Titan Medical Reports Second Quarter 2020 Financial Results
August 12 2020 - 5:30PM
Business Wire
Titan Medical Inc. (“Titan” or the “Company”) (TSX:
TMD) (Nasdaq: TMDI), a medical device company focused on the
design and development of single-port robotic surgical
technologies, announces financial results for the three and six
months ended June 30, 2020.
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 June 30,
2020 may be viewed at www.sedar.com and at www.sec.gov.
David McNally, President and CEO of Titan, said, “The most
significant event of the first half of 2020 was the execution of a
license agreement, a development and license agreement and a senior
secured note with Medtronic plc, which we announced on June 4. We
are honored to have secured this relationship based on the value
demonstrated in our intellectual property and technology, and the
confidence in our technical know-how in single-port robotic surgery
to develop, over the course of the next 12 months, technologies for
the mutual benefit of each company.”
Mr. McNally continued, “Following the announcement of the
agreements with Medtronic, we received a $10 million license
payment in accordance with the license agreement. We then secured
and announced the closing of an $18 million registered direct
offering on June 11, 2020, which has allowed us to resume
development of instruments for our single-port robotic surgical
system, and satisfies one of the milestones under the development
and licensing agreement.”
Mr. McNally concluded, “During the first half of 2020, we also
reached agreement on a payment plan with one of our product
development suppliers and resolved pending litigation with another
service provider. We are now focused on staffing our newly created
U.S. affiliate’s new facility in Chapel Hill, North Carolina in
order to execute on the development milestones associated with our
single-port surgical system, while continuing progress toward those
associated with the development and license agreement.”
Business highlights and achievements for the first six months of
2020 and recent weeks include:
- On January 6, the Company and Cambridge Design Partnership Ltd.
announced an expanded engagement for robotic instrument
development.
- On January 27, the Company announced that it had received ISO
13485:2003 Certification from a European Notified Body.
- On March 27, the Company announced the closing of a registered
direct offering priced at-the-market under Nasdaq rules, resulting
in total gross proceeds of approximately $1.2 million.
- On April 30, the Company announced the agreement of a payment
plan for outstanding amounts and resumption of development services
with one of its product development suppliers.
- On May 6, the Company announced the closing of a registered
direct offering priced at-the-market under Nasdaq rules, resulting
in total gross proceeds of approximately $2.0 million.
- On June 4, the Company, announced a development and license
agreement with Medtronic to further the development of
robotic-assisted surgical technologies, as well as a separate
license agreement with Medtronic in respect of certain intellectual
property of the Company.
- On June 8, the Company announced a registered direct offering
priced at-the-market under Nasdaq rules, resulting in total gross
proceeds of approximately $18 million.
- On June 9, the Company announced the settlement of pending
litigation with Naglreiter Consulting, LLC.
- On June 11, the Company announced the appointment of Phillip L.
McStotts to the Company’s Board of Directors and its Audit
Committee.
- On June 15, the Company announced that it established Titan
Medical USA Inc. as a wholly owned U.S. subsidiary, which is based
in Chapel Hill, North Carolina at a facility that will initially be
used for research and development activities.
- On June 25, the Company announced that it had promoted
intellectual property strategy leader Jasminder Brar to Vice
President of Legal, IP and Strategic Initiatives, and General
Counsel.
- On August 1, David McNally, President and CEO of Titan Medical,
presented at the Society of Robotic Surgery (SRS) 2020 World
Robotic Symposium in the virtual plenary session titled “Future
Robotic Platforms”.
- On July 30, the Company announced that it had completed design
enhancements to instruments compatible for use with its single-port
robotic surgical system.
Financial results for the three and six months ended June 30,
2020 include:
- Research and development (“R&D”) expenses for the three and
six months ended June 30, 2020 were $121,463 and $167,582,
respectively, compared with R&D expenses of 18,360,674 and
$32,769,286, 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.
- Net and comprehensive losses for the three and six months ended
June 30, 2020 were 1,143,199 and $1,911,242, compared with a net
and comprehensive losses of 14,472,866 and $42,755,746, for the
three and six months ended June 30, 2019, respectively. In addition
to reduced R&D expenses, the results for both periods include
recognition in June 2020 of $10 million in revenue from the license
agreement with Medtronic, a gain on settlement of a supplier claim,
and the impact of changes in the valuation of outstanding
warrants.
- Cash and cash equivalents as of June 30, 2020 were $28,689,757,
compared with cash and cash equivalents of $814,492 as of December
31, 2019. At June 30, 2020, current liabilities, excluding warrant
liability were $8,471,270 compared with $11,433,967 as of December
31, 2019.
- At June 30, 2020, the Company had working capital of
$21,746,851 compared to a working capital deficit of $9,684,525 at
December 31, 2019.
About Titan
Titan Medical Inc. is focused on robotic-assisted technologies
for application in minimally invasive surgery (“MIS”). Titan is
developing a single-port robotic surgical system comprised of a
surgeon-controlled patient cart that includes a dual-view camera
system with 3D and 2D high-definition vision systems and
multi-articulating instruments for performing MIS procedures, and a
surgeon workstation that provides an ergonomic interface to the
patient cart and a 3D high-definition endoscopic view of the MIS
procedure. Titan intends to initially pursue gynecologic surgical
indications for use of its single-port robotic surgical system.
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. These statements, include but are not limited to
statements with respect to the planned achievement of milestones
associated with the license agreement, development and license
agreement and senior secured note with Medtronic, Titan’s intention
to develop technologies for the mutual benefit of Titan and
Medtronic, Titan’s focus on staffing its U.S. affiliate’s new
facility in Chapel Hill, North Carolina and its reasons for doing
so and the development of Titan’s own single-port surgical system,
it’s anticipated features and the initial surgical indications
Titan intends to pursue. These statements reflect management’s
current beliefs with respect to future events and are based on
information currently available to management. There can be no
assurance that the Company will be successful in raising additional
capital necessary to recruit and retain key employees and to
complete development of its single-port robotic surgical system.
Furthermore, as previously announced on March 30, 2020, the Company
notes that its business and prospects are subject to added risks
associated with and arising from COVID-19, and the uncertainty of
the effects, duration and severity of the outbreak. For example,
the potential effects on the Company’s product and service
providers, consultants, U.S. and European regulatory authorities
and investigational hospital sites is presently unknown. Titan’s
previous market opportunity and growth projections are rendered
unreliable given the severity of COVID-19 on the healthcare sector
as well as, more broadly, on the economy and the capital markets.
The Company therefore has withdrawn and disclaimed all prior
disclosures and references in its annual information forms,
management’s discussion and analysis, material change reports, news
releases, investor presentations, letters to shareholders,
prospectuses and other regulatory filings, with respect to: i)
market research reports published by external market research
firms; ii) market size and growth projections; iii) any and all
product and service pricing estimates; iv) revenue projections; and
v) market and revenue growth set forth in news releases or filings
of other issuers in the robotic surgical technology sector.
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 for the year ended December 31, 2019
(which may be viewed at www.sedar.com and 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200812005715/en/
Stephen Randall Chief Financial Officer +1-416-548-7522
stephen@titanmedicalinc.com
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