Titan Medical Reports Fiscal Year 2023 Results

TORONTO, Ontario, March 29, 2024 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF), today reported financial results for the fiscal year ended December 31, 2023.

Recent Activities:

• On August 14, 2023, the Company announced the appointment of Dr. Daniel O’Brien, MD, MBA, Ph.D 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 had changed its auditor from BDO Canada LLP to MNP LLP.

• On March 18, 2024, the Company announced it has entered into a definitive amalgamation agreement (the “Definitive Agreement”) with Conavi Medical Inc. (“Conavi”) to combine the companies in an all-stock transaction (the “Transaction”). Under the terms of the Definitive Agreement, a newly incorporated and wholly-owned subsidiary of the Company and Conavi will amalgamate and the shareholders of Conavi will be issued Common Shares of the Company (“Common Shares”) based on an exchange ratio to be determined pursuant to the Definitive Agreement. Titan is focused on the execution of the Transaction, but the Transaction remains subject to a number of conditions precedent set forth in the Definitive Agreement, including the approval of the Company shareholders, the Conavi shareholders, and the approval of the TSX Venture Exchange for the listing of the Common Shares following closing of the Transaction.
  

Financial Highlights:

As of December 31, 2023, Titan had cash of $7.5 million, compared to $3.3 million on December 31, 2022. Working capital improved to $5.5 million as at December 31, 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 $5.7 million from December 31, 2022.

Revenue was $17.6 million for the year ended December 31, 2023 compared to $nil for the year ended December 31, 2022. In the current period, the Company recognized $15.5 million in revenue from the asset purchase and non-exclusive license agreement with Medtronic and the Intuitive License Agreement, as the agreements allow both Medtronic and Intuitive to use certain of the Company’s IP 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 under a Development and Pre-Clinical Supply Agreement.