Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions:
Item 1.01 Entry into a Material Definitive Agreement.
Please see Item 3.03, below.
Item 2.02. Results of Operations and Financial Conditions
The information in this report and the exhibit attached hereto are being furnished pursuant to Item 2.02 of Form 8-K
and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall they be deemed incorporated by
reference in any filing with the Securities and Exchange Commission under the Securities Act of 1934 or the Securities Act of 1933, except as shall be expressly
set forth by specific reference to such filing.
On May 15, 2014, we issued a press release regarding our financial results for the three months ended March 31, 2014. A
copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
We make reference to non-GAAP financial information in the press release. A reconciliation of these non-GAAP financial
measures to the comparable GAAP financial measures is contained in the attached press release. Specifically, among other non-GAAP financial measures, we have
provided non-GAAP operating loss, non-GAAP net comprehensive loss and non-GAAP loss per share measures that exclude non-cash amortization of acquired intangible
assets, non-cash stock-based, one-time Offering costs and the change in value of derivative warrant liability.
We believe that these non-GAAP financial measures provide investors with insight into what is used by management to conduct
a more meaningful and consistent comparison of our ongoing operating results and trends, compared with historical results. This presentation is also consistent
with the measures management uses to measure the performance of ongoing operating results against prior periods and against our internally developed targets.
There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP
financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial
measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the Companys consolidated financial
statements prepared in accordance with GAAP and the reconciliation of non-GAAP financial measures in the attached press release.
Item 3.03 Material Modification to Rights of Security Holders.
During April and May 2014, the Company requested waivers of certain anti-dilution provisions of the Stock Purchase Agreement
and Series A Warrant Agreements (Waivers) which were executed with investors in the Companys $5,000,000 private placement offering which was
completed on April 25, 2014. Under the terms of the Waivers, the investors agreed to waive their anti-dilution rights (which arose in the event the
Company sold securities at a price below $2.05 within one year of the date that the initial Registration Statement has been declared effective by the SEC) in
consideration of the Companys agreement not to sell any securities for cash at a price below $2.05 within such one-year period. The Waivers become effective
as to all the Common Stock issued in the offering once the Company receives the agreement of the holders of eighty percent (80%) of the Common Stock issued in
the offering and the holders of eighty percent (80%) of the Common Stock issued in each closing. As of May 15, 2014, the Company had received waivers from
the holders of 93.9 percent of the shares issued in the offering and over 80 percent for each closing, and so the Waivers have been declared effective on 100
percent of the Common Stock issued in the Offering. The Company is continuing to seek Waivers from the remaining investors for their Common Stock and Series A
Warrants. Waivers have also been received in respect of the Placement Agent Warrants and Series A Warrants held by Fountainhead Capital Management Limited.
As stated in Note 2 (Warrant Derivative Liability) and Note 8 of the Companys financial statements included in its
Form 10-Q Quarterly Report for the period ended March 31, 2014, because the Warrants carry certain anti-dilution protection for the holders, the Company had
recorded the Series A Warrants and Placement Agent Warrants as a liability, in accordance with the guidance contained in ASC 815-40-15-7D. Following the
declaration of effectiveness of the Waivers, the Company will no longer be required to record any derivative liability on account of
the Series A Warrants and Placement Agent warrants, with respect of the actual number of Warrants for which the Waivers have
Item 9.01. Financial Statements and Exhibits.
Form of Amendment and Waiver Agreement with Investors
Form of Amendment and Waiver Agreement with Placement Agent
Vycor Medical, Inc. Press Release dated May 14, 2014.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
VYCOR MEDICAL, INC.
/s/ Peter Zachariou
Chief Executive Officer
Dated: May 19, 2014