Titan Medical Inc.

Titan reported no revenue in the transcript. For Q3 2022, total expenses were $10.6 million versus $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; R&D was $26.7 million versus $28.4 million; and G&A was $8.7 million versus $9.6 million. Cash and cash equivalents were $11.6 million at September 30, 2022 versus $32.3 million at December 31, 2021, and management said that cash should fund operations into the first quarter of 2023. Forward-looking items: first Enos system delivery to Chapel Hill is expected next month; IDE submission is planned for mid-2023; human clinical trials are expected to start next year subject to IDE approval; De Novo submission is planned for 2024; and commercialization begins after FDA marketing authorization.

Cary Vance focused on execution milestones and positioning Enos as a differentiated single-access robotic surgery platform. He emphasized the move from development into production, the planned delivery of the first system next month, and the intent to reduce risk step by step through manufacturing, testing, clinical trials, and regulatory filings. His tone was optimistic, but it was tied to concrete milestones rather than near-term commercialization.

Stephen Lemieux walked through a lighter expense profile in Q3, with total expenses down to $10.6 million from $14.1 million a year ago, mainly because R&D fell to $7.6 million from $10.7 million as the company transitions from development to manufacturing. He also noted G&A declined to $3.0 million from $3.4 million, and cash of $11.6 million should fund operations into the first quarter of 2023. On capital allocation and financing, he highlighted the effective F-3 shelf that could allow up to $90 million of common shares, warrants, and/or units over 36 months, and said the company is exploring additional capital to fund the business through commercialization.

The most notable questions centered on timing and financing: when the Enos system will be delivered and ready for clinical use, how the company plans to avoid NASDAQ delisting, and how it intends to fund the path to IDE submission and commercialization. Management said delivery to Chapel Hill is expected next month, human trials are targeted for next year subject to IDE approval, and the share consolidation is the last available option if the company cannot regain bid-price compliance before December 26, 2022. They also said cash only lasts into Q1 2023 and that they are exploring additional capital sources, while the F-3 shelf adds flexibility to raise up to $90 million.