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

TORONTO, Ontario, Nov. 02, 2023 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF), announced today financial results for the three and nine months ended September 30, 2023.

Recent Activities:

• On August 14, 2023, the Company announced the appointment of Dr. Daniel O’Brien, MD, MBA, PHD to its Board of Directors.
• On August 21, 2023, the Company announced a licensing agreement with Auris Health, Inc., a Johnson & Johnson MedTech Company.
• On October 18, 2023, the Company announced it has changed its auditor from BDO Canada LLP to MNP LLP.
  
  

Financial Highlights:

As of September, 30, 2023, Titan had cash of $8.9 million, compared to $3.3 million on December 31, 2022. Working capital improved to $7.6 million as at September 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 $5.3 million from the first quarter of 2023.

Revenue was $0.5 million and $17.1 million for the three and nine months ended September 30, 2023 compared to $nil for the three and nine months ended September 30, 2022. In the current period, the Company recognized $15.0 million in revenue from the asset purchase and license agreement with Medtronic plc (“Medtronic”) and the non-exclusive license agreement with Intuitive Surgical, Inc. . The Company also recognized $1.7 million of revenue for the completion of the final deliverables on a purchase order for Medtronic.

Research and development expenses were $0.1 million for the three months ended September 30, 2023 compared to $7.6 million for the three months ended September 30, 2022. R&D expenses were $0.9 million for the nine months ended September 30, 2023 compared to $26.7 million for the nine months ended September 30, 2022.

The decrease in R&D expenses is related to the Strategic Review. In the three and nine months ended September 30, 2023, the Company implemented cost-cutting measures that significantly reduced R&D expenses. In the comparative period, R&D expenses were related to the development of the Enos System and transferring key components of the Enos System to manufacturing.

General and administrative expenses were $1.1 million and $7.7 million for the three and nine months ended September 30, 2023 compared to $3.0 million and $8.7 million for the comparative periods ended September 30, 2022. The decrease in G&A expenses in the current period is related cost-cutting measures.