learn more, please go online at www.vycormedical.com, www.vycorvbas.com or www.novavision.com.

Non-GAAP Measures

We make reference to non-GAAP financial information in this press release together with a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures. Specifically, we have provided non-GAAP Cash Operating Expenses and non-GAAP Cash Operating Loss measures that exclude Depreciation, Amortization and non-cash Stock Compensation.

We believe that these non-GAAP financial measures provide investors with insight into what is used by management to conduct a more meaningful and consistent comparison of our ongoing operating results and trends, compared with historical results. This presentation is also consistent with the measures management uses to measure the performance of ongoing operating results against prior periods and against our internally developed targets. 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 and the reconciliation of non-GAAP financial measures in this press release.

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, INC.
Consolidated Statements of Comprehensive Loss

For the Twelve Months Ended December 31,

2018

2017

Revenue

$1,509,330

$1,384,971

Cost of Goods
Sold

169,598

201,363

Gross Profit

1,339,732

1,183,608

Operating
expenses:

Research and development

3,015

Depreciation and Amortization

166,386

275,416

Selling, general and administrative

2,183,505

2,185,769

Impairment of assets

307,576

Total Operating expenses

2,657,467

2,464,200

Operating
loss

(1,317,735)

(1,280,592)

Other income
(expense)

Interest expense: Other

(48,800)

(48,523)

Interest expense: Related Party

(11,434)

(679)

Gain (loss) on foreign currency exchange

(1,387)

1,392

Gain (loss) on other income and expense

0

4,028

Warrant issuance expense

(120,788)

Total Other Income (expense)

(61,621)

(164,570)

Loss Before
Credit for Income Taxes

(1,379,356)

(1,445,162)

Credit for income taxes

Net Loss

(1,379,356)

(1,445,162)

Preferred stock dividends

(324,970)

(324,970)

Net Loss
available to common shareholders

(1,704,326)

(1,770,132)

Comprehensive
Loss

Foreign Currency Translation Adjustment

(2,832)

5,278

Comprehensive Loss

(1,707,158)

(1,764,854)

Net Loss Per
Share

Basic and diluted

($0.08)

($0.10)

Weighted
Average Number of Shares Outstanding – Basic and Diluted

21,599,118

18,373,355

Reconciliation
of Cash Operating Expenses and Cash Operating Loss Before
Depreciation,
Amortization and Other Non-Cash Items

For the Twelve Months Ended December 31,

2018

2017

GAAP Operating Expenses

(2,657,467)

(2,470,400)

Non-cash depreciation

127,020

127,899

Non-cash amortization of intangible assets

50,331

162,076

Non-cash stock-based compensation

625,625

559,972

Impairment of assets

307,576

Non GAAP Cash Operating
Expenses

(1,546,915)

(1,620,453)

GAAP Operating Loss

(1,317,735)

(1,312,563)

Non-cash depreciation

127,020

127,899

Non-cash amortization of intangible assets

50,331

162,076

Non-cash stock-based compensation

625,625

559,972

Impairment of assets

307,576

Non GAAP Operating loss
Before

Depreciation and
Amortization

(207,183)

(462,616)

Vycor Medical, Inc. Contact:

951 Broken Sound Parkway NW
Suite 320
Boca Raton, FL. 33487
(561) 558-2020
[email protected]

[1] Operating Profit/Loss before Depreciation, Amortization and non-cash Stock Compensation. See Reconciliation table

[2] Operating Expenses before Depreciation, Amortization and non-cash Stock Compensation. See Reconciliation table

SOURCE: Vycor Medical, Inc.

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