What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-03-07 compared with 2021-03-03 · 226 added, 235 removed, 676 unchanged (41% of the section changed)

Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

Consolidated Statements of Financial Position

Report of Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets

Consolidated Statements of Income and Comprehensive Income

3 unchanged sentences

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Viemed Healthcare, Inc.

To the Shareholders and the Board of Directors of

Viemed Healthcare, Inc.

Opinion on the Financial Statements

33 unchanged sentences

2 2,457 2,310

Income tax receivable 1,893 —

Prepaid expenses and other assets 2 1,729 1,511

47 unchanged sentences

Depreciation 851 816

(Gain) loss on disposal of property and equipment ( 2,328 ) 360

Other (income) expense 9 ( 3,952 ) 3

Loss (gain) on disposal of property and equipment 448 ( 2,328 )

Other expense (income) 9 ( 1,622 ) ( 3,952 )

Income from operations $ 11,580 $ 26,781

Non-operating expenses

Unrealized gain on warrant conversion liability 6 — ( 363 )

(Gain) loss from equity investments ( 91 ) 110

Non-operating income and expenses

Income from equity method investments ( 1,241 ) ( 91 )

Interest expense, net of interest income 5 318 509

Net income before taxes 12,503 26,363

(Benefit) provision for income taxes 10 ( 5,167 ) 271

Provision (benefit) for income taxes 10 3,377 ( 5,167 )

Net income $ 9,126 $ 31,530

Other comprehensive income

Change in unrealized loss on derivative instruments, net of tax ( 294 ) ( 157 )

Other comprehensive loss $ ( 294 ) $ ( 157 )

Other comprehensive income (loss)

Change in unrealized gain/loss on derivative instruments, net of tax 173 ( 294 )

Other comprehensive income (loss) $ 173 $ ( 294 )

Comprehensive income $ 9,299 $ 31,236

15 unchanged sentences

Stock-based compensation - restricted stock — — 1,072 — — 1,072

Exercise of warrants 133,170 260 — — — 260

Exercise of options 643,297 1,876 — — — 1,876

Shares issued for vesting of restricted stock units 589,225 3,939 ( 3,939 ) — — —

Shares repurchased and canceled under the Normal Course Issuer Bid ( 365,100 ) — — — ( 1,522 ) ( 1,522 )

Change in accumulated other comprehensive loss — — — ( 157 ) — ( 157 )

Change in accumulated other comprehensive loss, net of tax — — — ( 294 ) — ( 294 )

Net income — — — — 31,530 31,530

4 unchanged sentences

Shares issued for vesting of restricted stock units 608,929 4,721 ( 4,721 ) — — —

Shares redeemed to pay income tax ( 181,320 ) — — — ( 1,434 ) ( 1,434 )

Change in accumulated other comprehensive loss, net of tax — — — 173 — 173

14 unchanged sentences

Share-based compensation 7 5,150 4,882

Unrealized gain on warrant conversion liability 6 — ( 363 )

(Gain) loss on equity investments ( 91 ) 110

(Gain) loss on disposal of property and equipment ( 2,328 ) 360

Deferred income taxes (benefit) ( 8,733 ) —

Distributions of earnings received from equity method investments 416 —

Income from equity method investments ( 1,241 ) ( 91 )

Loss (gain) on disposal of property and equipment 448 ( 2,328 )

Deferred income tax expense (benefit) 3,884 ( 8,733 )

Net change in working capital

4 unchanged sentences

Increase in deferred revenue 344 94

Increase in accrued liabilities 2,308 2,461

Increase (decrease) in income tax payable 254 ( 66 )

(Decrease) increase in accrued liabilities ( 4,022 ) 2,308

Change in income tax payable/receivable ( 2,233 ) 254

Net cash provided by operating activities $ 22,494 $ 35,110

6 unchanged sentences

Proceeds from exercise of options 112 1,876

Proceeds from exercise of warrants — 260

(Principal payments) net proceeds on notes payable 5 ( 142 ) 4,446

(Principal payments) net proceeds on term note 5 ( 1,605 ) 4,933

Shares repurchased and canceled under the Normal Course Issuer Bid — ( 1,522 )

Principal payments on notes payable 5 ( 152 ) ( 142 )

Principal payments on term note 5 ( 1,683 ) ( 1,605 )

Shares redeemed to pay income tax ( 1,434 ) —

Repayments of lease liabilities ( 2,164 ) ( 9,198 )

Net cash used in financing activities $ ( 5,321 ) $ ( 9,069 )

Net increase in cash and cash equivalents 17,626 2,942

Net (decrease) increase in cash and cash equivalents ( 2,573 ) 17,626

Cash and cash equivalents at beginning of year 30,981 13,355

4 unchanged sentences

Supplemental disclosures of non-cash transactions

Property and equipment financed through finance leases $ 3,002 $ 12,011

Property and equipment financed through leases under FASB ASC 842 $ 57 $ 615

Net non-cash changes to finance leases balances $ 48 $ 3,002

Net non-cash changes to operating lease balances $ 712 $ 57

See accompanying notes to the consolidated financial statements

15 unchanged sentences

The Company will continue to file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K with the Securities and Exchange Commission (the "SEC").

As of June 30, 2021, the Company determined that it no longer qualifies as a “smaller reporting company,” but the Company is not required to comply with the larger company disclosure obligations (subject to certain exemptions and relief from various reporting requirements that are applicable to emerging growth companies) until our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022.

As a result, this Annual Report on Form 10-K is only required to comply with the smaller company disclosure obligations.

The Company is an "emerging growth company," as defined in the JOBS Act, and as such, has elected to comply with certain reduced U.S.

public company reporting requirements.

The Company’s common shares are traded in Canada on the TSX under the symbol VMD.TO and in the U.S.

on the Nasdaq Capital Market under the symbol VMD.

The Company’s common shares are traded in the U.S.

on the Nasdaq Capital Market under the symbol "VMD" and in Canada on the TSX under the symbol "VMD.TO".

Summary of Significant Accounting Policies

22 unchanged sentences

Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable.

Significant areas requiring the use of management estimates relate to revenue recognition, accounts receivable and the related allowance for doubtful accounts, income tax provisions, and fair value of financial instruments.

Areas requiring the use of management estimates relate to revenue recognition, accounts receivable and the related allowance for doubtful accounts, income tax provisions, and fair value of financial instruments.

Actual results could differ from these estimates.

24 unchanged sentences

Balance, end of period $ 7,031 $ 9,013

As of December 31, 2020 and 2019, no one customer represented more than 10% of outstanding accounts receivable.

The Company does have receivables at December 31, 2020 from Medicare and Medicaid, representing 35 % and 11 %, respectively, and 46 % combined, of total outstanding receivables (December 31, 2019 - 58 %).

As these receivables are both from government programs, there is little credit risk associated with these balances;

however, these receivables are subject to billing modifications and other adjustments and estimates of the amounts of such adjustments are included in the allowance for doubtful accounts.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

December 31, 2021 and 2020

As of December 31, 2021 and 2020, no one customer represented more than 10% of outstanding accounts receivable.

The Company does have receivables at December 31, 2021 from Medicare and Medicaid, representing 35 % and 9 %, respectively, and 44 % combined, of total outstanding receivables (December 31, 2020 - 46 %).

As these receivables are both from government programs, there is little credit risk associated with these balances;

however, these receivables are subject to billing modifications and other adjustments and estimates of the amounts of such adjustments are included in the allowance for doubtful accounts.

Revenues from Medicare and Medicaid as percentages of the Company's traditional revenue streams, excluding COVID-19 response sales and services, for the years ended December 31, 2021 and 2020 were as follows:

3 unchanged sentences

Total Medicare and Medicaid revenues 64 % 67 %

Inventory represents non-serialized respiratory supplies that consist of equipment parts, consumables, and associated product supplies and is expensed at the time of sale or use.

Inventory represents non-serialized supplies that consist of equipment parts, consumables, and associated product supplies and is expensed at the time of sale or use.

The Company values inventory at the lower of cost or net realizable value.

6 unchanged sentences

Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets.

Property and equipment are amortized on a straight-line basis over their estimated useful lives.

The estimated useful lives of the property and equipment are as follows:

5 unchanged sentences

Vehicles 5 Years

Building 15 - 39 Years

Buildings 15 - 39 Years

Land Indefinite Life

4 unchanged sentences

Equity Investments

Investments in unconsolidated entities, over whose operating and financial policies the Company has the ability to exercise significant influence but not control, are accounted for using the equity method of accounting.

Equity method investments are initially measured at cost in the Consolidated Balance Sheets with any subsequent adjustments made to the carrying amount of the investment for the Company’s proportionate share of income or loss.

The Company has recognized its share of income or loss within non-operating expenses in Consolidated Statements of Income.

Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investments may exceed the fair value.

No events or changes have occurred as of December 31, 2020 that would affect the carrying value of equity method investments.

The Company measures equity securities without a readily determinable fair value at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of December 31, 2020 on its investments in equity securities without a readily determinable fair value.

Equity investments on the Consolidated Balance Sheets are comprised of an investment accounted for under the equity method and an equity investment without a readily determinable fair value which is accounted for under the measurement alternative described in ASC 321-10-35-2.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

December 31, 2021 and 2020

The following table details the Company’s equity investments:

December 31, 2021 December 31, 2020

Equity method investments $ 959 $ 134

Other equity investments 1,198 599

Balance, end of period $ 2,157 $ 733

Our equity method investments include a 49 % equity interest in Solvet Services, LLC.

Investments accounted for under the equity method are investments in unconsolidated entities over whose operating and financial policies the Company has the ability to exercise significant influence but not control.

Equity method investments are initially measured at cost in the Consolidated Balance Sheets with a n y subsequent adjustments made to the carrying amount of the investment for the Company’s proportionate share of income or loss.

The Company has recognized its share of income or loss on the gain (loss) from equity method investments within non-operating expenses in the Consolidated Statements of Income.

Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investments may exceed the fair value.

No events or changes have occurred as of December 31, 2021 that would impair the carrying value of equity method investments.

Other equity investments include a 5 % equity interest in VeruStat, Inc.

Other equity investments are investments without a readily determinable fair value which do not qualify for the practical expedient in ASC 820.

For these investments, the Company has elected the measurement alternative which measures the investment at cost, less any impairment.

ASU 2019-04 clarifies that if an entity identifies observable price changes in orderly transactions for the identical or a similar investment of the same issuer, it must measure its equity investment at fair value in accordance with ASC 820 as of the date that the observable transaction occurred.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of December 31, 2021 on its investments in equity securities without a readily determinable fair value.

Comprehensive Income

2 unchanged sentences

Accumulated other comprehensive loss is presented on the accompanying Consolidated Balance Sheets as a component of shareholders' equity.

As a result of the “backward tracing” prohibition in ASC 740, certain previously measured unrealized gains or losses have resulted in the existence of "dangling" amounts within other comprehensive income.

The Company has elected the individual security approach to the release of these effects.

Under the individual security approach, dangling amounts are tracked on a security-by-security basis and cleared out of the other comprehensive income balance upon sale of each individual security.

During the periods presented, none of the individual securities associated with a dangling balance were sold.

Revenue Recognition

9 unchanged sentences

For commercial payors, DME companies must negotiate in-network pricing separately, though in general, the Company’s payors tend to benchmark their contract rates and coverage policies closely to those of Medicare.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

The Company considers performance obligations for sales and rentals to be met when the customer receives the equipment, and revenue for rentals is recognized over time, over the respective rental period.

18 unchanged sentences

The Company considers these rentals to be operating leases.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

Under FASB Accounting Standards Codification Topic 842, the Company recognizes rental revenue on operating leases on a straight-line basis over the contractual lease term which varies based on the type of equipment rental.

14 unchanged sentences

As such, the transaction price is constrained for the difference between the gross charge and what is estimated to be collected from payors and from patients.

The transaction price therefore is predominantly based on contractual payment rates as determined by the payors.

The transaction price therefore is predominantly based on contractual

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

payment rates as determined by the payors.

The Company does not generally contract with uninsured customers.

19 unchanged sentences

Any excess tax benefit or deficiency is recognized as a component of income taxes and within operating cash flows upon vesting of the share-based award.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

For the Company’s phantom share units settled in cash, the Company computes the fair value of the phantom share units using the closing price of the Company's stock at the end of each period and records a liability based on the percentage of requisite service.

3 unchanged sentences

These fair value estimates reflect an income approach based on the terms of the interest rate swap contract and inputs corroborated by observable market data including interest rate curves.

The Company includes unrealized gains in Other Long-term assets, as a component of long-term assets, and unrealized losses in accrued liabilities, as a component of long-term liabilities on the Consolidated Balance Sheets.

The Company presents a positive ending period fair value of the interest rate swap contract in other long-term assets, as a component of long-term assets, and a negative ending period fair value of the interest rate swap contract in accrued liabilities, as a component of long-term liabilities on the Consolidated Balance Sheets.

The Company recognizes any differences between the variable interest rate payments and the fixed interest rate settlements from its swap counterparty as an adjustment to interest expense over the life of the swap.

If determined to be an effective cash flow hedge, the Company will record the changes in the estimated fair value of the swaps to accumulated other comprehensive income or loss on the Consolidated Balance Sheets.

To the extent that interest rate swaps are determined to be ineffective, the Company would recognize the changes in the estimated fair value of swaps in interest and other non-operating expenses, net on its Consolidated Statements of Income.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

The Company is subject to income taxes in numerous jurisdictions.

15 unchanged sentences

The effect of a change in the enacted tax rates is recognized in net earnings and comprehensive income or in equity depending on the item to which the adjustment relates.

Deferred tax assets are recognized to the extent future recovery is probable.

At each reporting period end, deferred tax assets are evaluated for recoverability based on whether it is more likely than not that sufficient taxable earnings will be available to allow all or part of the asset to be recovered.

See Note 10 for details on income taxes recognized.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

Impairment of Long-Lived Assets

2 unchanged sentences

When properties are classified as held for sale they are recorded at the lower of the carrying amount or the expected sales price less costs to sell.

There were no impairment charges recognized during the fiscal years ended December 31, 2020 and 2019.

There were no impairment charges recognized during the years ended December 31, 2021 and 2020.

Net Income per Share Attributable to Common Stockholders

Basic net income per common share is computed based on the weighted average number of shares of common stock outstanding during the period.

Diluted net income per common share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential stock-based awards outstanding during the period using the treasury stock method.

Dilutive potential stock-based awards include outstanding common stock options and time-based RSUs.

Diluted net income per common share is computed based on the weighted average number of shares of common stock plus the effect of dilutive stock-based awards outstanding during the period using the treasury stock method.

Dilutive stock-based awards include outstanding common stock options and time-based RSUs.

See Note 11 for earnings per share computations.

Recently Adopted Accounting Pronouncements

In August 2018, the FASB issued ASU No.

2018-13, Fair Value Measurement (Topic 820):

Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.

The new guidance modifies the disclosure requirements on fair value measurements.

The Company adopted this standard on January 1, 2020 and the adoption of this standard did not have a material impact on the Company's consolidated financial statements.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740).

ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods.

The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods.

The Company adopted ASU 2019-12 in the first quarter of 2021 and the adoption had no material impact to the Company’s consolidated financial statements.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

On January 1, 2021, we adopted Accounting Standards Update (ASU) No.

2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01), which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815.

The adoption of this new standard did not have a material impact on our consolidated financial statements.

Recently Issued Accounting Pronouncements

5 unchanged sentences

Section 107 of the JOBS Act provides that the Company can elect to opt out of the extended transition period at any time, which election is irrevocable.

In June 2016, the FASB issued ASU No.

2016-13, “Financial Instruments - Credit Losses,” to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts.

The ASU will be effective for interim and annual periods beginning January 1, 2020 for issuers and annual periods beginning January 1, 2023 for non-issuers.

The Company anticipates adopting this ASU on January 1, 2023 given its smaller reporting company status and is still evaluating the impact of adoption on the consolidated financial statements in future periods.

In November 2019, the FASB issued ASU 2019-11, "Codification Improvements to Topic 326, Financial Instruments – Credit Losses." Among other things, the ASU expands the scope of the practical expedient that allows entities to exclude the accrued interest component of amortized cost from various disclosures required by ASC 326 to also include certain disclosures required by Topic 320.

Entities that elect to apply the practical expedient must disclose the total amount of accrued interest that they exclude from their disclosures of amortized cost.

The amendments have the same effective dates as ASU 2016-13 (Topic ASC 326) for entities that have not yet adopted that standard.

For entities that early adopted ASU 2016-13 (Topic ASC 326), the amendments are effective for fiscal years beginning after December 15, 2019 and interim periods therein.

Entities that early adopted ASU 2016-13 (Topic ASC 326) may early adopt the amendments.

In December 2019, the FASB issued ASU No.

2019-12, "Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes." The new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740.

The new guidance also improves consistent application of and simplifies U.S.

GAAP for other areas of Topic 740 by clarifying and amending the existing guidance.

The ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted.

The Company is currently evaluating the effect of the new guidance.

In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses:

Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring earlier recognition of credit losses on certain financial assets.

The standard replaces the current incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased.

Further, the FASB issued ASU 2019-04 and ASU 2019-05 to provide additional guidance on the credit losses standard.

The standard will be effective for fiscal years beginning after December 15, 2022 , including interim periods within those annual periods, with early adoption permitted.

The Company is currently evaluating the effect that this standard will have on its consolidated financial statements and related disclosures.

In March 2020, the FASB issued ASU No.

2020-04, Reference Rate Reform (Topic 848), which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting.

Specifically, the guidance permits an entity, when certain criteria are met, to consider amendments to contracts made to comply with reference rate reform to meet the definition of a modification under GAAP.

It further allows hedge accounting to be maintained and a one-time transfer or sale of qualifying held-to-maturity securities.

The expedients and exceptions provided by the amendments are permitted to be adopted any time through December 31, 2022 and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for certain optional expedients elected for certain hedging relationships existing as of December 31, 2022.

The Company has a commercial term note that references LIBOR and is evaluating how this standard may be applied to specific contract modifications through December 31, 2022.

In November 2021, the FASB issued ASU No.

2021-10, Government Assistance (Topic 832):

Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of:

(1) the types of government assistance received;

(2) the accounting for such assistance;

and (3) the effect of the assistance on a business entity's financial statements.

This guidance will be effective for us in the year ended December 31, 2022, with early adoption permitted.

We are currently evaluating the impact of the new guidance on our consolidated financial statements.

VIEMED HEALTHCARE, INC.

81 unchanged sentences

Net long-term lease liabilities $ 268 $ 762

Finance Lease Liabilities

The Company has various finance leases for equipment with an implied interest rate at fixed rates up to 9.61 %, secured by equipment, due between 2021 and 2022.

The Company's weighted average interest rate was 3.97 % and 2.48 % for all finance lease liabilities outstanding as of December 31, 2020 and 2019, respectively.

At December 31, 2020 and 2019, the weighted average lease term was approximately 0.59 years and 1.07 years, respectively.

Future minimum principal and interest payments for finance lease obligations required over the next five years as of December 31, 2020, as follows:

Principal Payments Interest Payments

2021 $ 2,147 $ 35

Total $ 2,158 $ 35

Interest expense related to these finance lease obligations for the years ended December 31, 2020 and 2019 amounted to $ 155,000 and $ 147,000 , respectively.

Included in lease liabilities at December 31, 2021 are finance lease liabilities for medical equipment in the amount of $ 42,000 due between 2022 and 2024.

Operating Lease Liabilities

10 unchanged sentences

The related assets for operating lease liabilities have been included with property and equipment on the Consolidated Balance Sheets.

Included within these operating lease liabilities are real property leases for real estate from a related party.

On August 1, 2015, the Company entered a ten-year triple net lease agreement for office and warehouse space with a company owned by the Company’s CEO, Casey Hoyt, and President, Michael Moore.

Rental payments under these related party lease agreements were $ 20,000 per month, plus taxes, utilities and maintenance.

Total rental payments for the use of these properties were $ 201,000 and $ 237,000 for the years ended December 31, 2021 and 2020, respectively.

The expense for these related party rents has been included within selling, general and administrative expenses.

On October 1, 2021, the Company acquired the properties for $ 2.8 million following approval by the Board of Directors.

The acquisition of these previously leased properties was funded by cash on hand and resulted in no incremental debt.

At December 31, 2021, these properties are recorded in property and equipment, net of related depreciation.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

December 31, 2021 and 2020

Included within these operating lease liabilities are real property leases for real estate from a related party.

On August 1, 2015, the Company entered a ten -year triple net lease agreement for office space with a rental company that is affiliated with the Company’s CEO, Casey Hoyt, and President, Michael Moore.

Rental payments under these related party lease agreements are $ 20,000 per month, plus taxes, utilities and maintenance.

Total rental payments for the use of these properties were $ 237,000 and $ 242,000 for the years ended December 31, 2020 and 2019, respectively.

The expense for these related party rents has been included within selling, general and administrative expenses.

Fair Value Measurement

1 unchanged sentence

ASC Topic 820 establishes a hierarchy for inputs to valuation techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

Observable inputs are inputs that reflect assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company.

Unobservable inputs are inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

There are three levels to the hierarchy based on the reliability of inputs, as follows:

4 unchanged sentences

The degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3.

The Company’s cash and cash equivalents are measured using Level 1 inputs and include cash on hand, deposits in banks, and money market funds.

Due to their short-term nature, the carrying amounts reported in the consolidated balance sheets approximate the fair value of cash and cash equivalents.

The fair value of debt is classified as Level 2 for the periods presented and approximates its carrying value.

During 2019, the Company had warrants to purchase one common share of the Company denominated in Canadian dollars which is different from the functional currency of the Company, which is U.S.

The conversion feature is treated as a derivative financial liability and the fair value movement during the period is recognized in the Consolidated Statement of Income and Comprehensive Income.

The change in the value of warrants has been recorded as an unrealized (gain) loss on derivative financial liability in the Consolidated Statements of Income and Comprehensive Income.

All unexercised warrants expired during the year ended December 31, 2019.

The warrant derivative financial liability was valued using Level 3 inputs from the fair value hierarchy.

There were no warrants issued or outstanding during the year ended December 31, 2020.

There were 133,000 warrants exercised at a weighted average price of $ 2.60 (CAD$) per common share and 44,000 warrants that expired during the year ended December 31, 2019.

A summary of the change in fair value of warrant conversion liability is as follows for the period ended December 31, 2019:

Warrant Conversion Liability

Balance December 31, 2018 $ 363

Warrants issued —

Unrealized gain on warrant conversion liability ( 363 )

Balance December 31, 2019 $ —

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company measures certain assets and liabilities at fair value on a recurring basis.

There were no transfers between fair value measurement levels during any presented period.

The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020:

At December 31, 2021

(In thousands) Level 1 Level 2 Level 3 Total

Recurring Fair Value Measurements:

Money market mutual funds $ 16,456 $ — $ — $ 16,456

Interest rate swap — ( 200 ) — ( 200 )

Total $ 16,456 $ ( 200 ) $ — $ 16,256

At December 31, 2020

(In thousands) Level 1 Level 2 Level 3 Total

Recurring Fair Value Measurements:

Money market mutual funds $ 25,662 $ — $ — $ 25,662

Interest rate swap — ( 433 ) — ( 433 )

Total $ 25,662 $ ( 433 ) $ — $ 25,229

Derivative Instruments and Hedging Activities

The Company recognizes its interest rate swaps as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value.

The valuation of these derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative.

This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities.

As of December 31, 2021, the Company holds one interest rate swap contract which matures on May 30, 2026 and has a notional amount of $ 4.5 million.

This contract is designated as a cash flow hedge.

During 2021, ineffective portions of the hedge were immaterial.

The fair value was $( 0.2 ) million (determined based on Level 2 inputs) and is included in accrued liabilities, as a component of long-term liabilities as of December 31, 2021.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

December 31, 2021 and 2020

Derivative Instruments and Hedging Activities

The Company has one interest rate swap contract in place, which became effective on May 31, 2019 and has been designated as a cash flow hedge.

This swap contract matures on May 30, 2026.

This swap contract converts the variable interest rate to a fixed interest rate on borrowings under the Building Term Note.

As of December 31, 2020, the notional amount of the interest rate swap was $ 4,600,000 and will be amortized over the term of the swap.

The fair value was $ 433,000 (determined based on Level 2 inputs) and is included in accrued liabilities, as a component of long-term liabilities as of December 31, 2020.

During 2020, losses recognized as a result of ineffectiveness were immaterial.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We measure certain assets and liabilities at fair value on a nonrecurring basis.

These assets and liabilities include equity method investments and other equity investments.

Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the investments may exceed the fair value.

The Company's other equity investments are holdings in a privately-held company without a readily determinable market value.

The Company remeasures equity securities without readily determinable fair value at fair value when an orderly transaction is identified for an identical or similar investment of the same issuer in accordance with Topic 820.

ASU 2019-04 states that the measurement alternative is a nonrecurring fair value measurement.

Accordingly, other equity investments without readily determinable fair value are classified within Level 3 in the fair value hierarchy because the Company estimates the value using a combination of observable and unobservable inputs, including valuation ascribed to the issuing company in subsequent financing rounds, volatility in the results of operations of the issuers and rights and obligations of the holdings we own.

The Company had no material adjustments of assets and liabilities measured at fair value on a nonrecurring basis during any of the periods presented.

There were no transfers between fair value measurement levels during any presented period.

Shareholders' Equity

4 unchanged sentences

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 39,640,388 and 39,185,182 shares were issued and outstanding as of December 31, 2021 and 2020, respectively.

On November 26, 2018, the Company announced that the TSX had accepted the Company’s notice of intention to make a NCIB for its common shares in compliance with the requirements of the TSX.

As of November 29, 2018, the Company was able to commence making purchases of up to a maximum of 1,875,575 common shares, which represented approximately 5 % of the Company’s issued and outstanding common shares at the time.

The NCIB covered the period from November 29, 2018 to November 28, 2019.

For the year ended December 31, 2019, the Company re-purchased and canceled 365,100 common shares at a cost of $ 1,522,000 pursuant to the NCIB that went into effect on November 29, 2018.

Total shares repurchased under the NCIB were 775,803 as of December 31, 2019.

The Company’s retained earnings were reduced by the amount paid for the shares repurchased for cancellation.

All outstanding warrants expired unexercised on August 27, 2019.

The following table summarizes warrant activity during the year ended December 31, 2019:

Number of warrants (000's) Weighted average exercise price (CAD$)

Balance December 31, 2018 177 $ 2.60

Exercised ( 133 ) 2.60

Expired ( 44 ) 2.60

Balance December 31, 2019 — $ —

During the year ended December 31, 2021, the Company repurchased and cancelled 181,320 common shares at a cost of $ 1.4 million due to tax withholding for RSUs vesting.

Stock-Based Compensation

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The Former Plan is a “fixed” stock plan, whereby the maximum number of the Company's shares reserved for issuance, combined with any equity securities granted under all other compensation arrangements adopted by the Company, may not exceed 7,582,000 shares (equal to 20 % of the issued and outstanding shares of the Company as of the date of the adoption of the Former Plan).

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

Effective June 11, 2020 (the "Effective Date"), the Company’s shareholders approved the Company's 2020 Long Term Incentive Plan (the "Omnibus Plan"), and the Former Plan was frozen.

10 unchanged sentences

As of December 31, 2021, there was approximately $ 591,000 of total unrecognized pre-tax compensation expense related to outstanding time-based RSUs that is expected to be recognized over a weighted average period of 0.68 years.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

The following table summarizes stock option activity for the years ended December 31, 2021 and 2020:

17 unchanged sentences

At December 31, 2020, the Company had 971,000 exercisable stock options outstanding with a weighted average exercise price of $ 3.09 and a weighted average remaining contractual life of 6.9 years.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

The fair value of the stock options has been charged to the Consolidated Statements of Income and credited to additional paid-in capital over the vesting period, using the Black-Scholes option pricing model calculated using the following assumptions for issuances during the years ended December 31, 2021 and 2020:

4 unchanged sentences

Expected volatility 60 % - 68 %

Expected term 5.63 - 10 years

Expected term 5.65 - 5.76

5.63 - 10 years

Expected dividend yield Nil Nil

1 unchanged sentence

$ 4.10 - $ 7.23

(1) For presentation purposes, stock options issued with a CAD exercise price have been translated to USD based on the prevailing exchange rate on the date of grant.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

Restricted Stock Units

The Company also grants RSUs to directors, officers, and employees.

The Company accounts for RSUs using fair value.

The Company accounts for Restricted Stock Units ("RSU") using fair value.

The fair value of the RSUs has been charged to the Consolidated Statements of Income and credited to additional paid-in capital over the vesting period, based on the stock price on the date of grant.

RSUs vest generally over a one or three-year period.

The Company accounts for forfeitures on RSUs under ASU 2016-09 and recognizes forfeitures in the period in which they occur.

The following table summarizes restricted stock unit activity for the years ended December 31, 2021 and 2020:

23 unchanged sentences

The following table summarizes phantom share unit activity for the years ended December 31, 2021 and 2020:

Number of phantom share units (000's)

Number of phantom share units (000's) Value of share equivalents (1)

Balance December 31, 2019 1,350 $ 8,370

Issued 346 2,439

Vested ( 601 ) ( 4,201 )

1 unchanged sentence

Balance December 31, 2020 985 7,644

Issued 394 3,771

Vested ( 656 ) ( 6,282 )

1 unchanged sentence

Balance December 31, 2021 573 2,991

The cash-settled phantom share units are accounted for as liability awards and are re-measured at fair value each reporting period until they become vested with accrued liability and related expense being recognized over the requisite service period.

The change in fair value of the phantom share units has been charged to the Consolidated Statements of Income and recorded as a liability included in accrued liabilities and long-term accrued liabilities, using a valuation method with the following inputs:

December 31, 2020 December 31, 2019

Share price (Nasdaq closing price at period end) $ 7.76 $ 6.20

Remaining life of phantom share units 0.36 - 2.36 Years

0.36 - 2.36 Years

Calculated fair value of phantom share units $ 5,344 $ 5,290

(1) The value of outstanding share equivalents at the beginning of the period is based on the market price of the Company’s stock at that time;

the value of issued share equivalents is based on the market price of the Company’s stock at issuance;

the value of vested share equivalents is based on the cash paid at the time of vesting;

and the values of expired/forfeited share equivalents and outstanding share equivalents at the end of the period are based on the market price of the Company's stock at the end of the period.

The market price of the Company's stock was $ 5.22 and $ 7.76 on December 31, 2021 and December 31, 2020, respectively.

The change in fair value of the phantom share units has been charged to the Consolidated Statements of Income and Comprehensive Income and recorded as a liability included in accrued liabilities and long-term accrued liabilities.

The total liability associated with phantom share units at December 31, 2021 is $ 1,676,000 , with $ 1,118,000 of this amount included in current accrued liabilities and the remaining portion of $ 558,000 included in long-term accrued liabilities.

14 unchanged sentences

December 31, 2021 and 2020

In March 2020, the Company (through its subsidiary Sleep Management) entered into a purchase order (the “Purchase Order”) with Vyaire Medical, Inc.

d/b/a CareFusion Respiratory Technologies (“Vyaire”) for respiratory equipment and paid $ 1.4 million (the “Deposit”) towards the delivery of such respiratory equipment.

As of December 31, 2020, outstanding supplier deposits in the amount of $ 0.9 million related to such Deposit are included within other long-term assets.

Vyaire was unable to deliver the vast majority of the respiratory equipment referenced in the Purchase Order.

On July 29, 2020, the Company (through its subsidiary Sleep Management) filed a lawsuit against Vyaire in the United States District Court for the Western District of Louisiana (the “Federal Court”).

This lawsuit was dismissed on December 8, 2020 in connection with the commencement of the State Court lawsuit described below.

On November 5, 2020, the Company (through its subsidiary Sleep Management) filed a lawsuit against Vyaire in the 15th Judicial District Court for the Parish of Lafayette, Louisiana (the “State Court”) seeking damages for breach of contract and seeking a declaratory judgment that the Company is not required to pay any further funds to Vyaire.

Legal Proceedings

As previously disclosed, the Company (through its subsidiary Sleep Management LLC) submitted a purchase order (the “Purchase Order”) in March 2020 to Vyaire Medical, Inc.

d/b/a CareFusion Respiratory Technologies (“Vyaire”) for respiratory equipment.

The Company ultimately prepaid $ 1.4 million towards the delivery of such respiratory equipment.

Vyaire was unable or unwilling to deliver the vast majority of the respiratory equipment referenced in the Purchase Order, and also refused to refund the prepayment amount (less the amounts paid for equipment actually received).

On July 29, 2020, the Company (through its subsidiary Sleep Management LLC) filed a lawsuit against Vyaire in the United States District Court for the Western District of Louisiana (the “Court”).

This lawsuit was dismissed on December 8, 2020 in connection with the commencement of the lawsuit filed by the Company (through its subsidiary Sleep Management) on November 5, 2020, against Vyaire in the 15th Judicial District Court for the Parish of Lafayette, Louisiana (the “State Court”) seeking damages for breach of contract and seeking a declaratory judgment that the Company is not required to pay any further funds to Vyaire.

On December 28, 2020, Vyaire filed its Answer, Affirmative Defenses, and Reconventional Demand (“Reconventional Demand”) with the State Court alleging breach of contract and seeking damages of $ 4.7 million purportedly for the improper cancellation of the Purchase Order.

We continue to believe that we have valid legal and equitable grounds to recover our outstanding Deposit as a result of Vyaire’s failure to deliver the vast majority of the respiratory equipment referenced in the Purchase Order.

We have not concluded that a loss related to the Reconventional Demand is probable, nor have we accrued a liability related to this claim.

Although a loss may be reasonably possible (as defined in ASC 450), we do not have sufficient information to determine the amount or range of reasonably possible loss with respect to the Counterclaim given that the dispute is in the early stages of the legal process.

The Company filed its Answer to the Reconventional Demand on February 12, 2021 and the parties are currently engaged in discovery.

We continue to believe that we have valid legal and equitable grounds to recover our outstanding prepayment as a result of Vyaire’s failure to deliver the vast majority of the respiratory equipment referenced in the Purchase Order.

We have determined that a loss related to the Reconventional Demand is not probable, and thus have not accrued a liability related to this claim.

Although a loss may be reasonably possible, we do not have sufficient information to determine the amount or range of reasonably possible loss with respect to the Reconventional Demand given that the dispute is in the early stages of the legal process.

At December 31, 2021, outstanding funds in the amount of $ 0.9 million related to undelivered respiratory equipment are included within other long-term assets.

Governmental and Regulatory Matters

From time to time we are involved in various external governmental investigations, audits and reviews.

Reviews, audits and investigations of this sort can lead to government actions, which can result in the assessment of recoupment of reimbursement, civil or criminal fines or penalties, or other sanctions, including restrictions or changes in the way we conduct business, loss of licensure or exclusion from participation in government healthcare programs.

In May of 2021, a final report and recommendation (“Report”) was issued by the OIG regarding an audit by OIG of claims relating to 100 of the Company’s non-invasive ventilation at home (“NIVH”) patients.

The OIG asserted that most of the sampled Medicare claims submitted for the monthly rental of non-invasive ventilators did not comply with Medicare requirements.

The Company firmly believes that the Report ignores each patient’s diagnosis and supporting documentation of that diagnosis from treating and prescribing physicians and applies clinical guidelines that are contrary to CMS’s accepted standard of care.

In late June of 2021, the Company received initial request letters from DME Medicare Administrative Contractors ("MACs") referencing the Report and requesting repayment of purported overpayments.

The Company responded to each initial request by submitting a rebuttal and by filing a redetermination appeal as prescribed by the initial request letters and by statute.

In September 2021, the MACs informed the Company of unfavorable decisions with respect to the redetermination appeals.

In November 2021, the Company filed Reconsideration Appeals and intends to continue to defend itself vigorously through the remaining appeals processes which include, in successive order, Reconsideration decision, Administrative Law Judge appeals, Medicare Appeals Council review, and ultimately through Federal Court, if necess ary.

The timing of additional appeals beyond reconsideration are subject to workload constraints of the reviewing body.

Based on initial discussions with CMS, a review of the current facts and circumstances as we understand them, and the nature of the requests, we have determined that a loss is not probable but may be reasonably possible.

Accordingly, no related accrual has been recorded.

The extrapolated value of the 39 associated claims within the 4-year reopening period limited by statute is approximately $ 9 million.

Man agement estimates that a possible loss, if any, will not exceed this amount.

It is possible that the ultimate resolution of this matter, if unfavorable, could materially and adversely affect the Company’s consolidated financial position, consolidated results of operations, or consolidated cash flows.

Retirement Plan

The Company maintains a 401(k) retirement plan for employees to which eligible employees can contribute a percentage of their pre-tax compensation.

Matching employer contributions to the 401(k) plan totaled $ 0.8 million and $ 0.6 million for the years ended December 31, 2020 and 2019.

Matching employer contributions to the 401(k) plan totaled $ 0.8 million and $ 0.8 million for the years ended December 31, 2021 and 2020, respectively.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

CARES Act Funds Received

The CARES Act created a Provider Relief Fund to support healthcare-related expenses or lost revenue attributable to the COVID-19 pandemic.

The Company received $ 3.5 million of the Provider Relief Funds in April 2020 and has recognized this amount within other income on its Consolidated Statements of Income.

The Company received a general distribution payment from the Provider Relief Fund of $ 3.5 million in April 2020 and a targeted distribution payment of $ 1.5 million in November 2021.

The HHS has stated that Provider Relief Fund payments are not loans and will not need to be repaid.

1 unchanged sentence

CMS has indicated that the terms and conditions may be subject to ongoing changes and reporting.

There is no US GAAP guidance for for-profit health care entities that receive government grants that are not in the form of an income tax credit, revenue from a contract with a customer or a loan.

As such, for-profit entities must determine the appropriate accounting treatment by analogy to other guidance such as International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance , in IFRS.

Under IAS 20, we determined that upon receipt of funds, we fully complied with the conditions attached to the grant.

We recognized the distributions received from the Provider Relief Fund in the income statement in full during the period of receipt.

To the extent that reporting requirements and terms and conditions are modified, it may affect the Company's ability to comply and may require the return of funds.

In accordance with the terms of acceptance for the grant, the Company has utilized these funds to prevent, prepare for, and respond to the COVID-19 pandemic.

Income taxes are computed in accordance with the provisions of ASC Topic 740, which requires, among other things, a liability approach to calculating deferred income taxes.

6 unchanged sentences

The Company recognizes interest and penalties related to income tax matters in income tax expense.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

The CARES Act which was signed into law on March 27, 2020 includes various income and payroll tax provisions.

As of December 31, 2020, the CARES Act has not had a material impact on the Company's consolidated financial statements.

However, the Company is still analyzing these provisions of the CARES Act.

The Company is subject to U.S.

1 unchanged sentence

The Company is generally not subject to examination by taxing authorities for years prior to 2018.

The Company's effective tax rate for 2020 is ( 19.60 )%, as compared to the effective tax rate of 3.08 % for the year ended December 31, 2019.

Included in the annual effective tax rate of ( 19.60 )% is a discrete benefit described below accounting for ( 29.19 )%.

The following table reconciles income taxes calculated at the combined U.S.

federal and statutory tax rate with income tax expense in the financial statements:

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before the provision for income taxes.

The sources and tax effects of the differences are as follows:

December 31, 2021 December 31, 2020

1 unchanged sentence

Statutory income tax rate 21.0 % 21.0 %

Computed provision for (recovery of) income taxes 5,536 1,847

Computed provision for income taxes 2,626 5,536

State income tax expense 799 839

Permanent differences 694 ( 41 )

Deferred balance adjustments ( 469 ) ( 922 )

Tax rate changes — —

Prior Year True Ups ( 436 ) ( 469 )

Changes in valuation allowance for deferred tax assets ( 306 ) ( 11,032 )

Provision for (recovery of) income taxes $ 3,377 $ ( 5,167 )

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

The significant components of the provision for income taxes for the years ended December 31, 2021 and 2020 are as follows:

10 unchanged sentences

Deferred Income Taxes

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply when the differences are expected to be recovered or settled.

The determination of the ability of the Company to utilize tax loss carry forwards to offset deferred tax liabilities requires management to exercise judgment and make certain assumptions about the future performance of the Company.

Management is required to assess whether it is “probable” that the Company will benefit from these prior losses and other deferred tax assets.

Changes in economic conditions and other factors could result in revisions to the estimates of the benefits to be realized or the timing of utilizing the losses.

Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.

A deferred tax asset has been recognized to the extent that the recoverability of deferred income tax assets is considered probable.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized.

3 unchanged sentences

This release of the valuation allowance was treated partially as a discrete item of $ 7.8 million and partially as part of the effective tax rate for the current year movement of the deferred prior to release in the amount of $ 3.3 million in the Company's June 30, 2020 effective tax rate computation.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2021 and 2020

The significant components of the Company’s deferred tax assets and liabilities are as follows:

3 unchanged sentences

State fixed asset and net operating losses 514 783

11,894 13,149

Goodwill 10,639 11,894

Allowance for doubtful accounts 1,828 2,334

2 unchanged sentences

Stock-based compensation 2,745 2,205

Deferred revenue — 858

Lease liability 179 348

Charitable contributions 41 —

UNICAP 381 363

Total deferred tax assets $ 18,291 $ 20,861

7 unchanged sentences

Net deferred tax asset $ 4,787 $ 8,733

(a) The Company elected to report the acquired assets at fair value at the time of the Company’s acquisition by PHM in 2015, and thus carries a goodwill asset for tax purposes subsequent to the transaction.

The goodwill is amortized over 15 years for tax purposes.

VIEMED HEALTHCARE, INC.

25 unchanged sentences

December 31, 2021 and 2020

Unaudited Summarized Quarterly Financial Information

The Company has prepared the quarterly statements of income data on a basis consistent with the audited financial statements.

In the opinion of management, the financial information reflects all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of this data.

The results of historical periods are not necessarily indicative of the results of operations for any future period.

The following tables set forth our unaudited quarterly statements of income data for each of the eight quarters in the period ended December 31, 2020:

2020 2020 2020 2020

Consolidated Statements of Operations Data:

Revenue $ 31,202 $ 33,447 $ 42,854 $ 23,806

Gross profit 19,178 19,453 25,927 15,553

Operating income 5,267 4,040 12,859 4,615

Net income 5,071 2,804 19,412 4,243

Net income per share:

Basic $ 0.13 $ 0.07 $ 0.50 $ 0.11

Diluted $ 0.12 $ 0.07 $ 0.48 $ 0.11

Weighted average shares outstanding

Basic 39,161,215 39,107,640 38,665,765 38,030,854

Diluted 41,043,419 41,155,668 40,814,238 39,677,983

the amounts for each quarter are computed independently, and, due to the computation formula, the sum of the four quarters may not equal the year.

2019 2019 2019 2019

Consolidated Statements of Operations Data:

Revenue $ 21,448 $ 20,368 $ 20,325 $ 18,115

Gross profit $ 14,243 $ 14,050 $ 14,639 $ 13,074

Operating income 2,691 2,186 1,664 2,316

Net income 2,388 2,853 1,326 1,958

Net income per share:

Basic $ 0.06 $ 0.08 $ 0.04 $ 0.05

Diluted $ 0.06 $ 0.07 $ 0.03 $ 0.05

Weighted average shares outstanding

Basic 37,952,660 37,812,921 37,686,763 37,827,058

Diluted 40,148,149 40,051,422 39,975,307 39,449,123

the amounts for each quarter are computed independently, and, due to the computation formula, the sum of the four quarters may not equal the year.

VIEMED HEALTHCARE, INC.

(Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts)

December 31, 2020 and 2019

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data