Q1 2021 Titan Medical Inc Earnings Call

[music].

Good evening, ladies and gentlemen, and welcome to the Titan Medicals first quarter 2021 earnings conference call. At this time, all participants are in a listen only mode.

After the presentation, there will be an opportunity for all participants to ask questions. As a reminder, today's conference is being recorded if anyone on the line should require operator assistance. During the conference. Please press star zero on your telephone keypad.

Now I'll turn the conference over to Christian Golf, Eddie Medicals, Vice President of Investor Relations and corporate Communications. Please proceed.

Yeah.

Thank you operator, good evening, everyone and thank you for joining us for Titan Medical first quarter 2021 earnings conference call. During our call. We will review the Titan first quarter 2021 financial results and key business highlights, which are summarized on our earnings press release issued earlier today.

A copy of the release can be found on the Investor Relations section of our website at Www Dot tightened Medical Inc. Dot com.

As a reminder, certain statements made during this conference call constitute forward looking statements that reflect management's current expectations of the company's future growth results of operation performance and business prospects and opportunities wherever possible words, such as May one could will anticipate believe plan expect intend.

Estimate potential for as plan and similar expressions have been used to identify these forward looking statements.

These statements, including statements with respect to projected development plans milestones timelines budgets development status anticipated regulatory pathways anticipated license payments.

Training of worldwide rights to commercialize their technologies and intellectual property license to Medtronic and goals that the email system is being designed to address the features that the email system is designed to include.

The medical outcomes that we expect to email system will improve the advantages that we expect you to just have the email system oversee the anticipated market demand for the email system and the belief that the market is under penetrated and plans to participate in certain industrial conferences reflect management's current beliefs with respect to future events and are based on information currently available.

Payable to management.

Forward looking statements involve significant risks uncertainties and assumptions many factors could cause the company's actual results performance or achievements to be materially different from any future results performance or achievements that may be expressed or implied by such forward looking statements, including without limitation those.

Listed in the risk factors section of the company's annual information form and form 40 F. For the fiscal year ended December 31, 2020, which may be viewed at www dot SEDAR dot com and at Www Dot SEC Dot Gov.

Should one or more of these risks or uncertainties materialize or should assumptions underlying the forward looking statements prove incorrect actual results performance or achievements may vary materially from those expressed or implied by the forward looking statements made during this conference call. These factors should be considered carefully and prospective investors should not place.

Undue reliance on forward looking statements. Although the forward looking statements made during this call are based upon what management currently believes to be reasonable assumptions. The company cannot assure a current or prospective investors that actual results performance or achievements will be consistent with these forward looking statements.

With that I will turn the call over to David now President and Chief Executive Officer of Titan Medical David.

Thank you Christian.

Good evening and welcome to Titan Medical's first quarter 2021 earnings call.

I want to thank our shareholders for their support and confidence in our ability to successfully develop emails robotics single access surgical system.

We were excited to share today's updates with shareholders, who have been following the Titan story.

And with investors new to Titan medical.

Joining me on the call today will be Perry <unk> Senior Vice President Research and development and President of Titan Medical USA, and Monique Delorme tightened Medical's Chief Financial Officer.

Well, if you're 20 resulted in an incredible year of accomplishments that position Titan nicely going into 2021 during the first quarter 2021 and in recent weeks that followed the company secured more than $44 $5 million from equity financing.

Separated the role of chairman from President and CEO.

Standard the board of directors.

Good on the senior leadership team.

Increased investor activities, and communications and launched Titan living labs.

Most importantly, we continued to accomplish on milestones and move closer to bringing the <unk> surgical system to patients.

We were opportunistic with market activity and as noted close two equity financings totaling $34 $5 million.

And received an additional $10 million from the exercise of warrants held by investors from previous offerings.

As a result of those efforts. We believe we are on a strong financial position to execute our strategy.

The board of directors believes but sound principles of corporate governance are critical to our success as a company and to earning the trust and confidence of each of other stakeholders.

In keeping with corporate governance best practices, we have separated the roles of chairman of the board from President and CEO and today, we announced that Paul cattle herd has been appointed Titans chairman of the board.

Paul joined Titan Board last fall as our lead independent director and during his tenure on the board. He has demonstrated his strong leadership skills and corporate governance experience.

She is the CEO and cofounder of Zephyr sleep technology.

Medical device companies specializing in the treatment and diagnosis of sleep disordered breathing.

Paul brings significant technology transfer and early stage company experience Titan Medical's Board.

That's true as an independent corporate director on a number of public boards of directors at companies listed on the T. S X yes.

Yes, ex D and NASDAQ, including Sierra wireless.

Truck Awfulness Iot Corporation.

Semi biosys genetics and AEG junction.

We are proud to have them in place as our new chairman of the board.

We are also delighted to announce today that Heather Knight has been appointed as an additional independent director to the board.

There is a dynamic sales and marketing executive and brings to US nearly 25 years of proven health care commercial experience.

Other currently serves as general manager of U S Hospital products at Baxter healthcare, where she is responsible for U S commercialization, including sales national accounts marketing commercial operations and business integration.

She previously served as global President of soap redeemed, France and.

And Vice President and general manager for surgical innovations and my T. G at Medtronic, where she led all portfolio strategy and growth initiatives for the global business, including commercialization in all regions across the globe.

And there was the executive sponsor for the Baxter Black Alliance employee business Resource group and previously served as co chair of the Medtronic Women's Network Executive Committee.

He is a 2021 health care business woman Associates true luminary, and the founding member of cheap Chicago.

Other serves on the board of directors of Tech Novation and linkage women in leadership.

We are equally excited to announce that Kathy Steiner has been nominated to join the board upon shareholder approval at our annual meeting.

He brings over 20 years of investment banking and financial and capital markets experience in dealings with public and private health care companies.

She is currently principle of origin merchant partners and independent investment bank specializing in mergers and acquisitions and corporate finance, where she leads the healthcare practice.

Previously Kathy held the role of Chief Financial Officer for technology companies through capital, raising and M&A transactions being responsible for financial accounting oversight and risk management.

For over a decade prior to that she was managing director for nucleus G. C. A boutique health care advisory firm working with clients on financing and strategic transactions as well as product development commercialization positioning and launch.

For nearly 10 years prior to that classy led health care investment banking for CIBC World markets in New York and Securities.

Kathy is currently a director at cipher Pharmaceuticals.

Yes ex listed company and serves as a member of the audit Committee.

We are delighted to have these two talented professionals joined our board and look forward to utilizing their expertise and insight to support tightened success.

Even Randall who retired in September 'twenty 'twenty. After previously serving as tightened CFO until September 2020 as.

<unk> remains on the board during the transition period during which we have augmented the independence of the board.

We are grateful for Stephens Distinguished service during his more than 10 years as CFO and for years as a director.

Please visit our website for additional governance details policy.

Remember buyouts and committee composition.

We recently announced the expansion of the senior leadership team appointing Christian golf that he is vice President Investor Relations and corporate Communications and Jenny Wang as Vice President Finance.

Each has over 20 years experience in their respective fields and will contribute to Titan continued growth and success.

Christian is responsible for executing our investor relation strategy and serves as the primary contact for our investors and media interest share.

Jen is applying his expertise to develop and implement financial system that will support tightens growth.

We are very pleased that they have joined the leadership team and they are already contributing to our progress in meaningful ways.

We also continue to augment our R&D team in Chapel Hill, North Carolina, adding experienced engineers technical experts and support staff, where the team now totals over 30 employees.

Perry will provide more details on the exciting work the R&D team is doing in chapel Hill.

Overall Titan remains focused on achieving milestones both in regard to those established for our email system development.

And those under the Medtronic development program.

Yeah, coming Medtronic milestone anticipated for completion this month.

Include and associated license payment to Titan a $10 million.

Titan and Medtronic currently operate under a development and license agreement that Leverages tightens technology and provides medtronic access to a portion of our intellectual property portfolio in exchange for milestone payments.

Importantly.

<unk> maintains perpetual royalty free worldwide rights to commercialize the licensed technologies for use with the email system and Furthermore, we have our own patent portfolio that continues to grow as we continue to innovate in robotic surgery with over 160.

Global patents and applications pending.

The landscape for single access robotic surgery is rapidly evolving.

We believe that there's high demand in the market for a versatile single axis robotic platform.

While improved patient outcomes are paramount hospitals, and surgeons are looking for greater cost effectiveness and efficiency and improved functionality.

We remain committed to enhancing robotic assisted surgery using innovative technology.

<unk> access point with the goals of improved patient outcomes, lower operating room costs and greater patient throughput.

As a reminder.

Items innovative technology is being designed to be both effective and easy to use to allow medical professionals to perform their best to improve patient outcomes.

On a multi articulating instruments are designed to allow a remarkable range of motion in a confined space and deliver the necessary strength for common surgical tasks.

<unk> surgical system is being designed with an ergonomic focus and to provide for a surgical experience that imitates the real life movements that surgeons regularly execute during minimally invasive surgery.

We continue to work closely with key opinion, leading surgeons as we value their feedback and interest in seeing the email system come to market.

Additionally, we believe that the market, we aim to serve as underpenetrated, thus presenting an exciting opportunity for our system to make a difference in patients' lives.

Titan E notes system is being developed as a single access surgical system aiming to become the new standard of care for single access robotic surgery.

The <unk> system is being designed to include the advantages of.

Dual three D and two D high definition vision systems for improved visualization.

Multi articulating instruments for increased dexterity, and an ergonomic surgeon workstation for surgeon comfort.

The system's initial clinical focus will include benign gynecologic surgery for the U S market.

We believe that the associated patient population is particularly motivated to embrace a surgical solution that has the potential to reduce trauma hasten healing and reduce scarring.

Additionally, based on our preclinical success, we anticipate the versatility of the system will eventually be found attractive for broad use in multiple sub specialties.

We continue to hone our relationships with leading surgeons that have provided us with excellent feedback and insights regarding opportunities for us to satisfy unmet needs across numerous procedures.

As we shared previously.

Communications with the U S FDA indicate that the regulatory pathway for our single access surgical system is expected via the de novo process reserved for novel medical devices.

We plan to finalize product development of the share.

Critical system this year.

And upon approval of our application for an investigational device exemption or IDE E. We anticipate advancing <unk> clinical studies in 2022.

Upon completing the study.

We expect to file for marketing authorization with the FDA in the first half of 'twenty to 'twenty three with possible product launch in the second half of 2023 upon successful receipt of authorization from the FDA.

We look forward to future correspondence and conversations with the FDA and.

Communicating our progress on getting the system cleared for marketing and into the hands of surgeons.

Our relationship with Medtronic resulted in $20 million in license payments received in 2020, and we believe that we are well positioned to meet the remaining two milestones in 2021, earning up to an additional $21 million in license payment.

This month, we expect to complete the first of the two remaining milestones on the development program with Medtronic.

Which would result in an associated license payment of $10 million.

Following receipt this payment the final phase of development is anticipated to be completed later this year, providing an additional license payment of approximately $11 million.

Monique will be providing you more detail where their update on our quarter end finances as of March 31 2021.

Yeah.

During the first quarter increased investor relations activities on improved stakeholder Communications, Inc.

Included.

One new analysts coverage Suraj kalia of Oppenheimer and company initiated coverage on Titan on April seven 2021, with a buy rating.

David Martin of Bloom Burton <unk> company initiated coverage on April 19th 2021, with a buy rating as well.

We appreciate the work these professionals invested in researching and reporting on prospects for our business.

True.

I mentioned earlier, we hired Christine <unk>, Vice President of Investor Relations and corporate communications with over 20 Years' experience to serve as your point of contact and to build corporate communications with other audiences on behalf of Titan.

Three.

The board of directors established the shareholder engagement policy that recognizes and encourage as regular and constructive communication between shareholders and the company.

A copy of the policy is available on our website.

Or.

We have updated the investors section on our corporate website with enhanced navigation to facilitate access to information and improve communication with investors.

Five.

Last Thursday, we launched a second edition of Titan living labs on our website that provides the opportunity for viewers to engage in our journey through product development.

The second video built upon the first released earlier this year and illustrates the enhanced kinematic engine.

Improved independence, or dexterous, multi articulating instruments and displays the two independent led light sources, one within our custom durable three D high definition camera and another in the insertion tube with integrated to the high definition camera.

The video features our dedicated team and the detailed development work that is required as we work towards finalizing product development of our <unk> system.

And lastly, we invite you to visit our website to view the newest vignette and navigate the updated investors section.

I will now turn the call over to Dr. Perry Juneau, Senior Vice President of R&D for Titan Medical incorporated and President of Titan Medical USA incorporated who will provide an update on activities in chapel Hill details on development activities relating to the surgical system.

And advancement pursuant to the ongoing development and license agreement with Medtronic.

Thank you, David and it's a pleasure to be speaking to all of you. This evening.

As David mentioned, we continued to advance our development work during the first quarter.

Our growing U S subsidiary based in Chapel Hill, North Carolina has deepened our technical expertise in the areas of software electrical and mechanical engineering quality assurance and program management.

<unk> of the surgical system continues.

During the first quarter of 2021, the team leverage its deep knowledge of physics, and kinematics to improve the natural motion surgeon field and strength of Titans unique instruments with.

Through the diligent efforts of our technical team. The system's instruments are designed to precisely mirror, a surgeon's discreet hand motions surgeon depreciate the natural movement designed into the ecosystem that translates physical inputs into dexterous arm movements.

Additionally, we have created capability for surgeons to work very close to the surgical incision entry point to the body, resulting in greater work area within the patient.

Simultaneously.

House team further advanced the <unk> camera system, providing outstanding maneuverability on visualization for the surgeon.

Independent two D and three D high definition systems, illuminate visualized and move better and are closer to commercialization than ever before.

Our software development team has worked tirelessly and continues to do so to improve robot kinematics decrease electromechanical system response times and increase system reliability, all while adding those features necessary for successful commercialization.

We also continue our deep commitment to implementing display overlays for augmented informatics to improve the surgical experience for surgeons, while making improvements to our integrated simulation training suite.

The proximity of Titans Chapel Hill facility, two independent evaluation laboratories, and some of the top U S thought leading hospitals has proven to be an excellent asset that we have leverage in support of Titans robotics technology development and ongoing innovation.

Managing product development in house has provided us with tight control of our design.

Shortened modification timing turnaround as we make iterative updates to the system. This has improved our ability to take substantially greater control over our technology development and expeditiously execute on other milestones manage spending and continue to innovate and expand our intellectual property.

Folio.

Our development program under the Medtronic development and license agreement continues to proceed according to plan.

The joint steering committee comprised of equivalent number of members from each company regularly coordinates activities and maintains development schedules.

We are presently on track to achieve the next planned milestone for the program by the end of this month.

I am very pleased with and proud of our accomplishments over the past year and look forward to sharing additional updates with you going forward.

Yes releases, an additional vignettes on tightened living labs.

As David mentioned Titan living labs on our website provides the opportunity to join our team of motivated and very talented engineers on our journey of innovation and to witness the growth of our expertise and advancement of the surgical system.

I will now turn the call to Monique Delorme, our CFO to review our financial results Monique.

Thank you Perry, it's my pleasure to be addressing all of you on this call. This evening.

As of March 31, 2021 we had cash and cash equivalents on hand of approximately $53 $4 million compared to $25 $5 million at December 31, 2020.

The increase was due to the receipt of $10 million from the exercise of warrants by investors from our previous financing.

And aggregate gross proceeds of $34 5 million from two equity financings that closed in the first quarter of 2021.

The company continues to carry alone from an affiliate of Medtronic and the amount of $2 million, including accrued Amtrak evidenced by an 8% senior secured promissory note on our books.

Net and comprehensive loss for the three months ended March 31, 2021 was $14 $8 million compared with the net and comprehensive loss of $800000 for the three months ended March 31 2020.

The increased loss is primarily due to increased R&D expenses of $7 $6 million in the first quarter of 2021 as we progressed on the development of our <unk> system and the activities under the development and license agreement with Medtronic.

In the first quarter of 2020 on.

R&D expenses were $50000, reflecting our temporary suspension of our R&D activities at that time.

As we increased staffing through the quarter and invested in strategic business development and corporate governance general and administrative expenses increased to $4 $1 million in the first quarter of 2021 compared to $1 $7 million in the first quarter of 2020.

During the first quarter of 2021. The company also recognized a noncash loss on fair value of warrant derivative liabilities of $3 $1 million compared to a noncash gain of $1 $1 million recorded in the first quarter of 2020.

As of March 31st 2021 current liabilities, excluding warrant derivative liability were $5 $2 million compared with $6 $6 million at December 31, 2020.

As of March 31, 2021, the company had working capital of $56 million compared to working capital of $24 million at December 31, 2020.

The growth our company has experienced over the past year has been incredible.

Augmenting the management team, establishing our U S subsidiary Tripling, our work force and achieving milestones internally for our system.

And delivering those in our development and license agreement with Medtronic had been great accomplishments for Titan.

Meanwhile, we continue to hone our financial reporting process and increase the efficiency with which we deliver our finance solutions.

Working together with members of the senior management and audit Committee of our board of Directors, we continue to evolve our accounting systems and dishes slate apply resources to address the rapidly changing needs of both our Canadian and U S operations.

Yeah.

As we noted during our year end earnings call, we had identified material weaknesses in our internal controls over financial reporting as we completed the preparation of our annual financial filings, resulting in noncash adjustments to our statements.

All corrections were made prior to the approval of the financial statements by our board and prior to the release of year end financial statements.

Since that time, we've taken several remedial actions, including engaging additional human resources to assist with the preparation of financial reports engaging the services of third party financial experts to assist in the preparation and review of more complex financial transactions and leveraging system.

<unk> and technologies to reduce the risk of theirs.

Based on our assessment, we have concluded that the 2021 first quarter financial statements are fairly presented in accordance with ISR assets.

In summary, our balance sheet remains strong and is expected to support the completion of the Medtronic development program and continued progress on the <unk> surgical system through 2022, as we prepare for regulatory filings and surgeons perform human clinical studies on receipt of anticipated.

I D E approval from the FDA.

With that I turn the call back over to David.

Thank you Mani.

We believe that the you know surgical system will address an underpenetrated, but high demand segment of the robotic assisted surgical device market.

Promising less patient trauma and faster recovery times.

On savings on capital equipment service and procedure cost for hospitals.

We look forward to keeping you apprised on Titan progress toward the exciting milestones ahead.

<unk> advancing our emails robotic single access surgical system towards commencing human clinical studies and meeting additional milestones under the Medtronic development program.

We remain committed to corporate governance and shareholder engagement and look forward to communicating with you through news releases, our newly enhanced website, social media and remaining engaged with the investor community through our participation in virtual investor conferences Investor Roadshows meeting.

With institutional investors and discussions with our covering analysts.

Planned participation in upcoming virtual investor conferences.

The Oppenheimer and company Med Tech summit on May 26, and the cash.

<unk> Global Health care conference at the end of September.

Importantly, we will be holding our annual and special meeting of shareholders virtually on June nine.

Details of the meeting including instructions on how to connect to the online platform can.

Can be found on our website in the investors section under news and events.

We encourage all of our shareholders to cast their votes and attend virtually for additional update.

Thank you for your support.

We will now open the line for questions operator.

And at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

Confirmation tone will indicate your line is on the question queue. You May Press Star two if you would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please while we poll for questions.

And our first question is from Suraj Kalia with Oppenheimer. Please proceed with your question.

Good afternoon, everyone.

David can you hear me all right.

Yes, suraj. Thank you.

Perfect.

So David.

Total remains to be done to freeze product design and move into <unk> trials.

Thank you for asking the question Suraj and as you've seen on Titan living labs, we've been able to demonstrate the functionality of the improvements to the camera systems.

And the instruments.

Now comes the part that's not as obvious to the outside world, which is moving through the processes. The biocompatibility of materials for affecting the manufacturing processes and verification and validation and those steps are necessary before we can say the design is true.

On the frozen and ready for production I can say, however that the design is firm and that we have been able to test the instruments the interfaces and the improvements to the system in the laboratory environment, and we feel comfortable with the architecture of the system, but it's the the details.

Take us from an exciting system that operates in a preclinical environment to one that is ready for clinical use and of course. These activities must be completed before we filed for our investigational device exemption planned for early next year.

So David I E. Next year can you just backup when must design be completely frozen.

I presume you're already in discussions about in design and in a benign hysterectomy. So just kind of what should we expect over the next three quarters in terms of milestones as we prepare for the I D.

So in terms of the milestones we're performing as we've noted in our MD&A the.

Compatibility testing of course, that's on for the current quarter Thats Q2.

We're also marching forward toward verification and validation.

<unk> software development this current quarter as well.

And continuing to communicate with the FDA regarding the clinical study that is the design of the clinical study and benign hysterectomy. So that when we go to file for our <unk> in the first quarter of next year that we've already worked out with FDA. The details of the number of <unk>.

<unk> the number of sites and the endpoints associated with that study.

On the cadence of over these next several quarters of this year include not only those activities related to our he knows robotic single access surgical system.

But also in parallel execution to the Medtronic milestones of which there are two remaining one as we confirm today that we expect to achieve this very month of May and the fourth milestone to be achieved later this year.

Turning license payments of approximately $10 million and $11 million, respectively related to those milestones.

Got it David one final question I'll, let others jump in so David as you think about the I T E.

Early next year.

Obviously, you'll have to be targeting your low hanging fruit is the top process to go into Larcher University centers or to tackle more community centers and also if you could touch upon the training and Credentialing groundwork you'll wood.

Be laying.

In anticipation of an eventual commercial launch thank you for taking my questions.

You're welcome Suraj and as always great questions and your research.

So we're targeting a mix of facilities for our IDE studies that range from a.

Large teaching hospitals to smaller community hospitals, and we do see that this also would demonstrate to the FDA that facilities of a broad range are potential candidates to safely use our technology. So it's strategic in the design of those.

Key to this as well is that we're working with surgeons that we believe can really further single access surgery.

With their hands on the system.

So very much focused on the right surgeons, who we've handpicked and by mutual agreement.

Sharing the inspiration of where we can take single access surgery are also interested in teaching other surgeons. So we view our initial sites for the <unk> study as evolving into teaching sites, where we can train other early adopter surgeons and ramp our commercial launch once we have cleared.

The F D a.

And then with respect to Credentialing, we expect that.

The training modules that we have been developing and implementing on the workstation will be invaluable not only to the surgeons and their performance in the operating room, but to the hospitals for accreditation. So we're investing heavily in integrated training software on our platform. We're also working with our key opinion leader.

Surgeons, who will lead the <unk> studies that May also procter in terms of cases with early commercial adopters outside of the surgeons perform in the in the <unk> studies. So we're we're very keen on optimizing the outcomes associated not only with D E studies.

But focused on excellent patient outcomes as we roll into commercialization after clearance.

Okay.

And there are no more questions over the phone lines, calling on them.

Back to David.

Actually we do have some questions from the webcast, which I'd like to share.

Our first step with the increased funding that the company has successfully completed is it possible to speed up the FDA submission.

Kristen I'll be happy to take that this is David.

Unfortunately, the more money does not make a difference in terms of one completing the product and more importantly, getting the.

Navigating the regulatory pathway there are certain.

Sponsor times associated with interaction with the FDA I can say that to date. The FDA has been very responsive and supportive of our drive to move forward with advanced technology, but there are certain processes that cannot be circumvented.

Even by capital or more personnel, so what we've put forth on our milestone plan.

Our what we believe to be realistic projections based on the known regulatory pathway ahead.

Okay.

Great and other question is the increased loss due to the.

Expected.

When do you think you will need to raise additional funds.

<unk> would you like to take that one.

Yes, David Thank you I'd like to and thank you for the question from a from a webcast readers or listeners.

So as we mentioned earlier on the call. We expect our current cash to last through the end of 2022.

Our reserves were in great shape on reserves will allow us to finalize.

Development of the ecosystem that David was just speaking about and upon FDA approval of our application for the I E. We anticipate that we will be able to.

Commence and complete our I D human clinical studies in 2022 as well.

Meanwhile, we have anticipated license payments from Medtronic.

That will add to our funding and pursuant to our development and license agreement as David mentioned, we expect to earn.

10 million.

In the coming weeks as well as an additional $11 million later this year.

Also as recent warrant exercises have continued to strengthen our balance sheet and.

There are also remains additional warrants outstanding that could be exercised at values of around two and $3, which will also increase our runway.

So although we acknowledge that additional financing will eventually be required to carry us through commercialization.

We're in good shape today, and there's no urgency for assets to go back to market.

Great.

The next question is there a plan to increase insider ownership.

I'll be happy to take that Christian This is David again.

And with respect to share ownership, our new independent Board believes that equity ownership is important for directors management and frankly for all employees since beating for the first time in October of last year. The board has begun developing and implementing policies and mechanisms to increase inside or.

Ownership, and it's something that the board and management remain committed to.

Excellent. Another question, if Medtronic does not wish to pursue a long term partnership with tightened medical once the Medtronic milestones are completed one Titan medical would be able to license the IP that Medtronic, you and Medtronic milestones to other companies who may be interested in that.

Again this is David Great Great question, and it's important to for me to make the point that Titan medicals future, we see to be based on our system.

We retain a non exclusive perpetual royalty you've a worldwide license to all intellectual property developed under the Medtronic development and license agreement.

But it is important to know also that and remember that we retain all rights to the greater portion of our IP portfolio that we continue to develop independently.

We're free to develop strategic relationships globally, including M&A without intervention from Medtronic, I say that with all due respect to Medtronic, who we value as a <unk>.

Development and strategic partner, we hold them in very high regard, but at the same time when it comes to Titan medical our future is open to many possibilities.

Next question.

Even with all the progress that is being made the share price continues to slide downward is there anything the company can do to raise it.

Well. This is a fundamental question, David again here, Chris and thanks to our our audience here with respect to valuation, we view execution to our milestones to be Paramount.

Including those related to our <unk> robotic single access surgical system as.

As well as those related to the Medtronic development and license agreement.

At the same time, we remain committed to investor outreach, having hired Christian as our vice President of Investor Relations and corporate communications.

Evidence of our outreach also includes new analysts coverage by Suraj Kalia of Oppenheimer and David Martin at Bloom Burton.

The things that we're doing tactically in terms of ramping up our activity on the website with an enhanced investor relations page and additional vignettes as Perry referred to on Titan living Labs. All of this is part of a coordinated effort for us to continue to get the word out as we.

Announce our milestones.

One other question Havent had an opportunity to peruse through the updated website. It seems that you know system isn't the completion stage is this the reason for the change of board members, bringing in those with M&A and valuation experience.

The I D.

David here again.

There, there's an even bigger picture here when we look at our board so.

Our new board members complement our increasingly independent and diverse board.

When we look to the future we as a board have looked to the skill sets with which we'd like to augment our board. So.

The investor inquiries on to something here, when we think about Heather Knight, who brings us commercialization experience that is particularly relevant to our planned commercial launch following FDA clearance.

Also on the management information circular we've nominated Kathy Steiner, who brings a depth of investment banking M&A capital markets and finance experience that will help us to navigate the opportunities that lie ahead as we execute on our strategy and also manage financial.

Lee at the board level. So we're very excited to bring both of them onto our board and I can say that they are strategic as we look ahead to the company's needs.

Great.

What is the projected completion date and windmill tightened satisfy the outstanding $1 5 million from Medtronic since there are sufficient funds to pay off the debt now.

I'll turn that one over to Monique.

Yeah. Thank you Kristen and dual part question. The first part of your question was.

But I think the projected completion date and windmill sadist tightened satisfy the outstanding loan.

So I'm going to assume that our our listener was asking about the completion of the Medtronic milestones on the Medtronic contract as they are referring to as alone that's associated with the Medtronic project.

And our Medtronic project is ongoing true too at the end of this year. It should complete before the end of the year. We have two milestones left as we mentioned milestone three we expect to complete this months and report on and add the fourth miles.

We expect to complete a closer to the end of the year and associated with the loan and when do we expect to pay it and why did we not pay it back now it is alone that.

Our commitment to Medtronic was to repay this loan at the end and the completion of milestone for under our development and license agreement and so we continue to hold the loan just until that time.

Great.

Next question do you plan to manufacture and commercialize the email systems yourself.

I'll be happy to take that Christian This is David again, and indeed, we intend to go to market ourselves managing outcomes with respect to.

Our.

Single access system as being the top priority that is ensuring that with early commercial uptake that we're seeing an increasing number of cases being performed at each of the early install sites with excellent patient outcomes. That's our priority. So our current plan is for us too.

<unk>.

Launch in a very measured way and to control that with our own internal team and internal resources, who had been with US on this journey augmented by clinical expertise and of course at the appropriate time more sales resources.

Thank you.

The growth of the facilities in North Carolina is it possible that you would consider closing the Toronto office.

We are committed to being a Canadian company our roots are Canadian.

We have a very strong Canadian shareholder base.

We have demonstrated earlier this year that there had been great benefits in terms of being able to raise capital on both sides of the border.

So our plans are to remain a Canadian entity to enjoy the advantages and the pride that we have on that and at the same time to ramp up our commercial and of course development team here in Chapel Hill.

Where in spite of COVID-19 that team has grown and thrived and executed on the milestones. So we believe that we're living the best of both worlds and we remain committed to move forward as a look at it as a global company with headquarters in Toronto, and our primary development facility here in the United States in chapel.

Hill.

Okay. Thank you I believe that's the last question, so I'll turn it back to David for closing.

Thank you Christian.

So in closing I'd like to thank all of our listeners again for joining us on the call. This evening and for your support of Titan Medical.

We continue to push forward and plan to bring our robotics single access surgical system to the market for the benefit of patients and surgeons.

We're proud of our accomplishments to date and recognize that it is a direct result of the commitment and hard work of our employees.

The leadership of our board of directors and the support of our shareholders.

We're very excited about the future ahead and look forward to keeping you informed of our progress.

Thank you again and have a great evening.

And this concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

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