20 May 2022 – 08h00 CET : Letter to Shareholders (Download PDF)

Letter to Shareholders - May 2022

Stéphane Bette,	Pierre Jérôme,
Co-founder,	Co-founder,
Deputy CEO	Chairman & CEO

Dear Shareholders,

We count on your participation in our General Assembly that will take place on June 8th and we invite you to vote on the resolutions via internet or proxy without delay. Your vote is essential in order to gather the quorum and save the cost of a second call, approximately 20,000 euros. As a foreword to this important meeting for SpineGuard's governance, we wish to come back to our greatest progress these last months and to share with you the main perspectives ahead of us.

The rescheduling of our debt combined with the 10 million euros equity line from the spring of 2021 have significantly strengthened our financial situation and enabled us to accelerate the deployment of our DSG® technology and to enrich our US team over the last months. We already started to harvest the fruits in terms of innovation and on the commercial front.

Our robotic program in collaboration with ISIR from Sorbonne University progressed significantly with the implementation of a new experimental setup entailing a medical grade robotic arm, a programmable drilling apparatus and various equipment. It allowed for the specific programming of 3rd generation automatic breach detection algorithms and the completion of a large scale in-vitro study that produced major outcomes: 100% success rate in 104 drillings with sub-millimetric accuracy. We advanced in parallel the FAROS (Functional Accurate RObotic Surgery) European collaborative project. We expect tangible results as soon as 2022 that will reinforce the demonstration of the strategic value of DSG for differentiating orthopedic robots.

Robot equipped with DSG sensor

Smart Universal Drill

(SUD)

The company started in 2021 the development of a universal solution named « SUD » (Smart Universal Drill) aiming at making « smart » the orthopedic drills currently used in hospitals. This device that embeds the fruits of the « Robotic DSG » program will enable impending breach detection and automatic stoppage of the drilling for avoidance of neurologic or vascular complications. SUD will be universal in the field of orthopedic surgery, spinal and beyond, because it will adapt to any power drill in the market and be applicable to any surgical technique chosen by the surgeon: manual, navigated, or robotically-guided. Along this progress, SpineGuard took the necessary steps in terms of intellectual property. We recently obtained the allowance of our first robotic patent in the USA. We hold as of today 80 patents or applications over 17 families.

www.SpineGuard.com

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More than 100 hundred surgeries have been performed to date with the new DSG Connect platform that allows for transmitting, visualizing and recording the data measured by DSG on a wireless tablet with dedicated software application. We received very encouraging feedback from the twenty-plus evaluation surgeons in Europe, United States and Brazil, where we obtained clearance in 2021. These achievements enable us to schedule the product full launch in fall during NASS (North American Spine Society) and Eurospine, the two key annual congresses worldwide for spine surgery.

App for tablet

Modified electronic board with

wireless transmission

DSG Connect opens the field of Digital Health for us via the collection and analysis of intra-operative data for the scientific purpose of measuring bone quality, and more generally tissue differentiation. A first scientific communication was thus given in April 2022 in Naples, Italy, during the CRAS conference (Conference on New Technologies for Computer and Robot Assisted Surgery) by the teams of Trousseau Hospital and ISIR in Paris.

The collaboration with ConfiDent ABC (Adin Group) in the context of worldwide exclusive license of DSG technology continues toward the development of a breakthrough product in the field of dental implantology. Ongoing discussions with various companies for other applications of our DSG technology could result in new partnerships.

DSG embedded in a dental power drill

Despite the impact of the Omicron variant on surgical activity in January and February, we got back to growth in the first quarter of 2022 (+8%). The strengthening of our commercial team in the United States and our strategic partnership with the American company Wishbone Medical start to bear fruits. The publication in February of a 19th clinical study describing the benefits of DSG and the clearance of the Threaded PediGuard for anterior approach have the potential to amplify these strong dynamics.

The growing interest triggered by our latest advances offers real value creation perspectives. It is stimulating the entire SpineGuard team who strives to reveal the full potential of the DSG technology, unique in its capacity to secure and streamline the placement of implants in bone while minimizing the recourse to X-rays. Thank you for supporting us in this exciting adventure!

Pierre Jérôme, Chairman & CEO and

Stéphane Bette, Deputy CEO

Co-founders

www.SpineGuard.com

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