*UPDATES FROM THE AGM*
Hi All,
I know I haven’t been on here in awhile, but I definitely didn’t forget about you guys – I’m just working on a lot of projects that have been taking place simultaneously and I simply haven’t had the time to get on here consistently over the past ~6 months. That said, I figured that you’d all appreciate an update on the AGM. To add further to what JUrology contributed, here are some of my notes:
In short, I was blown away by the new images and videos that were shown during the presentation (one-off and totally different than anything we’ve ever seen before). Everything looks incredible. Despite the setbacks that the company has had, it seems that things are progressing very well on the research and development side of things. The sales strategy and planning has also begun. I’m still extremely disappointed by management and their lack of commitment to shareholders to press release information that is in the public realm and support the share price - especially because they will be out of money by year end. My friend voiced this opinion quite clearly, asking a long question surrounding management’s compensation plan and voting against it as well. As an investor, you have to decide whether or not you want to hold until we have some actual catalysts on the horizon. Time-money value is a tricky thing. That said, I really think that this is going to be a home-run as long as you’re patient. Long and strong.
Hopefully you’ll find some good information below:
Financial Snapshot:
As at March 31, 2015 – Share Price $1.43; $27.4M cash and cash equivalents; Shares Outstanding increased to 102.6 million or 105.2 million fully diluted; MC $146.7M or $150.5M; Management owns ~6.2%; Warrants about 39M out, and about $80M to potentially come in
Discussion around the clinical, financial and operational challenges faced by customers including: Capital equipment downtime/utilization; Surgical scheduling and procedural planning; staff morals; increased patient wait time; patient satisfaction stories; staff retention and operation; workflow; capacity; and revenues
Discussion on the importance of value-based account management deliverables. This was a recurring phrase throughout the presentation.
Discussion on voice of customer feedback from industry sources including: 1. GPOs; 2. IDNs; 3. Acute care hospitals; 4. Health systems; 5. Academic medical centers; 6. Ambulatory care centers; 7. DOD/VA hospitals; 8. Professional healthcare organizations; 9. Large healthcare insurers; 10. Center of Medical Services (CMS); 11. American Hospital Association; and 12. Surgeons in North America, Europe and rest of world
Discussion of SPORT based on a “Scouting Report”. Talked about surgeon experience statistics on low-volume surgeons and the tiered procedural approach being used by hospital administration.
Discussion on SPORT features including: Teleoperation; 3-D stereoscopic imaging; restores intuitive control; enhanced or new functionality; and enhanced ergonomics (much more comfortable workstation); design is pretty much finalized.
Discussion on enhanced functionality including: Enhanced 32” HD 3-D display from Sony; Improved dexterity; Outstanding controllability; Information delivery with a 2nd display; Automated functionality; and data collection and analytics for the surgeon and/or OR team (time, instruments used, for how long, etc.).
Discussion on Works-Like Workstation. Wanted to show more photos, except patent counsel advised against it; patents forthcoming maybe in days
Discussion on Looks-Like Workstation. Built using CAD of final design of workstation; a few photos shown over the next few slides; You need to wear glasses for the 3-D effect.
Discussions on Patient Cart, Works-Like Patient Cart, Close-ups of Central Unit, Insertion Tube, Camera Module and Robotic Arms, and Tools.
Video of Dr. Valvo performing surgery with the SPORT.
Discussion on training including curriculum, creating learning experiences, performance assessment, and training partners.
Regulatory update on FDA and CE Mark.
Q&A Highlights (paraphrased):
Question 2.
Q: Question of cash burn
A: [Randall] Current burn rate is about $3.3 million/month
Question 5.
Q: There’s a consensus out there that Titan is under a big “cloak of secrecy” in regards to protecting our assets. I was wondering if there’s a marketing plan in place with a road map to inform investors?
A: [John] Per the Sony contract, that is why they have not announced right now. We will be seeing more press, the company has a game plan in place that starts with the hospital and the customer.
Question 7.
Q: There has been no mention of shareholders since the formal part of the meeting. I voted against the option plan. I would like to understand the compensation plan and who is responsible for it. I’d like to understand about the option plan. Please elaborate on that because the company will be out of money sooner than later. Concerned about shareholder value.
A: [John] As far as employees and management are concerned, they believe they bring quite a value and everything is justified.
[Randall] We are paid reasonable, below-market salaries. The real end game is becoming commercial, hence the incentivized option plan. That’s where the “real” money is for management and shareholders. We are extremely well aware of the status of the warrants.
Question 9.
Q: How many acutal prototype machines have been built today?
A: 2 machines will be built by October and 7 by the end of the year. 7 in total.
*HOPEFULLY* a video of the AGM will be put up in the coming days as Titan had a videographer filming the event.
I am working on a Seeking Alpha article right now which will include a lot more detail than these rough notes. It will hopefully be out in the next 24-48 hours.
If you have any more specific question I’ll try to answer them as best as I can. Either post on the board or private message me.
Long and strong.
