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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 10-Q/A

Amendment No. 2

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal quarter ended_________June 30, 2010_______________

[ ] 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.)

80 Orville Drive, Suite 100, Bohemia, New York 11716
(Address of principal executive offices) (Zip code)

Issuer's telephone number: (631) 244 1435
Securities registered under Section 12(g) of the Exchange Act:

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 675,357,950 shares outstanding of registrant's common stock, par value $.0001 per share, as of July 31, 2010.

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

Forward-looking Statements

In addition to historical information, this Annual Report on Form 10-Q/A includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ("the Exchange Act"). The forward-looking statements involve risks and uncertainties. Forward-looking statements are identified by words such as "anticipates," "believes," "expects," "intends," "may," "will," and other similar expressions. However, these words are not the only way we identify forward-looking statements. In addition, any statements which refer to expectations, projections, or other characterizations of future events, or circumstances, are forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including those set forth below in "Management's Discussion and Analysis of Financial Condition and Results of Operations" "Risk Factors" and those described elsewhere in this report, and those described in our other reports filed with the Securities and Exchange Commission ("SEC"). We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this report, and we undertake no obligation to update these forward-looking statements after the filing of this report. You are urged to review carefully and consider our various disclosures in this report and in our other reports publicly disclosed or filed with the SEC that attempt to advise you of the risks and factors that may affect our business.

EXPLANATORY NOTE

Vycor Medical, Inc. is filing this Amendment No. 2 on Form 10-Q/A (the "Amendment") to its Quarterly Report on Form 10-Q for the period ended June 30, 2010, originally filed August 16, 2010 (the "Original Filing") to amend and restate the following previously-filed consolidated financial statements and related disclosures (the "Restatement"): (1) our unaudited consolidated financial statements as of and for the periods ended June 30, 2010 and June 30, 2009 and the notes thereto contained in Part I, Item 1 of this Amendment (including our audited balance sheet for the period ended December 31, 2009 included in such financial statements); (2) management's discussion and analysis of financial condition and results of operations as of and for the quarters ended June 30, 2010 and 2009 contained in Part I, Item 2 of this Amendment.

Financial information related to the periods ended June 30, 2010 and 2009 and the fiscal year ended December 31, 2009 included in the report on Form 10-Q previously filed by us and all related earnings press releases and similar communications issued by us during these periods, should not be relied upon. In the event there are discrepancies between this Amendment and previous reports, press releases and similar communications, the information in this Amendment shall control.

Background of the Restatement

In late July 2011, the Company's management re-evaluated certain of its accounting policies and procedures in connection with the preparation of the Company's financial statements for the period ended June 30, 2011, and determined that it had not properly accounted for warrants issued in connection with certain service agreements and for the beneficial conversion feature of certain convertible debentures. Specifically, management determined that the Company had previously not recognized the fair value of warrants issued in connection with certain consulting or other service agreements at the measurement date, and had previously recognized the expense ratably over the life of the warrant. The Company's management further determined that the proper accounting, following the guidance in ASC Topic 505, is to record the fair value of these warrants as a prepaid expense on the date of issuance, and recognize the expense ratably over the life of the underlying service agreement. In addition, the Company had, since December 2009, been determining the existence of a beneficial conversion feature of convertible debt based on the fair value of the conversion feature on the date of issuance, rather than using the intrinsic value of the conversion feature on the date of issuance, as required under ASC Topic 470.

Following discussions with the Company's independent registered public accounting firm, the Company's management met on August 12, 2011 with the Company's Board of Directors, which concluded that the Company's previously issued consolidated financial statements: (i) for the years ended December 31, 2009 and 2010 (the "Annual Financial Statements") included in the Company's Annual Reports on Form 10-K for the years then ended (the "Annual Reports"); and (ii) for the interim periods ended March 31, 2010, June 30, 2010, September 30, 2010 and March 31, 2011 (collectively, the "Quarterly Financial Statements") included in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010, September 30, 2010 and March 31, 2011 respectively (the "Quarterly Reports") should no longer be relied upon and that the Company should, as soon as practicable, file with the SEC amendments to the aforementioned Annual Reports and Quarterly Reports to restate such Annual Financial Statements and Quarterly Financial Statements to properly record the warrants and beneficial conversion features and to make related adjustments and disclosures in connection therewith. This Amendment to the Form 10-Q for the quarter ended June 30, 2010 incorporates such restatement for the periods presented in this report.

Restatement of Other Financial Statements

The Board of Directors concluded that the Company's accounting for such warrants and the beneficial conversion feature associated with such debentures had not appropriately been recognized for the following periods as follows;

(i)

for the year ended December 31, 2009 included in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2010;

(ii)

for the three months ended March 31, 2010, included in the Company's Quarterly Report on Form 10-Q originally filed with the SEC on May 12, 2010;

(iii)

for the three and nine months ended September 30, 2010 included in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 15, 2010;

(iv)

for the year ended December 31, 2010, included in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2011; and

(v)

for the three months ended March 31, 2011, included in the Company's Quarterly Report on Form 10-Q filed with the SEC on May 13, 2011.

Total Impact from the Foregoing Adjustments

The Company expects that the net impact on the Company's previously reported Net Loss for the 18 month period of October 1, 2009 through March 31, 2011 will be to increase losses by approximately $152,000.

Internal Control Deficiencies

Management determined that there was a deficiency in its internal controls that constitutes a significant deficiency, as discussed in Part I — Item 4 of the Amended Filing. A material weakness in internal control over financial reporting is defined in Section 210.1-02(4) of Regulation S-X as a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the Company's financial reporting. For a discussion of management's consideration of the Company's disclosure controls and procedures and the significant deficiency identified, see Part I — Item 4 included in this Amended Filing.

For the convenience of the reader, this Amended Filing sets forth the Original Filing in its entirely as modified and superseded where necessary to reflect the restatement. The following items in this report have been amended as a result of the Restatement:

Part I:

Item 1: Financial Statements;

Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations;

Item 4: Controls and Procedures

Part II:

Item 6: Exhibits

We have not modified or updated disclosures presented in our original quarterly report on Form 10-Q, except as required to reflect the effects of this Restatement. Accordingly, this Form 10-Q/A does not reflect events occurring after the Original Filing and does not modify or update those disclosures affected by subsequent events, except specifically referenced herein. Information not affected by the Restatement is unchanged and reflects the disclosures made at the time of the Original Filing on August 16, 2010. References to the quarterly report on Form 10-Q herein shall refer to the quarterly report on Form 10-Q originally filed on August 16, 2010.

ITEM 1. FINANCIAL STATEMENTS

VYCOR MEDICAL, INC.
Balance Sheets (Restated)

June 30,
2010
(unaudited) December 31,
2009
(audited)

ASSETS

Current Assets

Cash $ 133,116 $ 12,771

Accounts receivable 62,612 29,748

Inventory 54,861 41,967

Prepaid expenses 340,529 22,369

591,118 106,855

Fixed assets, net 181,369 191,009

Other assets:

Patents, net of accumulated amortization 84,619 93,704

Website, net of accumulated amortization 5,487 7,042

Security deposits 3,633 2,350

93,739 103,096

TOTAL ASSETS $ 866,226 $ 400,960

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable $ 152,839 $ 336,942

Accrued interest 23,647 2,904

Accrued liabilities 113,499 62,002

Notes payable 441,362 1,245,052

TOTAL LIABILITIES 731,347 1,646,900

STOCKHOLDERS' EQUITY (DEFICIT)

Preferred stock, $0.0001 par value, 10,000,000
shares authorized, 140,000 and 0 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively 14 -

Common Stock, $0.0001 par value, 1,000,000,000 shares authorized, 674,545,450 and 557,798,599 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively 67,455 55,780

Additional Paid-in Capital 5,728,553 3,597,621

Accumulated Deficit (5,661,143 ) (4,899,341 )

134,879 (1,245,940 )

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 866,226 $ 400,960

See accompanying notes to financial statements

VYCOR MEDICAL, INC.
Statement of Cash Flows (Restated)

For the six months ended June 30,

2010
(unaudited) 2009
(unaudited)

Cash flows from operating activities:

Net loss $ (761,802 ) $ (671,849 )

Adjustments to reconcile net loss to cash used in operating activities:

Amortization of intangible assets 8,253 6,245

Depreciation of fixed assets 11,571 11,474

Amortization of debt discount expense - 145,303

Share based compensation 126,992 62,296

Shares issued for consulting services 12,917 5,000

Interest satisfied with stock conversion - 6,625

Changes in assets and liabilities:

Accounts receivable (32,864 ) 62,624

Inventory (12,894 ) 22,434

Prepaid expenses (29,120 ) (10,850 )

Security deposit (1,283 ) -

Accounts payable (184,104 ) 31,578

Accounts payable satisfied with common stock 14,025 -

Accrued interest 20,743 40,501

Accrued liabilities 57,955 107,558

Cash used in operating activities (769,611 ) (181,061 )

Cash flows provided by / (used in) investing activities:

Purchase of fixed assets (1,931 ) -

Reduction of / (Acquisition of) patents 2,387 (150 )

Cash provided by / (used in) investing activities 456 (150 )

Cash flows from financing activities:

Proceeds from sale of equity - Common stock 749,500 -

Proceeds from sale of equity - Series B preferred 140,000 -

Proceeds from short term Notes Payable 291,500 40,000

Repayment of short term Notes Payable (291,500 ) -

Cash provided by financing activities 889,500 40,000

Net increase (decrease) in cash 120,345 (141,211 )

Cash at beginning of period 12,771 196,138

Cash at end of period $ 133,116 $ 54,927

Supplemental Disclosures of Cash Flow information:

Interest paid: $ - $ -

Taxes paid $ 2,078 $ 300

Non-Cash Transactions:

Warrants, options and common stock issued for debt financing $ 803,690 $ 250,000

See accompanying notes to financial statements

VYCOR MEDICAL, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010

1. BASIS OF PRESENTATION

The condensed consolidated balance sheet as of December 31, 2009, which has been derived from restated audited financial statements, and the accompanying unaudited condensed financial statements have been prepared by Vycor Medical, Inc. (together with its consolidated subsidiaries, the "Company" or "Vycor") in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to the quarterly report on Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation, have been included. Operating results for the three and six months ended June 30, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010. These financial statements should be read in conjunction with the financial statements and footnotes thereto included in the Company's annual report on Form 10-K/A for the year ended December 31, 2009, as amended and restated. Certain prior period amounts have been reclassified to conform to the current presentation. All financial information included in these Notes relating to the Company's financial position as of December 31, 2009 and results of operations for the interim period ended June 30, 2010 have been restated to give effect to the accounting corrections discussed in Note 5.

2. FORMATION AND BUSINESS OF THE COMPANY

Business Description

Vycor Medical, LLC, (the "Company") was formed in June 17, 2005 under the laws of the State of New York. The Company converted its entity form on August 14, 2007 from a New York Limited Liability Company to a Delaware Corporation with 16,048 of common stock exchange for each partnership unit with 1122 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; thus all are references to number of shares prior to the date of conversion are based upon the common stock equivalent of the units. The Company's business plan is to develop and market a commercially feasible surgical access system for sale to hospitals and medical professionals.

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 $761,802 for the six months ended June 30, 2010, and the Company expects to continue to incur substantial additional losses in the future, including additional development costs, costs related to marketing and manufacturing expenses. The Company has incurred negative cash flows from operations since inception. As of June 30, 2010, the Company had a stockholders' equity of $134,879 and cash and cash equivalents of $133,116. The Company believes it would 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. 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. 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 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.

Under a previously disclosed agreement entered into with Fountainhead Capital Management Limited, Fountainhead agreed to fund or procure funding for the Company's monthly operating proceeds through August 2010 subject to the Company meeting certain financial benchmarks. Fountainhead has agreed to extend this commitment through September 30, 2010 pending discussions with the Company relative to the terms and conditions of a longer extension, including finalization of a budget covering the extension period.

4. ACCOUNTING POLICIES

Research and Development

The Company expenses all research and development costs as incurred. For the six months ended June 30, 2010 and 2009, the amounts charged to research and development expenses were $5,648 and $0, respectively.

Concentration of Credit Risk

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. The Company's accounts at these institutions may, at times, exceed the federally insured limits. The Company has not experienced any losses in such accounts.

Fair Values of Financial Instruments

At June 30, 2010 and 2009, fair values of cash, accounts receivable, accounts payable, and accrued expenses short term promissory notes approximate their carrying amount due to the short period of time to maturity. The fair value of the Company's long term debt is based on the present value using a discount rate comparable with borrowing rates available to the Company along with various fair value model calculations used to value certain debt related securities.

Property and equipment

The Company records property and equipment at cost and calculates depreciation using the straight-line method over the estimated useful life of the assets, which is estimated to be between three and ten years.

Income taxes

Based upon relevant FASB standard, deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases 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. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company has provided a full valuation allowance against the gross deferred tax asset as of June 30, 2010 as it is more likely that this deferred tax asset will not be realized.

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Critical estimates include amortization of intangible assets, and the fair values of options and warrant included in the determination of debt discounts and share based compensation.

Patents

The Company capitalizes legal and related costs associated with the establishment of patents for its products. Costs associated with the development of the patented item or processes are charged to research and development costs as incurred. The costs associated with the establishment of the patents are amortized over the life of the patent.

The Company reviews existing patents as well as those in the approval process for impairment on an annual basis using a present value, cash flow method based upon relevant FASB standard. Since the Company's patents are either very new or still in the process of approval, the Company does not believe that any impairment of these amounts exists.

Revenue Recognition

The Company records revenue, based upon relevant FASB standard, when a completed contract for the sale exists, title transfers to the buyer and the product is invoiced and shipped to the customer. The Company sells a surgical access system which has already cleared the U.S. FDA 510(k) review process. It has been granted a 510(k) number for marketing the system to hospitals and other medical professionals. The Company does not expect the need to provide for product returns or warranty costs but will review such potential costs after the commencement of sales on an annual basis.

Educational and marketing expenses

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

Website Costs

The Company capitalizes the costs associated with the acquisition of hardware and development tools as well as the creation of database tools in connection with the Company's website pursuant to the relevant FASB standard. Other costs including the development of functionality and identification of software tools are expensed as incurred.

Fair Values of Assets and Liabilities

Effective January 1, 2008, the relevant FASB standards define the fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These standards require that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. These standards also established a fair value hierarchy, which prioritizes the valuation inputs into three broad levels.

There are three general valuation techniques that may be used to measure fair value, as described below:

Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Prices may be indicated by pricing guides, sale transactions, market trades, or other sources;

Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost); and

Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about the future amounts (includes present value techniques and option-pricing models). Net present value is an income approach where a stream of expected cash flows is discounted at an appropriate market interest rate.

Financial assets and liabilities are valued using either level 1 inputs based on unadjusted quoted market prices within active markets or using level 2 inputs based primarily on quoted prices for similar assets or liabilities in active or inactive markets. For certain long-term debt, fair value is based on present value techniques using inputs derived principally or corroborated from market data. Using level 3 inputs using management's assumptions about the assumptions market participants would utilize in pricing the asset or liability. In the Company's case this entailed assumptions used in pricing models for attached warrant calculations. Valuation techniques utilized to determine fair value are consistently applied.

The Company has no items that are subject to these standards as of June 30, 2010.

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 based on the weighted-average common shares outstanding during the period plus dilutive potential common shares calculated using the treasury stock method. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. The Company's potential dilutive shares, which include outstanding common stock options, convertible notes payable and warrants, have not been included in the computation of diluted net loss per share for all periods as the result 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 because to do so would be anti-dilutive as of the end of each period presented:

June 30,
2010 June 30,
2009

Stock options outstanding 833,333 1,050,000

Warrants to purchase common stock 66,139,264 5,610,452

Debentures convertible into common stock 36,554,012 10,009,858

Total 103,526,609 25,670,037

Recent Accounting Pronouncements

Effective July 1, 2009, the Company adopted the FASB ASC 105-10, Generally Accepted Accounting Principles - Overall ("ASC 105-10"). ASC 105-10 establishes the FASB Accounting Standards Codification (the "Codification") as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. All guidance contained in the Codification carries an equal level of authority. The Codification superseded all existing non-SEC accounting and reporting standards. All other non-grandfathered, non-SEC accounting literature not included in the Codification is non-authoritative. The FASB will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates ("ASUs"). The FASB will not consider ASUs as authoritative in their own right. ASUs will serve only to update the Codification, provide background information about the guidance and provide the bases for conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have been updated for the Codification.

Effective January 1, 2008, the Company adopted FASB ASC 820-10, Fair Value Measurements and Disclosures - Overall ("ASC 820-10") with respect to its financial assets and liabilities. In February 2008, the FASB issued updated guidance related to fair value measurements, which is included in the Codification in ASC 820-10-55, Fair Value Measurements and Disclosures - Overall - Implementation Guidance and Illustrations. The updated guidance provided a one year deferral of the effective date of ASC 820-10 for non-financial assets and non-financial liabilities, except those that are recognized or disclosed in the financial statements at fair value at least annually. Therefore, the Company adopted the provisions of ASC 820-10 for non-financial assets and non-financial liabilities effective January 1, 2009, and such adoption did not have a material impact on the Company's consolidated results of operations, financial condition or liquidity.

Effective January 1, 2009, the Company adopted FASB ASC 805, Business Combinations ("ASC 805"). ASC 805 establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. ASC 805 changes the previous treatment of acquisition related costs, restructuring costs related to an acquisition that the acquirer expects but is not obligated to incur, contingent consideration associated with the purchase price and pre-acquisition contingencies associated with acquired assets and liabilities. Under ASC 805, acquisition costs associated with business combinations will be expensed as incurred, whereas, prior to the adoption of ASC 805, similar costs associated with a successful acquisition were capitalized. ASC 805 applies to business combinations for which the acquisition date is on or after the adoption date, thus the adoption of ASC 805 will have no effect on prior acquisitions. The effect of the adoption of ASC 805 will depend upon the nature of any future business combinations.

In April 2009, the FASB issued updated guidance relating to intangible asset valuation, which is included in the Codification in ASC 350-30-55, General Intangibles Other Than Goodwill - Implementation ("ASC 350-30-55"). ASC 350-30-55 amends ASC 350-30, Intangibles - Goodwill and Other, to identify the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. ASC 350-30-55 is effective for fiscal years beginning after December 31, 2008. The Company adopted the amendment to ASC 350-30 effective January 1, 2009, and such amendment did not have a material effect on the Company's results of operations, financial position or liquidity.

Effective April 1, 2009, the Company adopted FASB ASC 825-10-65, Financial Instruments - Overall - Transition and Open Effective Date Information ("ASC 825-10-65"). ASC 825-10-65 amends ASC 825-10 to require disclosures about fair value of financial instruments in interim financial statements as well as in annual financial statements and also amends ASC 270-10, Presentation - Interim Reporting - Overall, to require those disclosures in all interim financial statements. The adoption of ASC 825-10-65 did not have a material impact on the Company's results of operations, financial position or liquidity.

Effective April 1, 2009, the Company adopted FASB ASC 320-10-65, Investments - Debt and Equity Securities - Overall - Transition and Open Effective Date Information ("ASC 320-10-65). ASC 320-10-65 amends the other-than-temporary impairment guidance in U.S. GAAP to make the guidance more operational and to improve the presentation of other-than-temporary impairments in the financial statements. The adoption ASC 320-10-65 did not have a material impact on the Company's results of operations, financial position or liquidity.

Effective April 1, 2009, the Company adopted FASB ASC 855-10, Subsequent Events - Overall ("ASC 855-10"). ASC 855-10 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. It required the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date - that is, whether that date represents the date the financial statements were issued or were available to be issued. This disclosure should alert all users of financial statements that an entity has not evaluated subsequent events after that date in the set of financial statements being presented. In February 2010, the FASB issued ASU

2010-09, Amendments to Certain Recognition and Disclosure Requirements ("ASU 2010-09"). ASU 2010-09 amended the guidance on subsequent events to remove the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. Adoption of ASC 855-10, as amended, did not have a material impact on the Company's results of operations, financial position or liquidity.

Effective July 1, 2009, the Company adopted FASB ASU No. 2009-05, Fair Value Measurements and Disclosures (Topic 820) ("ASU 2009-05"). ASU 2009-05 provided amendments to ASC 820-10, Fair Value Measurements and Disclosures - Overall, for the fair value measurement of liabilities. ASU 2009-05 provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using certain techniques. ASU 2009-05 also clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of a liability. ASU 2009-05 also clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level 1 fair value measurements. Adoption of ASU 2009-05 did not have a material impact on the Company's results of operations, financial position or liquidity.

The Company does not believe that any other recently issued, but not yet effective accounting standards will have a material effect on the Company's consolidated financial position, results of operations or cash flows.

5. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

On August 15, 2011, the Company filed with the SEC a Current Report on Form 8-K, to report management's determination that the Company's financial statements for the quarter ended June 30, 2010, included in its Quarterly Report on Form 10-Q originally filed with the SEC on August 16, 2010 (the "2010 Form 10-Q"), should no longer be relied upon due to incorrect accounting in such financial statements with respect to warrants issued in connection with service agreements and for the beneficial conversion feature of certain convertible debentures. The Company determined that the historical financial statements for the quarter ended June 30, 2010 included in the Company's 2010 Form 10-Q require restatement to properly record these warrants and beneficial conversion features.

The Current Report on Form 8-K which the Company filed with the SEC on August 15, 2011 also reported management's determination that the Company's following financial statements should no longer be relied upon due to incorrect accounting in such financial statements with respect warrants issued in connection with service agreements and for the beneficial conversion feature of certain convertible debentures:

(i)

for the year ended December 31, 2009, included in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2010;

(ii)

for the three months ended March 31, 2010, included in the Company's Quarterly Report on Form 10-Q originally filed with the SEC on May 13, 2010;

(iii)

for the three and nine months ended September 30, 2010 included in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 15, 2010;

(iv)

for the year ended December 31, 2010, included in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2011; and

(v)

for the three months ended March 31, 2011, included in the Company's Quarterly Report on Form 10-Q filed with the SEC on May 13, 2011.

The Company's management re-evaluated certain of its accounting policies and procedures in connection with the preparation of the Company's financial statements for the periods ended June 30, 2011, and determined that it had not properly accounted for warrants issued in connection with service agreements and for the beneficial conversion feature of certain convertible debentures. The Company had previously not recognized the fair value of warrants issued in connection with consulting or other service agreements at the measurement date, and has previously recognized the expense ratably over the life of the warrant. The Company's management has determined that the proper accounting, following the guidance in ASC Topic 505, is to record the fair value of these warrants as a prepaid expense on the date of issuance, and recognize the expense ratably over the life of the underlying service agreement. The Company has, since December 2009, been determining the existence of a beneficial conversion feature of convertible debt based on the fair value of the conversion feature on the date of issuance, rather than using the intrinsic value of the conversion feature on the date of issuance, as required under ASC Topic 470.

The Company's board of directors and management has discussed the matters set forth herein with Paritz & Co., P.A., the Company's registered independent public accounting firm. Paritz & Co. was the Company's independent public accounting firm for each of the periods being restated as set forth above.

The tables below show the effects of the restatements on (i) the Company's consolidated balance sheets as of June 30, 2010 and December 31, 2009, (ii) the consolidated statements of operations for the three and six months ended June 30, 2010, and (iii) the consolidated statement of cash flows for the six months ended June 30, 2010. These adjustments are non-cash items and do not impact the Company's operating activities or cash flows from operations in any way.

Vycor Medical, Inc.

Consolidated Balance Sheets

June 30, 2010 December 31, 2009

As Reported Adjustment Restated As Reported Adjustment Restated

Prepaid Expenses 51,489 289,040 a 340,529 22,369 - 22,369

Total Current Assets 302,078 289,040 591,118 106,855 - 106,855

Total Assets 577,186 289,040 866,226 400,960 - 400,960

Notes Payable 360,279 81,083 b 441,362 1,111,053 133,999 b 1,245,052

Total Liabilities 650,264 81,083 731,347 1,512,901 133,999 1,646,900

Additional Paid-in Capital 5,573,221 155,332 a,b 5,728,553 3,708,967 (111,346 ) b 3,597,621

Accumulated Deficit (5,713,768 ) 52,625 c,d (5,661,143 ) (4,876,688 ) (22,653 ) c,d (4,899,341 )

Total Stockholders' Equity (Deficit) (73,078 ) 207,957 134,879 (1,111,941 ) (133,999 ) (1,245,940 )

Total Liabilities and Stockholders' Equity 577,186 289,040 866,226 400,960 - 400,960

Vycor Medical, Inc.

Consolidated Statements of Operations

Three months ended June 30, 2010 Six months ended June 30, 2010

As Reported Adjustment Restated As Reported Adjustment Restated

General and administrative 501,905 (25,646 ) c 476,259 855,579 (3,496 ) c 852,083

Total Operating Expenses 502,667 (25,646 ) 477,021 861,227 (3,496 ) 857,731

Total Operating Loss (434,034 ) 25,646 (408,388 ) (740,896 ) 3,496 (737,400 )

Interest Expense (27,047 ) (15,250 ) d (11,797 ) (96,184 ) (71,782 ) d (24,402 )

Total Other Income (Expense) (27,047 ) 15,250 (11,797 ) (96,184 ) 71,782 (24,402 )

Net Loss (461,081 ) 40,896 (420,185 ) (837,080 ) 75,278 (761,802 )

Net Loss per share (0.001 ) 0.000 (0.001 ) (0.001 ) 0.000 (0.001 )

Vycor Medical, Inc.

Consolidated Statements of Cash Flows

For the Six Months Ended

June 30, 2010

As Reported Adjustment Restated

Net Loss (837,080 ) 75,278 (761,802 )

Amortization of Debt Discount Expense 71,782 (71,782 ) d -

Share-based compensation 130,488 (3,496 ) c 126,992

Shares issued for consulting services 19,375 (6,458 ) c 12,917

Changes in Accrued liabilities 51,497 6,458 57,955

Cash used in operating activities (769,611 ) - (769,611 )

Cash provided by investing activities 456 - 456

Cash provided by financing activities 889,500 - 889,500

Net Increase in Cash 120,345 - 120,345

Notes:

a Grant date fair value of warrants issued for consulting services

b Elimination debt discount where no Beneficial Conversion Feature exists

c Net change in expense from converting amortization period from life of warrant to life of service agreement

d Reversal of BCF amortization where no Beneficial Conversion Feature exists

6. NOTES PAYABLE

As of June 30, 2010 and December 31, 2009, Notes Payable consists of:

June 30, 2010 December 31, 2009

On December 29, 2009, in conjunction with a debt restructuring (see Note 5) the Company issued a convertible debenture in the amount of $70,000 payable to Fountainhead Capital Management Limited. This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. On May 14, 2010, this loan was satisfied. - 70,000

On December 29, 2009, in conjunction with a debt restructuring (see Note 5), the Company issued a convertible debenture in the amount of $371,362 payable to Fountainhead Capital Management Limited. This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 $0.0125 per share, subject to adjustment and does not require bifurcation. On May 14, 2010, the due date for satisfaction was extended to June 30, 2011. 371,362 371,362

On December 29, 2009, the Company issued a convertible debenture in the amount of $350,000 payable Regent Private Capital, LLC ("Regent"). This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 $0.0125 per share, subject to adjustment and does not require bifurcation. On December 29, 2009, this debenture was amended to provide for automatic conversion, subject to the Company authorizing sufficient shares to convert this, and other existing instruments, and transferred to three parties. On January 11, 2010 (see Note 10), these notes were satisfied in accordance with the automatic conversion clause. - 350,000

June 30, 2010 December 31, 2009

On December 29, 2009, the Company issued a convertible debenture in the amount of $453,690 payable Regent Private Capital, LLC ("Regent"). This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 $0.0125 per share, subject to adjustment and does not require bifurcation. On December 29, 2009, this debenture was amended to provide for automatic conversion, subject to the Company authorizing sufficient shares to convert this, and other existing instruments, and transferred to five parties. On January 11, 2010 (see Note 10), these notes were satisfied in accordance with the automatic conversion clause. - 453,690

On February 3, 2010, the Company issued a convertible debenture in the amount of $70,000 payable to Fountainhead Capital Management Limited. This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 $0.0125 per share, subject to adjustment and does not require bifurcation.. On May 14, 2010, the due date for satisfaction was extended to June 30, 2011. 70,000 -

Total Notes Payable: $ 441,362 $ 1,245,052

The following is a schedule of future minimum loan payments:

Twelve months ending June 30, Amount

2011 $ 441,362

2012 -

2013 -

2014 -

2015 -

Thereafter -

Total $ 441,362

As of June 30, 2010, the Company's entire notes payable is secured by a first security interest in all of the assets of the Company. The Company determines the existence of a beneficial conversion feature of its convertible debt under the guidance of ASC Topic 470 by assessing the intrinsic value of such conversion feature at the time of issuance. For each of the convertible debt instruments set out above, the fair value of the stock on the date of issue was either the same or less than the conversion price, and so there was no value attributable to any beneficial conversion feature.

7. EQUITY

Certain Equity Transactions

As prescribed in a previous agreement, in consideration for services provided to the Board of Directors, the Company issued 800,000 shares of its common stock to Steven Girgenti on February 23, 2010.

On January 11, 2010, in accordance with the terms prescribed in debentures totaling $803,690, the Company issued 64,295,200 common shares to automatically convert said debentures at the rate of $0.0125 per share.

In accordance with the previously filed Certificate of Designation, the Company has sold 140,000 shares of Series B Preferred Stock during the current fiscal year for an aggregate amount of $140,000. These shares yield dividends of 8% per annum, payable in cash or stock at the Company's sole discretion. Series B Preferred Stock can be converted into the Company's Common Stock at a multiple of 80 common shares per Series B share at the holder's discretion, or can be redeemed by the Company using the equivalent multiple after the issue's one year anniversary.

In accordance with an agreement with Joe Simone for consulting services relating to identifying sales and marketing opportunities, increasing investor awareness of the Company, identifying potential new investors who might have an interest in investing in the Company, and other activities in the furtherance of the above, the Company issued 750,000 shares of its Common Stock valued at $9,375.

On April 14, 2010, by action by written consent of the Board of Directors, the Company developed the 2010 Professional/Consultant Stock Compensation Plan. Further, a Form S-8 Registration Statement was filed with the Securities and Exchange Commission on April 16, 2010, registering 934,986 shares for the Plan's use. It was further resolved that these shares be issued to Gregory Sichenzia for services provided to the Company by Sichenzia Ross Friedman Ference LLP, valued at $14,025.

From April 13, 2010 through May 10, 2010, the Company accepted Subscription Agreements from eleven subscribers for the purchase of its Common Stock. In accordance with these Agreements, 49,966,665 shares were purchased at $0.015 per share, totaling $749,500. Approximately $72,500 of reimbursable out-of-pocket costs were incurred by consultants in furtherance of these transactions.

8. SHARE-BASED COMPENSATION

The Company recognizes the cost of all share-based payments under the relevant authoritative accounting guidance. Share-based payments include any remuneration paid by the Company in shares of the Company's common stock or financial instruments that grant the recipient the right to acquire shares of the Company's common stock. For share-based payments to employees, which consist only of awards made under the stock option plan described below, the Company accounts for the payments in accordance with the provisions of ASC Topic 718, "Stock Compensation" (formerly referred to as SFAS No. 123(R)). Share-based payments to consultants, service providers and other non-employees are accounted for under in accordance with ASC Topic 718, ASC Topic 505, "Equity Payments to Non-Employees" or other applicable authoritative guidance.

Stock Option Plan

The Company has adopted the Vycor Medical, Inc Employee, Director, and Consultant Stock Plan as of February 13, 2008, that includes both incentive stock options and nonqualified stock options to be granted to employees, officers, and consultants, independent contractors, directors and affiliates of the Company. The board of directors establishes the terms and conditions of all stock options 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 nonemployees is determined based on the services being provided.

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 six months ended June 30, 2010 and 2009

Initial grants totaling 500,000 shares each were issued on February 13, 2008 to Kenneth T. Coviello, Chief Executive Officer and Heather N. Vinas, President at an exercise price of $.135 per share. The options vest 33 1/3 % on each of the first, second, and third anniversary of the grant and expire February 12, 2018. Accordingly, for the six months ended June 30, 2010, the Company recognized share-based compensation amounts of $28,920 and $28,920, for each of the respective grants.

The maximum number of shares of stock which maybe 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.

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 June 30, 2010 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.

Consulting Agreement

Heather N. Vinas Consulting Agreement

On May 14, 2010, upon the resignation and foregoing of the existing employment agreement, Heather N. Vinas ("Vinas") entered into a Consulting Agreement to provide transition services to the Company to assist in a seamless and smooth transition from her position with the Company. In this regard, Vinas will make herself available for up to five hours per month to provide services to the Company and will communicate with the Company's customers, related physicians, vendors and other persons or entities who do business with the Company to advise them of the new capacity under which she shall operate in support of the Company's good and continued relationships with such persons and entities. In consideration of these services, beginning in July, 2010 the Company will pay Vinas $6,250 per month over the 12 month term of the Consulting Agreement.

Outstanding Rights, Options, and Warrants

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 January 1, 2007 4,144,300 0.43

Granted 1,143,408 0.32

Exercised - -

Cancelled or expired - -

Outstanding at December 31, 2007 5,287,708 0.41

Granted 1,365,788 0.31

Exercised - -

Cancelled or expired (192,576 ) 0.24

Outstanding at December 31, 2008 6,460,920 $ 0.39

Granted 32,900,132 0.01

Exercised - -

Cancelled or expired (3,867,878 ) 0.40

Outstanding at December 31, 2009 35,493,174 $ 0.03

Granted 39,063,670 0.01

Exercised - -

Cancelled or expired (8,417,579 ) 0.01

Outstanding at June 30, 2010 66,139,265 $ 0.02

STOCK OPTIONS:

Number of shares Weighted
average
exercise
price per
share

Outstanding at January 1, 2007 - -

Granted - -

Exercised - -

Cancelled or expired - -

Outstanding at December 31, 2007 - -

Granted 1,050,000 0.14

Exercised

Cancelled or expired

Outstanding at December 31, 2008 1,050,000 $ 0.14

Granted - -

Exercised - -

Cancelled or expired (50,000 ) 0.14

Outstanding at December 31, 2009 1,000,000 $ 0.14

Granted - -

Exercised - -

Cancelled or expired (166,667 ) 0.14

Outstanding at June 30, 2010 833,333 $ 0.14

The weighted-average remaining contractual life of outstanding warrants and options is 4.71 and 7.88 years, respectively.

Non-Employee Stock Based Compensation

Under the terms of a consulting agreement dated February 2010, the Company issued warrants to Fountainhead Capital Management to purchase up to 39,063,670 shares of the Company's common stock at $.0125 per share. The warrants are valid from February 10, 2010 for a period of five years. This warrant was fair valued under the Black-Scholes Model and amortized over the two-year life of the consultancy agreement. For the six months ended June 30, 2010, $69,151 was recognized as share-based compensation in connection with this agreement.

Under the terms of a twelve month sales and marketing consulting agreement dated March 2010, the Company issued 750,000 shares of its Common Stock to Joe Simone, valued at $9,375. For the six months ended June 30, 2010, $2,917 was recognized as share-based compensation in connection with this agreement.

During the six months ended June 30, 2010, the Company issued and aggregate of 650,000 shares of common stock to Steven Girgenti for services rendered to the board of directors. For the six months ended June 30, 2010, $10,000 was recognized as share-based compensation for the issuance of these shares

Stock-based compensation expense charged to operations on employee options and on stock and warrants granted to the above non-employees for the six months ended June 30, 2010 is $139,908. As of June 30, 2010, there was approximately $355,091 of total unrecognized compensation costs related to non-vested stock option awards and common stock and warrants granted under service agreements, which are expected to be recognized over a weighted average period of approximately 1.43 years.

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 in the periods ended June 30, 2010 and 2009:

Six months ended June 30,

2010 2009

Risk-free interest rates 2.39 % 4-5 %

Expected life 3 years 3 years

Expected dividends 0% 0%

Expected volatility 96% 99%

Vycor Common Stock fair value $0.0125 $0.19

Total stock-based compensation expense charged to operations for options, stock and warrants granted to the above employees and non-employees for the six months ended June 30, 2010 is $139,907.

9. INCOME TAXES

The Company has incurred net operating losses since inception. The Company has not reflected any benefit of such net operating loss carry forward in the financial statements. Prior to August 15, 2007 the Company was a limited liability company and losses were flowed through to the individual members, therefore the Company only has potential tax benefits from the date it became a 'C' corporation.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income.

Based on the level of historical taxable losses and projections of future taxable income (losses) over the periods in which the deferred tax assets can be realized, management currently believes that it is more likely than not that the Company will not realize the benefits of these deductible differences. Accordingly, the Company has provided a valuation allowance against the gross deferred tax assets as follows:

June 30, 2010 December 31, 2009

Gross deferred tax assets 1,288,000 1,032,500

Valuation allowance (1,288,000 ) (1,032,500 )

Net deferred tax asset — —

As of June 30, 2010 and December 31, 2009, the Company has U.S. federal net operating loss carryforwards of approximately $3,680,000 and $2,950,000, respectively. The federal net operating loss carryforwards expire in the tax years 2027 through 2030.

Federal tax laws impose significant restrictions on the utilization of net operating loss carryforwards and research and development credits in the event of a change in ownership of the Company, as defined by the Internal Revenue Code Section 382. The Company's net operating loss carryforwards and research and development credits may be subject to the above limitations.

The relevant FASB standard resulted in no adjustments to the Company's liability for unrecognized tax benefits. As of both the date of adoption and as of June 30, 2010 there were no unrecognizable tax benefits. Accordingly, a tabular reconciliation from beginning to ending periods is not provided. The Company will classify any future interest and penalties as a component of income tax expense if incurred. To date, there have been no interest or penalties charged or accrued in relation to unrecognized tax benefits. The Company is subject to federal and state examinations for the year 2006 forward. There are no tax examinations currently in progress.

10. COMMITMENTS AND CONTINGENCIES

Lease

The Company executed a lease agreement for administrative office space at its current location at 80 Orville Drive, Bohemia, New York. The lease term is nine months ending October 31, 2010. Payments under this lease include fixed amounts for occupancy, plus additional charges for common area, phone equipment, phone usage, secure inventory storage area, office services, and other consumables. Rental expense for the six months ended June 30, 2010 and 2009 were $17,108 and $11,708, respectively.

11. SUBSEQUENT EVENTS

Common Stock Subscriptions

On August 11, 2010, in consideration for services provided to the Board of Directors (valued at $5,000), the Company issued 250,000 shares of its common stock to Steven Girgenti.

On August 11, 2010, in consideration for services provided to the Board of Directors (valued at $6,000), the Company issued 300,000 shares of its common stock to Ramin Rak, M.D., P.C.

On August 11, 2010, in consideration for services provided to the Board of Directors (valued at $5,250), the Company issued 262,500 shares of its common stock to Konstantin V. Slavin.

In August 2010, the Company received subscription agreements from four investors to purchase an aggregate of 6,571,428 shares of Company common stock at a price of $0.0175 per share for aggregate gross proceeds of $115,000.

Amendment to Certificate of Incorporation

Effective July 11, 2010, the Company amended its Certificate of Incorporation to increase the Company's authorized capital to 1,510,000,000 shares comprising 1,500,000,000 shares of Common Stock par value $.0001 per share and 10,000,000 shares of Preferred Stock par value $0.0001 per share.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward Looking Statements

This Form 10-Q contains some forward-looking statements. 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.

Restatement

With this amendment to our Quarterly Report on Form 10-Q, we have restated the following previously filed consolidated financial statements, data and related disclosures:

(1) our unaudited consolidated financial statements as of and for the periods ended June 30, 2010 and June 30, 2009 and the notes thereto contained in Part I, Item 1 of this Amendment (including our audited balance sheet for the period ended December 31, 2009 included in such financial statements);

(2) management's discussion and analysis of financial condition and results of operations as of and for the periods ended June 30, 2010 and 2009 contained in Part I, Item 2 of this Amendment.

The Restatement results from our management's determination subsequent to the issuance of our financial statements for the quarter ended June 30, 2010 that we had not properly accounted for warrants issued in connection with certain service agreements and for the beneficial conversion feature of certain convertible debentures. Specifically, management, following discussions with the Company's independent registered public accounting firm, determined that the Company had previously not recognized the fair value of warrants issued in connection with certain consulting or other service agreements at the measurement date, and had previously recognized the expense ratably over the life of the warrant. The Company's management further determined that the proper accounting, following the guidance in ASC Topic 505, is to record the fair value of these warrants as a prepaid expense on the date of issuance, and recognize the expense ratably over the life of the underlying service agreement. In addition, the Company had, since December 2009, been determining the existence of a beneficial conversion feature of convertible debt based on the fair value of the conversion feature on the date of issuance, rather than using the intrinsic value of the conversion feature on the date of issuance, as required under ASC Topic 470.

The following discussion and analysis of our financial condition and results of operations incorporates the restated amounts. For this reason the data set forth in this section may not be comparable to discussions and data in our previously filed Quarterly Report.

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 November 14, 2007, we converted into a Delaware corporation and changed our name to "Vycor Medical, Inc." ("Delaware Corporation"). Our sole reason for conversion to the Delaware Corporation was to facilitate the raising of additional

capital, as prospective investors had expressed resistance to investing in the Company as the NY LLC. At November 14, 2007, we had approximately 1,122 membership units of the NY LLC issued and outstanding. The managing members of the NY LLC determined, in their reasonable business judgment, that such units, in the aggregate, should convert to an aggregate of 17,999,999 shares of common stock of the Delaware Corporation. On this basis, we adopted a conversion ratio of 16,048 shares of common stock of the Delaware Corporation for each former unit of the NY LLC. Likewise, all conversion rights, options, warrants and any other rights to acquire units of the NY LLC (including but not limited to units issuable pursuant to the terms of the Fountainhead Bridge Loan Debenture, Fountainhead Warrant to purchase 50.22 units of the NY LLC, the Company's Option Agreement with Fountainhead dated December 14, 2006), were converted to conversion rights, options, warrants and rights to acquire common shares of the Delaware Corporation, based on the same conversion ratio. The action authorizing the conversion was adopted by the unanimous consent of the Managing Members of the NY LLC pursuant to the terms of the NY LLC Operating Agreement.

Overview of Business

Vycor Medical Inc. is a medical device company headquartered in Bohemia, NY that designs, develops and markets medical devices for use in neurosurgery. The company is ISO 13485:2003 compliant, has U.S. FDA 510(k) clearance for brain and spine surgeries, CE Marking for Europe and Canadian HPB licensing for sale in Canada of its brain retractors. The Company has developed its first product, the ViewSite Brain Access System (VBAS), a next generation brain retractor system. This is now commercialized and revenue generating. The VBAS addresses a market that has not changed materially in over 50 years in contrast to development in surgical technologies.

The second product in our pipeline is the Cervical Access System, which, pending receipt of additional funding, requires further prototyping and successful market testing and commercialization launch. Like the Brain Access System, this product is designed to assist the surgeon in cervical surgeries, allowing the surgeon to gain access to the anterior cervical surgery site.

We have received FDA 510(k) clearance for our products. Section 510(k) of the United States Food, Drug and Cosmetic Act requires medical device manufacturers to register with the U.S. Food and Drug Administration of their intent to market a medical device at least 90 days in advance. The 510(k) submission allows the U.S. Food and Drug Administration to determine whether a device is generally equivalent to similar one already on the market. With the FDA 510(k) clearance, we are authorized to take our products to market in the U.S. without further approvals.

Our Products

Viewsite Brain Access System (VBAS)

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. 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. When designing the products, we felt that if we can incorporate certain features into our products, the surgeon reaction and acceptance would be favorable. We attempted to incorporate the following features:

•

Gently separate delicate tissue by utilizing a tapered forward edge;

•

Minimize venous pressure caused by in the brain;

•

Reduce "target shift" to allow the surgeon to reach the site accurately;

•

Minimize healthy tissue damage while reaching the target site;

•

Allow for accurate neuronavigational image guidance systems ("IGS") performance;

•

Integrate in due course with the leading surgical IGS systems such as Medtronic® and BrainLab®;Stryker and GE

•

Improve surgical outcomes (reducing potential surgeon and hospital liability), for example, decreased insertion tissue trauma, less need for readjustment during surgery and minimum interface surface pressures;

•

Reduce damage to healthy brain tissue potentially leading to shorter post-op recovery and reduced hospital stay

•

To allow direct surgical visualization of brain tissue via optically transparent construction

The extent to which we are successful in achieving the above objectives will be judged by the acceptance of the devices in the market.

The Brain Access System products have the potential to significantly reduce brain tissue trauma resulting from the currently used retractors and standard access procedures. First, the unique design of the product minimizes the size of the brain entry access necessary for surgical procedures, and in turn the amount of brain tissue exposed. For instance, a brain procedure involving the removal of a 7cm cystic astrocyctoma would result in an access site (corticotomy) of approximately 20mm. However, the same procedure that was performed utilizing the Company's Brain Access System product required a corticotomy of only 2mm.

Because our products are relatively new to the market, there is no guarantee that any of the abovementioned features would prove effective and be useful by the end user.

Product shortcomings

Our products have a few shortcomings:

•

As compared to existing blade retractors our device diameter is fixed as opposed to variable which might give the surgeon less flexibility once he is at the desired location.

•

The diameters and lengths of our devices are set to specific measurements, which may limit the surgeon to these specific sizes.

•

Depending on the case, usage of a disposable product may be viewed as more costly and may not be accepted by our potential end users.

IGS Opportunity for the Brain Access System

The VBAS product has the potential to improve surgical use of IGS (Image Guidance Systems) employed in many surgeries, by addressing two substantial IGS-related problems of target shifting and the lack of real-time retractor positioning data during procedures:

• Target Shifting

The normal surgical procedure utilizing standard retractors in brain surgery require pulling away the healthy tissue to expose the targeted region of the brain located underneath. However, in many cases, the amount of pulling required causes the targeted area to shift away from what is shown on the IGS system. This target shifting then requires the surgeon to cause possible additional trauma to healthy tissue and spend additional time as the shifted target area is located and the retractor is repositioned. The VBAS system is designed to minimize or eliminate target shift, as the elliptical shape of the product distributes relatively uniform pressure on the surrounding brain tissue.

• Real-Time Retractor Positioning Data

Current retractor technology (commonly known as ribbon or blade retractors) is not well integrated with IGS systems. During insertion, the surgeon typically does not have real-time data to allow visualization of retractor insertion on the IGS monitor. The VBAS product line has the potential to adapt to IGS systems, such that the use of a Brain Access System unit will allow the surgeon to see on the surgical monitor, in real-time, exactly where the retractor is in relation to critical brain structures and underlying pathologies. With the IGS enabled unit, the tip of the introducer is literally the "pointer" on the IGS system.

Brain Access System Product Models

• TC-VBAS

The series consists of twelve disposable products, offered in four different port diameters of 17mm and 21mm, 12mm and 28 mm and a choice of three lengths for each of 3, 5, and 7cm.

Cervical Access Products

Subject to the raising of additional capital (which cannot be guaranteed), the Company will continue its preliminary work to design Cervical Access System products which would be used by the surgeon to access the anterior cervical surgical site (the uppermost vertebrae located in the neck). While the Company has filed certain intellectual property applications with respect to this technology, such development is in an early stage.

We plan to design the Cervical Access System to:

•

reduce the possibility of surrounding anatomic tissue damage, which include the trachea, esophagus, carotid artery, recurrent laryngeal and sympathetic nerve;

•

minimize skin disruption with the utilization of tapered outward edges;

•

eliminate retractor induced electrocautery burn injuries because it is made with surgical grade plastic materials;

•

enable stable fixation (directly to the spinal column) in order to avoid accidental displacement and surrounding "tissue creep"; and

•

allows for direct visualization of underlying anatomic structures using optically clear plastic.

Because the Cervical Access System products have not yet been brought to market, there is no guarantee that any of the abovementioned features would prove effective and even so, be welcomed by the end user. Further research and development is needed for a market-ready product.

New Products

Brain Retractors

Subject to the availability of additional financing, the Company's future plans include developing additional Brain Access System retractors. Our goals would be to eventually include retractor lines that are designed for the requirements of specific surgical applications like aneurisms, tumors and endoscopic work.

Additional Applications of Brain Access System and Cervical Access System Technology

We believe that our Brain Access System and Cervical Access System technology can be adapted to advance retractor systems for use in other areas of the body. We believe that the key cross-applicable benefits of our technology are:

•Promotes minimally invasive procedures from smallest possible entry incision

•Uniform pressure distribution minimizes collateral tissue damage due to stress points

•Eliminates "tissue creep" into the surgical field

•Reduces the number of materials in the surgical field

Sales and Marketing

We are implementing an educational and marketing strategy to promote product and brand awareness in our target markets including clinical papers and attending trade shows.

Domestic Sales Strategy

VBAS was launched in November 2008 with a strategy of driving sales through leading neurosurgeons. In this regard, the Company has adopted a dual strategy of targeting both the leading neurosurgeons and the leading neurosurgery hospitals. The Company believes that out of the 4,500 neurosurgeons in the US approximately 1,500 focus predominantly on craniotomies or cranial procedures that could potentially benefit from the VBAS product. Management believes that there are approximately 750-1,000 hospitals that represent the majority of its target market.

We are currently using independent distributors who have existing relationships with neurosurgeons and target hospitals.

International Sales

In Canada, the company has an exclusive agreement with a distributor focused in neurosurgery. In Europe, the company has agreements with five exclusive distributors who are also focused in neurosurgery. In China, Vycor has entered into a distribution agreement, for its VBAS. The Company has filed for but not yet received SFDA approval, which is required to sell and market products in this country.

Reference Hospitals Program

The Company has developed a Reference Hospital Program to identify centers of excellence and to provide neurosurgeons with evidence of support for our products.

Manufacturing

We have 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 have shipped orders to Vycor and have made production runs of all 12 sizes.

Market

The market for our Brain Access System product lines is the neurosurgical community. The Company has analyzed and estimated the market for its products from an analysis of available statistics, discussion with surgeons, distributors and other market participants. Vycor is currently focusing its attention for VBAS on the US, China and Europe.

Competition

Competitive manufacturers of brain retractors include:

•Cardinal Health (V. Mueller line)

•Aesculap

•Integra Life Science

•Codman (Division of Johnson & Johnson)

Cervical Access System competitors include Medtronic, Asculap/B. Braun, Cardinal and Nuvasive, Cloward Instruments, among others. In addition to the standard "blade retractors" distributed by the aforementioned companies, Medtronic distributes the MetRx dilating retractor system. In addition companies such as Endius and EBI have announced cervical retractor systems.

Customers

The Company sells to regional distributors and hospitals. The Company believes that its products currently are being evaluated or utilized in approximately 80 hospitals in the United States. In addition, in 2009 (and in the six months ended June 30, 2010) international sales accounted for approximately 25% of revenues.

Intellectual Property

Patent Applications

Below is a table setting out the status and particulars of our patent applications:

Filing date Application No. Country Title Status

22-Jun-2005 60/692,959 US - PROV Surgical Access Instruments For Use With Spinal Or Orthopedic Surgery (Cervical) Converted

22-Jun-2006 PCT/US06/24243 PCT Surgical Access Instruments For Use With Spinal Or Orthopedic Surgery (Cervical) National Phase Completed

27-Nov-2006 PCT/US06/61246 PCT Surgical Access Instruments for use with Delicate Tissues (Brain) National Phase Completed

Filing date Application No. Country Title Status

22-Jun-2006 2613323 Canada Surgical Access Instruments for use with spinal or orthopedic surgery Pending - annuity due 6/22/11; Deferred exam due 06/22/11

22-Jun-2006 06785312.7 Europe Surgical Access Instruments for use with spinal or orthopedic surgery Pending - annuity due 6/22/11

22-Jun-2006 299/KOLNP/2008 India Surgical Access Instruments for use with spinal or orthopedic surgery Pending

22-Jun-2006 2008-518369 Japan Surgical Access Instruments for use with spinal or orthopedic surgery Published

20-Dec-2007 11/993,280 US - UTIL Surgical Access Instruments for use with spinal or orthopedic surgery Published

25-Jun-2008 08107050.4 Hong Kong Surgical Access Instruments for use with spinal or orthopedic surgery Pending

18-Sep-2008 61/098041 US - PROV Surgical Access Instruments for use with Delicate Tissues (Brain) Converted

25-May-2009 2670631 Canada Surgical Access Instruments for use with Delicate Tissues (Brain) Pending - annuity due 11/27/10; Request exam due 11/27/11

27-Nov-2006 06840022.5 Europe Surgical Access Instruments for use with Delicate Tissues (Brain) Published - annuity due 11/30/10

27-Nov-2006 1977/KOLNP/2009 India Surgical Access Instruments for use with Delicate Tissues (Brain) Pending - Request exam due 11/27/10

27-Nov-2006 2009-539227 Japan Surgical Access Instruments for use with Delicate Tissues (Brain) Published

27-Nov-2006 2009124446 Russia Surgical Access Instruments for use with Delicate Tissues (Brain) Pending - Response due 08/16/10

27-Nov-2006 200680056889.9 China Surgical Access Instruments for use with Delicate Tissues (Brain) Published - Response due 11/02/10

Filing date Application No. Country Title Status

21-Aug-2009 12/545686 US - CON Surgical Access Instruments for use with Delicate Tissues (Brain) Published

21-Aug-2009 12/545719 US - CON Surgical Access Instruments for use with Delicate Tissues (Brain) (apparatus claims) Published

20-Jun-2010 10106385.8 Hong Kong Surgical Access Instruments for use with Delicate Tissues (Brain) Pending

The inventor on the above-indicated patent applications was Dr. John Mangiardi, who assigned the rights to the Sawmill Trust on September 17, 2005 under the terms of an assignment agreement between the parties. The Sawmill Trust then, in turn, assigned the same rights to the Company on September 17, 2005 pursuant to an assignment agreement between the Sawmill Trust and the Company dated the same date.

Trademarks

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

Insurance

We presently have Directors' and Officers' Liability Insurance and Product Liability insurance.

Government Regulations

We are committed to an integrated total quality management system. We have completed the necessary procedures and are 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.

In November 2009, we successfully passed our re-certification audit through Intertek. Recertification audits are required every 3 years while surveillance audits occur annually in between.

We have 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

— HPB Licensing for Canada

Continuing Regulatory Requirements

Governmental regulation in the United States and other countries is a significant factor affecting the research and development, manufacture and marketing of medical devices, including our products. In the United States, the FDA has broad authority under the Federal Food, Drug and Cosmetic Act (the FD&C Act) to regulate the development, distribution, manufacture, marketing and sale of medical devices. Foreign sales of medical devices are subject to foreign governmental regulation and restrictions that vary from country to country.

Medical devices intended for human use in the United States are classified into one of three categories, depending upon the degree of regulatory control to which they will be subject. Such devices are classified by regulation into either Class I general

controls, Class II special standards or Class III pre-market approval (PMA), depending upon the level of regulatory control required to provide reasonable assurance of the safety and effectiveness of the device.

Most Class I devices are exempt from pre-market notification (510(k)) or PMA. However Class I devices are subject to "general controls," including compliance with FDA manufacturing requirements (Quality System Regulation (QSR), sometimes referred to as current good manufacturing practices or CGMPs), adverse event reporting, labeling and other requirements. Class II devices are subject to general controls and to the pre-market notification requirements under Section 510(k) of the FD&C Act. For a 510(k) to be cleared by the FDA, the manufacturer must demonstrate to the FDA that a device is substantially equivalent to another legally marketed device that was either cleared through the 510(k) process or on the market prior to 1976. It generally takes four to twelve months from the date of submission to obtain 510(k) clearance although it may take longer. Class III is the most stringent regulatory category for devices. Class III devices are those for which insufficient information exists to assure safety and effectiveness solely through general or special controls. Class III devices are usually those that support or sustain human life, are of substantial importance in preventing impairment of human health, or which present a potential, unreasonable risk of illness or injury. Class III devices also include devices that are not substantially equivalent to other legally marketed devices. To obtain approval to market a Class III device, a manufacturer must obtain FDA approval of a PMA application. The PMA process requires more data, including ordinarily data from clinical studies testing the device in humans, takes longer and is typically a significantly more complex and expensive process than the 510(k) procedure. Clinical studies of devices in humans is also subject to regulation by the FDA. Testing must be conducted in compliance with the investigational device exemption (IDE) regulations.

According to the US FDA, our products have been classified as Class II products and cleared for marketing through the 510(k) process.

We can provide no assurance that we will be able to maintain and obtain clearances or approvals needed to introduce new products and technologies. 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 can result in enforcement action by the FDA, which may include any of the following sanctions:

•

fines, injunctions, and civil penalties;

•

recall or seizure of our products;

•

operating restrictions, partial suspension or total shutdown of production;

•

refusing a request for 510(k) clearance or premarket approval of new products;

•

withdrawing 510(k) clearance or premarket approvals that are already granted; and

•

criminal prosecution.

Medical device laws are also in effect in many of the countries outside of the United States in which we will 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.

We have obtained the CE marking approval to allow for distribution of our VBAS products in Europe and have received our HPB licensing approval for distribution in Canada.

Health Care Regulatory Issues

The health care industry is highly regulated and the regulatory environment in which we operate may change significantly in the future. In general, regulation of health care-related companies is increasing. We anticipate that Congress and state legislatures will continue to review and assess alternative health care delivery and payment systems. We cannot predict what impact the adoption of any federal or state health care reform measures may have on our business.

We regularly monitor developments in statutes and regulations relating to our business. We may be required to modify our agreements, operations, marketing and expansion strategies from time to time in response to changes in the statutory and regulatory environment. We plan to structure all of our agreements, operations, marketing and strategies in accordance with applicable law, although we can provide no assurance that our arrangements will not be challenged successfully or that required changes may not have a material adverse effect on our business, financial condition, results of operations and cash flows.

We believe that the discussion above summarizes all of the material health care regulatory requirements to which we currently are subject. Complying with these regulatory requirements may involve expense to us, delay in our operations and/or restructuring of our business relationships. Violations could potentially result in the imposition of civil and/or criminal penalties.

Results of Operations

Comparison of the Three Months Ended June 30, 2010 to the Three Months Ended June 30, 2009

The following table presents the dollar amount changes from period to period of the line-items included in our Statements of Operations for the three months ended June 30, 2010 and June 30, 2009

Three months ended: 2010 2009 Increase/
(Decrease)

Revenue:

Sales $ 74,817 $ 42,301 $ 32,517

Cost of Goods Sold 6,184 5,331 (853 )

Gross Profit 68,633 36,970 31,663

Operating expenses:

Research and Development 762 - 762

General and administrative 476,259 234,045 242,214

Operating loss (408,388 ) (197,075 ) 211,313

Interest Expense 11,797 54,639 (42,842 )

Net Loss $ (420,185 ) $ (251,714 ) $ 168,471

Revenue:

The company recorded revenue of $74,817 from the sale of our products in the three months ended June 30, 2010, an increase of 77% for the same period in 2009. The increase in sales was attributable to greater penetration and usage of our product in hospitals in the United States both direct and through distributors, and increased sales internationally. Gross margin of 92% was achieved in the three months ended June 30, 2010 compared to 87% for the same period in 2009, however gross margin is mostly a product of sale mix between US sales through distributors, US sales direct and international sales which vary quarter by quarter and for the three months ended June 30, 2010 reflected certain manufacturing credits.

Research and Development Expense:

Research and development expenses were $762 compared $0 for the three months ended June 30, 2009.

General and Administrative Expenses:

General and administrative expenses increased by $242,214 to $476,259 for the three months ended June 30, 2010 from $234,045 for the three months ended June 2009.

of reduced activity in 2009 as a result of capital constraints. This has lead to an increase in the marketing-related costs of the Company. Vycor has also carried out a series of fundraisings since the closing of the recapitalization, which has resulted in additional cash and non-cash expenses.

The increases for the three months ended June 30, 2010 over the three months ended June 30, 2009 are attributable to an increased level of sales and marketing activity, fundraising fees and related costs, offset by a reduction in corporate activity, as follows:

Total G&A expenses for the three months ended June 30, 2010 $ 234,045

Increase in marketing expenditure and travel costs 117,457

Decrease in sales commissions from sales mix change (7,051 )

Increase in personnel costs 22,709

Fundraising costs 72,500

Increase in non-cash consulting fees 9,659

Increase non-cash warrant/option recognition expense 49,891

Reduction in professional fees from reduced corporate activity (32,325 )

Increase in other operating expenses 9,374

Total G&A expenses for the three months ended June 30, 2010 $ 476,259

Warrant and Option Recognition Expense

Included within General and Administrative expenses above is a non-cash charge for share based compensation as the result of amortizing warrants and options which have been issued by the Company over various periods. The charge for the three months ended June 30, 2010 was $52,118, an increase of $49,891 over the three months ended June 30, 2009.

Interest Expense:

Interest expense for the three months ended June 30, 2010 was reduced by $42,842 to $11,797 from $54,639 for the three months ended June 30, 2009, as a result of debt reduction.

Comparison of the Six Months Ended June 30, 2010 to the Six Months Ended June 30, 2009

The following table presents the dollar amount changes from period to period of the line-items included in our Statements of Operations for the six months ended June 30, 2010 and June 30, 2009

Six months ended: 2010 2009 Increase/
(Decrease)

Revenue:

Sales $ 139,103 $ 112,389 $ 26,714

Cost of Goods Sold 18,772 14,834 (3,934 )

Gross Profit 120,331 97,555 22,776

Operating expenses:

Research and Development 5,648 - 5,648

General and administrative 852,083 576,011 276,072

Operating loss (737,400 ) (478,456 ) 258,944

Interest Expense 24,402 193,393 (168,991 )

Net Loss $ (761,802 ) $ (671,849 ) $ 89,953

Revenue:

The company recorded revenue of $139,103 from the sale of our products in the six months ended June 30, 2010, an increase of 19% for the same period in 2009 and. The increase in sales was attributable to greater penetration and usage of our product in hospitals in the United States both direct and through distributors, and increased sales internationally. Gross margin of 87% was achieved in the six months ended June 30, 2010 compared to 87% for the same period in 2009. Gross margin is mostly a product of sale mix between US sales through distributors, US sales direct and international sales which vary quarter by quarter and for the six months ended June 30, 2010 reflected certain manufacturing credits.

Research and Development Expense:

Research and development expenses were $5,648 compared to $0 for the six months ended June 30, 2009.

General and Administrative Expenses:

General and administrative expenses increased by $276,072 to $852,083 for the six months ended June 30, 2010 from $576,011 for the six months ended June 2009.

Following the recapitalization transaction that closed on December 29, 2009 board Vycor has embarked on a period of heightened sales and marketing activity and engagement with distributors and hospital customers following a prolonged period of reduced activity in 2009 as a result of capital constraints. This has lead to an increase in the marketing-related costs of the Company. Vycor has also carried out a series of fundraisings since the closing of the recapitalization, which has resulted in additional cash and non-cash expenses.

The increases for the six months ended June 30, 2010 over the six months ended June 30, 2009 are attributable to an increased level of sales and marketing activity, fundraising fees and related costs, offset by a reduction in corporate activity and a reduction in personnel costs, as follows:

Total G&A expenses for the six months ended June 30, 2009 $ 576,011

Increase in marketing expenditure and travel costs 150,849

Decrease in sales commissions from sales mix change (5,118 )

Decrease in personnel costs (29,567 )

Fundraising costs 72,500

Increase in non-cash consulting fees 33,752

Increase non-cash warrant/option recognition expense 77,613

Reduction in professional fees from reduced corporate activity (27,077 )

Increase in other operating expenses 3,120

Total G&A expenses for the six months ended June 30, 2010 $ 852,083

Warrant and Option Recognition Expense

Included within General and Administrative expenses above is a non-cash charge for share based compensation as the result of amortizing warrants and options which have been issued by the Company over various periods. The charge for the six months ended June 30, 2010 was $139,909, an increase of $77,613 over the six months ended June 30, 2009.

Interest Expense:

Interest expense for the six months ended June 30, 2010 was reduced by $168,991 to $24,402 from $193,393 for the six months ended June 30, 2009, as a result of debt reduction.

Balance Sheet, Liquidity and Capital Resources

As of June 30, 2010 we had $133,116 cash, a working capital deficit of $140,229 and an accumulated deficit of $5,661,143through June 30, 2010. The Stockholders' equity at June 30, 2010 was $134,879, an improvement from a deficit of $1,245,940at December 31, 2009. Debt at June 30, 2010 was $441,362 a reduction from $1,245,052 in December 2009.

Our operating activities used $769,611 in cash for the six months ended June 30, 2010. Aside from the increased operating expenses discussed above, the Company has significantly reduced historic payables, from $336,942 in December 2009 to $152,839 in June 2010, and increased operating assets. This is accounted for as follows:

Net cash loss adjusted for change in accrued interest $ 581,326

Reduction in accounts payable 170,079

Increase in accounts receivable and inventory 45,758

Purchase of new molds not yet delivered 18,380

Net Change in other assets and liabilities (45,932 )

$ 769,611

Going Concern

Our independent auditors have added an explanatory paragraph to their audit issued in connection with the financial statements for the period ended December 31, 2009, relative to our ability to continue as a going concern. This means that there is substantial doubt that the company can continue as an ongoing business for the next 12 months. The financial statements do not include any adjustments that might result from the uncertainty about our ability to continue our business. The company has incurred losses since inception, including net losses of $1,164,036 for the year ended December 31, 2009 and $761,802 for the six months ended June 30, 2010, and expects to incur substantial additional losses, including additional development costs, costs related to clinical trials and manufacturing expenses. The company has incurred negative cash flows from operations since inception. As of June 30, 2010 and December 31, 2009, the company had an accumulated deficit of $5,661,143 and $4,899,341, respectively, and cash and cash equivalents balance of $133,116 and $12,771 at June 30, 2010 and December 31, 2009, respectively. Since there is no record of profitable operations, there is high a possibility that you may suffer a complete loss of your investment. Because our auditors have issued a going concern opinion, there is substantial uncertainty we will continue operations in which case you could lose your investment. In these circumstances the Company believes it may not have enough cash to meet ongoing cash needs unless the Company is able to obtain additional cash from the issuance of debt or equity securities. 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. 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 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.

Recently Issued Accounting Pronouncements

The Company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.

Critical Accounting Policies and Estimates

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Currently, the Company estimates depreciation, amortization of intangible assets, and the fair values of options and warrants.

The most critical estimates that impact the financial position and results of operation of the company have to do with the methodologies and assumptions used in determining the fair value of various debt estimates. These include assumptions associated with warrants, options and stock issued in conjunction with such debt. Additionally, the Black-Scholes option pricing model and its related assumptions of volatility, risk free interest, stock price also significantly impacted share based compensation and the results of operations.

Research and Development

The Company expenses all research and development costs as incurred. For the three months ended June 30, 2010 and 2009, the amounts charged to research and development expenses were $762 and $0, respectively.

Cash and cash equivalents

The Company considers all highly liquid debt investments with original maturities of six months or less when purchased to be cash equivalents. The carrying amounts approximate fair market value because of the short maturity. 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. The Company's accounts at these institutions may, at times, exceed the federally insured limits. The Company has not experienced any losses in such accounts.

Fair Values of Financial Instruments

At June 30, 2010 and 2009, fair values of cash and cash equivalents, accounts payable, convertible promissory notes, and options and warrants approximate their carrying amount due to the short period of time to maturity and various fair value model calculations.

Property and equipment

Income taxes

The Company accounts for income taxes in accordance with SFAS 109, Accounting for Income Taxes. This statement prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases 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. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.

Patents

The Company capitalizes legal and related costs associated with the establishment of patents for its products. Costs associated with the development of the patented item or process are charged to research and development costs as incurred. The costs associated with the establishment of the patents are amortized over the life of the patent.

The Company reviews existing patents as well as those in the approval process for impairment on an annual basis using a present value, cash flow method pursuant to Statement of Financial Accounting Standards 142, Goodwill and Other Intangible Assets. Since the Company's patents are either very new or still in the process of approval, the Company does not believe that any impairment of these amounts exists.

Revenue Recognition

The Company records revenue at the time, pursuant to Staff Accounting Bulletin Topic 13(a), that a completed contract for the sale exists, title transfers to the buyer and the product is invoiced and shipped to the customer. The Company intends to sell a surgical access system which has already cleared the U.S. FDA 510(k) review process. It has been granted a 510(k) number to market to hospitals and other medical professionals. The Company does not expect the need to provide for product returns or warrantee costs but will review such potential costs after the commencement of sales.

Educational and marketing expenses

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable

ITEM 4. CONTROLS AND PROCEDURES (As Revised)

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

(a) Disclosure Controls and Procedures

We are required to maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer (also our principal executive officer) and our chief financial officer (also our principal financial and accounting officer) to allow for timely decisions regarding required disclosure.

On August 12, 2011, the Board of Directors concluded that the Company had not properly accounted for warrants issued in connection with consulting or other service agreements and for the beneficial conversion feature of certain convertible debentures. The Company had previously not recognized the fair value of warrants issued in connection with consulting or other service agreements at the measurement date, and has previously recognized the expense ratably over the life of the warrant. The Company's management has determined that the proper accounting, following the guidance in ASC Topic 505, is to record the fair value of these warrants as a prepaid expense on the date of issuance, and recognize the expense ratably over the life of the underlying service agreement. The Company has, since December 2009, been determining the existence of a beneficial conversion feature of convertible debt based on the fair value of the conversion feature on the date of issuance, rather than using the intrinsic value of the conversion feature on the date of issuance, as required under ASC Topic 470. These items had a material effect on our previously issued consolidated financial statements for the years ended December 31, 2009 and 2010 and for each of the quarters for the year ended December 31, 2010 and the quarter ended March 31, 2011, requiring us to restate the financial statements for such periods.

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 ("Exchange Act"), the Company carried out an evaluation, with the participation of the Company's management, including the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") (the Company's principal financial and accounting officer), of the effectiveness of the Company's disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, and taking the matters described above into account, the Company's CEO and CFO concluded that the Company's disclosure controls and procedures were not effective as of June 30, 2010 to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

(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. In light of the matters described above with respect to accounting for warrants issued under consulting or other service agreements and the beneficial conversion feature of certain convertible debt, the Company intends to re-evaluate its internal control over financial reporting and to implement such changes as it may deem appropriate in light of such re-evaluation.

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met and the Company's management, including the Company's CEO and CFO, does not expect that the Company's internal control over financial reporting will prevent all errors and all fraud Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected. The Company's disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, and the Principal Executive Officer and the Principal Financial Officer have concluded that these controls and procedures are effective at the "reasonable assurance" level.

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 June 30, 2010, we were not a party to any material litigation, claim or suit whose outcome could have a material effect on our financial statements.

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

On January 11, 2010, the Company issued 531,376,500 shares of common stock to Fountainhead Capital Management Limited in accordance with the terms of a Debenture Exchange Agreement dated as of December 29, 2009 (see Exhibit 4.1 to the Company's Form 8-K Current Report filed with the SEC on January 6, 2010).

On January 11, 2010, the Company issued 4,000,000 shares of common stock to Jodi Yeager on the conversion of $50,000 face value of the Company's convertible debenture.

On January 11, 2010, the Company issued 8,787,600 shares of common stock to Panamerica Capital Group, Inc. on the conversion of $109,845 face value of the Company's convertible debenture.

On January 11, 2010, the Company issued 9,187,600 shares of common stock to Hyperlink Media, LLC on the conversion of $114,845 face value of the Company's convertible debenture.

On January 11, 2010, the Company issued 10,320,000 shares of common stock to Karen Ginder on the conversion of $129,000 face value of the Company's convertible debenture.

On January 11, 2010, the Company issued 4,000,000 shares of common stock to Accessible Development Corp. on the conversion of $50,000 face value of the Company's convertible debenture.

On January 11, 2010, the Company issued 16,000,000 shares of common stock to Altitude Group, LLC on the conversion of $200,000 face value of the Company's convertible debenture.

On January 11, 2010, the Company issued 6,000,000 shares of common stock to Mario Zachariou on the conversion of $75,000 face value of the Company's convertible debenture.

On January 11, 2010, the Company issued 6,000,000 shares of common stock to Anthony Cantor on the conversion of $75,000 face value of the Company's convertible debenture.

On February 23, 2010, in consideration for services provided to the Board of Directors (valued at $10,000), the Company issued 800,000 shares of its common stock to Steven Girgenti.

In accordance with the previously filed Certificate of Designation, during the period January 2010 through March 2010, the Company sold 140,000 shares of Series B Preferred Stock during the current fiscal year for an aggregate amount of $140,000. These shares yield dividends of 8% per annum, payable in cash or stock at the Company's sole discretion. Series B Preferred Stock can be converted into the Company's Common Stock at a multiple of 80 common shares per Series B share at the holder's discretion, or can be redeemed by the Company using the equivalent multiple after the issue's one year anniversary.

In accordance with an agreement with Joe Simone for consulting services relating to identifying sales and marketing opportunities, increase investor awareness of the Company, identify potential new investors who might have an interest in investing in the Company, and other activities in the furtherance of the above, in April 2010, the Company issued 750,000 shares of its Common Stock valued at $9,375.

On August 11, 2010, in consideration for services provided to the Board of Directors (valued at $5,000), the Company issued 250,000 shares of its common stock to Steven Girgenti.

On August 11, 2010, in consideration for services provided to the Board of Directors (valued at $6,000), the Company issued 300,000 shares of its common stock to Ramin Rak, M.D., P.C.

On August 11, 2010, in consideration for services provided to the Board of Directors (valued at $5,250), the Company issued 262,500 shares of its common stock to Konstantin V. Slavin.

The securities issued in the abovementioned transactions were issued in connection with private placements exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended, pursuant to the terms of Section 4(2) of that Act and Rule 506 of Regulation D.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. (REMOVED AND RESERVED)

None.

ITEM 5. OTHER INFORMATION

Amendment to Certificate of Incorporation

ITEM 6. EXHIBITS

Index to Exhibits

31.1 Certification of Chief Financial Officer under Rule 13(a) - 14(a) of the Exchange Act.

31.2 Certification of Chief Executive Officer under Rule 13(a) - 14(a) of the Exchange Act.

32 Certification of CEO and CFO under 18 U.S.C. Section 1350



	PART I
Item 1.	Financial Statements	5

	Consolidated Balance Sheets as of June 30, 2010 (unaudited) and December 31, 2009	5

	Unaudited Consolidated Statements of Operations for the three months ended June 30, 2010 and June 30, 2009	6

	Unaudited Consolidated Statements of Operations for the six months ended June 30, 2010 and June 30, 2009	7

	Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2010 and 2009	8

	Notes to Unaudited Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	34
	PART II
Item 1.	Legal Proceedings	35

Item 1A.	Risk Factors	35


Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3.	Defaults Upon Senior Securities	37

Item 4.	(Removed and Reserved)	37

Item 5.	Other Information	37

Item 6.	Exhibits	37

SIGNATURES		38



				VYCOR MEDICAL, INC.

				By:			/s/ Kenneth T. Coviello
							Kenneth T. Coviello
							Chief Executive and
							Director (Principal Executive Officer)

				By:			/s/ Adrian C. Liddell
							Adrian C. Liddell
							Chairman of the Board and
							Director (Principal Financial Officer)


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


	Large accelerated filer o			Accelerated filer o
	Non-accelerated filer o (Do not check if a smaller reporting company)			Smaller reporting company x


			June 30, 2010 (unaudited)			December 31, 2009 (audited)
ASSETS

Current Assets

	Cash	$	133,116		$	12,771
	Accounts receivable		62,612			29,748
	Inventory		54,861			41,967
	Prepaid expenses		340,529			22,369
			591,118			106,855

Fixed assets, net			181,369			191,009

Other assets:
	Patents, net of accumulated amortization		84,619			93,704
	Website, net of accumulated amortization		5,487			7,042
	Security deposits		3,633			2,350
			93,739			103,096

TOTAL ASSETS		$	866,226		$	400,960

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
	Accounts payable	$	152,839		$	336,942
	Accrued interest		23,647			2,904
	Accrued liabilities		113,499			62,002
	Notes payable		441,362			1,245,052
TOTAL LIABILITIES			731,347			1,646,900

STOCKHOLDERS' EQUITY (DEFICIT)

	Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 140,000 and 0 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively		14			-
	Common Stock, $0.0001 par value, 1,000,000,000 shares authorized, 674,545,450 and 557,798,599 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively		67,455			55,780
	Additional Paid-in Capital		5,728,553			3,597,621
	Accumulated Deficit		(5,661,143	)		(4,899,341	)

			134,879			(1,245,940	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	866,226		$	400,960

See accompanying notes to financial statements


		For the three months ended June 30,
		2010 (unaudited)			2009 (unaudited)

Revenue	$	74,817		$	42,301

Cost of Goods Sold		6,184			5,331

Gross Profit		68,633			36,970

Operating expenses:
Research and development		762			-
General and administrative		476,259			234,045

Total Operating expenses		477,021			234,045

Operating loss		(408,388	)		(197,075	)

Interest expense		11,797			54,639

Net Loss	$	(420,185	)	$	(251,714	)

Loss Per Share
Basic and diluted	$	(0.001	)	$	(0.010	)

Weighted Average Number of Shares Outstanding		649,281,287			26,356,638


		For the six months ended June 30,
		2010 (unaudited)			2009 (unaudited)

Revenue	$	139,103		$	112,389

Cost of Goods Sold		18,772			14,834

Gross Profit		120,331			97,555

Operating expenses:
Research and development		5,648			-
General and administrative		852,083			576,011

Total Operating expenses		857,731			576,011

Operating loss		(737,400	)		(478,456	)

Interest expense		24,402			193,393

Net Loss	$	(761,802	)	$	(671,849	)

Loss Per Share
Basic and diluted	$	(0.001	)	$	(0.026	)

Weighted Average Number of Shares Outstanding		631,918,392			26,207,774


	June 30, 2010	June 30, 2009
Stock options outstanding	833,333	1,050,000
Warrants to purchase common stock	66,139,264	5,610,452
Debentures convertible into common stock	36,554,012	10,009,858
Total	103,526,609	25,670,037


	Vycor Medical, Inc.
	Consolidated Balance Sheets
	June 30, 2010						December 31, 2009
	As Reported		Adjustment		Restated		As Reported		Adjustment			Restated

Prepaid Expenses	51,489		289,040	a	340,529		22,369		-			22,369
Total Current Assets	302,078		289,040		591,118		106,855		-			106,855
Total Assets	577,186		289,040		866,226		400,960		-			400,960
Notes Payable	360,279		81,083	b	441,362		1,111,053		133,999		b	1,245,052
Total Liabilities	650,264		81,083		731,347		1,512,901		133,999			1,646,900
Additional Paid-in Capital	5,573,221		155,332	a,b	5,728,553		3,708,967		(111,346	)	b	3,597,621
Accumulated Deficit	(5,713,768	)	52,625	c,d	(5,661,143	)	(4,876,688	)	(22,653	)	c,d	(4,899,341	)
Total Stockholders' Equity (Deficit)	(73,078	)	207,957		134,879		(1,111,941	)	(133,999	)		(1,245,940	)
Total Liabilities and Stockholders' Equity	577,186		289,040		866,226		400,960		-			400,960


	Vycor Medical, Inc.
	Consolidated Statements of Operations
	Three months ended June 30, 2010							Six months ended June 30, 2010
	As Reported		Adjustment			Restated		As Reported		Adjustment			Restated

General and administrative	501,905		(25,646	)	c	476,259		855,579		(3,496	)	c	852,083
Total Operating Expenses	502,667		(25,646	)		477,021		861,227		(3,496	)		857,731
Total Operating Loss	(434,034	)	25,646			(408,388	)	(740,896	)	3,496			(737,400	)
Interest Expense	(27,047	)	(15,250	)	d	(11,797	)	(96,184	)	(71,782	)	d	(24,402	)
Total Other Income (Expense)	(27,047	)	15,250			(11,797	)	(96,184	)	71,782			(24,402	)
Net Loss	(461,081	)	40,896			(420,185	)	(837,080	)	75,278			(761,802	)
Net Loss per share	(0.001	)	0.000			(0.001	)	(0.001	)	0.000			(0.001	)


	Vycor Medical, Inc.
	Consolidated Statements of Cash Flows
	For the Six Months Ended
	June 30, 2010
	As Reported		Adjustment			Restated

Net Loss	(837,080	)	75,278			(761,802	)
Amortization of Debt Discount Expense	71,782		(71,782	)	d	-
Share-based compensation	130,488		(3,496	)	c	126,992
Shares issued for consulting services	19,375		(6,458	)	c	12,917
Changes in Accrued liabilities	51,497		6,458			57,955
Cash used in operating activities	(769,611	)	-			(769,611	)
Cash provided by investing activities	456		-			456
Cash provided by financing activities	889,500		-			889,500
Net Increase in Cash	120,345		-			120,345


	June 30, 2010	December 31, 2009
On December 29, 2009, in conjunction with a debt restructuring (see Note 5) the Company issued a convertible debenture in the amount of $70,000 payable to Fountainhead Capital Management Limited. This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 into shares of common stock of the Company at the conversion price of $0.0125 per share, subject to adjustment and does not require bifurcation. On May 14, 2010, this loan was satisfied.	-	70,000

On December 29, 2009, in conjunction with a debt restructuring (see Note 5), the Company issued a convertible debenture in the amount of $371,362 payable to Fountainhead Capital Management Limited. This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 $0.0125 per share, subject to adjustment and does not require bifurcation. On May 14, 2010, the due date for satisfaction was extended to June 30, 2011.	371,362	371,362

On December 29, 2009, the Company issued a convertible debenture in the amount of $350,000 payable Regent Private Capital, LLC ("Regent"). This debenture accrues interest rate of 6% per annum, is due August 31, 2010, 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 $0.0125 per share, subject to adjustment and does not require bifurcation. On December 29, 2009, this debenture was amended to provide for automatic conversion, subject to the Company authorizing sufficient shares to convert this, and other existing instruments, and transferred to three parties. On January 11, 2010 (see Note 10), these notes were satisfied in accordance with the automatic conversion clause.	-	350,000


Twelve months ending June 30,		Amount
2011	$	441,362
2012		-
2013		-
2014		-
2015		-
Thereafter		-
Total	$	441,362


	Number of shares			Weighted average exercise price per share
Outstanding at January 1, 2007	4,144,300			0.43

Granted	1,143,408			0.32
Exercised	-			-
Cancelled or expired	-			-
Outstanding at December 31, 2007	5,287,708			0.41

Granted	1,365,788			0.31
Exercised	-			-
Cancelled or expired	(192,576	)		0.24
Outstanding at December 31, 2008	6,460,920		$	0.39

Granted	32,900,132			0.01
Exercised	-			-
Cancelled or expired	(3,867,878	)		0.40
Outstanding at December 31, 2009	35,493,174		$	0.03

Granted	39,063,670			0.01
Exercised	-			-
Cancelled or expired	(8,417,579	)		0.01
Outstanding at June 30, 2010	66,139,265		$	0.02

STOCK OPTIONS:


	Number of shares			Weighted average exercise price per share


Outstanding at January 1, 2007	-			-

Granted	-			-
Exercised	-			-
Cancelled or expired	-			-
Outstanding at December 31, 2007	-			-

Granted	1,050,000			0.14
Exercised
Cancelled or expired
Outstanding at December 31, 2008	1,050,000		$	0.14

Granted	-			-
Exercised	-			-
Cancelled or expired	(50,000	)		0.14
Outstanding at December 31, 2009	1,000,000		$	0.14

Granted	-			-
Exercised	-			-
Cancelled or expired	(166,667	)		0.14
Outstanding at June 30, 2010	833,333		$	0.14


	Six months ended June 30,
	2010	2009
Risk-free interest rates	2.39 %	4-5 %
Expected life	3 years	3 years
Expected dividends	0%	0%
Expected volatility	96%	99%
Vycor Common Stock fair value	$0.0125	$0.19


	June 30, 2010		December 31, 2009
Gross deferred tax assets	1,288,000		1,032,500
Valuation allowance	(1,288,000	)	(1,032,500	)
Net deferred tax asset	—		—


Three months ended:		2010			2009			Increase/ (Decrease)

Revenue:
Sales	$	74,817		$	42,301		$	32,517
Cost of Goods Sold		6,184			5,331			(853	)
Gross Profit		68,633			36,970			31,663
Operating expenses:
Research and Development		762			-			762
General and administrative		476,259			234,045			242,214
Operating loss		(408,388	)		(197,075	)		211,313
Interest Expense		11,797			54,639			(42,842	)
Net Loss	$	(420,185	)	$	(251,714	)	$	168,471


Total G&A expenses for the three months ended June 30, 2010	$	234,045

Increase in marketing expenditure and travel costs		117,457
Decrease in sales commissions from sales mix change		(7,051	)
Increase in personnel costs		22,709
Fundraising costs		72,500
Increase in non-cash consulting fees		9,659
Increase non-cash warrant/option recognition expense		49,891
Reduction in professional fees from reduced corporate activity		(32,325	)
Increase in other operating expenses		9,374

Total G&A expenses for the three months ended June 30, 2010	$	476,259


Six months ended:		2010			2009			Increase/ (Decrease)

Revenue:
Sales	$	139,103		$	112,389		$	26,714
Cost of Goods Sold		18,772			14,834			(3,934	)
Gross Profit		120,331			97,555			22,776
Operating expenses:
Research and Development		5,648			-			5,648
General and administrative		852,083			576,011			276,072
Operating loss		(737,400	)		(478,456	)		258,944
Interest Expense		24,402			193,393			(168,991	)
Net Loss	$	(761,802	)	$	(671,849	)	$	89,953


Net cash loss adjusted for change in accrued interest	$	581,326
Reduction in accounts payable		170,079
Increase in accounts receivable and inventory		45,758
Purchase of new molds not yet delivered		18,380
Net Change in other assets and liabilities		(45,932	)
	$	769,611



	31.1			Certification of Chief Financial Officer under Rule 13(a) - 14(a) of the Exchange Act.
	31.2			Certification of Chief Executive Officer under Rule 13(a) - 14(a) of the Exchange Act.
	32			Certification of CEO and CFO under 18 U.S.C. Section 1350