Titan Medical Reports Operating and Financial Results for the Second Quarter 2023

TORONTO, Ontario, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF), announced today financial results for the three and six months ended June 30, 2023.

Recent Activities:

• On May 26^th and June 5^th, respectively, the Company announced IP licensing transactions for total upfront payments of $15.5 million.
• On May 29^th, as a result of the strategic review process (“Strategic Review”) announced on November 30, 2022, the Board of Directors of Titan (the “Board”) approved a strategic transition in the Company’s business from the development and commercialization of robotic-assisted surgeries (“RAS”) technologies to evaluating new opportunities to further develop and license its intellectual property (“Strategic Transition”). Titan continues to retain the rights necessary to develop and commercialize RAS technologies, should it choose to do so, including the two-instrument Enos single-access RAS system (the “Enos System”) and, as announced on January 9, 2023, a three-instrument single-access RAS system that builds on the Enos System technologies.
• On May 29^th, the Company announced executive leadership team changes effective June 1, 2023, reflecting the Company’s Strategic Transition and to reduce operating expenses in the business, including the appointment of Paul Cataford as interim President and CEO, and Chien Huang as CFO.
  
  

Financial Highlights:

The Company has improved its cash position with proceeds of $15.5 million from two IP licensing transactions announced on May 26^th and June 5^th.

As of June 30, 2023, Titan had cash of $10.6 million, compared to $3.3 million on December 31, 2022. Working capital improved to $7.4 million as at June 30, 2023 compared to a deficit of $3.9 million as at December 31, 2022. In addition, the Company has reduced its outstanding financial obligations to vendors by $4.1 million from the first quarter of 2023.

Revenue was $16.7 million for the three months ended June 30, 2023 compared to $nil for the comparative period ended June 30, 2022. In the current period, the Company recognized $15.0 million in revenue from the non-exclusive licensing agreement with Intuitive and Medtronic as the agreement allow both Intuitive and Medtronic to use the Company’s intellectual property as it exists when the license is granted. The Company also recognized $1.7 million of revenue for the completion of the final deliverables on the purchase order for Medtronic.