Titan Medical Inc.

Titan reported cash and cash equivalents of $11.6 million as of September 30, 2022, versus $32.3 million at December 31, 2021. Total expenses were $10.6 million in Q3 2022, down from $14.1 million in Q3 2021; R&D was $7.6 million versus $10.7 million, and G&A was $3.0 million versus $3.4 million. For the nine months ended September 30, 2022, total expenses were $35.4 million versus $37.9 million a year earlier; R&D was $26.7 million versus $28.4 million; and G&A was $8.7 million versus $9.6 million. Management said cash on hand is expected to fund operations into the first quarter of 2023. Looking ahead, Titan expects first Enos delivery to Chapel Hill next month, IDE submission in mid-2023, human clinical trials next year subject to IDE approval, and a De Novo submission in 2024.

Cary Vance emphasized that the quarter’s key milestone was Enos entering production at Benchmark, which he framed as bringing commercialization materially closer. He positioned Enos as a differentiated single-access robotic surgery platform designed to improve outcomes, surgeon usability, and hospital economics, while stressing that the company is still focused on de-risking the program through manufacturing, verification/validation, IDE submission, and clinical trials. His tone was upbeat and promotional, but grounded in execution milestones rather than near-term revenue.

Stephen Lemieux focused on the balance sheet, expenses, and financing flexibility. He said cash and cash equivalents were $11.6 million at September 30, 2022 and reiterated that this should fund operations into Q1 2023; he also noted the company is exploring additional capital funding ideas to carry the business through commercialization. On costs, he highlighted Q3 total expenses of $10.6 million, down from $14.1 million last year, with R&D down to $7.6 million from $10.7 million and G&A down to $3.0 million from $3.4 million. He also said the F3 shelf became effective on August 25, 2022 and can provide capacity to raise up to $90 million over 36 months, and discussed the proposed share consolidation as a potential step to regain NASDAQ compliance if needed.

Analysts focused on the expected timing of Enos delivery and readiness for clinical studies, and management said the system should arrive in Chapel Hill next month for verification and validation testing, with human trials targeted for next year subject to IDE approval. Questions also centered on the NASDAQ bid-price issue; management said a share consolidation would be the last option to regain compliance and that delisting risk would arise if compliance is not evidenced before December 26, 2022, though the company would likely appeal. Other questions covered funding, where management said cash lasts into Q1 2023 and additional capital ideas are being explored, plus Medtronic and launch strategy, where management described on-time instrument/camera delivery, broader strategic interest, and a planned launch approach built around KOL centers and reference sites.