VYCOR MEDICAL INC Annual Report - How They Did This Year

I’m putting together a plain-English guide to help you understand how Vycor Medical Inc. (VYCO) performed this year. My goal is to break down their latest filings so you can decide if this company fits your investment strategy.

1. What does this company do?

Vycor is a medical technology company with a lean team of 7 full-time employees. They operate two distinct business segments:

• Vycor Medical: This segment designs and sells surgical tools. Their flagship product, the "ViewSite Brain Access System," uses a clear, tube-like tool that helps surgeons see the brain during surgery, which reduces tissue damage.
• NovaVision: This segment offers "Vision Restoration Therapy," a computer-based program designed to help patients improve their vision after a stroke or brain injury.

2. How did they perform this year?

The company saw some positive movement in 2025, though results varied by segment:

• Revenue Growth: The Vycor division brought in $1.79 million, an 18% increase over 2024. This growth came from more surgeons using the ViewSite system, especially through partners in Europe and the Middle East.
• Profitability per Sale: The Vycor division kept a healthy 83% profit margin on its sales. While this is slightly lower than the 89% margin in 2024 due to higher material and shipping costs, the company still maintains strong pricing power.
• NovaVision Performance: This division is shrinking as the company shifts its focus to surgical tools. Revenue dropped 8% to $67,000, as the company stopped investing in marketing for this product.

3. Financial health and "The Reality Check"

While surgical sales are growing, the company’s finances remain in a difficult spot:

• The "Going Concern" Warning: Auditors issued a "going concern" warning, indicating the company may not have enough cash to pay its bills through March 2027 without raising more money or restructuring.
• Debt Load: The company owes $4.2 million more than it has in liquid assets. This is compounded by $3.6 million in debt owed to company insiders. These loans can be called in at any time, putting constant pressure on the company’s limited cash.
• Cash Position: The company spent about $2.1 million to run the business in 2025. With only $87,000 in the bank, they have less than one month of cash left to operate without new funding.

4. Key risks to keep in mind

• Survival Risk: With only $87,000 in cash, the company depends on constant outside funding. If they cannot borrow more money or find investors, they risk going out of business.
• Dilution: To pay off its $4.2 million debt, the company may issue more shares. This would reduce your ownership percentage and potentially lower the value of your current holdings.
• Concentration: The Vycor division relies on a few international distributors. If they lose one major partner, annual revenue could drop significantly.
• Volatility: Because this stock trades on the OTC market, it has low trading volume. This makes the stock price prone to wild swings, even on minor news.

5. The Bottom Line

Vycor is a company fighting to survive. While they grew their surgical sales by 18% last year, they are still burning cash and carrying heavy debt. Management is currently looking to sell the NovaVision division to raise cash for the surgical business.

Investor Takeaway: This is a high-risk situation. Before investing, consider whether you believe the company can secure the necessary funding or find a buyer for its assets. The company’s ability to stabilize its cash flow is currently more critical to its future than its sales growth.