TMD.TO - Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to Titan Medical's Third Quarter 2022 Earnings Conference Call. After the presentation, there will be an opportunity for call participants to ask questions.

As a reminder, today’s conference is being recorded. I'd now turn the call over to your host, Kristen Galfetti, VP, Investor Relations. Mr. begin. may you Galfetti,

Kristen Galfetti

release Good the Titan And website financial Medical’s this the highlights. section a Call. operator. financial Relations quarter joining and Investor can results update you www be us at Earlier business press issued we for third copy morning our Titan’s morning, you, titanmedicalinc.com. third thank XXXX of everyone. A for Conference summarizing release Thank of quarter in XXXX found

call of certain constitute management's and reminder, made and statements that the this conference business looking a reflect forward As current company's during statements future operations, prospects of expectations growth, opportunities. results performance

company's all any announcing annual at results Please today's sections Forward release fiscal sec.gov. in regarding XX, and sections December financial statements available by be and including and by in results, future and assumptions. sedar.com be or looking looking achievements investment company's ended expressed uncertainties www.titanmedicalinc.com. read the which at and year may This and listed such making news looking cautions caution XXXX, be recommendations. in viewed to actual forward statements statements of news significant risk performance the risk contents cause statements looking risks, these Many report or or factors from be operating guided their our implied forward results for the and without release that involve is factors performance may as and could achievements forward limitation, different materially

Chief over Cary? With I’ll we Vance, Lemieux, Executive have and Titan’s Officer. Cary President Joining this, Titan’s Chief me Officer; call on to call and Stephen turn the Cary. today, the Financial

Cary Vance

update is my we several exciting quarter to This has welcome Medical’s our facility few at in third our our past call. an an in months. being Enos quarter view running as at had hit in the weeks, first Good goal to next places morning, plant. exciting the partner in that over is first the benchmarks look and manufacturing accomplishments System production receive is the XXXX Hill Thank they month. prior you, as closer important This the Chapel Enos We System many Kristen. ground step anytime been than Titan financial most

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Stephen Lemieux

Thank Cary. you,

all Please Turning our numbers results. note discussion to are in dollars. quarterly the U.S. financial in following

million September cash and XX to XXXX, of As XXXX. $XX.X compared December cash had of million $XX.X we equivalents at XX

cash our on will We the anticipate fund hand quarter continue into to operations first XXXX. of that

decrease $XX.X XXXX, ended were in total September million $XX.X and from million months three For the expenses XXXX. QX XX

September third decline total Benchmark, million the $XX.X quarter XXXX, of period manufacturing R&D expenses in XX expenses by year. were $XX.X is its compared XXXX. million nine-months compared System related to for this manufacturing, awaits later expenses transition of For the third same of million, was $X.X the from to XXXX, to the million $XX.X company first in ended development XXXX. the quarter to delivery in that R&D the Enos The in

$X compensation The costs. of Enos increase XX For of expenses of in quarter million to XX G&A R&D million ending to for comparative an is period period the the with development were versus compared three-month the related the labor XX XXXX, expenses and the in for ending work expenses XX $XX.X the decrease to September in related in in development period XXXX, are same development period, to the a related million under the for September Medtronic. $X.X September In ending XXXX. million for required September ending XXXX. nine-months and million. achieve to quarter $XX.X the R&D nine-month R&D the based development Enos System, milestones System, the the expenses agreement XXXX, the to $X.X decrease G&A the decreased stock expenses

public nine-month $X.X build in an primarily costs related period successfully patient to roles collaboration in compensation The million comparative were in Titan to the is in The million expertise XXXX, senior to filling on clinical XX the professional our the of between our on our a September consulting open workstations. severance increase a million, application and nine-month team. with and expenses the cards to the For remain fees submission, $X.X partner completing $X.X leadership period. offset and and and and in-house continues working decrease decrease related has expenses development G&A our Systems Enos to shifted from in trials IDE and ended System. focused manufacturing the We manufacturing commencing commercialization ultimately decrease stock Enos successfully. partners based IDE in of partially costs, by fees company compared the G&A period recruitment product

As to at option effecting minimum price with company issuer generally purposes a requires compliance including approval consolidation the of for the more days, which Cary days. shared the mentioned, minimum $X share not demonstrating NASDAQ to rules, a least with we an will the than for implement consolidation, of be bid XX to maintain business XX consecutive provide a a seeking but of shareholder by

extension with an bid shared, we requirement. NASDAQ minimum price previously us to granted As have regain compliance

affected is that at Should notify initiatives are subject resulting not its by the consolidation, if last undertake the with regain share we If minimum to liquidity a company's to NASDAQ and largest XX prior and world company able company to company's continued available the expected likely to requirement. may appeals to delisting. the bid The provide market the shareholders completion So process. option provide and company the evidence ownership to value. at expect approved also the the capital likely trade be price of and be continue company XXXX, company, NASDAQ, shares catalyst the December securities the consolidated the that from pending least would compliance determination, exposure directed Institutional the shares, approved, to listed the price shares. continue it the the company At appeal by common be to increasing compliance available shareholder on for to time, in would Titan anticipated such would such with Investor

As a ratio, the consolidation reminder, and the should Titans per an the share be increased same have would would that so by value investor's common consolidation share the the share affected consolidation total shares be book share share book position. impact of approved on value no on

factors ratio share On will number in invest with to in registration information providing period required FX that consolidation Under while we the it filing company close effective, to tool proposed million the up exact can in additional and the became form a and an including There's certain our raise Form the additional units resources. of amount securities of common registration the raise company prepared cash strategy. the navigate the financing, to flexibility in $XX investors the company. be in circumstances, time of we the is connection may many our of to follow that may over may as so statement. the with a financing a August market to Canada managing management expected use potential U.S., prospectus increase to shares, regulations ability the U.S. and the on to shorten warrants meeting. base proposed months, The XXXX the capitalization XX period circular details special under in the shelf statement company company's FX also provides short Additional pursuant a qualify FX or of capital XX impact or

to is for purpose improve outcomes driving patients. Our

hard will back I solid that, our made to goals the see With progress through. have turn Cary. work continue and over to We to we call

Cary Vance

employees, Steven. you, We’d partners, importantly, Thank shareholders. thank to like our Board, our and our our

on that toward our support. milestones, we As execute we can we and hope progress our in your goals come

continue on as mission get soon possible. our will as the market System to and We to safely Enos

now open questions. We will line the Operator. for

Operator

call turn over webcast? the take now the to will I who Galfetti, Miss will questions from

Kristen Galfetti

Great, Paul. thank you,

several We get have to. to questions

The system expect delivered studies? Enos ready do to use clinical in the be Cary? be to will surgical when first and we

Cary Vance

clinical human subject IDE expect to next year trials their to We start approval. clinical

been OEM So we've our completed for and that's Benchmark workstation the transfer our announced with design card, specifications patient manufacturer.

we So to complete workstation of next testing Chapel December. delivered to on use. allow that's patient both verification be for System Enos this Hill us expect month, system the a and to card consisting And safety will the necessary to prior its and

Kristen Galfetti

a question, there on of XXXX, is announcement today's several for XX January shareholder consolidation. approval Next special actually regarding meeting stock seeking

Titan question Specifically, from please being NASDAQ? will this on can details? provide And you the is Stephen? prevent delisted

Stephen Lemieux

Kristen. Thanks,

value. know, people as an increasing to initiatives extension we to weren't So continue, undertake shareholder we granted continue to directed

company shares At the NASDAQ evidence be the to the able XX, Titan, expect that prior to should to do company would this not would time, subject However, compliance be to delisting. notify appeal. we December it

the to completion requirement. the shareholders with Kristen? option will the sending regain on to ratio. the investors will The will those be in of likely the available consolidation meeting minimum trade December the materials the meeting include and if last NASDAQ to will company bid materials in company compliance pending As approved The continue expected to consolidation, our delisted shares company appeal share at be process.

Kristen Galfetti

plan take price, Next question, what the to maintain Stephen? to you activities share

Stephen Lemieux

Thanks, Kristen.

we’re System trials. IDE We've which our of be and executing of continue delivery on we midyear clinical our lot mentioned. bills next Cary month, into human months, got next And the So, and value XX application our our a the manufacturing heading milestones then the to like in Enos submitting include creating we'll plan. then plan

Kristen Galfetti

IDE question. and the Okay, FDA Stephen? then to are submission next taking activities company you fund to commercialization? What to

Stephen Lemieux

I don’t think as go on to well.

cash of our expected to So our operations current balance cash-- fund the first quarter our is into XXXX.

the with We through engaged we're fund additional funding ideas capital business commercialization. exploring and parties have to

part and milestones progress. through conversations as to market on future our a keep continue fund updated of We the initiatives expect these we'll to company our

Kristen Galfetti

Medtronic? on the a Could Do additional Great. an larger you this revenues? turn project have Cary? agreement instruments you that gears. possibly update camera have Switching into with with

Cary Vance

next Sure, manufacturing the And is assembly and we in to year, with time. and early order accordance well. the which instruments going very their process purchase on cameras expect deliver

larger technology. on focused time a far As high I and now, we're turning on mean, reliable current as meeting agreement, with and into quality right this commitment,

As that, opportunities innovator do growth an our and Medtronic strengthens opportunities a we're them. continuing partner, look forward with to well. and it has other Medtronic able as to work as and a furthers to supplier, value great for as for been we and with

Kristen Galfetti

you. Thank

Next will Cary? convince invest? question. to How you investors

Cary Vance

product to Well, to to like, marketing clinical it's builds, We the now. manufacturing market, of difficult System, then concentrate and its authorization, and course creating best volatile is creating value, action development, commercialization. ultimately, the on success, highly which Enos milestones, right value on delivery execution of believe leads regulatory execute of

point, the in what we every risk. a like deal we're big a milestone, reducing at So of time trying on next is to And month, risk. a reduce it's do that system terms delivery execute every of

can and can parallel, our and with added as reducing sure customers how and to traditionally to and in stability institutions we've this outreach to increase how continue uptake the impact And we heard. care. in awareness At technology also their program do, public journalist of as want aware investor we future and about we we're to we impact in the to a everyone's seeing can that excitement becomes want want stock. the Now, our widely story interest increased patients, create time, of addition, kind make market relations we our and provide with same what risk,

Kristen Galfetti

What Thank was us recently an FX for? you. you Stephen, this statement? take perhaps on. Titan filed could registration

Stephen Lemieux

Thanks, Kristen.

resources provides fund through novo U.S. months. This capital our cash August, and the $XX or a common the million it to the So raising and clearance. of raise effective, and ability program managing became additional team period warrants provides we over XX in shares, company's registration company the units de potentially a with Enos our of to to in FX -- flexibility in up

Kristen Galfetti

Great.

sell Is holdings? question. management did chair your and being insider done of to members Why Another anything board there Stephen? increase senior shares?

Stephen Lemieux

Kristen. Sure, thanks,

restricted So, employees, may to members, taxes holding share time to are and the employee. issued settle RSUs. these granted they due units When time from become be common officers shares board and the

taxes a in can RSUs. This sell the cover this practice tax is company and to connection respect the common So ownership. space covering individuals shares with of payable, in the position. With to settling the

So increase we're the in of has, a the couple seeing we've place. steady amount ownership a in programs company got

So employee we share plan. purchase kicked the just off

in as first six-month put So we're of the our window for ownership board C-suite. for members that restrictions period, board share the well the is and as in

members those fulfilling So as towards obligations those are working well.

So to increase time. see we over continued ownership expect insider the company in to

Kristen Galfetti

strategy? different question, launch Cary. think it like? will And do Great. your you Have you what look Little designed

Cary Vance

to Yes, real, but it's experience launch it a might but the on launching very to that a the and into see. execute a in actually it. is it's important my you good the It process. some can launch having hurdles never hands like very And me about strategy too for products seem early really be off, excited to strategy. in very and strategy because on ability the strategy we're get it's put early think about thought ways that It's of what's it's our important I

strategy as the develop and deliberative we're and going we the as product. So be launch very we strategic to

a it's for important to closely Because using centers of can work will utilization. of sure our but them after group can of be for influencers points outgoing excellence fellows to And residents. them, proof have that's they for And so we'll KOL that hospitals care and serve we’ll and will about with serve sites but others that that represent customers it's in and academic reference customers use centers on once of that only and cross the to And sites. as centers, it liking diverse launching a look launch a just not section as not that as as systems future it about initial successful us, look develop product, it. can training extremely

networks medical plan we to centers integrated several integrated our delivery into hospitals. expand out network Additionally, rural hospital XXX to build large with customers in

Kristen Galfetti

the feasibility animal you Can conducted system? axis single studies what have and referencing Can cases? Okay. cadaver Cary? been talk the AD, about completed on you Titan

Cary Vance

Sure. Thanks, Kristen.

As done in esteem and done XX, centers, colorectal surgeries, you University have Center in general in cadaver York, including in France, places Strasbourg, oncology, Columbia at preclinical areas so urology, Medical over and Health IHEU completed Florida. Advent gynecology, we've and gynecology, we've animal of we Celebration, and Nicholson Center like mentioned, these New cases the surgery, the

So And to robotic us is as additional of the it completing indications. surgery, all of indication. design and first these really helped needs to target affecting unmet potential system gynecologic our our the build cases for purpose

Kristen Galfetti

support mentioning recently Great. instruments. company RAS announced to designed system? three axis publication mean abandoning The Does a patent Cary? single application a system this you are the arm two

Cary Vance

past, portfolio, say future. extremely of patent present and proud and will our I we're no. Well, excited Thanks.

focused Now on System, competitive. and two we're which extremely instruments it'll the supports said, being be advancing Enos that

with in for concurrently an the to innovate future. we Now leader that, as continue single innovation necessarily, access and RAS,

potential independent could So next with incorporate this patent generation application documents such for endoscope. three an instruments, along system innovations that

Kristen Galfetti

have final Cary? question, other interest our you beyond Excellent. for Medtronic companies then strategic opportunities? from And had

Cary Vance

brings other Thank with the System, Titan mean, surgical interested in of general, inquiries Yes, I system you. and And companies to Enos and see the many who about we've they're access discussions learning what and single the had in value. more benefits robotics.

committed and next generation. we've market innovative most for greatest have the to technology having their the discussions strategy and for mutual or benefits spent System. sure Enos the we they about tools our productive see the past their they months partnerships, what I've opportunities several current We're strongest path with system to created make to our our accelerate inquire four between and as companies So

So these be we to very fruitful. find conversations

Kristen Galfetti

question, you over that's back it for Cary. our I'll Think last closure. turn to

Cary Vance

us surgical to assisted focused future and want the I the several on look our joining call about we months. support Thank to our appreciate progress innovative robotic your hospitals. all your this everyone you. and excited Thank to much sharing over you, want very axis patients, updates for for Kristen. system I support. next you the Thank we remain We We're morning. of benefit so bringing to on thank on and Titan’s the market surgeons forward single

Operator

conference today's have concludes call. day. That Thank attending you for a and pleasant

Titan Medical (TMDIF) 10 Nov 222022 Q3 Earnings call transcript