10-Q

U.S. 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                 March 31, 2013                 

o  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	333-149782	20-3369218
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6401 Congress Ave., Suite 140, Boca Raton, FL 33487
(Address of principal executive offices) (Zip code)

Issuer's telephone number: (561) 558-2000

Securities registered under Section 12(g) of the Exchange Act:

Common Stock par value $0.0001

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 o

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 o No o

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 o	Accelerated filer o
Non-accelerated filer o (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 o No x

There were 6,317,955 shares outstanding of registrant's common stock, par value $0.0001 per share, as of May 10, 2012.

Transitional Small Business Disclosure Format (check one): Yes o No x

TABLE OF CONTENTS

PART I
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of March 31, 2013 (unaudited) and December 31, 2012	3
	Unaudited Consolidated Statements of Operations for the three months ended March 31, 2013 and March 31, 2012	4
	Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25
PART II
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	(Removed and Reserved)	27
Item 5.	Other Information	28
Item 6.	Exhibits	28
SIGNATURES		29

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PART I

ITEM 1. FINANCIAL STATEMENTS

VYCOR MEDICAL, INC.
Consolidated Balance Sheets

		March 31, 2013 (unaudited)			December 31, 2012
ASSETS
Current Assets
Cash	$	15,924		$	59,821
Accounts receivable, net		83,619			144,347
Inventory		267,970			290,508
Prepaid expenses and other current assets		363,935			429,102
Total Current Assets		731,448			923,778
Fixed assets, net		774,422			827,389
Intangible and Other assets:
Trademarks		251,157			251,157
Patents, net of accumulated amortization		512,497			502,895
Website, net of accumulated amortization		2,292			2,772
Security deposits		53,169			53,169
Total Intangible and Other assets		819,115			809,993
TOTAL ASSETS	$	2,324,985		$	2,561,160
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	214,603		$	187,789
Accrued interest		238,033			195,138
Accrued liabilities		1,273,678			1,198,463
Other current liabilities		137,938			241,918
Notes payable - current		2,536,100			2,195,502
TOTAL CURRENT AND TOTAL LIABILITIES		4,400,352			4,018,810
STOCKHOLDERS' DEFICIENCY
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 39.3 issued and outstanding as at March 31, 2013 and December 31, 2012	$	1		$	1
Common Stock, $0.0001 par value, 1,500,000,000 shares authorized, 6,029,879 and 6,020,555 shares issued and outstanding at March 31, 2013 and December 31, 2012 respectively		603			602
Additional Paid-in Capital		13,163,988			13,141,489
Treasury Stock (103,334 and 68,889 shares of Common Stock as at March 31, 2013 and December 31, 2012 respectively, at cost)		(1,033	)		(1,033	)
Accumulated Deficit		(15,250,586	)		(14,587,914	)
Accumulated Other Comprehensive Income		11,660			(10,795	)
Total Stockholders' Deficiency		(2,075,367	)		(1,457,650	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$	2,324,985		$	2,561,160

See accompanying notes to financial statements

3

VYCOR MEDICAL, INC.
Consolidated Statement of Operations
(unaudited)

		For the three months ended March 31,
		2013			2012
Revenue	$	231,674		$	432,601
Cost of Goods Sold		30,018			79,422
Gross Profit		201,656			353,179
Operating expenses:
Research and development		31,350			24,687
Depreciation and Amortization		86,269			81,576
General and administrative		683,658			1,054,973
Negative Goodwill on Acquisition of Subsidiary		-			(66,394	)
Costs related to Acquisition of Subsidiary		-			18,285
Total Operating expenses		801,277			1,113,127
Operating loss		(599,621	)		(759,948	)
Other income (expense)
Other income (expense)		(20,158	)		8,118
Interest expense		(42,893	)		(31,600	)
Total Other expense		(63,051	)		(23,483	)
Net Loss Before Taxes		(662,672	)		(783,430	)
Net Loss		(662,672	)		(783,430	)
Loss Per Share
Basic and diluted	$	(0.11	)	$	(0.14	)
Weighted Average Number of Shares Outstanding		5,947,998			5,554,218

See accompanying notes to financial statements

4

VYCOR MEDICAL, INC.
Consolidated Statement of Cash Flows
(unaudited)

		For the three months ended March 31,
		2013			2012
Cash flows from operating activities:
Net loss	$	(662,672	)	$	(783,430	)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization of intangible assets		30,186			25,935
Depreciation of fixed assets		62,951			57,377
Share based compensation and expense		88,125			149,342
Changes in assets and liabilities:
Accounts receivable		60,195			(440	)
Inventory		22,464			(127,741	)
Prepaid expenses		(1,144	)		143,226
Accounts payable		26,987			16,061
Accrued interest		42,895			31,658
Accrued liabilities		78,315			103,281
Other current liabilities		(12,048	)		(516	)
Cash used in operating activities		(263,746	)		(385,247	)
Cash flows used in investing activities:
Purchase of fixed assets		(10,063	)		(8,047	)
Acquisition of subsidiary, net of cash acquired		(89,945	)		(153,601	)
Acquisition of patents		(39,141	)		3,690
Cash used in investing activities		(139,149	)		(157,958	)
Cash flows from financing activities:
Net proceeds from issuance of Notes Payable		352,737			3,842
Repayment of Notes Payable		(12,111	)		(9,103	)
Cash provided by (used in) financing activities		340,626			(5,261	)
Effect of exchange rate changes on cash		18,372			3,616
Net increase (decrease) in cash		(43,897	)		(544,850	)
Cash at beginning of period		59,821			950,841
Cash at end of period	$	15,924		$	405,991
Supplemental Disclosures of Cash Flow information:
Interest paid:	$	-		$	197
Taxes paid	$	-		$	-
Non-Cash Transactions:
Acquisition of subsidiary, net of cash acquired
Trademarks and Tradenames	$	-		$	121,157
Patents		-			180,183
Internally Developed Software		-			363,472
Other Net Assets		-			(758	)
Negative Goodwill on Acquisition		-			(66,394	)
	$	-		$	597,660
Warrants, options and common stock issued for acquisition of subsidiary		-			(287,000	)
Deferred consideration payable		89,945			(155,330	)
Foreign exchange difference on deferred consideration		-			(1,729	)
	$	89,945		$	153,601
See accompanying notes to financial statements

5

VYCOR MEDICAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013
(unaudited)

1.  BASIS OF PRESENTATION

The consolidated financial statements of the Company present the financial position, results of operations, and cash flows of Vycor Medical, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements 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 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in comprehensive financial statements have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet as of December 31, 2012 derives from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These 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, 2012.

The condensed consolidated financial statements for the three months ended March 31, 2013 and 2012, 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 and results of operations. The results of operations for the three months ended March 31, 2013 and 2012 are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Certain prior period amounts have been reclassified to conform to the current presentation.

2.  FORMATION AND BUSINESS OF THE COMPANY

Business Description

Vycor Medical, LLC was formed on June 17, 2005 as a New York Limited Liability Company. The Company changed its name to Vycor Medical, Inc. and converted to a Delaware Corporation on August 14, 2007 and issued 107 shares of common stock in exchange for each of the 1,122 partnership units outstanding at date of conversion. The assets, liabilities and operations of the Company did not change pursuant to this reorganization, and the accompanying financial statements are presented as if the change occurred on the first day of the earliest period presented. Accordingly, all references to number of shares prior to the date of conversion are based upon the common stock equivalent of the partnership units outstanding on such dates.

The Company designs, develops and markets neurological medical devices and therapies through two operating divisions: Vycor Medical and NovaVision. Vycor Medical focuses on brain and cervical surgical access systems for sale to hospitals and medical professionals; NovaVision focuses on neuro-stimulation therapies and diagnostic devices for the treatment and screening of vision field loss.

3.   GOING CONCERN

The Company's financial statements have been presented on a basis that contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and assumes the Company will continue as a going concern. The Company has incurred losses since its inception, including a net loss of $662,672 for the three months ended March 31, 2013, and the Company expects to incur additional losses. The Company has generated negative cash flows from operations since inception. As of March 31, 2013, current liabilities exceeded current assets by $3,668,904 the Company had a stockholders' deficit of $2,075,367 and cash and cash equivalents of $15,924. The Company believes it will not have enough cash to meet its various cash needs unless the Company is able to obtain additional cash from the issuance of debt or equity securities. The Company intends to raise funds from the issuance of equity and/or debt securities, but there is no assurance that additional funds from the issuance of equity will be available for the Company to finance its operations on acceptable terms, or at all. If adequate funds are not available, the Company may have to delay development or commercialization of products or technologies that the Company would otherwise seek to commercialize, or cease operations. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. The 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.

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4.   SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The 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. The operations of Sight Science have been consolidated since January 4, 2012 the date of the completion of the acquisition of all the shares of Sight Science. All material inter-company accounts, transactions, and profits have been eliminated in consolidation.

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 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.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock and convertible debt.  Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. No dilution adjustment has been made to the weighted average outstanding common shares in the periods presented because the assumed exercise of outstanding options and warrants and the conversion of preferred stock and debt would be anti-dilutive.

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

	March 31,	March 31,
	2013	2012
Stock options outstanding	5,557	5,557
Warrants to purchase common stock	1,749,874	1,745,207
Debentures convertible into common stock	368,727	368,726
Preferred shares convertible into common stock	582,233	826,681
Total	2,706,391	2,946,171

5.   NOTES PAYABLE

As of March 31, 2013 and December 31, 2012 Notes Payable consists of:

	March 31, 2013	December 31, 2012
On December 29, 2009 and February 3, 2010, the Company issued convertible debentures in the amount of $371,362 and $70,000, respectively, payable to Fountainhead Capital Management ("Fountainhead"), the beneficial owner of more than 50% of the Company's common stock. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $1.88 per share, subject to adjustment and does not require bifurcation. These debentures were originally due August 31, 2010 and the due date has been extended over time to December 31, 2013.	441,362	441,362

7

	March 31, 2013	December 31, 2012
On September 30, 2010 and October 14, 2010, the Company issued convertible debentures payable to Fountainhead in the amount of $85,000 and $90,000, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $2.63 per share, subject to adjustment and does not require bifurcation. The debentures were originally due August 31, 2011, and the due date has been extended over time to December 31, 2013.	175,000	175,000
On October 26, 2010 and November 15, 2010, the Company issued debentures payable to Fountainhead in the amount of $77,500 and $322,500, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The debentures were originally due August 31, 2011, and the due date has been extended over time to December 31, 2013.	400,000	400,000
On November 15, 2010, the Company issued a convertible debenture in the amount of $350,000 payable to Peter Zachariou, a Director of the Company. This debenture accrues interest rate of 6% per annum, is secured by a first priority security interest in all of the assets of the Company, and is senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $2.85 per share, subject to adjustment and does not require bifurcation. On December 20, 2010, the Company repaid $50,000 of this debenture and removed the convertible rights. The debentures were originally due December 31, 2012 and the due date has been extended over time to December 31, 2013.	300,000	300,000
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. In connection with the loan the Company also issued EuroAmerican warrants to purchase 400,000 shares of the Company's common stock at an exercise price of $4.50 per share for a period of three (3) years. On June 25, 2011 the due date for this note was extended to September 25, 2011 and the Holder was granted the right to convert all or any amount of the principal face amount of the debenture then outstanding and accrued interest into shares of common stock of the Company at the conversion price of $0.03 per share, subject to adjustment and does not require bifurcation. The due date for this note has been extended over time to June 30, 2013.	300,000	300,000
In the period July to December 2012 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $300,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.	300,900	300,900
In the period August to December 2012 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $115,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.	115,550	115,550
In the period August to December 2012 the Company issued short term, unsecured notes payable to Craig Kirsch in the aggregate amount of $98,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.	98,550	98,550

8

		March 31, 2013		December 31, 2012
In September 2012 the Company issued short term, unsecured notes payable to Osbaldo Trading Limited in the amount of $42,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		42,900		42,900
In the period January to March 2013 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $189,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		189,000		-
In the period January to March 2013 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $145,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		145,000		-
Insurance policy finance agreements		27,838		21,240
Total Notes Payable:	$	2,536,100	$	2,195,502

As of March 31, 2013, $1,316,362 of Company's notes payable are secured by a security interest in all of the assets of the Company. The company assesses the value of the beneficial conversion feature of its convertible debt by determining the intrinsic value of such conversion, under ASC 470, at the time of issuance. At the time of issuance of each of the convertible debt instruments set out above, the fair value of the stock was either the same or less than the conversion price, and so there was no value attributable to any beneficial conversion feature.

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. Set out below are the revenues, gross profits and total assets for each segment.

		Three Months Ended March 31,
		2013		2012
Revenue:
Vycor Medical	$	130,665	$	321,781
NovaVision		101,009		110,820
Total Revenue	$	231,674	$	432,601
Gross Profit:
Vycor Medical	$	116,279	$	260,588
NovaVision		85,377		92,591
Total Gross Profit	$	201,656	$	353,179

		March 31, 2013		December 31, 2012
Total Assets:
Vycor Medical	$	940,625	$	1,055,026
NovaVision		1,384,360		1,506,134
Total Assets	$	2,324,985	$	2,561,160

(b) Geographic information

The Company operates in two geographic segments, the United States and Europe. Set out below are the revenues, gross profits and total assets for each segment.

9

		Three Months Ended March 31,
		2013		2012
Revenue:
United States	$	179,515	$	362,248
Europe		52,159		70,353
Total Revenue	$	231,674	$	432,601
Gross Profit:
United States	$	156,188	$	290,769
Europe		45,468		62,410
Total Gross Profit	$	201,656	$	353,179

		March 31, 2013		December 31, 2012
Total Assets:
United States	$	2,273,997	$	2,475,933
Europe		50,988		85,227
Total Assets	$	2,324,985	$	2,561,160

7.   EQUITY 

Certain Equity Transactions

During January to March 2013 the Company issued 1,482 shares of Common Stock (valued at $5,000) to Steven Girgenti and 2,632 shares of Common Stock (valued at $5,000) to Dr Oscar Bronsther in consideration for services provided to the Board of Directors; and 926 shares of Common Stock (valued at $3,125) to Alvaro Pascual-Leone and Josef Zihl and 1,646 shares of Common Stock (valued at $3,125) to Jason Barton and Jose Romano in respect of their roles as members of the NovaVision, Inc. Scientific Advisory Board.

On January 11, 2013, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a reverse stock split of 1 for 150 on the issued and outstanding Common Stock par value $0.0001 ("Common Stock"). On January 15, 2013 (the "Effective Date"), the Company effectuated its reverse stock split. On the Effective date, the Company implemented a one for 150 share reverse split of its Common Stock. On the Effective Date, the Company's pre-split 892,749,897 shares of Common Stock became 5,951,744 post-split shares of Common Stock, including the issuance of 66 shares of Common Stock for the round-up of partial shares. In connection with the reverse split, the Company's authorized capital was not changed. All relevant information relating to the number of shares and per share information has been retrospectively adjusted to reflect the recerse stock split for all periods presented.

In March 2013 GreenBridge Capital Partners, IV, LLC returned to Vycor all of the 34,445 shares being sought by the Company under an action filed by the Company in July 2012. These shares have been taken into Treasury Stock.

8.   SHARE-BASED COMPENSATION

Stock Option Plan

The Company adopted the Vycor Medical, Inc Employee, Director, and Consultant Stock Plan (the "Plan") as of February 13, 2008. The Plan provides for both incentive stock options and nonqualified stock options to be granted to employees, officers, consultants, independent contractors, directors and affiliates of the Company.   The board of directors establishes the terms and conditions of all stock option grants, subject to the Plan and applicable provisions of the Internal Revenue Code.  Incentive stock options must be granted at an exercise price not less than the fair market value of the common stock on the grant date.  The options granted to participants owning more than 10% of the Company's outstanding voting stock must be granted at an exercise price not less than 110% of the fair market value of the common stock on the grant date.  The options expire on the date determined by the board of directors, but may not extend mare than 10 years from the grant date, while incentive stock options granted to participants owning more than 10% of the Company's outstanding voting stock expire five years from the grant date. The vesting period for employees is generally over three years.  The vesting Period for non-employees

10

is determined based on the services being provided. The maximum number of shares of stock which may be delivered under the plan shall automatically increase by a number sufficient to cause the number of shares covered by the plan to equal 10% of the total number of shares of stock then outstanding on a fully diluted basis.

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.  No employee stock options were granted for the three month periods ended March 31, 2013 and 2012.

Initial grants of options to purchase 500,000 shares were issued under the Plan on February 13, 2008 to each of Kenneth T. Coviello, the Company's Chief Executive Officer and Heather N. Vinas, the Company's President at an exercise price of $0.135 per share.  The options vested 33-1/3% on each of the first, second, and third anniversary of the grant and expire February 12, 2018. Following Heather Vinas' resignation as President of the Company in May 2010, 166,667 unvested options were cancelled. The Company recognized share-based compensation of $0 for the three months ended March 31, 2012 and 2011.

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 March 31, 2012 there were no awards of any stock appreciation rights.

The Company from time to time issues common stock, stock options or common stock warrants to acquire services or goods from non-employees. Common stock, stock options and common stock warrants issued to other than employees or directors are recorded on the basis of their fair value, which is measured as of the "measurement date" using an option pricing model. 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.

The details of the outstanding rights, options and warrants and value of such rights, options and warrants are as follows: 

STOCK WARRANTS:	Number of shares			Weighted average exercise price per share
Outstanding at December 31, 2011	1,747,347		$	3.07
Granted	4,667			4.50
Exercised	-			-
Cancelled or expired	(2,140	)		36.00
Outstanding at December 31, 2012	1,749,874		$	3.03
Granted	-			-
Exercised	-			-
Cancelled or expired	-			-
Outstanding at March 31, 2013	1,749,874		$	3.03
STOCK OPTIONS:	Number of shares			Weighted average exercise price per share
Outstanding at December 31, 2011	5,557		$	20.25
Granted	-			-
Exercised	-			-
Cancelled or expired	-			-
Outstanding at December 31, 2012	5,557		$	20.25
Granted	-			-
Exercised	-			-
Cancelled or expired	-			-
Outstanding at March 31, 2013	5,557		$	20.25

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As of March 31, 2013, the weighted-average remaining contractual life of outstanding warrants and options is 1.69 and 4.88 years, respectively. 

Non-Employee Stock Compensation

During the three months ended March 31, 2013, the Company issued an aggregate of 1,482 and 2,632 shares of common stock, respectively, valued at $5,000, to each of Steven Girgenti and Oscar Bronsther for services rendered to the board of directors. For the three months ended March 31, 2013, a total of $10,000 was recognized as share-based compensation for the issuance of these shares.

During the three months ended March 31, 2013 the Company issued an aggregate of 926, 1,646, 1,646 and 926 shares of common stock, respectively, valued at $3,125, to each of Alvaro Pascual-Leone, Jason Barton, Jose Romano and Josef Zihl for services rendered to the Scientific Advisory Board of NovaVision. For the three months ended March 31, 2013, an aggregate of $12,500 was recognized as share-based compensation for the issuance of these shares.

On November 30, 2012 the Company entered into 12 month consulting agreements with Del Mar Consulting, Inc and Alex Partners, LLC to provide investor relations and investor awareness consultancy services. Under these agreements, Del Mar and Alex Partners received shares Common Shares valued at $157,500 and $105,000 respectively. The value of these shares is being amortized over the period of the agreement, and for the three months ended March 31, 2013 stock compensation of $65,625 was recognized as share-based compensation in connection with these agreements.

Aggregate stock-based compensation expense charged to operations for stock and warrants granted to the above non-employees for the three months ended March 31, 2013 was $88,125. As of March 31, 2013, there was $175,000 of total unrecognized compensation costs related to warrant and stock awards and non-vested options.

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. The fair value of the common stock is determined by the then-prevailing private placement purchase price. Expected volatility was based on the historical volatility of a peer group of publicly traded companies. The expected term of options and warrants was based upon the life of the option, and the risk-free rate used was based on the U.S. Treasury Constant Maturity rate.

The following assumptions were used in calculations of the Black-Scholes option pricing model for options and warrants expensed in the three months ended March 31, 2013 and 2012:

	Three months ended March 31,
	2013	2012
Risk-free interest rates	-	2.39 %
Expected life	-	3 years
Expected dividends	-	0%
Expected volatility	-	96%
Vycor Common Stock fair value	-	$1.88-$3.38

9.   COMMITMENTS AND CONTINGENCIES

Lease

The Company leases approximately 10,000 sq. ft located at 6401 Congress Ave., Suite 140, Boca Raton, FL 33487 from Catexor Limited Partnership for a gross rent of $14,260 plus sales tax per month. The term of the lease is 5 years and 6 months terminating July, 2017. The Company's subsidiaries in Germany and the UK occupy properties on short term lease agreements. Rent expense for the three months ended March 31, 2013 and 2012 were $48,553 and $48,198 respectively.

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Potential German tax liability and connected professional fees

In June 2012 the Company's German subsidiary received a preliminary assessment for Magdeburg City trade tax of approximately €75,000 (approximately $94,000). 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 has been preliminarily reduced to zero. The Company has not accepted this trade tax assessment and is in discussion with the relevant tax authorities with a view to its reduction. To the extent that this assessment, a higher or a reduced amount, is ultimately confirmed by the tax authorities, the Company believes it has a very strong claim against certain professional advisors which would offset the liability in full. Accordingly, the Company has made no provision for this liability for the three months ending March 31, 2013 or the year ended December 31, 2012.

Related to the above tax situation, the Company has incurred advisory fees. The Company believes it also has a strong claim against certain professional advisors for a recovery of the full amount of the fees, however such recovery may be limited to a statutory minimum. Accordingly the Company has made a provision in the period ended December 31, 2012 for the full amount of these fees, being approximately €39,000 ($50,105); there were no costs incurred in the three months ended March 31, 2013.

Potential Patent Infringement

The Company is aware that a potential competitor is developing a product similar to VBAS for sale in a foreign market.  If this product comes to market, Vycor has the option to take action to enforce its patent rights.  As with all patent infringement actions, there is some risk that the accused infringer will not be found to infringe the claims, and an additional risk that the accused infringer will successfully challenge the validity of the asserted claims.

VBAS Limited Product Recall

In August 2012 the Company initiated a limited product recall having identified a microscopic fiber in a single lot of its TC171105 model. Further investigation concluded that there was a very low incidence of this microscopic fiber in the lot, which had not been picked up during the manufacturer’s inspection process. The FDA was notified and all customers with units that had been distributed (a total of 5 customers in the U.S. and 2 customers internationally) were contacted and the units were recalled and replaced with re-inspected and passed units, or internationally re-inspected under 100% enhanced inspection guidelines; this recall and replacement process was completed in the US in September 2012 and internationally in November 2012 and there are no affected units on the marketplace. In January 2013, following their review, the FDA classified the recall as a Class I. The Company has submitted a recall termination request to the FDA.

Vycor re-inspected all remaining units in the lot prior to shipment under 100% enhanced inspection procedures and took steps to ensure that this issue was contained to this lot and that other lots and products were not affected (this is one of 12 products sold by Vycor). The likely source of the fiber was identified and corrective steps implemented in both the manufacturing and inspection processes to ensure that the issue would not re-occur.

Management believes that a decline in sales during February 2013 may have at least partially been the result of the posting by the FDA in late January 2013 of the Class 1 classification to the recall and which created some short-term customer instability. Notwithstanding, for the period commencing March 1, 2013 and continuing through early May, 2013, the Company's sales have returned to pre-February 2013 levels and Vycor is not able at this time to determine whether there will be any additional financial impact on the Company as a result of this recall. Vycor's customers have appreciated that Vycor took swift voluntary action to remove this product from the marketplace, even though the incidence of this fiber and therefore the risk was low, before any units could be used, and to maintain Vycor's high safety and quality standards.

10. CONSULTING AND OTHER AGREEMENTS

The Company has entered into no new consulting or other agreements during the three months ended March 31, 2013. The following agreements remained in force during the period:

Consulting Agreement with Fountainhead Capital Management Limited ("Fountainhead")

In February 2010 the Company entered into a Consulting Agreement with Fountainhead, which was the subject of a Supplement Agreement in May, 2011 to recognize Fountainhead's expanded responsibilities as a result of the acquisition by the Company of the assets of NovaVision, Inc. Under the terms of the Agreement and Supplement, the Company will pay to Fountainhead a monthly retainer of $37,500 ($8,500 under the Original Agreement and $29,000 under the Supplement). This monthly retainer shall be accrued and paid out to Fountainhead at the option of Fountainhead as follows: (i) in Vycor stock at any time at $1.88 per share for the Original Agreement and $3.38 per share for the Supplement; or (ii) in cash following the closing of a fundraising of no less than $2.5 million or on the sale of the Company or a substantial part of the assets thereof at any time after June 30, 2011. Notwithstanding, Fountainhead has the option to receive up to $5,000 of monthly retainer in cash each month, commencing April 1, 2011.

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Consulting Agreement with Del Mar Consulting Group, Inc and Alex Partners, LLC.

On November 30, 2012 the Company entered into 12 month consulting agreements with Del Mar Consulting, Inc and Alex Partners, LLC to provide investor relations and investor awareness consultancy services. Under these agreements, Del Mar and Alex Partners received shares Common Shares valued at $157,500 and $105,000 respectively.

11. RELATED PARTY TRANSACTIONS

During January to March 2013, the Company issued unsecured, subordinated loan notes to: Fountainhead for a total of $189,000; and to Peter Zachariou, a director of the Company, for a total of $145,000. During April, the Company issued unsecured, subordinated loan notes to: Fountainhead for a total of $29,000; and to Peter Zachariou, a director of the Company, for a total of $45,000. The loan notes are subordinated to the Company's secured debentures and Preferred C Stock of the Company, bear interest at a rate of 6% are due on demand or by their one-year anniversary.

In March 2013, Fountainhead and Peter Zachariou, a director of the Company, extended the maturity of secured loans totaling $1,016,362 and $300,000 respectively from March 31, 2013 to December 31, 2013.

In April 2013, in connection with her departure from the Board of Directors, the Company and Heather Vinas entered into a Warrant Exercise and Share Sales Agreement (the "Agreement"). Under the terms of the Agreement Mrs. Vinas agreed to exercise her warrants to purchase 54,834 shares of Common Stock, which are exercisable on a cashless basis, at a price of $2.60 per share and receive 32,152 shares of Common Stock. Following this exercise, Mrs Vinas holds an aggregate of 66,272 shares of Common Stock. The Agreement also requires Mrs Vinas not to sell more than 16,000 shares in any 30-day period.

During April and May 2013, Fountainhead Capital Management sold warrants to purchase 124,375 shares of Vycor Common Stock at an exercise price of $1.88 per share. These warrants were granted to Fountainhead by the Company in February 2010 and were sold by Fountainhead to investors at a price of $0.10 per warrant share. The warrants were immediately exercised by the investors.

There were no other related party transactions during the three months ended March 31, 2013 other than the payment or accrual of fees under the Fountainhead Consulting agreement described in 10 above.

12. SUBSEQUENT EVENTS

The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10Q.

Share Issuance

During April and May 2013, the Company issued 668 and 1,335 shares of Common Stock respectively (valued at $1,563 and $3,125 respectively) to Alvaro Pascual-Leone and Josef Zihl in respect of their roles as members of the NovaVision, Inc. Scientific Advisory Board; and 2,632 shares of Common Stock (valued at $5,000) to Steve Girgenti in consideration for services provided to the Board of Directors.

During April and May 2013, the Company issued 31,727 and 32,152 shares of Common Stock respectively on exercise of warrants by Kenneth Coviello and Heather Vinas. The warrants had an exercise price of $1.08 and were exercisable on a cashless basis.

During April and May 2013, the Company issued 124,375 shares of Common Stock in respect of the exercise of warrants to purchase 124,375 shares by 4 investors. The exercise price of the warrants was $1.88 per share and the Company received cash proceeds of $233,335.

Conversion of Preferred Shares

During April and May 2013, the Company issued a total of 198,521 shares of Common Stock in respect of conversion of Series C Preferred Stock.

Warrant Sale

During April and May 2013, Fountainhead Capital Management sold 124,375 warrants to purchase Vycor Common Stock at an exercise price of $1.88 per share. These warrants were granted to Fountainhead by the Company in February 2010 and were sold by Fountainhead to investors at a price of $0.10 per warrant. The warrants were immediately exercised by the investors.

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Loan Funding

During April, the Company issued unsecured, subordinated loan notes to: Fountainhead for a total of $29,000; and to Peter Zachariou, a director of the Company, for a total of $45,000. The loan notes are subordinated to the Company's secured debentures and Preferred C Stock of the Company, bear interest at a rate of 6% are due on demand or by their one-year anniversary.

Formation of Audit Committee

On April 30, 2013 the Company’s Board of Directors took formal action to form an Audit Committee and adopted an Audit Committee Charter of Operations. At the same time, the Company’s board of directors appointed Lowell Rush as Chairman and a member of the Audit Committee and to serve as the Audit Committee’s Financial Expert. Messrs. Steven Girgenti and Adrian Liddell were also appointed as members of the Audit Committee of the board of directors.

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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

We were 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." ("Vycor" or the "Company"). On November 29, 2010, Vycor, through its wholly-owned subsidiary NovaVision Acquisition, Inc., completed the acquisition of substantially all of the assets of the former NovaVision, Inc., a company that had been in the business of researching, developing and providing medical technologies to restore the vision of patients with neurological visual loss. Subsequent to the purchase, NovaVision Acquisition, Inc. changed its name to NovaVision, Inc. ("NovaVision"). On January 4, 2012 Vycor, through its wholly-owned subsidiary NovaVision, completed the acquisition of all the shares of Sight Science Limited ("Sight Science").

2. Overview of Business

Vycor operates two distinct business units within the medical industry: Vycor Medical (which operates as a division of the Company) and NovaVision. Vycor Medical is a medical device company that designs, develops and markets medical devices for use in neurosurgery. NovaVision (which incorporates Sight Science) develops non-invasive, computer-based visual neuro-stimulation therapy for patients suffering from vision field deficits resulting from neurological trauma such as stroke and traumatic brain injuries, as well as screening and diagnostic products. In addition to our existing products and products in development, we actively seek acquisition, joint ventures and in-licensing opportunities in the medical device and therapy fields which we believe are complementary, can benefit from our existing infrastructure and will add shareholder value.

Vycor Medical

Introduction

Vycor Medical is a medical device company that designs, develops and markets medical devices for use in neurosurgery. Vycor Medical is ISO 13485:2003 compliant, has U.S. FDA 510(k) clearance for brain and spine surgeries, and CE Marking for Europe (Class III) as well as applicable regulatory approvals in Australia, Canada, China, Japan and Russia for sale of its

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brain access system. Vycor Medical's ViewSite Brain Access System (VBAS) is a next generation access and retraction system that was fully commercialized in early 2010. The VBAS device is the first significant technological change to brain tissue retraction and access. The incumbent blade retractor technology has not changed materially in over 50 years in contrast to development in most other neuro-surgical technologies.

Vycor Medical has a current product pipeline that is both aimed at enhancing ease of use and compatibility in the current VBAS range, and expanding the applicable procedures it addresses by expanding its VBAS range. A second potential product range is the Cervical Access System (VCAS), which requires further prototyping and market testing prior to a decision to commercialize. This product is designed to assist the surgeon in cervical surgeries, allowing the surgeon to gain access to the anterior cervical surgery site; the VCAS is covered by Vycor's 510(k) clearance.

Vycor Medical's Products

Viewsite Brain Access System (VBAS)

To access a surgical site in the brain, the surgeon needs to remove part of the skull (craniotomy) and then part (retract) the soft brain tissue to access the target site. The current standard of care utilizes a metal blade retractor to force the tissue apart; to maintain the opening the blades are attached to a head frame and tension is applied to the tissue.

The VBAS series is used by neurosurgeons to access the surgical site in the brain. This is done by inserting the VBAS into the brain tissue and then removing the VBAS introducer, leaving the remaining hollow working channel in place to provide the surgeon with access to the precise location desired for surgery.

The VBAS is available in multiple sizes and is a single-use product. The series consists of twelve disposable products, offered in four different port diameters of 12mm, 17mm, 21mm and 28 mm and a choice of three lengths for each of 3, 5, and 7cm. We intend to add additional models in the future.

We believe our Brain Access System offers several advantages over the brain retractor systems, commonly known as ribbon or blade retractors that are metallic, including having the potential to significantly reduce brain tissue trauma resulting from the currently used retractors when accessing deep brain targets. Brain tissue damage caused by retraction has been estimated at 5-10%. The VBAS' unique design and shape helps minimize the size of the brain entry access (size of the corticotomy) necessary for surgical procedures, and reduces the pressure exerted on the tissue that is retracted.

The Market For Vycor Medical's VBAS Product

The market for Vycor Medical's VBAS product range is craniotomy procedures. Based on statistics from the American Association of Neurological Surgeons, an estimated 700,000 such procedures were performed in the US in 2012. Of this, management believe approximately 200,000 (28 percent) are addressable by the VBAS range currently, with another 125,000 (total of 325,000 or 46 percent) addressable by an expanded range. Management estimates, for the global market, there exists an current addressable market of 1,000,000 procedures with another 600,000 addressable by an expanded VBAS range.

Sales and Marketing

Domestic Sales Strategy

The VBAS sales strategy is focused on driving sales through leading neurosurgeons. In this regard, Vycor Medical has adopted a dual strategy of targeting both the neurosurgeons specializing in brain and the larger neurosurgical hospitals.

Vycor Medical sells to stocking regional distributors and direct to hospitals through independent representatives, all of whom have existing relationships with neurosurgeons to target hospitals and drive our sales.

International Sales

Vycor Medical's strategy is to target those countries or regions internationally where it has patent protection and either has or can obtain regulatory approval. Vycor Medical utilizes select medical device distributors with experience in neurosurgical devices in their countries or regions. In Europe, the Company has agreements with distributors for Spain, Italy, Belgium, Scandinavia, Switzerland and the U.K. who are all focused in neurosurgery, and is seeking representation in a range of other European countries. Vycor also has required regulatory approvals in Australia, Canada, China, Japan and Russia with distribution agreements in place or being put into place.

VBAS Market and the Hospital Adoption Process

The market for VBAS in the US is relatively concentrated. Teaching hospitals not only carry out more relevant procedures but also provide a natural way to drive adoption through the conversion of new surgeons. We focus our efforts initially on surgeons as the principle proponent within the hospital. Vycor has found that the learning curve is only 1-2 cases for surgeons,

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who like the simplicity of design and ease of use after trialing the product. However, Hospital Administration is required to approve the purchase of a new product and sometimes even a trial or evaluation product and this is one of the key barriers to the speed of adoption.

Experience has been that the approval process can take up to six months for each hospital, and in some cases may even be longer.

Peer Review and Other Clinical Studies

The publication of clinical papers in neurosurgery journals by surgeon-users of VBAS regarding their experiences with the products (peer review papers), and the publication of other clinical data, is important for the Company as it continues to evidence the clinical superiority of VBAS. During 2011 the following papers were published:

• "Usage of a Minimally Invasive Tubular Retraction System for Deep-Seated Tumors in Pediatric Patients" in Journal of Neurosurgery in May 2011: Pediatrics. Co-authors Pablo Recinos, M.D., of the Cleveland Clinic and George Jallo, M.D., of Johns Hopkins University conclude that while access to deep-seated, intra-axial tumors is challenging, the ViewSite™ tubular retractor and frameless neuro navigation facilitated the surgical approach and the combination of these technologies adds to the surgeon's armamentarium to safely approach tumors in deep locations.

• "Vycor Viewsite TC: Endoscope-guided Intraparenchimal Brain Tumor Resection," by Daniel Prevedello, M.D., Director of the Minimally Invasive Cranial Surgery Program at the Ohio State University. Dr Prevedello reported on a case with a patient taking Avastin®, which delays surgical wound healing. He said the Viewsite TC was essential to the surgery; otherwise, no procedure could have been performed on the patient.

• "Minimally Invasive Trans-Portal Resection of Deep Intracranial Lesions" in Minimally Invasive Neurosurgery, February 2011 a Johns Hopkins University paper by lead author A. Quinones Hinojosa. The authors reported a case series of 9 adult and pediatric patients with a variety of pathologies, including colloid cyst, DNET, papillary pineal tumor, anaplastic astrocytoma, toxoplasmosis and lymphoma. The locations of the lesions approached included: lateral ventricle, basal ganglia, pulvinar/posterior thalamus and insular cortex. Post-operative imaging was assessed to determine extent of resection and extent of white matter damage along the surgical trajectory. Satisfactory resection or biopsy was obtained in all patients. "VBAS lends itself well to minimally invasive microsurgical approaches and can be used in combination with modern navigational systems. The use of navigation permits not only the creation of a smaller craniotomy but also facilitates the creation of a trajectory that provides efficient and safe means for splitting white fiber tracts," said the authors.

Manufacturing

Vycor Medical has executed agreements with Lacey Manufacturing Company of Bridgeport, Connecticut ("Lacey") and C&J Industries, Meadville PA ("C&J") to provide a full range of engineering, contract manufacturing and logistical support for our products.

Lacey and C&J are recognized leaders in the medical contract manufacturing sector, providing vertically integrated full services. They are U.S. Food and Drug Administration registered and meet ISO standards and certifications. Lacey and C&J each manufacture 6 of the VBAS 12 different sizes.

Intellectual Property

Patents

Vycor Medical maintains a portfolio of patent protection on its methods and apparatus for its Brain and Spine products and technology in the form of issued patents and applications, both domestically and internationally, with a total of 3 granted and 13 pending patents.

Vycor Medical's 3 granted patents are in the China (Brain), Hong Kong (Brain), and Russia (Brain).

Vycor Medical's 13 pending patents are in: Canada (Brain, Spine), Europe (Brain, Spine), India (Brain, Spine), Japan (Brain and Spine), Hong Kong (Spine), US (Brain Method, Brain Appartus, Spine, Extension Arm).

Trademarks

VYCOR MEDICAL is a registered trademark and VIEWSITE is pending registration as a trademark with the United States Patent and Trademark Office.

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NovaVision, Inc.

Introduction

NovaVision develops and markets a non-invasive, computer-based light stimulation therapy called Vision Restoration Therapy (VRT) and through its recently acquired subsidiary, Sight Science, Neuro-Eye Therapy (NeET). Both therapies are aimed at those suffering from a permanent vision visual field deficit, which reduces mobility and other activities of daily living, resulting from neurological trauma such as stroke and traumatic brain injury.

NovaVision operates in the US through our wholly-owned subsidiary, NovaVision, Inc., in Germany through our wholly-owned subsidiary, NovaVision GmbH. and in the UK through our wholly-owned subsidiary, Sight Science.

VRT is based on NovaVision's platform technology. The diagnostic algorithm in the VRT product first maps the visual field and defines the areas of defect in patients suffering vision loss. The therapeutic algorithm in the VRT product is then specifically designed for each patient based upon the results of the diagnostic program and it repetitively challenges the visual cortex with thousands of stimuli over the course of time. VRT is generally performed over a four to six month period, twice a day for an hour total, six days a week. The Company maintains broad IP protection. NovaVision has collected significant amounts of data from clinical studies and peer reviewed papers that support the Company's claims about the benefits of its platform technology for vision restoration and other indications. NovaVision has received 510(k) clearance and CE Marking for VRT and NeET (both Class I).

The Market For NovaVision's Therapies

The market for NovaVision's therapies comprises those suffering from vision loss resulting from neurological trauma such as stroke and traumatic brain injury (TBI). The U.S. Centers for Disease Control (CDC) estimates there are 8 million Americans who have previously had a stroke incident, with 740,000 additional cases occurring annually. Additionally, approximately 5.3 million Americans live with long term deficits resulting from a traumatic brain injury (TBI). Based on published reports of industry specialists, A. Pambakian and C. Kennard, it is estimated that approximately 16% of these patients experience a permanent visual field deficit, reducing mobility and other activities of daily living. NovaVision's target market is this subset of patients who have suffered a visual field deficit. Management estimates that NovaVision's addressable target market is approximately 1.5 million people in the US, approximately 1.4 million people in Europe and approximately 6.4 million people throughout the rest of the world.

Competition

NovaVision provides restitution therapies for those suffering neurologically-induced vision loss, other therapies being substitution (optical aids such as prisms, which NovaVision does not really consider as competition) and compensation or adaption (eye movement training). Within compensation and adaption, competitors include RevitalVision, PositScience and NVT Systems. In restitution competition has been reduced through NovaVision's acquisition of Sight Science and really only leaves two small companies, Teltra and Visiontrainer.

Platform Technology

The management of NovaVision believes that the underlying basis for the visual field recovery it has witnessed, and the functional outcome improvements it has noted with its patients, is largely due to neuroplasticity of the visual field which is the brain's ability to remap or repair itself in response to a pre-programmed and deliberate stimulation. Neuroplasticity has been discussed over the last 20 years or so and, as far back as 1990, Charles D. Gilbert and Torsten N Wiesel talked about the cortex not having a fixed functional architecture. The platform technology is comprised of proprietary algorithms that generate patient-specific therapies enabling NovaVision's products to be used as both diagnostic and therapeutic tools. The platform technology generates light-based, or photic, stimulus programs consisting of a fixation point on a display screen. As the patient focuses on this fixation point, a series of photic stimuli are delivered on the screen that are specific to the patient's neurological requirements, and relayed directly to the brain using the eye as a conduit.

Management believes that it is these programmed light sequences that stimulate the border zone between the "seeing" and "blind" visual fields which induces neuroplasticity. While neuroplasticity for explaining VRT has never been conclusively demonstrated, a 2007 study by Randold S. Marshall, using MRI did demonstrate that VRT results in increased neural activity in the visual cortex. Irrespective of mechanism, patient studies point to significantly improved functional outcomes for patients who have done VRT treatment. This improvement manifests itself in greater confidence to move around and, according to data published by G. Westheimer, an average shift of 4.9 degrees in the border between seeing and blind visual fields. The visual field is the portion of space surrounding an individual which is visible at any given time by that individual while their gaze is held stationary. To humans, the central 10° of visual field holds the greatest functional importance for focal and cognitive tasks.

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Clinical Data Relating to VRT

NovaVision has accumulated significant amounts of clinical data as a result of company-sponsored trials as well as studies conducted by independent third parties.

• Approximately 70% of patients experience positive outcome reflected by an increase in their visual field and studies have indicated an average increase of 4.9 degrees (Mueller I, Mast H, Sabel BA (2007)).

• Elapsed time since injury does not seem to impact VRT and NeET therapies success. Therefore, a massive historical backlog of patients can potentially be treated (Romano JG, Schulz P, Kenkel S, Todd DP (2008)).

• Improvements are permanent and do not appear to be age or gender dependent.

• Age at the onset of the injury is not a critical factor, allowing access to the therapy by both young and older adults with brain injuries (Romano JG, Schulz P, Kenkel S, Todd DP (2008)).

Regulatory Matters

In the U.S., NovaVision's products are regulated by the FDA as Class U medical devices subject to 510(k) clearances, and in Europe NovaVision has CE Marking for VRT as a Class I device. NovaVision received its 510(k) clearance for VRT specific to Stroke and TBI indications in 2003.

Intellectual Property

Patents

NovaVision maintains a portfolio of patent protection on its methods and apparatus in the form of issued patents and applications, both domestically and internationally, with a total of 29 granted and 10 pending patents (including Sight Science).

NovaVision's 29 granted patents are in the U.S. (12), Canada (3), Europe (7), Australia (1), China (2), Hong Kong (1), Singapore (1), India (1) and Japan (1).

NovaVision's 10 pending patents are in the U.S. and Canada (3), Europe (5), Australia (1) and Japan (1).

Trademarks

NovaVision maintains a portfolio of registered trademarks for NOVAVISION, NOVAVISION VRT and VISION RESTORATION THERAPY amongst others, both in the US and internationally.

Manufacturing and Operations

NovaVision is based at the Vycor Medical, Inc. group headquarters at a 10,000 square foot leased facility in Boca Raton, Florida. NovaVision purchases electronics and custom fabricated hardware from third party vendors and assembles and tests all of its medical devices within the facility. NovaVision has an FDA Establishment Registration and the Company does not have any long-term contractual obligations with its vendors to purchase products from them, nor are suppliers contractually obligated to sell products to NovaVision.

Sight Science, Ltd.

In January 2012 NovaVision acquired Sight Science, Ltd. ("Sight Science"). Sight Science, which was established in 2009 based on the research of Professor Arash Sahraie at the University of Aberdeen, provides an interactive computer-based therapy called Neuro-Eye Therapy ("NeET"), which patients administer at home. To date, over 100 patients have utilized NeET. Sight Science has 6 patents granted in the UK, Canada, France, Germany, Switzerland and Singapore and 1 patent pending in the U.S., all of which are included under the NovaVision Patents section above. Prof. Sahraie has conducted extensive research on blindsight and residual visual processing after brain injury, and is highly regarded in the field.

As part of the transaction, Prof. Sahraie agreed to join NovaVision as its Chief Scientific Officer on a part-time secondment basis from the University for a minimum of 5 years. Prof. Sahraie is responsible for driving NovaVision's scientific effort to develop and validate technologies in vision rehabilitation for visual field defects resulting from brain injury. The acquisition also created a long-term relationship between the Company, NovaVision and the University, which is a leading medical research center.

Both NovaVision's VRT and Sight Science's NeET work on the basis that repeated stimulation of the blind areas by either bright patches of light (VRT) or the specific spatial patterns (NeET) and can lead to increases in sensitivity of the blind areas. Patients progress after VRT appears to be initiated at the blind and sighted borders whereas NeET results in changes deep within the field damage. Both therapies are able to demonstrate improvements in both visual sensitivity and activities of daily living. The Company believes that these therapies are highly complementary.

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3. Other Matters

Product Liability Insurance

We presently have Product Liability insurance for both Vycor Medical and NovaVision.

Government Regulations

We are committed to an integrated total quality management system. We believe that we have completed the necessary procedures and Vycor Medical is certified to the ISO standards expected of medical device manufacturers as follows:

ISO 13485:2003 Medical Devices — Quality Management Systems

The certification of a quality management system to ISO 13485, specifically for medical devices, is advantageous and often essential for medical companies to export their products to the global market, as well as maintain and enter into certain agreements and business growth opportunities within the U.S. For example, Canada requires that medical device manufacturers marketing their products in Canada must have a quality system certified to ISO 13485:2003. The certification is also required for placement of branded devices into the European Union.

Vycor Medical has the following certification/licensing:

•Fully Quality Assurance System Directive 93/42/EEC for Medical Devices, Annex II (3)

•EC Design-Examination Certificate Directive 93/42/EEC for Medical Devices, Annex II (4)

•ISO 13485.2003

Continuing Regulatory Requirements

Vycor Medical's products have been classified as Class II products by the FDA and cleared for marketing through the 510(k) process. NovaVision's VRT product has been cleared as a Class U product through the 510(k) while its HMP is registered as an exempt Class 1 device.

After a device is placed on the market, numerous regulatory requirements apply. These include:

• quality system regulation, which requires manufacturers to follow design, testing, control, documentation and other quality assurance procedures during the manufacturing process;

• labeling regulations, which prohibit the promotion of products for unapproved or "off-label" uses and impose other restrictions on labeling; and

• medical device reporting regulations, which require that manufacturers report to the FDA if their device may have caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious injury if it were to recur.

Failure to comply with applicable regulatory requirements, and failure to respond to requested corrective actions on an ongoing basis, can result in enforcement action by the FDA.

Medical device laws are also in effect in many of the countries outside of the United States in which we do business. These laws range from comprehensive device approval and quality system requirements for some or all of our medical device products to simple requests for product data or certifications. The number and scope of these requirements are increasing. In June 1998, the European Union Medical Device Directive became effective, and all medical devices must meet the Medical Device Directive standards and receive CE mark certification. CE mark certification involves a comprehensive Quality System program, and submission of data on a product to the Notified Body in Europe.

Vycor Medical has obtained the CE marking approval to allow for distribution of its VBAS products in Europe as a Class III device and has received HPB licensing approval for distribution in Canada. NovaVison's VRT and Sight Science's NeET have CE mark registrations as Class I devices in Europe. HMP does not have European regulatory clearance at this time.

Employees

We currently have 14 full-time employees.

Website. The Company operates websites at www.vycormedical.com and www.novavision.com.

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Comparison of the Three Months Ended March 31, 2013 to the Three Months Ended March 31, 2012

Revenue and Gross Margin:

		2012		2011	% Change
Revenue:
Vycor Medical	$	130,665	$	321,781	(59	)%
NovaVision		101,009		110,820	(9	)%
Total Revenue	$	231,674	$	432,601	(46	)%
Gross Profit
Vycor Medical	$	116,279	$	260,588	(55	)%
NovaVision		85,377		92,591	(8	)%
Total Gross Profit	$	201,656	$	353,179	(43	%)

Vycor Medical recorded revenue of $130,665 from the sale of its products for the three months ended March 31, 2013, a decrease of $191,116 over the same period in 2012. The decrease in sales was primarily attributable to a shipment to the People's Republic of China (PRC) with a value of $152,850 during the 2012 period that was not repeated in the 2013 period. In addition, management believes that a decline in sales during February 2013 may have at least partially been the result of the posting by the FDA in late January 2013 of a Class 1 classification to the recall which the Company had completed in November 2012, and which created some short-term customer instability.  Notwithstanding, for the period commencing March 1, 2013 and continuing through early May, 2013, the Company's sales have returned to pre-February 2013 levels. Gross margin of 89% was achieved in 2012 compared to 81% for 2012. Gross margin is mostly a product of sale mix between US sales through distributors, US sales direct and international sales. International sales are all indirect through distributors and end-market prices internationally tend to be lower.

NovaVision recorded revenues of $101,009 for the three months ended March 31, 2013, a decrease of $9,811 over the same period in 2012, and gross margin of 85%, compared to 84% for the same period in 2012.

Research and Development Expense:

Research and development ("R&D") expenses were $31,350 for the three months ended March 31, 2013, as compared to $24,687 for the same period in 2012.

General and Administrative Expenses:

General and administrative expenses decreased by $371,315 to $683,658 for the three months ended March 31, 2013 from $1,054,973 for the same period in 2012. Included within General and Administrative Expenses are non-cash charges for share based compensation as the result of amortizing employee and non-employee shares, warrants and options which have been issued by the Company over various periods. The charge for the three months ended March 31, 2013 was $88,125, a decrease of $61,217 over $149,342 in 2012. Also included within General and Administrative Expenses are Sales Commissions, which increased by $5,556 to $27,665.

The remaining General and Administrative decrease of $315,654 reflects: reduced investor relations costs ($39,000); reduced professional and consulting fees ($34,907); reduced premises costs ($50,500); reduced payroll costs ($76,022); reduced sales and marketing costs ($43,639); and reduced other costs ($71,586).

Interest Expense:

Interest expense includes interest expense on the Company's debt and insurance policy financing. Interest expense in the three months ended March 31, 2013 increased by $11,293 to $42,893 from $31,600 for the same period in 2012, reflecting increased debt levels.

Liquidity and Capital Resources

Liquidity

The following table shows cash flow and liquidity data for the periods ended March 31, 2013 and December 31, 2012:

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		March 31, 2013			December 31, 2012			$ Change
Cash	$	15,924		$	59,821		$	(43,897	)
Accounts receivable, inventory and other current assets	$	715,524		$	863,957		$	(148,433	)
Total current liabilities	$	(4,400,352	)	$	(4,018,810	)	$	(381,542	)
Working capital deficit	$	(3,668,904	)	$	(3,095,032	)	$	(573,872	)
Cash provided by financing activities	$	340,626		$	728,368		$	(387,742	)

As of March 31, 2013 we had $15,924 cash, a working capital deficit of $3,668,904 and an accumulated deficit of $15,250,586. Total Stockholders' equity at March 31, 2013 was $2,075,367. Total debt at March 31, 2013, included in the working capital deficit above, was $2,536,100.

Uses of estimates in the preparation of financial statements

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimated. To the extent management's estimates prove to be incorrect, financial results for future periods may be adversely affected. Significant estimates and assumptions contained in the accompanying consolidated financial statements include management's estimate of the allowance for uncollectible accounts receivable, amortization of intangible assets, and the fair values of options and warrant included in the determination of debt discounts and share based compensation.

Going Concern

The Company's financial statements have been presented on a basis that contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and assumes the Company will continue as a going concern. The Company has incurred losses since its inception, including a net loss of $662,672 for the three months ended March 31, 2013, and the Company expects to incur additional losses. The Company has generated negative cash flows from operations since inception. As of March 31, 2013, current liabilities exceeded current assets by $3,668,904 the Company had a stockholders' deficit of $2,075,367 and cash and cash equivalents of $15,924. The Company believes it will not have enough cash to meet its various cash needs unless the Company is able to obtain additional cash from the issuance of debt or equity securities. The Company intends to raise funds from the issuance of equity and/or debt securities, but there is no assurance that additional funds from the issuance of equity will be available for the Company to finance its operations on acceptable terms, or at all. If adequate funds are not available, the Company may have to delay development or commercialization of products or technologies that the Company would otherwise seek to commercialize, or cease operations. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. The 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.

Research and Development

The Company expenses all research and development costs as incurred.

Cash and cash equivalents

The Company maintains cash balances at various financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. Cash balances may at times exceed the FDIC insured limits. Cash also includes a US investment account in a money market backed by government securities up to 105% of the account balance. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Included within cash are deposits paid by patients, held by the Company until the patient returns the VRT device at the end of therapy. At March 31, 2013 and December 31, 2012 patient deposits amounted to $31,121 and $35,000, respectively, and are reserved against in Other Current Liabilities.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. Expenditures for additions and improvements are capitalized; repairs and maintenance are expensed as incurred.

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Income taxes

The Company accounts for income taxes in accordance with the current authoritative guidance. Deferred income tax assets and liabilities are determined based upon differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established, when it is more likely than not that such benefit will not be realized.

Patents and Other Intangible Assets

The Company capitalizes legal and related costs associated with the establishment and enhancement of patents for its products once patents have been applied for. Costs associated with the development of the patented item or processes are charged to research and development costs and expensed as incurred. The capitalized costs are amortized over the life of the patent. The Company reviews intangible assets on an annual in accordance with the authoritative guidance. Trademarks have an indefinite life and are also reviewed annually by management for impairment in accordance with the authoritative guidance.

Revenue Recognition

Vycor Medical generates revenue from the sale of its surgical access system to hospitals and other medical professionals. Vycor Medical records revenue when a completed contract for the sale exists, the product is invoiced and shipped to the customer. Vycor Medical does provide for product returns or warranty costs.

NovaVision generates revenues from various programs, therapy services and other sources such as government grants. Therapy services revenues represent fees from NovaVision's vision restoration therapy software, diagnostic software, medical devices, clinic set up and training fees, and the professional and support services associated with the therapy. NovaVision recognizes revenue for providing the vision restoration therapy as the Company's work effort is expended. NovaVision provides vision restoration therapy directly to patients. The typical vision restoration therapy consists of six modules, performed on average over 6 months in the U.S. and 10 months in Germany. A patient contract comprise 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.

Accounts Receivable and Allowance for Doubtful Accounts Receivable

We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required.  We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary.  Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that we should abandon such efforts.

Inventory

Inventories are stated at the lower of cost, determined using the weighted average cost method, and net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose of the product.

If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company's consolidated statements of operations.

Foreign Currency

The Euro is the local currency of the country in which NovaVision GmbH conducts its operations and is considered the functional currency of this entity; the GB Pound is the local currency of the country in which Sight Science Limited conducts its operations and is considered the functional currency of this entity. All balance sheet amounts are translated to U.S. dollars using the U.S.

24

exchange rate at the balance sheet date except for the equity section which is translated at historical rates. Operating statement amounts are translated using an average exchange rate for the period of operations. Foreign currency translation effects are accumulated as part of the accumulated other comprehensive income (loss) and included in shareholders' (deficit) in the accompanying Consolidated Balance Sheet.

Educational marketing and advertising expenses

The Company may incur costs for the education of customers on the uses and benefits of its products. The Company will include education, marketing and advertising expense as a component of selling, general and administrative costs as such costs are incurred.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable

ITEM 4. CONTROLS AND PROCEDURES

(a) Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.  Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company's principal executive and principal financial officers and effected by the company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

• Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.  All internal control systems, no matter how well designed, have inherent limitations.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process.  Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

As of March 31, 2013, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") and SEC guidance on conducting such assessments.  Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below.  This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

The matter involving internal controls and procedures that our management considered to be a material weakness under the standards of the Public Company Accounting Oversight Board was the lack of a functioning Audit Committee, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.  The aforementioned material weaknesses were identified by our management in connection with the review of our financial statements for the three months ended March 31, 2013.

Management believes that the material weakness set forth above did not have an effect on our financial results.  However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures,

25

which could result in a material misstatement in our financial statements in future periods. Effective April 30, 2013, the Company formed an Audit Committee, comprising two independent directors (one of whom qualifies as a 'Financial Expert') and one management director, and adopted an Audit Committee Charter.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only the management's report in this annual report.

(b) Changes in Internal Controls

There have not been any changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) under the Exchange Act) during the fiscal period to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.  

The Company's management, including the Company's President and CFO, does not expect that the Company's internal control over financial reporting will prevent all errors and all fraud.  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.

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PART II

ITEM 1. LEGAL PROCEEDINGS

We are subject from time to time to litigation, claims and suits arising in the ordinary course of business. As of May 10, 2013, we were not a party to any material litigation, claim or suit whose outcome could have a material effect on our financial statements other than the following:

On July 20, 2012, the Company filed Action #13 148 01633 12 with the American Arbitration Association entitled Vycor Medical, Inc. (Claimant) against Greenbridge Capital Partners IV, LLC, Partizipant, LLC, and Joseph D. Kowal (Respondents) (the "Action"). The Action is based on breach of contract and fraud and seeks recovery of 34,445 shares of Company Common Stock previously issued to Greenbridge Capital Partners IV, LLC and recovery of at least $357,000 paid to Partizipant, LLC (including amounts paid to third parties at Partizipant's direction), together with recovery of fees, costs and expenses incurred in connection with the Action. The arbitrator has ruled that he will not entertain the action against Joseph D. Kowal in the arbitration and the Company is considering pursuing an action against Mr. Kowal in California state court. The arbitration is currently in the discovery stage and a hearing is set for September 2013. In March 2013 Greenbridge returned to us all of the 34,445 shares being sought by the Company. At this time, the Company cannot project whether it will achieve a successful result in connection with the remainder of the Action or any other related actions. For the avoidance of doubt, this is an action by the Company against the Respondents and there is no action against the Company.

ITEM 1A. RISK FACTORS.

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During January to March 2013 the Company issued 1,482 shares of Common Stock (valued at $5,000) to Steven Girgenti and 2,632 shares of Common Stock (valued at $5,000) to Dr Oscar Bronsther in consideration for services provided to the Board of Directors; and 926 shares of Common Stock (valued at $3,125) to Alvaro Pasuale-Leone and Josef Zihl and 1,646 shares of Common Stock (valued at $3,125) to Jason Barton and Jose Romano in respect of their roles as members of the NovaVision, Inc. Scientific Advisory Board.

During April and May 2013, the Company issued 668 and 1,335 shares of Common Stock respectively (valued at $1,563 and $3,125 respectively) to Alvaro Pascual-Leone and Josef Zihl in respect of their roles as members of the NovaVision, Inc. Scientific Advisory Board; and 2,632 shares of Common Stock (valued at $5,000) to Steve Girgenti in consideration for services provided to the Board of Directors.

During April and May 2013, the Company issued 31,727 and 32,152 shares of Common Stock respectively on exercise of warrants by Kenneth Coviello and Heather Vinas. The warrants had an exercise price of $1.08 and were exercisable on a cashless basis.

During April and May 2013, the Company issued 124,375 shares of Common Stock in respect of the exercise of warrants to purchase 124,375 shares by 4 investors. The exercise price of the warrants was $1.88 per share and the Company received cash proceeds of $233,335. The proceeds will be applied working capital.

During April and May 2013, the Company issued a total of 198,521 shares of Common Stock in respect of conversion of Series C Preferred Stock.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. (REMOVED AND RESERVED)

None.

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ITEM 5. OTHER INFORMATION

Subsequent events

The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10Q.

Share Issuance

During April and May 2013, the Company issued 668 and 1,335 shares of Common Stock respectively (valued at $1,563 and $3,125 respectively) to Alvaro Pascual-Leone and Josef Zihl in respect of their roles as members of the NovaVision, Inc. Scientific Advisory Board; and 2,632 shares of Common Stock (valued at $5,000) to Steve Girgenti in consideration for services provided to the Board of Directors.

During April and May 2013, the Company issued 31,727 and 32,152 shares of Common Stock respectively on exercise of warrants by Kenneth Coviello and Heather Vinas. The warrants had an exercise price of $1.08 and were exercisable on a cashless basis.

During April and May 2013, the Company issued 124,375 shares of Common Stock in respect of the exercise of warrants to purchase 124,375 shares by 4 investors. The exercise price of the warrants was $1.88 per share and the Company received cash proceeds of $233,335.

Conversion of Preferred Shares

During April and May 2013, the Company issued a total of 198,521 shares of Common Stock in respect of conversion of Series C Preferred Stock.

Warrant Sale

During April and May 2013, Fountainhead Capital Management sold 124,375 warrants to purchase Vycor Common Stock at an exercise price of $1.88 per share. These warrants were granted to Fountainhead by the Company in February 2010 and were sold by Fountainhead to investors at a price of $0.10 per warrant. The warrants were immediately exercised by the investors.

Loan Funding

During April, the Company issued unsecured, subordinated loan notes to: Fountainhead for a total of $29,000; and to Peter Zachariou, a director of the Company, for a total of $45,000. The loan notes are subordinated to the Company's secured debentures and Preferred C Stock of the Company, bear interest at a rate of 6% are due on demand or by their one-year anniversary.

Formation of Audit Committee

On April 30, 2013 the Company’s Board of Directors took formal action to form an Audit Committee and adopted an Audit Committee Charter of Operations. At the same time, the Company's board of directors appointed Lowell Rush as Chairman and a member of the Audit Committee and to serve as the Audit Committee's Financial Expert.  Messrs. Steven Girgenti and Adrian Liddell were also appointed as members of the Audit Committee of the board of directors.

ITEM 6. EXHIBITS
Index to Exhibits

31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May 14, 2013.

VYCOR MEDICAL, INC.
By:	/s/ David M. Cantor
	David M. Cantor
	President and
	Director (Principal Executive Officer)
By:	/s/ Adrian C. Liddell
	Adrian C. Liddell
	Chairman of the Board and
	Director (Principal Financial Officer)

29

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

I, David Cantor, certify that:

1. I have reviewed this Form 10-Q for the period ended March 31, 2013 of Vycor Medical, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 14, 2013

/s/ David Cantor.

________________________________
David Cantor.

Principal Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

I, Adrian Liddell, certify that:

1. I have reviewed this Form 10-Q for the period ended March 31, 2013 of Vycor Medical, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 14, 2013

/s/ Adrian Liddell

________________________________
Adrian Liddell

Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Vycor Medical, Inc., a Delaware corporation (the "Company"), does hereby certify, to such officer's knowledge, that:

The annual report on Form 10-Q for the period ended March 31, 2013 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 14, 2013

/s/ David Cantor

David Cantor

Principal Executive Officer

A signed original of this written statement required by Section 906 has been provided to VYCOR MEDICAL, INC. and will be retained by VYCOR MEDICAL, INC. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Vycor Medical, Inc., a Delaware corporation (the "Company"), does hereby certify, to such officer's knowledge, that:

The annual report on Form 10-Q for the period ended March 31, 2013 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 14, 2013

/s/ Adrian Liddell

Adrian Liddell

Principal Accounting Officer

A signed original of this written statement required by Section 906 has been provided to VYCOR MEDICAL, INC. and will be retained by VYCOR MEDICAL, INC. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Share-Based Compensation (Details 1) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Options and warrants expensed
Risk-free interest rates		2.39%
Expected life		3 years
Expected dividends		0.00%
Expected volatility		96.00%
Vycor Common Stock fair value minimum		$ 1.88
Vycor Common Stock fair value maximum		$ 3.38

XML

Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Potential shares of common stock that are not included in the calculation of diluted net loss per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share	2,706,391	2,946,171
Stock options outstanding [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share	5,557	5,557
Warrants to purchase common stock [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share	1,749,874	1,745,207
Debentures convertible into common stock [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share	368,727	368,726
Preferred shares convertible into common stock [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share	582,233	826,681

XML

Related Party Transactions (Details) (USD $)	3 Months Ended	1 Months Ended							1 Months Ended
	Mar. 31, 2013	May 15, 2013 Fountainhead [Member]	Mar. 31, 2013 Fountainhead [Member]	Mar. 31, 2013 Fountainhead [Member] Secured Loan One [Member]	Mar. 31, 2013 Fountainhead [Member] Secured Loan Two [Member]	Mar. 31, 2013 Peter Zachariou [Member]	Mar. 31, 2013 Peter Zachariou [Member] Secured Loan One [Member]	Mar. 31, 2013 Peter Zachariou [Member] Secured Loan Two [Member]	Apr. 30, 2013 Heather Vinas [Member]
Related Party Transactions (Textual)
Loan amount			$ 1,016,362	$ 189,000	$ 29,000	$ 300,000	$ 145,000	$ 45,000
Interest rate on secured debentures and Preferred C Stock	6.00%
Warrants issue to purchase an additional shares to fully vested									54,834
Extended maturity date of secured loans	From March 31, 2013 to December 31, 2013
Warrants issue to purchase additional shares to fully vested Common stock price									$ 2.60
Common stock receive upon exercise of warrant									32,152
Common stock held									66,272
Restriction on sale of common stock									The Agreement also requires Mrs Vinas not to sell more than 16,000 shares in any 30-day period.
Warrants sold to purchase shares		124,375
Warrant exercise price		$ 1.88
Warrant sale price		$ 0.10

XML

Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

4.   SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The 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. The operations of Sight Science have been consolidated since January 4, 2012 the date of the completion of the acquisition of all the shares of Sight Science. All material inter-company accounts, transactions, and profits have been eliminated in consolidation.

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 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.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock and convertible debt.  Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. No dilution adjustment has been made to the weighted average outstanding common shares in the periods presented because the assumed exercise of outstanding options and warrants and the conversion of preferred stock and debt would be anti-dilutive.

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

	March 31,		March 31,
	2013		2012
Stock options outstanding		5,557		5,557
Warrants to purchase common stock		1,749,874		1,745,207
Debentures convertible into common stock		368,727		368,726
Preferred shares convertible into common stock		582,233		826,681
Total		2,706,391		2,946,171

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Segment Reporting, Geographical Information (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Revenue:
Total Revenue	$ 231,674	$ 432,601
Gross Profit:
Total Gross Profit	201,656	353,179
Total Assets:
Total Assets	2,324,985		2,561,160
United States [Member]
Revenue:
Total Revenue	179,515	362,248
Gross Profit:
Total Gross Profit	156,188	290,769
Total Assets:
Total Assets	2,273,997		2,475,933
Europe [Member]
Revenue:
Total Revenue	52,159	70,353
Gross Profit:
Total Gross Profit	45,468	62,410
Total Assets:
Total Assets	$ 50,988		$ 85,227

XML

Segment Reporting, Geographical Information (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Revenue:
Total Revenue	$ 231,674	$ 432,601
Gross Profit:
Total Gross Profit	201,656	353,179
Total Assets:
Total Assets	2,324,985		2,561,160
Vycor Medical [Member]
Revenue:
Total Revenue	130,665	321,781
Gross Profit:
Total Gross Profit	116,279	260,588
Total Assets:
Total Assets	940,625		1,055,026
NovaVision [Member]
Revenue:
Total Revenue	101,009	110,820
Gross Profit:
Total Gross Profit	85,377	92,591
Total Assets:
Total Assets	$ 1,384,360		$ 1,506,134

XML

Segment Reporting, Geographical Information (Details Textual)	3 Months Ended
	Mar. 31, 2013 Segment
Segment Reporting, Geographical Information (Textual)
Number of business segments	2
Number of geographic segments	2

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Equity (Details) (USD $)	0 Months Ended	3 Months Ended
	Jan. 15, 2013	Mar. 31, 2013	Dec. 31, 2012
Equity (Textual)
Effect of reverse stock split	1 for 150
Common Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Number of common shares prior to reverse split	892,749,897
Reduction in number of shares as of stock split	5,951,744
Number of common shares issued for round up of partial shares	66
Shares repurchased into Treasury Stock from GreenBridge Capital Partner		34,445
Common Stock [Member] | Steven Girgenti [Member]
Equity (Textual)
Share-based compensation shares issued to nonemployees for services, share		1,482
Share-based compensation shares issued to nonemployees for services, value		$ 5,000
Common Stock [Member] | Dr Oscar Bronsther [Member]
Equity (Textual)
Share-based compensation shares issued to nonemployees for services, share		2,632
Share-based compensation shares issued to nonemployees for services, value		5,000
Common Stock [Member] | Alvaro Pascual - Leone [Member]
Equity (Textual)
Share-based compensation shares issued to nonemployees for services, share		926
Share-based compensation shares issued to nonemployees for services, value		3,125
Common Stock [Member] | Jason Barton [Member]
Equity (Textual)
Share-based compensation shares issued to nonemployees for services, share		1,646
Share-based compensation shares issued to nonemployees for services, value		$ 3,125

XML

Going Concern

3 Months Ended

Mar. 31, 2013

Going Concern [Abstract]

GOING CONCERN

3.   GOING CONCERN

The Company’s financial statements have been presented on a basis that contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and assumes the Company will continue as a going concern. The Company has incurred losses since its inception, including a net loss of $662,672 for the three months ended March 31, 2013, and the Company expects to incur additional losses. The Company has generated negative cash flows from operations since inception. As of March 31, 2013, current liabilities exceeded current assets by $3,668,904 the Company had a stockholders’ deficit of $2,075,367 and cash and cash equivalents of $15,924. The Company believes it will not have enough cash to meet its various cash needs unless the Company is able to obtain additional cash from the issuance of debt or equity securities. The Company intends to raise funds from the issuance of equity and/or debt securities, but there is no assurance that additional funds from the issuance of equity will be available for the Company to finance its operations on acceptable terms, or at all. If adequate funds are not available, the Company may have to delay development or commercialization of products or technologies that the Company would otherwise seek to commercialize, or cease operations. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The 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.

XML

Share-Based Compensation (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Stock Warrant [Member]
Details of the outstanding rights, options and warrants and value of such rights, options and warrants
Options Outstanding, Beginning Balance	1,749,874	1,747,347
Number of shares, Granted		4,667
Number of shares, Exercised
Number of shares, Cancelled or expired		(2,140)
Options Outstanding, Ending Balance	1,749,874	1,749,874
Weighted average exercise price per share, Outstanding, Beginning Balance	$ 3.03	$ 3.07
Weighted average exercise price per share, Granted		$ 4.50
Weighted average exercise price per share, Exercised
Weighted average exercise price per share, Cancelled or expired		$ 36.00
Weighted average exercise price per share, Outstanding, Ending balance	$ 3.03	$ 3.03
Stock Options [Member]
Details of the outstanding rights, options and warrants and value of such rights, options and warrants
Options Outstanding, Beginning Balance	5,557	5,557
Number of shares, Granted
Number of shares, Exercised
Number of shares, Cancelled or expired
Options Outstanding, Ending Balance	5,557	5,557
Weighted average exercise price per share, Outstanding, Beginning Balance	$ 20.25	$ 20.25
Weighted average exercise price per share, Granted
Weighted average exercise price per share, Exercised
Weighted average exercise price per share, Cancelled or expired
Weighted average exercise price per share, Outstanding, Ending balance	$ 20.25	$ 20.25

XML

Consolidated Balance Sheets (USD $)	Mar. 31, 2013	Dec. 31, 2012
Current Assets
Cash	$ 15,924	$ 59,821
Accounts receivable, net	83,619	144,347
Inventory	267,970	290,508
Prepaid expenses and other current assets	363,935	429,102
Total Current Assets	731,448	923,778
Fixed assets, net	774,422	827,389
Intangible and Other assets:
Trademarks	251,157	251,157
Patents, net of accumulated amortization	512,497	502,895
Website, net of accumulated amortization	2,292	2,772
Security deposits	53,169	53,169
Total Intangible and Other assets	819,115	809,993
TOTAL ASSETS	2,324,985	2,561,160
Current Liabilities
Accounts payable	214,603	187,789
Accrued interest	238,033	195,138
Accrued liabilities	1,273,678	1,198,463
Other current liabilities	137,938	241,918
Notes payable - current	2,536,100	2,195,502
TOTAL CURRENT AND TOTAL LIABILITIES	4,400,352	4,018,810
STOCKHOLDERS' DEFICIENCY
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 39.3 issued and outstanding as at March 31, 2013 and December 31, 2012	1	1
Common Stock, $0.0001 par value, 1,500,000,000 shares authorized, 6,029,879 and 6,020,555 shares issued and outstanding at March 31, 2013 and December 31, 2012 respectively	603	602
Additional Paid-in Capital	13,163,988	13,141,489
Treasury Stock (103,334 and 68,889 shares of Common Stock as at March 31, 2013 and December 31, 2012 respectively, at cost)	(1,033)	(1,033)
Accumulated Deficit	(15,250,586)	(14,587,914)
Accumulated Other Comprehensive Income	11,660	(10,795)
Total Stockholders' Deficiency	(2,075,367)	(1,457,650)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$ 2,324,985	$ 2,561,160

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Basis of Presentation

3 Months Ended

Mar. 31, 2013

Basis Of Presentation and Formation and Business Of Company [Abstract]

BASIS OF PRESENTATION

1.  BASIS OF PRESENTATION

The consolidated financial statements of the Company present the financial position, results of operations, and cash flows of Vycor Medical, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements 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 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in comprehensive financial statements have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet as of December 31, 2012 derives from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These 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, 2012.

The condensed consolidated financial statements for the three months ended March 31, 2013 and 2012, 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 and results of operations. The results of operations for the three months ended March 31, 2013 and 2012 are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Certain prior period amounts have been reclassified to conform to the current presentation.

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Commitments and Contingencies (Details)	1 Months Ended			3 Months Ended		12 Months Ended
	Aug. 31, 2012	Jun. 30, 2012 USD ($)	Jun. 30, 2012 EUR (€)	Mar. 31, 2013 USD ($) sqft	Mar. 31, 2012 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2012 EUR (€)
Commitments and Contingencies (Textual)
Area of leased building (sq. ft)				10,000
Rent expenses plus sales tax (per month)				$ 14,260
Term of lease				5 years 6 months
Approximate preliminary assessed trade tax		94,000	75,000
Approximate preliminary assessed corporate tax		0
Provision for advisory fees statutory, minimum						50,105	39,000
Description of Food and Drug Administration	The FDA was notified and all customers with units that had been distributed (a total of 5 customers in the U.S. and 2 customers internationally) were contacted and the units were recalled and replaced with re-inspected and passed units, or internationally re-inspected under 100% enhanced inspection guidelines; this recall and replacement process was completed in November 2012 and there are no affected units on the marketplace.
Rent expense				$ 48,553	$ 48,198

XML

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Share-Based Compensation [Abstract]

Details of the outstanding rights, options and warrants and value of such rights, options and warrants

STOCK WARRANTS:	Number of shares			Weighted average exercise price per share
Outstanding at December 31, 2011		1,747,347		$	3.07
Granted		4,667			4.50
Exercised		-			-
Cancelled or expired		(2,140	)		36.00
Outstanding at December 31, 2012		1,749,874		$	3.03
Granted		-			-
Exercised		-			-
Cancelled or expired		-			-
Outstanding at March 31, 2013		1,749,874		$	3.03
STOCK OPTIONS:	Number of shares			Weighted average exercise price per share
Outstanding at December 31, 2011		5,557		$	20.25
Granted		-			-
Exercised		-			-
Cancelled or expired		-			-
Outstanding at December 31, 2012		5,557		$	20.25
Granted		-			-
Exercised		-			-
Cancelled or expired		-			-
Outstanding at March 31, 2013		5,557		$	20.25

Assumptions used in calculations of the Black-Scholes option pricing model for options and warrants

	Three months ended March 31,
	2013		2012
Risk-free interest rates		-		2.39	%
Expected life		-	3 years
Expected dividends		-		0	%
Expected volatility		-		96	%
Vycor Common Stock fair value		-	$	1.88-$3.38

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Consulting and Other Agreements (Details) (USD $)	1 Months Ended
	Feb. 28, 2010 Fountainhead [Member]	Nov. 30, 2012 Del Mar Consulting [Member]	Nov. 30, 2012 Alex Partners, LLC [Member]
Consulting and Other Agreements (Textual)
Consulting agreement duration		12 months	12 months
Shares received under consulting agreement, value		$ 157,500	$ 105,000
Payment of monthly retainer under consulting agreement	37,500
Payment made in original agreement for consultancy services	8,500
Payment made in supplement agreement for consultancy services	29,000
Description of accrued and paid of consulting fee at the option of consultant	(i) in Vycor stock at any time at $1.88 per share for the Original Agreement and $3.38 per share for the Supplement; or (ii) in cash following the closing of a fundraising of no less than $2.5 million or on the sale of the Company or a substantial part of the assets thereof at any time after June 30, 2011.
Maximum cash payment for consulting services (monthly)	$ 5,000

XML

Going Concern (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2011
Going Concern (Textual)
Net loss	$ (662,672)	$ (783,430)
Working capital deficit	3,668,904
Stockholders' deficit	(2,075,367)		(1,457,650)
Cash and cash equivalents	$ 15,924	$ 405,991	$ 59,821	$ 950,841

XML

Formation and Business of the Company

3 Months Ended

Mar. 31, 2013

Basis Of Presentation and Formation and Business Of Company [Abstract]

FORMATION AND BUSINESS OF THE COMPANY

2.  FORMATION AND BUSINESS OF THE COMPANY

Business Description

Vycor Medical, LLC was formed on June 17, 2005 as a New York Limited Liability Company. The Company changed its name to Vycor Medical, Inc. and converted to a Delaware Corporation on August 14, 2007 and issued 107 shares of common stock in exchange for each of the 1,122 partnership units outstanding at date of conversion. The assets, liabilities and operations of the Company did not change pursuant to this reorganization, and the accompanying financial statements are presented as if the change occurred on the first day of the earliest period presented.  Accordingly, all references to number of shares prior to the date of conversion are based upon the common stock equivalent of the partnership units outstanding on such dates.

The Company designs, develops and markets neurological medical devices and therapies through two operating divisions: Vycor Medical and NovaVision.  Vycor Medical focuses on brain and cervical surgical access systems for sale to hospitals and medical professionals; NovaVision focuses on neuro-stimulation therapies and diagnostic devices for the treatment and screening of vision field loss.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Balance Sheets [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	39.3	39.3
Preferred stock, shares outstanding	39.3	39.3
Common Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, shares authorized	1,500,000,000	1,500,000,000
Common Stock, shares issued	6,029,879	6,020,555
Common Stock, shares outstanding	6,029,879	6,020,555
Treasury Stock, shares	103,334	68,889

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Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

12.  SUBSEQUENT EVENTS

The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10Q.

Share Issuance

During April and May 2013, the Company issued 668 and 1,335 shares of Common Stock respectively (valued at $1,563 and $3,125 respectively) to Alvaro Pascual-Leone and Josef Zihl in respect of their roles as members of the NovaVision, Inc. Scientific Advisory Board; and 2,632 shares of Common Stock (valued at $5,000) to Steve Girgenti in consideration for services provided to the Board of Directors.

During April and May 2013, the Company issued 31,727 and 32,152 shares of Common Stock respectively on exercise of warrants by Kenneth Coviello and Heather Vinas. The warrants had an exercise price of $1.08 and were exercisable on a cashless basis.

During April and May 2013, the Company issued 124,375 shares of Common Stock in respect of the exercise of warrants to purchase 124,375 shares by 4 investors. The exercise price of the warrants was $1.88 per share and the Company received cash proceeds of $233,335.

Conversion of Preferred Shares

During April and May 2013, the Company issued a total of 198,521 shares of Common Stock in respect of conversion of Series C Preferred Stock.

Warrant Sale

During April and May 2013, Fountainhead Capital Management sold 124,375 warrants to purchase Vycor Common Stock at an exercise price of $1.88 per share. These warrants were granted to Fountainhead by the Company in February 2010 and were sold by Fountainhead to investors at a price of $0.10 per warrant. The warrants were immediately exercised by the investors.

Loan Funding

During April, the Company issued unsecured, subordinated loan notes to: Fountainhead for a total of $29,000; and to Peter Zachariou, a director of the Company, for a total of $45,000. The loan notes are subordinated to the Company’s secured debentures and Preferred C Stock of the Company, bear interest at a rate of 6% are due on demand or by their one-year anniversary.

Formation of Audit Committee

On April 30, 2013 the Company’s Board of Directors took formal action to form an Audit Committee and adopted an Audit Committee Charter of Operations. At the same time, the Company's board of directors appointed Lowell Rush as Chairman and a member of the Audit Committee and to serve as the Audit Committee's Financial Expert.  Messrs. Steven Girgenti and Adrian Liddell were also appointed as members of the Audit Committee of the board of directors.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 10, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	VYCOR MEDICAL INC
Entity Central Index Key	0001424768
Amendment Flag	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,317,955

XML

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

Significant Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The 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. The operations of Sight Science have been consolidated since January 4, 2012 the date of the completion of the acquisition of all the shares of Sight Science. All material inter-company accounts, transactions, and profits have been eliminated in consolidation.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that 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.

Net Loss Per Share

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock and convertible debt.  Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. No dilution adjustment has been made to the weighted average outstanding common shares in the periods presented because the assumed exercise of outstanding options and warrants and the conversion of preferred stock and debt would be anti-dilutive.

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

	March 31,		March 31,
	2013		2012
Stock options outstanding		5,557		5,557
Warrants to purchase common stock		1,749,874		1,745,207
Debentures convertible into common stock		368,727		368,726
Preferred shares convertible into common stock		582,233		826,681
Total		2,706,391		2,946,171

XML

Consolidated Statement of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Statement Of Operations [Abstract]
Revenue	$ 231,674	$ 432,601
Cost of Goods Sold	30,018	79,422
Gross Profit	201,656	353,179
Operating expenses:
Research and development	31,350	24,687
Depreciation and Amortization	86,269	81,576
General and administrative	683,658	1,054,973
Negative Goodwill on Acquisition of Subsidiary		(66,394)
Costs related to Acquisition of Subsidiary		18,285
Total Operating expenses	801,277	1,113,127
Operating loss	(599,621)	(759,948)
Other income (expense)
Other income (expense)	(20,158)	8,118
Interest expense	(42,893)	(31,600)
Total Other expense	(63,051)	(23,483)
Net Loss Before Taxes	(662,672)	(783,430)
Net Loss	$ (662,672)	$ (783,430)
Loss Per Share
Basic and diluted	$ (0.11)	$ (0.14)
Weighted Average Number of Shares Outstanding	5,947,998	5,554,218

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Equity

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

EQUITY

7.   EQUITY 

Certain Equity Transactions

During January to March 2013 the Company issued 1,482 shares of Common Stock (valued at $5,000) to Steven Girgenti and 2,632 shares of Common Stock (valued at $5,000) to Dr Oscar Bronsther in consideration for services provided to the Board of Directors; and 926 shares of Common Stock (valued at $3,125) to Alvaro Pascual-Leone and Josef Zihl and 1,646 shares of Common Stock (valued at $3,125) to Jason Barton and Jose Romano in respect of their roles as members of the NovaVision, Inc. Scientific Advisory Board.

On January 11, 2013, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a reverse stock split of 1 for 150 on the issued and outstanding Common Stock par value $0.0001 (“Common Stock”). On January 15, 2013 (the “Effective Date”), the Company effectuated its reverse stock split. On the Effective date, the Company implemented a one for 150 share reverse split of its Common Stock. On the Effective Date, the Company’s pre-split 892,749,897 shares of Common Stock became 5,951,744 post-split shares of Common Stock, including the issuance of 66 shares of Common Stock for the round-up of partial shares. In connection with the reverse split, the Company’s authorized capital was not changed. All relevant information relating to the number of shares and per share information has been retrospectively adjusted to reflect the recerse stock split for all periods presented.

In March 2013 GreenBridge Capital Partners, IV, LLC returned to Vycor all of the 34,445 shares being sought by the Company under an action filed by the Company in July 2012. These shares have been taken into Treasury Stock.

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Segment Reporting, Geographical Information

3 Months Ended

Mar. 31, 2013

Segment Reporting, Geographical Information [Abstract]

SEGMENT REPORTING, GEOGRAPHICAL INFORMATION

6.   SEGMENT REPORTING, GEOGRAPHICAL INFORMATION

(a) Business segments

The Company operates in two business segments: Vycor Medical, which focuses on devices for neurosurgery; and NovaVision, which focuses on neuro stimulation therapies and diagnostic devices for the treatment and screening of vision field loss and which includes Sight Science. Set out below are the revenues, gross profits and total assets for each segment.

	Three Months Ended March 31,
	2013		2012
Revenue:
Vycor Medical	$	130,665	$	321,781
NovaVision		101,009		110,820
Total Revenue	$	231,674	$	432,601
Gross Profit:
Vycor Medical	$	116,279	$	260,588
NovaVision		85,377		92,591
Total Gross Profit	$	201,656	$	353,179

	March 31, 2013		December 31, 2012
Total Assets:
Vycor Medical	$	940,625	$	1,055,026
NovaVision		1,384,360		1,506,134
Total Assets	$	2,324,985	$	2,561,160

(b) Geographic information

The Company operates in two geographic segments, the United States and Europe. Set out below are the revenues, gross profits and total assets for each segment.

	Three Months Ended March 31,
	2013		2012
Revenue:
United States	$	179,515	$	362,248
Europe		52,159		70,353
Total Revenue	$	231,674	$	432,601
Gross Profit:
United States	$	156,188	$	290,769
Europe		45,468		62,410
Total Gross Profit	$	201,656	$	353,179

	March 31, 2013		December 31, 2012
Total Assets:
United States	$	2,273,997	$	2,475,933
Europe		50,988		85,227
Total Assets	$	2,324,985	$	2,561,160

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Formation and Business of the Company (Details)	0 Months Ended	3 Months Ended
	Aug. 14, 2007 Unit	Mar. 31, 2013 Unit
Formation and Business of the Company (Textual)
Common stock issued in exchange for partnership units	107
Number of partnership units outstanding	1,122
Number of operation divisions		2

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Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

Significant Accounting Policies [Abstract]

Potential shares of common stock that are not included in the calculation of diluted net loss per share

	March 31,		March 31,
	2013		2012
Stock options outstanding		5,557		5,557
Warrants to purchase common stock		1,749,874		1,745,207
Debentures convertible into common stock		368,727		368,726
Preferred shares convertible into common stock		582,233		826,681
Total		2,706,391		2,946,171

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Consulting and Other Agreements

3 Months Ended

Mar. 31, 2013

Consulting and Other Agreements [Abstract]

CONSULTING AND OTHER AGREEMENTS

10. CONSULTING AND OTHER AGREEMENTS

The Company has entered into no new consulting or other agreements during the three months ended March 31, 2013. The following agreements remained in force during the period:

Consulting Agreement with Fountainhead Capital Management Limited (“Fountainhead”)

In February 2010 the Company entered into a Consulting Agreement with Fountainhead, which was the subject of a Supplement Agreement in May, 2011 to recognize Fountainhead’s expanded responsibilities as a result of the acquisition by the Company of the assets of NovaVision, Inc.  Under the terms of the Agreement and Supplement, the Company will pay to Fountainhead a monthly retainer of $37,500 ($8,500 under the Original Agreement and $29,000 under the Supplement). This monthly retainer shall be accrued and paid out to Fountainhead at the option of Fountainhead as follows: (i) in Vycor stock at any time at $1.88 per share for the Original Agreement and $3.38 per share for the Supplement; or (ii) in cash following the closing of a fundraising of no less than $2.5 million or on the sale of the Company or a substantial part of the assets thereof at any time after June 30, 2011. Notwithstanding, Fountainhead has the option to receive up to $5,000 of monthly retainer in cash each month, commencing April 1, 2011.

Consulting Agreement with Del Mar Consulting Group, Inc and Alex Partners, LLC.

On November 30, 2012 the Company entered into 12 month consulting agreements with Del Mar Consulting, Inc and Alex Partners, LLC to provide investor relations and investor awareness consultancy services. Under these agreements, Del Mar and Alex Partners received shares Common Shares valued at $157,500 and $105,000 respectively.

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Share-Based Compensation

3 Months Ended

Mar. 31, 2013

Share-Based Compensation [Abstract]

SHARE-BASED COMPENSATION

8.   SHARE-BASED COMPENSATION

Stock Option Plan

The Company adopted the Vycor Medical, Inc Employee, Director, and Consultant Stock Plan (the “Plan”) as of February 13, 2008.  The Plan provides for both incentive stock options and nonqualified stock options to be granted to employees, officers, consultants, independent contractors, directors and affiliates of the Company.   The board of directors establishes the terms and conditions of all stock option grants, subject to the Plan and applicable provisions of the Internal Revenue Code.  Incentive stock options must be granted at an exercise price not less than the fair market value of the common stock on the grant date.  The options granted to participants owning more than 10% of the Company’s outstanding voting stock must be granted at an exercise price not less than 110% of the fair market value of the common stock on the grant date.  The options expire on the date determined by the board of directors, but may not extend mare than 10 years from the grant date, while incentive stock options granted to participants owning more than 10% of the Company’s outstanding voting stock expire five years from the grant date. The vesting period for employees is generally over three years.  The vesting Period for non-employees is determined based on the services being provided. The maximum number of shares of stock which may be delivered under the plan shall automatically increase by a number sufficient to cause the number of shares covered by the plan to equal 10% of the total number of shares of stock then outstanding on a fully diluted basis.

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.  No employee stock options were granted for the three month periods ended March 31, 2013 and 2012.

Initial grants of options to purchase 500,000 shares were issued under the Plan on February 13, 2008 to each of Kenneth T. Coviello, the Company’s Chief Executive Officer and Heather N. Vinas, the Company’s President at an exercise price of $0.135 per share.  The options vested 33-1/3% on each of the first, second, and third anniversary of the grant and expire February 12, 2018. Following Heather Vinas’ resignation as President of the Company in May 2010, 166,667 unvested options were cancelled. The Company recognized share-based compensation of $0 for the three months ended March 31, 2012 and 2011.

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 March 31, 2012 there were no awards of any stock appreciation rights.

The Company from time to time issues common stock, stock options or common stock warrants to acquire services or goods from non-employees. Common stock, stock options and common stock warrants issued to other than employees or directors are recorded on the basis of their fair value, which is measured as of the “measurement date” using an option pricing model. 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.

The details of the outstanding rights, options and warrants and value of such rights, options and warrants are as follows: 

STOCK WARRANTS:	Number of shares			Weighted average exercise price per share
Outstanding at December 31, 2011		1,747,347		$	3.07
Granted		4,667			4.50
Exercised		-			-
Cancelled or expired		(2,140	)		36.00
Outstanding at December 31, 2012		1,749,874		$	3.03
Granted		-			-
Exercised		-			-
Cancelled or expired		-			-
Outstanding at March 31, 2013		1,749,874		$	3.03
STOCK OPTIONS:	Number of shares			Weighted average exercise price per share
Outstanding at December 31, 2011		5,557		$	20.25
Granted		-			-
Exercised		-			-
Cancelled or expired		-			-
Outstanding at December 31, 2012		5,557		$	20.25
Granted		-			-
Exercised		-			-
Cancelled or expired		-			-
Outstanding at March 31, 2013		5,557		$	20.25

As of March 31, 2013, the weighted-average remaining contractual life of outstanding warrants and options is 1.69 and 4.88 years, respectively. 

Non-Employee Stock Compensation

During the three months ended March 31, 2013, the Company issued an aggregate of 1,482 and 2,632 shares of common stock, respectively, valued at $5,000, to each of Steven Girgenti and Oscar Bronsther for services rendered to the board of directors. For the three months ended March 31, 2013, a total of $10,000 was recognized as share-based compensation for the issuance of these shares.

During the three months ended March 31, 2013 the Company issued an aggregate of 926, 1,646, 1,646  and 926 shares of common stock, respectively, valued at $3,125, to each of Alvaro Pascual-Leone, Jason Barton, Jose Romano and Josef Zihl for services rendered to the Scientific Advisory Board of NovaVision. For the three months ended March 31, 2013, an aggregate of $12,500 was recognized as share-based compensation for the issuance of these shares.

On November 30, 2012 the Company entered into 12 month consulting agreements with Del Mar Consulting, Inc and Alex Partners, LLC to provide investor relations and investor awareness consultancy services. Under these agreements, Del Mar and Alex Partners received shares Common Shares valued at $157,500 and $105,000 respectively. The value of these shares is being amortized over the period of the agreement, and for the three months ended March 31, 2013 stock compensation of $65,625 was recognized as share-based compensation in connection with these agreements.

Aggregate stock-based compensation expense charged to operations for stock and warrants granted to the above non-employees for the three months ended March 31, 2013 was $88,125. As of March 31, 2013, there was $175,000 of total unrecognized compensation costs related to warrant and stock awards and non-vested options.

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. The fair value of the common stock is determined by the then-prevailing private placement purchase price. Expected volatility was based on the historical volatility of a peer group of publicly traded companies. The expected term of options and warrants was based upon the life of the option, and the risk-free rate used was based on the U.S. Treasury Constant Maturity rate.

The following assumptions were used in calculations of the Black-Scholes option pricing model for options and warrants expensed in the three months ended March 31, 2013 and 2012:

	Three months ended March 31,
	2013		2012
Risk-free interest rates		-		2.39	%
Expected life		-	3 years
Expected dividends		-		0	%
Expected volatility		-		96	%
Vycor Common Stock fair value		-	$	1.88-$3.38

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

9.   COMMITMENTS AND CONTINGENCIES

Lease

The Company leases approximately 10,000 sq. ft located at 6401 Congress Ave., Suite 140, Boca Raton, FL 33487 from Catexor Limited Partnership for a gross rent of $14,260 plus sales tax per month.  The term of the lease is 5 years and 6 months terminating July, 2017. The Company’s subsidiaries in Germany and the UK occupy properties on short term lease agreements. Rent expense for the three months ended March 31, 2013 and 2012 were $48,553 and $48,198 respectively.

Potential German tax liability and connected professional fees

In June 2012 the Company's German subsidiary received a preliminary assessment for Magdeburg City trade tax of approximately €75,000 (approximately $94,000). 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 has been preliminarily reduced to zero. The Company has not accepted this trade tax assessment and is in discussion with the relevant tax authorities with a view to its reduction. To the extent that this assessment, a higher or a reduced amount, is ultimately confirmed by the tax authorities, the Company believes it has a very strong claim against certain professional advisors which would offset the liability in full. Accordingly, the Company has made no provision for this liability for the three months ending March 31, 2013 or the year ended December 31, 2012.

Related to the above tax situation, the Company has incurred advisory fees. The Company believes it also has a strong claim against certain professional advisors for a recovery of the full amount of the fees, however such recovery may be limited to a statutory minimum. Accordingly the Company has made a provision in the period ended December 31, 2012 for the full amount of these fees, being approximately €39,000 ($50,105); there were no costs incurred in the three months ended March 31, 2013.

Potential Patent Infringement

The Company is aware that a potential competitor is developing a product similar to VBAS for sale in a foreign market.  If this product comes to market, Vycor has the option to take action to enforce its patent rights.  As with all patent infringement actions, there is some risk that the accused infringer will not be found to infringe the claims, and an additional risk that the accused infringer will successfully challenge the validity of the asserted claims.

VBAS Limited Product Recall

In August 2012 the Company initiated a limited product recall having identified a microscopic fiber in a single lot of its TC171105 model. Further investigation concluded that there was a very low incidence of this microscopic fiber in the lot, which had not been picked up during the manufacturer’s inspection process. The FDA was notified and all customers with units that had been distributed (a total of 5 customers in the U.S. and 2 customers internationally) were contacted and the units were recalled and replaced with re-inspected and passed units, or internationally re-inspected under 100% enhanced inspection guidelines; this recall and replacement process was completed in the US in September 2012 and internationally in November 2012 and there are no affected units on the marketplace. In January 2013, following their review, the FDA classified the recall as a Class I. The Company has submitted a recall termination request to the FDA.

Vycor re-inspected all remaining units in the lot prior to shipment under 100% enhanced inspection procedures and took steps to ensure that this issue was contained to this lot and that other lots and products were not affected (this is one of 12 products sold by Vycor). The likely source of the fiber was identified and corrective steps implemented in both the manufacturing and inspection processes to ensure that the issue would not re-occur.

Management believes that a decline in sales during February 2013 may have at least partially been the result of the posting by the FDA in late January 2013 of the Class 1 classification to the recall and which created some short-term customer instability. Notwithstanding, for the period commencing March 1, 2013 and continuing through early May, 2013, the Company's sales have returned to pre-February 2013 levels and Vycor is not able at this time to determine whether there will be any additional financial impact on the Company as a result of this recall. Vycor’s customers have appreciated that Vycor took swift voluntary action to remove this product from the marketplace, even though the incidence of this fiber and therefore the risk was low, before any units could be used, and to maintain Vycor’s high safety and quality standards.

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Related Party Transactions

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

11.  RELATED PARTY TRANSACTIONS

During January to March 2013, the Company issued unsecured, subordinated loan notes to: Fountainhead for a total of $189,000; and to Peter Zachariou, a director of the Company, for a total of $145,000. During April, the Company issued unsecured, subordinated loan notes to: Fountainhead for a total of $29,000; and to Peter Zachariou, a director of the Company, for a total of $45,000. The loan notes are subordinated to the Company’s secured debentures and Preferred C Stock of the Company, bear interest at a rate of 6% are due on demand or by their one-year anniversary.

In March 2013, Fountainhead and Peter Zachariou, a director of the Company, extended the maturity of secured loans totaling $1,016,362 and $300,000 respectively from March 31, 2013 to December 31, 2013.

In April 2013, in connection with her departure from the Board of Directors, the Company and Heather Vinas entered into a Warrant Exercise and Share Sales Agreement (the “Agreement”). Under the terms of the Agreement Mrs. Vinas agreed to exercise her warrants to purchase 54,834 shares of Common Stock, which are exercisable on a cashless basis, at a price of $2.60 per share and receive 32,152 shares of Common Stock. Following this exercise, Mrs Vinas holds an aggregate of 66,272 shares of Common Stock. The Agreement also requires Mrs Vinas not to sell more than 16,000 shares in any 30-day period.

During April and May 2013, Fountainhead Capital Management sold warrants to purchase 124,375  shares of Vycor Common Stock at an exercise price of $1.88 per share. These warrants were granted to Fountainhead by the Company in February 2010 and were sold by Fountainhead to investors at a price of $0.10 per warrant share. The warrants were immediately exercised by the investors.

There were no other related party transactions during the three months ended March 31, 2013 other than the payment or accrual of fees under the Fountainhead Consulting agreement described in 10 above.

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Share-Based Compensation (Details Textual) (USD $)	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	1 Months Ended		3 Months Ended		1 Months Ended	3 Months Ended		1 Months Ended			3 Months Ended							1 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Stock options [Member]	Dec. 31, 2012 Stock options [Member]	Mar. 31, 2013 Stock Warrant [Member]	Dec. 31, 2012 Stock Warrant [Member]	Mar. 31, 2013 Alvaro Pascual - Leone [Member]	Nov. 30, 2012 Del Mar Consulting [Member]	Nov. 30, 2012 Alex Partners, LLC [Member]	Mar. 31, 2013 Board Of Directors Chairman [Member]	Mar. 31, 2013 Scientific Advisory Board [Member]	Feb. 29, 2008 Stock Option Plan [Member]	Mar. 31, 2012 Stock Option Plan [Member]	May 31, 2011 Stock Option Plan [Member]	Feb. 29, 2008 Stock Option Plan [Member] Chief Executive Officer [Member]	May 31, 2010 Stock Option Plan [Member] President [Member]	Feb. 29, 2008 Stock Option Plan [Member] President [Member]	Mar. 31, 2013 Non Employee Stock Compensation [Member] Steven Girgenti [Member] Common Stock [Member]	Mar. 31, 2013 Non Employee Stock Compensation [Member] Dr Oscar Bronsther [Member] Common Stock [Member]	Mar. 31, 2013 Non Employee Stock Compensation [Member] Alvaro Pascual - Leone [Member] Common Stock [Member]	Mar. 31, 2013 Non Employee Stock Compensation [Member] Jason Barton [Member] Common Stock [Member]	Mar. 31, 2013 Non Employee Stock Compensation [Member] Jose Romano [Member] Common Stock [Member]	Mar. 31, 2013 Non Employee Stock Compensation [Member] Josef Zihl [Member] Common Stock [Member]	Mar. 31, 2013 Consulting Agreement [Member]	Mar. 31, 2012 Stock appreciation rights [Member]
Share-Based Compensation (Textual)
Ownership percentage of outstanding voting stock for the options to be granted												More than 10%.
Exercise price of options granted												Not less than 110% of the fair market value of the common stock on the grant date.
Option expired period determined by the board of directors												Not extend mare than 10 years from the grant date.
Outstanding voting stock expire from grant date												5 years
Vesting period for employees												3 years
Number of shares, Granted						4,667									500,000		500,000								0
Percentage of number of shares covered by plan												10.00%
Exercise price per share						$ 4.50									$ 0.135		$ 0.135
Percentage of options vested on first anniversary												33.333%
Percentage of options vested on second anniversary												33.333%
Percentage of options vested on third anniversary												33.333%
Grant expire date												Feb. 12, 2018
Share-based compensation arrangement, cancelled or expired in Period																166,667
Share based compensation expenses	$ 88,125						$ 12,500			$ 10,000	$ 12,500		$ 0	$ 0										$ 65,625
Weighted-average remaining contractual life of outstanding options			1 year 8 months 8 days		4 years 10 months 17 days
Fair value of common stock		$ 1.88
Share-based compensation shares issued to nonemployees for services, share								157,500	105,000									1,482	2,632	926	1,646	1,646	926
Share-based compensation shares issued to nonemployees for services, value																		5,000	5,000	3,125	3,125	3,125	3,125
consultancy agreement period								12 months	12 months
Total unrecognized compensation costs related to warrant and stock awards and non-vested options	$ 175,000

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Segment Reporting, Geographical Information (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting, Geographical Information [Abstract]

Business segments information

	Three Months Ended March 31,
	2013		2012
Revenue:
Vycor Medical	$	130,665	$	321,781
NovaVision		101,009		110,820
Total Revenue	$	231,674	$	432,601
Gross Profit:
Vycor Medical	$	116,279	$	260,588
NovaVision		85,377		92,591
Total Gross Profit	$	201,656	$	353,179

	March 31, 2013		December 31, 2012
Total Assets:
Vycor Medical	$	940,625	$	1,055,026
NovaVision		1,384,360		1,506,134
Total Assets	$	2,324,985	$	2,561,160

Summary of geographic information

	Three Months Ended March 31,
	2013		2012
Revenue:
United States	$	179,515	$	362,248
Europe		52,159		70,353
Total Revenue	$	231,674	$	432,601
Gross Profit:
United States	$	156,188	$	290,769
Europe		45,468		62,410
Total Gross Profit	$	201,656	$	353,179

	March 31, 2013		December 31, 2012
Total Assets:
United States	$	2,273,997	$	2,475,933
Europe		50,988		85,227
Total Assets	$	2,324,985	$	2,561,160

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Notes Payable (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Components of notes payable
Total Notes Payable:	$ 2,536,100	$ 2,195,502
Convertible debentures issued on December 29, 2009 and February 3, 2010 [Member]
Components of notes payable
Total Notes Payable:	441,362	441,362
Convertible debentures issued on September 30, 2010 and October 14, 2010 [Member]
Components of notes payable
Total Notes Payable:	175,000	175,000
Debentures payable issued on October 26, 2010 and November 15, 2010 [Member]
Components of notes payable
Total Notes Payable:	400,000	400,000
Convertible debenture issued on November 15, 2010 [Member]
Components of notes payable
Total Notes Payable:	300,000	300,000
Term notes issued on March 25, 2011[Member]
Components of notes payable
Total Notes Payable:	300,000	300,000
Short term, unsecured notes payable issued on July to December 2012 [Member]
Components of notes payable
Total Notes Payable:	300,900	300,900
Short term, unsecured notes payable issued on August to December 2012 [Member]
Components of notes payable
Total Notes Payable:	115,550	115,550
Short term, unsecured notes payable issued on August to December 2012 [Member]1
Components of notes payable
Total Notes Payable:	98,550	98,550
Short term, unsecured notes payable issued September 2012 [Member]
Components of notes payable
Total Notes Payable:	42,900	42,900
Short term, unsecured notes payable issued on January to March 2013 [Member]
Components of notes payable
Total Notes Payable:	189,000
Short term, unsecured notes payable issued on January to March 2013 [Member] 1
Components of notes payable
Total Notes Payable:	145,000
Insurance policy finance agreements [Member]
Components of notes payable
Total Notes Payable:	$ 27,838	$ 21,240

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Consolidated Statement of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net loss	$ (662,672)	$ (783,430)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization of intangible assets	30,186	25,935
Depreciation of fixed assets	62,951	57,377
Share based compensation and expense	88,125	149,342
Changes in assets and liabilities:
Accounts receivable	60,195	(440)
Inventory	22,464	(127,741)
Prepaid expenses	(1,144)	143,226
Accounts payable	26,987	16,061
Accrued interest	42,895	31,658
Accrued liabilities	78,315	103,281
Other current liabilities	(12,048)	(516)
Cash used in operating activities	(263,746)	(385,247)
Cash flows used in investing activities:
Purchase of fixed assets	(10,063)	(8,047)
Acquisition of subsidiary, net of cash acquired	(89,945)	(153,601)
Acquisition of patents	(39,141)	3,690
Cash used in investing activities	(139,149)	(157,958)
Cash flows from financing activities:
Net proceeds from issuance of Notes Payable	352,737	3,842
Repayment of Notes Payable	(12,111)	(9,103)
Cash provided by (used in) financing activities	340,626	(5,261)
Effect of exchange rate changes on cash	18,372	3,616
Net increase (decrease) in cash	(43,897)	(544,850)
Cash at beginning of period	59,821	950,841
Cash at end of period	15,924	405,991
Supplemental Disclosures of Cash Flow information:
Interest paid:		197
Taxes paid
Acquisition of subsidiary, net of cash acquired
Trademarks and Tradenames		121,157
Patents		180,183
Internally Developed Software		363,472
Other Net Assets		(758)
Negative Goodwill on Acquisition		(66,394)
Total assets acquired		597,660
Warrants, options and common stock issued for acquisition of subsidiary		(287,000)
Deferred consideration payable	89,945	(155,330)
Foreign exchange difference on deferred consideration		(1,729)
Warrants, options and common stock issued for debt financing	$ 89,945	$ 153,601

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Notes Payable

3 Months Ended

Mar. 31, 2013

Notes Payable [Abstract]

NOTES PAYABLE

5.   NOTES PAYABLE

As of March 31, 2013 and December 31, 2012 Notes Payable consists of:

	March 31, 2013		December 31, 2012
On December 29, 2009 and February 3, 2010, the Company issued convertible debentures in the amount of $371,362 and $70,000, respectively, payable to Fountainhead Capital Management (“Fountainhead”), the beneficial owner of more than 50% of the Company’s common stock. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $1.88 per share, subject to adjustment and does not require bifurcation. These debentures were originally due August 31, 2010 and the due date has been extended over time to December 31, 2013		441,362		441,362
On September 30, 2010 and October 14, 2010, the Company issued convertible debentures payable to Fountainhead in the amount of $85,000 and $90,000, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $2.63 per share, subject to adjustment and does not require bifurcation. The debentures were originally due August 31, 2011, and the due date has been extended over time to December 31, 2013.		175,000		175,000
On October 26, 2010 and November 15, 2010, the Company issued debentures payable to Fountainhead in the amount of $77,500 and $322,500, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The debentures were originally due August 31, 2011, and the due date has been extended over time to December 31, 2013.		400,000		400,000
On November 15, 2010, the Company issued a convertible debenture in the amount of $350,000 payable to Peter Zachariou, a Director of the Company. This debenture accrues interest rate of 6% per annum, is secured by a first priority security interest in all of the assets of the Company, and is senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $2.85 per share, subject to adjustment and does not require bifurcation. On December 20, 2010, the Company repaid $50,000 of this debenture and removed the convertible rights. The debentures were originally due December 31, 2012 and the due date has been extended over time to December 31, 2013.		300,000		300,000
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. In connection with the loan the Company also issued EuroAmerican warrants to purchase 400,000 shares of the Company’s common stock at an exercise price of $4.50 per share for a period of three (3) years. On June 25, 2011 the due date for this note was extended to September 25, 2011 and the Holder was granted the right to convert all or any amount of the principal face amount of the debenture then outstanding and accrued interest into shares of common stock of the Company at the conversion price of $0.03 per share, subject to adjustment and does not require bifurcation. The due date for this note has been extended over time to June 30, 2013		300,000		300,000
In the period July to December 2012 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $300,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		300,900		300,900
In the period August to December 2012 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $115,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		115,550		115,550
In the period August to December 2012 the Company issued short term, unsecured notes payable to Craig Kirsch in the aggregate amount of $98,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		98,550		98,550
In September 2012 the Company issued short term, unsecured notes payable to Osbaldo Trading Limited in the amount of $42,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		42,900		42,900
In the period January to March 2013 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $189,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		189,000		-
In the period January to March 2013 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $145,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		145,000		-
Insurance policy finance agreements	27,838			21,240
Total Notes Payable:	$	2,536,100	$	2,195,502

As of March 31, 2013, $1,316,362 of Company's notes payable are secured by a security interest in all of the assets of the Company. The company assesses the value of the beneficial conversion feature of its convertible debt by determining the intrinsic value of such conversion, under ASC 470, at the time of issuance. At the time of issuance of each of the convertible debt instruments set out above, the fair value of the stock was either the same or less than the conversion price, and so there was no value attributable to any beneficial conversion feature.

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Notes Payable (Details Textual) (USD $)		1 Months Ended				1 Months Ended			1 Months Ended				1 Months Ended			1 Months Ended			6 Months Ended	5 Months Ended		1 Months Ended	3 Months Ended
	Mar. 31, 2013	Feb. 28, 2010 Convertible debentures issued on December 29, 2009 and February 3, 2010 [Member]	Dec. 31, 2009 Convertible debentures issued on December 29, 2009 and February 3, 2010 [Member]	Feb. 03, 2010 Convertible debentures issued on December 29, 2009 and February 3, 2010 [Member]	Dec. 29, 2009 Convertible debentures issued on December 29, 2009 and February 3, 2010 [Member]	Oct. 31, 2010 Convertible debentures issued on September 30, 2010 and October 14, 2010 [Member]	Sep. 30, 2010 Convertible debentures issued on September 30, 2010 and October 14, 2010 [Member]	Oct. 14, 2010 Convertible debentures issued on September 30, 2010 and October 14, 2010 [Member]	Nov. 30, 2010 Debentures payable issued on October 26, 2010 and November 15, 2010 [Member]	Oct. 31, 2010 Debentures payable issued on October 26, 2010 and November 15, 2010 [Member]	Nov. 15, 2010 Debentures payable issued on October 26, 2010 and November 15, 2010 [Member]	Oct. 26, 2010 Debentures payable issued on October 26, 2010 and November 15, 2010 [Member]	Nov. 30, 2010 Convertible debenture issued on November 15, 2010 [Member]	Dec. 20, 2010 Convertible debenture issued on November 15, 2010 [Member]	Nov. 15, 2010 Convertible debenture issued on November 15, 2010 [Member]	Dec. 31, 2010 Debentures issued on December 3, 2010 [Member]	Mar. 31, 2011 Term notes issued on March 25, 2011[Member]	Mar. 25, 2011 Term notes issued on March 25, 2011[Member]	Dec. 31, 2012 Short term, unsecured notes payable issued on July to December 2012 [Member]	Dec. 31, 2012 Short term, unsecured notes payable issued on August to December 2012 [Member]	Dec. 31, 2012 Short term, unsecured notes payable issued on August to December 2012 [Member]1	Sep. 30, 2012 Short term, unsecured notes payable issued September 2012 [Member]	Mar. 31, 2013 Short term, unsecured notes payable issued on January to March 2013 [Member]	Mar. 31, 2013 Short term, unsecured notes payable issued on January to March 2013 [Member] 1
Notes Payable (Textual)
Issuance of convertible debentures				$ 70,000	$ 371,362		$ 85,000	$ 90,000			$ 322,500	$ 77,500			$ 350,000				$ 300,900	$ 115,500	$ 98,550	$ 42,900	$ 189,900	$ 145,000
Term notes payables																		300,000
Percentage of company's common stock hold by beneficial owner				50.00%	50.00%
Interest rate on debentures				6.00%	6.00%		6.00%	6.00%			6.00%	6.00%			6.00%				6.00%	6.00%	6.00%	6.00%	6.00%	6.00%
Conversion price				$ 1.88	$ 1.88		$ 2.63	$ 2.63							$ 2.85			$ 0.03
Repayment of convertible debt														50,000
Interest rate on term notes																		16.00%
Number of common stock purchased by issuance of warrants																		400,000
Exercise price of warrants																		$ 4.50
Period of warrants																		3 years
Debt instruments, original maturity date		Aug. 31, 2010	Aug. 31, 2010			Aug. 31, 2011	Aug. 31, 2011		Aug. 31, 2011	Aug. 31, 2011			Dec. 31, 2012			Jun. 30, 2011	Jun. 25, 2011
Debt instruments, extended maturity date description		Due date has been extended over time to December 31, 2013.	Due date has been extended over time to December 31, 2013.			Due date has been extended over time to December 31, 2013.	Due date has been extended over time to December 31, 2013.		Due date has been extended over time to December 31, 2013.	Due date has been extended over time to December 31, 2013.			Due date has been extended over time to December 31, 2013.				Due date for this note was extended to September 25, 2011 and the Holder was granted the right to convert all or any amount of the principal face amount of the debenture then outstanding and accrued interest into shares of common stock of the Company at the conversion price of $0.03 per share, subject to adjustment and does not require bifurcation. The due date for this note has been extended over time to June 30, 2013.		Due on demand or one year after the issue date.	Due on demand or one year after the issue date.	Due on demand or one year after the issue date.	Due on demand or one year after the issue date.	Due on demand or one year after the issue date.	Due on demand or one year after the issue date.
Amount of notes payable secured by first security interest	$ 1,316,362

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Subsequent Events (Details) (USD $)	3 Months Ended		1 Months Ended					1 Months Ended	3 Months Ended	1 Months Ended	3 Months Ended
	Mar. 31, 2013	May 15, 2013 Subsequent Event [Member]	Apr. 30, 2013 Subsequent Event [Member] Fountainhead [Member] Secured Loan One [Member]	Apr. 30, 2013 Subsequent Event [Member] Peter Zachariou [Member] Secured Loan Two [Member]	May 15, 2013 Subsequent Event [Member] Issuance of Equity [Member] Steven Girgenti [Member]	May 15, 2013 Subsequent Event [Member] Issuance of Equity [Member] Investor [Member] Investor	May 31, 2013 Subsequent Event [Member] Issuance of Equity [Member] Investor [Member]	Apr. 30, 2013 Subsequent Event [Member] Issuance of Equity [Member] Scientific Advisory Board [Member]	May 15, 2013 Subsequent Event [Member] Issuance of Equity [Member] Scientific Advisory Board [Member]	Apr. 30, 2013 Subsequent Event [Member] Issuance of Equity [Member] Kenneth Coviello and Heather Vinas [Member]	May 15, 2013 Subsequent Event [Member] Issuance of Equity [Member] Kenneth Coviello and Heather Vinas [Member]
Subsequent Events (Textual)
Shares received under consulting agreement, value					$ 5,000			$ 1,563	$ 3,125
Shares received under consulting agreement, shares					2,632			668	1,335
Shares issued upon exercise of warrant						124,375				31,727	32,152
Exercise price of warrants		$ 1.88				$ 0.10	$ 1.88				$ 1.08
Number of investors						4
Proceeds from exercise of warrants						233,335
Shares issued on conversion of Preferred stock, shares		198,521
Warrant received to purchase maximum common shares		124,375
Loan amount			$ 29,000	$ 45,000
Interest rate on secured debentures and Preferred C Stock	6.00%		6.00%	6.00%

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Notes Payable (Tables)

3 Months Ended

Mar. 31, 2013

Notes Payable [Abstract]

Components of notes payable

	March 31, 2013		December 31, 2012
On December 29, 2009 and February 3, 2010, the Company issued convertible debentures in the amount of $371,362 and $70,000, respectively, payable to Fountainhead Capital Management (“Fountainhead”), the beneficial owner of more than 50% of the Company’s common stock. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $1.88 per share, subject to adjustment and does not require bifurcation. These debentures were originally due August 31, 2010 and the due date has been extended over time to December 31, 2013		441,362		441,362
On September 30, 2010 and October 14, 2010, the Company issued convertible debentures payable to Fountainhead in the amount of $85,000 and $90,000, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debentures then outstanding into shares of common stock of the Company at the conversion price of $2.63 per share, subject to adjustment and does not require bifurcation. The debentures were originally due August 31, 2011, and the due date has been extended over time to December 31, 2013.		175,000		175,000
On October 26, 2010 and November 15, 2010, the Company issued debentures payable to Fountainhead in the amount of $77,500 and $322,500, respectively. These debentures accrue interest at a rate of 6% per annum, are secured by a first priority security interest in all of the assets of the Company, and are senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The debentures were originally due August 31, 2011, and the due date has been extended over time to December 31, 2013.		400,000		400,000
On November 15, 2010, the Company issued a convertible debenture in the amount of $350,000 payable to Peter Zachariou, a Director of the Company. This debenture accrues interest rate of 6% per annum, is secured by a first priority security interest in all of the assets of the Company, and is senior to or pari passu with, all other obligations of the Company, subject to certain conditions. The Holder is entitled to convert all or any amount of the principal face amount of the debenture then outstanding into shares of common stock of the Company at the conversion price of $2.85 per share, subject to adjustment and does not require bifurcation. On December 20, 2010, the Company repaid $50,000 of this debenture and removed the convertible rights. The debentures were originally due December 31, 2012 and the due date has been extended over time to December 31, 2013.		300,000		300,000
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. In connection with the loan the Company also issued EuroAmerican warrants to purchase 400,000 shares of the Company’s common stock at an exercise price of $4.50 per share for a period of three (3) years. On June 25, 2011 the due date for this note was extended to September 25, 2011 and the Holder was granted the right to convert all or any amount of the principal face amount of the debenture then outstanding and accrued interest into shares of common stock of the Company at the conversion price of $0.03 per share, subject to adjustment and does not require bifurcation. The due date for this note has been extended over time to June 30, 2013		300,000		300,000
In the period July to December 2012 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $300,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		300,900		300,900
In the period August to December 2012 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $115,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		115,550		115,550
In the period August to December 2012 the Company issued short term, unsecured notes payable to Craig Kirsch in the aggregate amount of $98,550. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		98,550		98,550
In September 2012 the Company issued short term, unsecured notes payable to Osbaldo Trading Limited in the amount of $42,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		42,900		42,900
In the period January to March 2013 the Company issued short term, unsecured notes payable to Fountainhead in the aggregate amount of $189,900. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		189,000		-
In the period January to March 2013 the Company issued short term, unsecured notes payable to Peter Zachariou in the aggregate amount of $145,000. The notes accrue interest at a rate of 6% per annum, are due on demand or one year after the issue date and are junior to the secured debentures and Preferred C Stock of the Company.		145,000		-
Insurance policy finance agreements	27,838			21,240
Total Notes Payable:	$	2,536,100	$	2,195,502