Titan Medical Reports Third Quarter Financial Results
November 16 2020 - 06:00AM
Business Wire
Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD)
(Nasdaq: TMDI), a medical device company focused on the design
and development of surgical technologies for robotic single access
surgery, announces financial results for the three and nine months
ended September 30, 2020, highlighted by the Company’s improved
cash position, which, as of September 30, 2020, reflects a positive
difference of approximately $24 million compared to its cash
position at December 31, 2019.
All financial results are prepared in accordance with
International Accounting Standards (“IAS”) 34 on a basis consistent
with the Company’s 2019 annual financial statements and are
reported in U.S. dollars, unless otherwise stated. The unaudited
condensed interim consolidated financial statements and
management’s discussion and analysis for the period ended September
30, 2020 may be viewed at www.sedar.com and at www.sec.gov.
“Titan made significant progress during the third quarter of
this year. We recommenced the development of our robotic single
access surgical system, unveiled ‘Enos’ as its new brand name, and
updated our corporate identity. Today, we are proud to launch our
revamped website reflecting the new branding,” said David McNally,
President and Chief Executive Officer of Titan. “During the quarter
we also continued with the development activities commenced in
mid-June under the development and license agreement with
Medtronic, leading to the on-schedule and successful completion of
the first technical milestone in October 2020. This first phase of
the program was an intensive four-month effort and the results are
a testament to the expertise and the innovative culture of our
in-house and partner service provider teams.”
Demonstrating the Company’s commitment to more frequent
shareholder communications, a video of recent highlights presented
by David McNally is on the Company’s website at
https://www.titanmedicalinc.com/videos/.
Business highlights for the third quarter of 2020 and recent
weeks include:
- On July 30, the Company announced that it had completed design
enhancements to the instruments for the Enos™ robotic single access
surgical system, which are expected to improve strength, agility,
movement efficiency, and durability for reprocessing, while
potentially reducing manufacturing costs.
- David McNally, President and CEO of Titan, presented at three
conferences including: on August 1, at the plenary session of the
Society of Robotic Surgery 2020 World Robotic Symposium; on
September 2, at the LD Micro LD 500 Virtual Conference for microcap
companies with valuations up to $300 million; and on September 14,
at the H.C. Wainwright 22nd Annual Global Investor Conference.
- Continued expansion of the Company’s intellectual property
portfolio, with the issuance of certain robotic surgery patents
related to camera and system control as announced on September 17,
and additional issuances and filings bringing the Company’s totals
to 59 issued patents and 85 applications pending as of September
30.
- On September 21, the Company revealed the new Enos robotic
single access surgical system brand identity, replacing the SPORT
brand identity.
- An ISO 13485:2016 surveillance audit was successfully completed
in September by TÜV SÜD, the Company’s European Notified Body.
- On September 30, Stephen Randall, CFO of Titan, retired after
serving more than 10 years with the Company, and effective October
1, Monique L. Delorme was promoted to CFO from VP of Finance.
- On October 7, following approval by shareholders at its Annual
and Special Meeting of Shareholders, the Company announced the
election of Paul Cataford, Anthony J. Giovinazzo and Cary G. Vance
to the Board of Directors.
- On October 26, the Company announced the on-schedule
accomplishment of the first technical milestone pursuant to the
Medtronic development and license agreement, and on October 28,
received the related $10 million license payment.
- As of November 16, the Company has increased its office and lab
space for the growing product development team at its subsidiary,
Titan Medical USA Inc., in Chapel Hill, North Carolina. Drawing
talent from the Research Triangle Park area, the team has grown to
8 technical experts who are focused on advancing the Enos system,
including software development and implementation of enhancements
to its camera systems, multi-articulated instruments, and patient
cart.
Financial results for the three and nine months ended September
30, 2020 include:
- Net and comprehensive losses for the three and nine months
ended September 30, 2020 were $1,640,633 and $3,551,875, compared
with net and comprehensive losses of $1,564,196 and $44,319,942,
for the three and nine months ended September 30, 2019,
respectively. In addition to reduced R&D expenses, the results
include recognition in June 2020 of $10 million in revenue from a
license agreement with Medtronic, and a gain on settlement of a
supplier claim. Further, both the three and nine months ended
September 30, 2020 were impacted, as compared to the prior periods,
by the changes in the valuation of outstanding warrants.
- Research and development (“R&D”) expenses for the three and
nine months ended September 30, 2020 were $2,265,975 and
$2,433,557, respectively, compared with R&D expenses of
$16,570,480 and $49,339,766, respectively for the corresponding
prior-year periods, as the Company suspended product development
during the first half of 2020 due to insufficiency of available
capital. The Company has since resumed its R&D program
beginning in July 2020.
- Cash and cash equivalents as of September 30, 2020 were
$24,675,913, compared with cash and cash equivalents of $814,492 as
of December 31, 2019. At September 30, 2020, current liabilities,
excluding warrant liability were $9,416,241 compared with
$11,433,967 as of December 31, 2019.
- At September 30, 2020, the Company had working capital of
$16,523,569 compared to a working capital deficit of $9,684,525 at
December 31, 2019.
About Titan
Titan Medical Inc., a medical device company headquartered in
Toronto, is focused on developing robotic assisted technologies for
application in single access surgery. The Enos™ system, by Titan
Medical, is being developed to become the new standard of care in
robotic single access surgery with dual 3D and 2D high-definition
vision systems, multi-articulating instruments, and an ergonomic
surgeon workstation. With the Enos system, Titan intends to
initially pursue gynecologic surgical indications.
Certain of Titan’s robotic assisted surgical technologies and
related intellectual property have been licensed to Medtronic plc,
while retaining world-wide rights to commercialize the technologies
for use with the Enos system.
Enos™ is a trademark of Titan Medical Inc.
For more information, visit www.titanmedicalinc.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of applicable Canadian and U.S. securities laws. Such
statements reflect the current expectations of management of the
Company’s future growth, results of operations, performance and
business prospects and opportunities. Wherever possible, words such
as “may”, “would”, “could”, “will”, “anticipate”, “believe”,
“plan”, “expect”, “intend”, “estimate”, “potential for” and similar
expressions have been used to identify these forward-looking
statements, including references to: the Company being focused on
the design and development of surgical technologies for robotic
single access surgery; the design enhancements to the instruments
of the Enos system which are expected to improve strength, agility,
movement efficiency, and durability for reprocessing, while
potentially reducing manufacturing costs; the Enos system being
developed to become the new standard of care in robotic single
access surgery with dual 3D and 2D high-definition vision systems,
multi-articulating instruments, and an ergonomic surgeon
workstation; Titan’s intention to initially pursue gynecologic
surgical indications with the Enos system; the license of certain
of Titan’s robotic assisted surgical technologies and related
intellectual property to Medtronic plc, while retaining world-wide
rights to commercialize the technologies for use with the Enos
system. These statements reflect management’s current beliefs with
respect to future events and are based on information currently
available to management. Forward-looking statements involve
significant risks, uncertainties and assumptions. Many factors
could cause the Company’s actual results, performance or
achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements, including, without limitation,
those listed in the “Risk Factors” section of the Company’s Annual
Report on Form 20F dated March 30, 2020 (which may be viewed at
www.sedar.com and at www.sec.gov). Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results, performance, or achievements may vary materially from
those expressed or implied by the forward-looking statements
contained in this news release. These factors should be considered
carefully, and prospective investors should not place undue
reliance on the forward-looking statements. Although the
forward-looking statements contained in the news release are based
upon what management currently believes to be reasonable
assumptions, the Company cannot assure prospective investors that
actual results, performance or achievements will be consistent with
these forward-looking statements. Except as required by law, the
Company expressly disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201116005309/en/
Monique L. Delorme Chief Financial Officer +1-416-548-7522
investors@titanmedicalinc.com
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