What changed in this filing

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Item 1. Financial Statements

2022-05-03 compared with 2021-11-02 · 184 added, 222 removed, 532 unchanged (43% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

September 30, 2021 At

March 31, 2022 At

December 31, 2021

2 unchanged sentences

Cash and cash equivalents $ 29,248 $ 28,408

Accounts receivable, net of allowance for doubtful accounts of $ 7,115 and $ 9,013 at September 30, 2021 and December 31, 2020, respectively

Accounts receivable, net of allowance for doubtful accounts of $ 8,484 and $ 7,031 at March 31, 2022 and December 31, 2021, respectively

2 13,599 12,823

Inventory, net of inventory reserve of $ 1,237 and $ 1,353 at September 30, 2021 and December 31, 2020, respectively

Inventory, net of inventory reserve of $ 0 and $ 1,418 at March 31, 2022 and December 31, 2021, respectively

2 2,503 2,457

12 unchanged sentences

Deferred revenue 3,888 3,753

Income taxes payable — 340

Accrued liabilities 4 8,739 8,875

12 unchanged sentences

unlimited authorized;

39,630,446 and 39,185,182 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

39,293,778 and 39,640,388 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively

7 $ 14,348 $ 14,014

9 unchanged sentences

Dollars, except share and per share amounts)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

Note 2022 2021

7 unchanged sentences

Depreciation 237 200

Loss (gain) on disposal of property and equipment 145 203 304 ( 2,424 )

Other expense (income) ( 32 ) ( 19 ) ( 85 ) ( 3,593 )

Other (income) expense ( 455 ) 55

Income from operations $ 2,248 $ 1,332

5 unchanged sentences

Net income $ 1,762 $ 1,684

Other comprehensive income (loss)

Other comprehensive income

Change in unrealized gain/loss on derivative instruments, net of tax 163 106

Other comprehensive income (loss) $ 21 $ 24 $ 121 $ ( 321 )

Other comprehensive income $ 163 $ 106

Comprehensive income $ 1,925 $ 1,790

17 unchanged sentences

Shares issued for vesting of restricted stock units 556,840 4,403 ( 4,403 ) — — —

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

Change in accumulated other comprehensive loss, net of tax — — — 106 — 106

1 unchanged sentence

Shareholders' equity, March 31, 2021 39,577,288 $ 13,649 $ 4,224 $ ( 345 ) $ 65,893 $ 83,421

Stock-based compensation - options — — 933 — — 933

Share-based compensation - restricted stock — — 263 — — 263

Exercise of options 596,160 1,757 — — — 1,757

Change in accumulated other comprehensive loss, net of tax — — — ( 33 ) — ( 33 )

Net income — — — — 19,412 19,412

Shareholders' equity, June 30, 2020 39,082,932 $ 8,414 $ 5,448 $ ( 502 ) $ 57,768 $ 71,128

Stock-based compensation - options — — 945 — — 945

Stock-based compensation - restricted stock — — 289 — — 289

Exercise of options 2,400 8 — — — 8

Shares issued for vesting of restricted stock units 59,850 663 ( 663 ) — — —

Change in accumulated other comprehensive loss, net of tax — — — 24 — 24

Net income — — — — 2,804 2,804

Shareholders' equity, September 30, 2020 39,145,182 $ 9,085 $ 6,019 $ ( 478 ) $ 60,572 $ 75,198

See accompanying notes to the condensed consolidated financial statements

VIEMED HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Expressed in thousands of U.S.

Dollars, except share and per share amounts)

Common Stock Additional paid-in capital Accumulated other comprehensive loss Total Shareholders'

3 unchanged sentences

Stock-based compensation - restricted stock — — 485 — — 485

Exercise of options 16,586 65 — — — 65

Shares issued for vesting of restricted stock units 67,010 334 ( 334 ) — — —

Shares redeemed to pay income tax ( 23,742 ) — — — ( 119 ) ( 119 )

Shares repurchased under the share repurchase program ( 389,878 ) — — — ( 1,887 ) ( 1,887 )

Change in accumulated other comprehensive loss, net of tax — — — 163 — 163

1 unchanged sentence

Shareholders' equity, March 31, 2022 39,293,778 $ 14,348 $ 8,720 $ ( 115 ) $ 73,091 $ 96,044

Stock-based compensation - options — — 998 — — 998

Stock-based compensation - restricted stock — — 238 — — 238

Exercise of options 11,011 47 — — — 47

Change in accumulated other comprehensive loss, net of tax — — — ( 6 ) — ( 6 )

Net income — — — — 1,566 1,566

Shareholders' equity, June 30, 2021 39,588,299 $ 13,696 $ 5,460 $ ( 351 ) $ 67,459 $ 86,264

Stock-based compensation - options — — 1,051 — — 1,051

Stock-based compensation - restricted stock — — 251 — — 251

Shares issued for vesting of restricted stock units 42,147 261 ( 261 ) — — —

Change in accumulated other comprehensive loss, net of tax — — — 21 — 21

Net income — — — — 1,789 1,789

Shareholders' equity, September 30, 2021 39,630,446 $ 13,957 $ 6,501 $ ( 330 ) $ 69,248 $ 89,376

See accompanying notes to the condensed consolidated financial statements

2 unchanged sentences

(Expressed in thousands of U.S.

Nine Months Ended September 30,

Three Months Ended March 31,

Note 2022 2021

8 unchanged sentences

Income from equity method investments ( 323 ) ( 220 )

Loss (gain) on disposal of property and equipment 304 ( 2,424 )

(Gain) Loss on disposal of property and equipment ( 14 ) 76

Deferred income tax expense (benefit) 745 ( 222 )

1 unchanged sentence

Increase in accounts receivable ( 4,221 ) ( 2,728 )

Increase in inventory ( 196 ) ( 1,402 )

Decrease in inventory 1,372 94

Increase in prepaid expenses and other assets ( 68 ) ( 161 )

Increase in trade payables 2,638 2,739

(Decrease) increase in trade payables ( 467 ) 438

Increase in deferred revenue 135 13

(Decrease) increase in accrued liabilities ( 3,711 ) 2,397

Increase (decrease) in accrued liabilities 58 ( 77 )

Change in income tax payable/receivable 1,217 —

9 unchanged sentences

Principal payments on term note 5 ( 433 ) ( 414 )

Shares repurchased under the share repurchase program 7 ( 1,887 ) —

Shares redeemed to pay income tax 7 ( 119 ) ( 1,434 )

6 unchanged sentences

Cash paid during the period for interest $ 66 $ 117

Cash paid during the period for income taxes, net of refunds received $ 1,760 $ 1,975

Refunds received during the period for income taxes $ 1,217 $ —

Supplemental disclosures of non-cash transactions

Net non-cash changes to finance lease balances $ 42 $ 3,002

Net non-cash changes to operating lease balances $ 372 $ 57

Net non-cash changes to finance leases $ — $ 12

Net non-cash changes to operating leases $ — $ 85

See accompanying notes to the condensed consolidated financial statements

3 unchanged sentences

Dollars, except per share amounts)

September 30, 2021 and 2020

March 31, 2022 and 2021

Nature of Business and Operations

6 unchanged sentences

Kaliste Saloom Road, Lafayette, Louisiana 70508.

The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act (the "JOBS Act") and a "smaller reporting company" under Rule 12b-2 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), and, as such, has elected to comply with certain reduced U.S.

The Company no longer qualifies as a “smaller reporting company” and is 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) beginning in this Quarterly Report on Form 10-Q.

The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act (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 the U.S.

on the Nasdaq Capital Market under the symbol VMD and in Canada on the Toronto Stock Exchange ("TSX") under the symbol VMD.TO.

on the Nasdaq Capital Market under the symbol "VMD" and in Canada on the Toronto Stock Exchange under the symbol "VMD.TO".

Summary of Significant Accounting Policies

15 unchanged sentences

Actual results could differ from these estimates.

Accounts receivable

Accounts receivable are regularly reviewed for collectability and an allowance is recorded to cover the estimated bad debts and billing modifications.

The accounts receivable are presented on the Condensed Consolidated Balance Sheets net of the allowance for doubtful accounts.

It is possible that the estimates of the allowance for doubtful accounts could change, which could have a material impact on our operations and cash flows.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

September 30, 2021 and 2020

March 31, 2022 and 2021

Accounts receivable

Accounts receivable are regularly reviewed for collectability and an allowance is recorded to cover the estimated bad debts and billing modifications.

The accounts receivable are presented on the Condensed Consolidated Balance Sheets net of the allowance for doubtful accounts.

It is possible that the estimates of the allowance for doubtful accounts could change, which could have a material impact on our operations and cash flows.

The Company writes off receivables when the likelihood for collection is remote, and when the Company believes collection efforts have been fully exhausted and it does not intend to devote additional resources in attempting to collect.

The write-offs are charged against the allowance for doubtful accounts.

For the nine months ended September 30, 2021, our evaluation takes into consideration such factors as historical bad debt experience, national and local economic trends and conditions, industry and regulatory conditions, other collection indicators and information about disaggregated receivables.

For the three months ended March 31, 2022, our evaluation takes into consideration such factors as historical bad debt experience, national and local economic trends and conditions, industry and regulatory conditions, other collection indicators and information about disaggregated receivables.

The complexity of many third-party billing arrangements, patient qualification for medical necessity of equipment and the uncertainty of reimbursement amounts for certain services from certain payors may result in adjustments to amounts originally recorded.

The estimates and write-offs for the allowance for doubtful accounts for each reporting period were as follows:

September 30, 2021 September 30, 2020

March 31, 2022 March 31, 2021

Balance, beginning of year $ 7,031 $ 9,013

2 unchanged sentences

Balance, end of period $ 8,484 $ 7,999

Included in accounts receivable at September 30, 2021 are amounts due from Medicare and Medicaid which represent 36 % and 10 %, respectively, and 46 % combined, of total outstanding receivables.

As of December 31, 2020, 46 % of total outstanding receivables were due from Medicare and Medicaid.

Revenues from Medicare and Medicaid as percentages of the Company's traditional revenue streams, excluding COVID-19 response sales and services, for the three and nine months ended September 30, 2021 and 2020 were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Included in accounts receivable at March 31, 2022 are amounts due from Medicare and Medicaid, representing 38 % and 12 %, respectively, and 50 % combined, of total outstanding receivables.

As of December 31, 2021, 44 % of total outstanding receivables were amounts due from Medicare and Medicaid.

Revenues from Medicare and Medicaid as percentages of the Company's traditional revenue streams, excluding COVID-19 response sales and services, for the three months ended March 31, 2022 and 2021 were as follows:

Three Months Ended March 31,

Medicare revenues 49 % 60 %

4 unchanged sentences

Obsolete and unserviceable inventories are valued at estimated net realizable value.

Inventory is presented net of a reserve balance of $ 1,237,000 and $ 1,353,000 at September 30, 2021 and December 31, 2020, respectively, that relates to COVID-19 response supplies.

Inventory is presented net of a reserve balance of $ 0 and $ 1,418,000 at March 31, 2022 and December 31, 2021, respectively, that relates to COVID-19 response supplies.

During three months ended March 31, 2022, these supplies were determined to be unavailable for sale due to expiration.

Accordingly, the previously established reserves were eliminated through disposal.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Property and equipment

6 unchanged sentences

Property and equipment with definite useful lives are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

Equity investments

1 unchanged sentence

The following table details the Company’s equity investments:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Equity method investments $ 1,061 $ 959

1 unchanged sentence

Balance, end of period $ 2,359 $ 2,157

The Company's 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 Condensed 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.

Equity method investments are initially measured at cost in the Condensed 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 on the gain (loss) from equity method investments within non-operating expenses in the Condensed 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 September 30, 2021 that would affect the carrying value of equity method investments.

No events or changes have occurred as of March 31, 2022 that would affect the carrying value of equity method investments.

Other equity investments include an equity interest in VeruStat, Inc and an equity interest in DMEscripts, LLC.

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

1 unchanged sentence

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 September 30, 2021 on its investments in equity securities without a readily determinable fair value.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of March 31, 2022 on its investments in equity securities without a readily determinable fair value.

Comprehensive income

Comprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources.

Our comprehensive income represents net income adjusted for unrealized gains and losses on derivative instruments, net of tax.

The Company's comprehensive income represents net income adjusted for unrealized gains and losses on derivative instruments, net of tax.

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

3 unchanged sentences

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

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Revenue recognition

3 unchanged sentences

Contractual adjustments result from the differences between the rates charged for services and reimbursement rates paid by government-sponsored healthcare programs and insurance companies for such services.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

The Company's contracts with customers often include multiple products and services, and the Company evaluates these arrangements to determine the unit of accounting for revenue recognition purposes based on whether the product or service is distinct from other products or services in the arrangement and should be accounted for as a separate performance obligation.

7 unchanged sentences

For any DME sales and services, the Company recognizes revenue under FASB ASU 2014-09, “Revenue from Contracts with Customers,” (Topic 606) and related amendments.

The Company recognizes equipment rental revenue over the non-cancelable lease term, which is one month , less estimated adjustments, in accordance with Topic 842.

The Company recognizes equipment rental revenue over the non-cancelable lease term, which varies based on the type of equipment rental, less estimated adjustments, in accordance with Topic 842.

The Company has separate contracts with each patient that are not subject to a master lease agreement with any third-party payor.

1 unchanged sentence

The revenues from each major source are summarized in the following table:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Revenue from rentals

3 unchanged sentences

Equipment and supply sales

2,415 1,890 6,258 3,962

COVID-19 response sales and services

1,452 8,553 5,542 29,306

Service revenues

515 393 1,505 983

Total revenues $ 32,255 $ 28,416

3 unchanged sentences

The Company accounts for these rentals as operating leases.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Under FASB ASC 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.

5 unchanged sentences

Such adjustments are typically identified and recorded at the point of cash application or claim denial.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

Revenue Accounting under Topic 606

21 unchanged sentences

Any taxes due upon sale of the products or services are not recognized as revenue.

The Company does not have any partially or unfilled performance obligations related to contracts with customers and as such, the Company has no contract liabilities as of September 30, 2021.

The Company does not have any partially or unfilled performance obligations related to contracts with customers and as such, the Company has no contract liabilities as of March 31, 2022.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Stock-based compensation

8 unchanged sentences

The Company utilizes an interest rate swap contract to reduce exposure to fluctuations in variable interest rates for future interest payments on the Term Note (as defined below).

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

For determining the fair value of the interest rate swap contract, the Company uses significant other observable market data or assumptions (Level 2 inputs) that market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk.

16 unchanged sentences

Changes or differences in these estimates or assumptions may result in changes to the current and deferred tax assets and liabilities on the Condensed Consolidated Balance Sheets and a charge to or recovery of income tax expense.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Recently adopted accounting pronouncements

9 unchanged sentences

In other words, an emerging growth company can selectively delay the adoption of all accounting standards until those standards would otherwise apply to private companies.

The Company has elected to utilize this exemption and, as a result, our condensed consolidated financial statements may not be comparable to the financial statements of issuers that are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies.

The Company has elected to utilize this exemption and, as a result, the Company's condensed consolidated financial statements may not be comparable to the financial statements of issuers that are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies.

To date, however, the Company has not delayed the adoption of any accounting standards except as noted below.

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.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

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

3 unchanged sentences

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

The standard is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies, including interim periods within those annual periods, with early adoption permitted.

The standard is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies based on the Company's designation as of November 2019, 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.

4 unchanged sentences

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

The Company has a commercial term note that references LIBOR and the Company is currently 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 , 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 the annual periods beginning after December 15, 2021.

The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Property and Equipment

1 unchanged sentence

The following table details the Company’s fixed assets:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Medical equipment $ 80,322 $ 76,864

6 unchanged sentences

Property and equipment, net of accumulated depreciation and amortization $ 63,977 $ 62,846

Depreciation in the amount of $ 2,656,000 and $ 2,224,000 is included in cost of revenue for the three months ended September 30, 2021 and 2020, respectively, and in the amount of $ 7,574,000 and $ 6,133,000 for the nine months ended September 30, 2021 and 2020, respectively.

Included in medical equipment above is equipment acquired under finance lease obligations whose cost and accumulated depreciation at September 30, 2021 total $ 1,098,000 and $ 222,000 , respectively.

Depreciation in the amount of $ 3,160,000 and $ 2,409,000 is included in cost of revenue for the three months ended March 31, 2022 and 2021, respectively.

Included in medical equipment above is equipment acquired under finance lease obligations whose cost and accumulated depreciation at March 31, 2022 total $ 39,000 and $ 6,000 , respectively.

At December 31, 2021, cost and accumulated depreciation on equipment acquired under finance lease obligations was $ 47,000 and $ 5,000 , respectively.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

Current Liabilities

The Company’s short-term accrued liabilities are included within current liabilities and consist of the following:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Accrued trade payables $ 2,682 $ 2,011

7 unchanged sentences

Senior Credit Facility

On February 20, 2018, the Company entered a Commercial Business Loan Agreement that provides for Term Loans and Line of Credit with Hancock Whitney Bank.

On February 20, 2018, the Company entered a Commercial Business Loan Agreement (the "Senior Credit Facility") that provides for Term Loans and a Line of Credit with Hancock Whitney Bank.

Line of Credit

1 unchanged sentence

Any amounts advanced on this line will be subject to an interest rate equal to the WSJ prime rate plus a margin of 0.50 %, with a 3.50 % interest rate floor and will be secured by substantially all of the Company's assets.

There were no borrowings against this line of credit at September 30, 2021 or December 31, 2020.

There were no borrowings against this line of credit at March 31, 2022 or December 31, 2021.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Commercial Term Notes

13 unchanged sentences

These deferred financing costs are amortized over the term of the loans using the effective interest method.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

The recorded balances associated with these term notes, which have terms greater than twelve months, are as follows:

September 30, 2021 December 31, 2020

The recorded balances associated with these term notes are as follows:

March 31, 2022 December 31, 2021

Notes payable $ 5,315 $ 5,786

4 unchanged sentences

The Credit Agreement also contains certain customary events of default, including, among other things, failure to make payments when due thereunder and failure to observe or perform certain covenants.

The Company was in compliance with all covenants under the Commercial Business Term Loan Agreement in effect at September 30, 2021.

The Company was in compliance with all covenants under the Commercial Business Term Loan Agreement in effect at March 31, 2022.

The Company has recognized finance lease liabilities for medical equipment and operating leases for land and buildings that have terms greater than twelve months, as follows:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Lease liabilities $ 593 $ 732

1 unchanged sentence

Net long-term lease liabilities $ 232 $ 268

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 2024.

The Company's weighted average interest rate was 3.74 % and 3.17 % for all finance lease liabilities outstanding as of September 30, 2021 and 2020, respectively.

At September 30, 2021 and 2020, the weighted average lease term was approximately 1.05 years and 0.73 years, respectively.

Interest expense related to these finance lease obligations for the three and nine months ended September 30, 2021 amounted to $ 4,000 and $ 35,000 , respectively.

Interest expense related to these finance lease obligations for the three and nine months ended September 30, 2020 amount to $ 34,000 and $ 128,000 , respectively.

Included in lease liabilities at March 31, 2022 are finance lease liabilities for medical equipment in the amount of $ 39,000 due between 2022 and 2024.

Operating lease liabilities

2 unchanged sentences

These lease liabilities are recorded at present value based on a discount rate of 5.50 %, which was based on the Company's incremental borrowing rate at the time of assessment.

At September 30, 2021, the weighted average lease term was approximately 3.39 years.

Operating rental expenses were $ 194,000 and $ 570,000 for the three and nine months ended September 30, 2021, respectively, and $ 191,000 and $ 575,000 for the three and nine months ended September 30, 2020, respectively.

The related assets for operating lease liabilities have been included with property and equipment on the Condensed 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 ten-year triple net lease agreements for office space with an entity 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 $ 81,000 and $ 194,000 for the three and nine months ended September 30, 2021, respectively, and $ 58,000 and $ 180,000 for the three and nine months ended September 30, 2020, respectively.

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

At March 31, 2022, the weighted

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

September 30, 2021 and 2020

March 31, 2022 and 2021

average lease term was approximately 2.15 years.

Operating rental expenses were $ 126,000 and $ 185,000 for the three months ended March 31, 2022 and 2021, respectively.

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

Fair Value Measurement

10 unchanged sentences

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 September 30, 2021 and December 31, 2020:

At September 30, 2021

The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021:

At March 31, 2022

(In thousands) Level 1 Level 2 Level 3 Total

9 unchanged sentences

Total $ 16,456 $ ( 200 ) $ — $ 16,256

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Derivative instruments and hedging activities

2 unchanged sentences

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

As of March 31, 2022, the Company holds one interest rate swap contract which matures on May 30, 2026 and has a notional amount of $ 4.4 million.

This contract is designated as a cash flow hedge.

In the first nine months of 2021, ineffective portions of the hedge were immaterial.

The fair value was $( 0.3 ) million (determined based on Level 2 inputs) and is included in accrued liabilities, as a component of long-term liabilities as of September 30, 2021.

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

In the first three months of 2022, ineffective portions of the hedge were immaterial.

The fair value was $ 0.02 million (determined based on Level 2 inputs) and is included in other long-term assets as of March 31, 2022.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

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

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

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

3 unchanged sentences

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.

5 unchanged sentences

The Company has only one class of stock outstanding, common shares.

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 39,630,446 and 39,185,182 shares were issued and outstanding as of September 30, 2021 and December 31, 2020, respectively.

For the nine months ended September 30, 2021, the Company repurchased and canceled 181,320 common shares at a cost of $ 1.4 million due to tax withholding for RSUs vesting.

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

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 39,293,778 and 39,640,388 shares were issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.

For the three months ended March 31, 2022, the Company repurchased and canceled 389,878 common shares at a cost of $ 1.9 million pursuant to the Share Repurchase Program authorized by the Board of Directors on March 7, 2022 (the "2022 Share Repurchase Program").

The Company also acquired and cancelled 23,742 common shares at a cost of $ 0.1 million to satisfy employee income tax withholding associated with RSUs vesting during the three months ended March 31, 2022.

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

Stock-based compensation

3 unchanged sentences

The maximum amount of the foregoing common shares that may be awarded under the Omnibus Plan as “incentive stock options” is 2,600,000 common shares.

As of September 30, 2021, the Company had outstanding options of 3,772,000 and RSUs of 219,000 associated with common shares under the Omnibus Plan.

The following table summarizes stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Stock-based compensation - options $ 1,051 $ 945 $ 3,127 $ 2,769

Stock-based compensation - restricted stock units 251 289 718 812

Total $ 1,302 $ 1,234 $ 3,845 $ 3,581

As of March 31, 2022, the Company had outstanding options of 4,505,000 and RSUs of 580,000 associated with common shares under the Omnibus Plan.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

September 30, 2021 and 2020

At September 30, 2021, there was approximately $ 3,495,000 of total unrecognized pre-tax stock option expense under our equity compensation plans, which is expected to be recognized over a weighted-average period of 2.00 years.

As of September 30, 2021, there was approximately $ 852,000 of total unrecognized pre-tax compensation expense related to outstanding time-based restricted stock units that is expected to be recognized over a weighted-average period of 0.90 years.

The following table summarizes stock option activity for the nine months ended September 30, 2021:

March 31, 2022 and 2021

The following table summarizes stock-based compensation expense for the three months ended March 31, 2022 and 2021 (in thousands):

Three Months Ended March 31,

Stock-based compensation - options $ 820 $ 1,078

Stock-based compensation - restricted stock units 485 229

Total $ 1,305 $ 1,307

At March 31, 2022, there was approximately $ 3,597,000 of total unrecognized pre-tax stock option expense under the Company's equity compensation plans, which is expected to be recognized over a weighted-average period of 2.17 years.

As of March 31, 2022, there was approximately $ 2,404,000 of total unrecognized pre-tax compensation expense related to outstanding time-based restricted stock units that is expected to be recognized over a weighted-average period of 1.53 years.

The following table summarizes stock option activity for the three months ended March 31, 2022:

Number of options

5 unchanged sentences

Expired / Forfeited — —

Balance September 30, 2021 3,772 $ 5.21 7.7 years $ 4,343

Balance March 31, 2022 4,505 $ 5.22 7.6 years $ 3,269

(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.

(2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing stock price of our common stock on the last trading day of the period.

The aggregate intrinsic value of options outstanding was $ 4,343,000 and options exercisable were $ 3,798,000 at September 30, 2021.

For the nine months ended September 30, 2021, 27,597 shares of common stock were issued pursuant to the exercise of stock options.

At September 30, 2021, the Company had 1,882,000 exercisable stock options outstanding with a weighted average exercise price of $ 3.65 and a weighted average remaining contractual life of 6.8 years.

(2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing stock price of the Company's common stock on the last trading day of the period ($ 4.98 ).

The aggregate intrinsic value of options outstanding was $ 3,269,313 and options exercisable were $ 3,269,213 at March 31, 2022.

For the three months ended March 31, 2022, 0 shares of common stock were issued pursuant to the exercise of stock options.

At March 31, 2022, the Company had 2,856,000 exercisable stock options outstanding with a weighted average exercise price of $ 4.41 and a weighted average remaining contractual life of 6.7 years.

At December 31, 2021, the Company had 1,905,744 exercisable stock options outstanding with a weighted average exercise price of $ 3.70 and a weighted average remaining contractual life of 6.5 years.

1 unchanged sentence

Stock–based compensation cost for stock options are determined at the grant date using the Black-Scholes option pricing model.

The assumptions used to determine the grant date fair value of the stock options granted during the nine months ended September 30, 2021 were as follows:

The assumptions used to determine the grant date fair value of the stock options granted during three months ended March 31, 2022 were as follows:

Exercise price $ 5.21

4 unchanged sentences

Fair value on date of grant $ 2.74

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

March 31, 2022 and 2021

Restricted stock units

4 unchanged sentences

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

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2021 and 2020

The following table summarizes RSU activity for the nine months ended September 30, 2021:

The following table summarizes RSU activity for the three months ended March 31, 2022:

Number of RSUs (000's) Weighted average grant price (1)

4 unchanged sentences

Expired / Forfeited —

Balance September 30, 2021 219 $ 6.72 0.90 years $ 1,217

Balance March 31, 2022 580 $ 5.60 1.53 years $ 2,946

(1) All future equity grants will be awarded in USD, therefore, RSUs issued with a CAD grant price have been translated to USD based on the prevailing exchange rate on the date of grant for presentation purposes.

(2) The aggregate intrinsic value of time-based RSUs outstanding was based on our closing stock price on the last trading day of the period.

During the three months ended September 30, 2021, the Company issued 81,394 RSUs with a vesting term of one year and a fair value of $ 6.38 per share.

During the nine months ended September 30, 2021, the Company issued 144,700 RSUs with a vesting term of one to three years and a fair value of $ 7.34 per share.

(2) The aggregate intrinsic value of time-based RSUs outstanding was based on the Company's closing stock price on the last trading day of the period ($ 4.98 ).

During the three months ended March 31, 2022, the Company issued 441,169 RSUs with a vesting term of three years and a fair value of $ 5.21 per share.

Phantom share units

3 unchanged sentences

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 following table summarizes phantom share unit activity for the nine months ended September 30, 2021:

The following table summarizes phantom share unit activity for the three months ended March 31, 2022:

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

3 unchanged sentences

Expired / Forfeited ( 20 ) $ ( 263 )

Balance September 30, 2021 614 $ 3,407

Balance March 31, 2022

(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, the values of expired/forfeited share equivalents and outstanding share equivalents at the end of the period and 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 $ 5.55 on September 30, 2021.

The change in fair value of the phantom share units has been charged to the Condensed 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 September 30, 2021 is $ 1,462,000 , with $ 1,002,000 of this amount included in current accrued liabilities and the remaining portion of $ 460,000 included in long-term accrued liabilities.

The market price of the Company's stock was $ 4.98 on March 31, 2022.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

September 30, 2021 and 2020

March 31, 2022 and 2021

The total liability associated with phantom share units at March 31, 2022 is $ 2,074,000 , with $ 1,343,000 of this amount included in current accrued liabilities and the remaining portion of $ 731,000 included in long-term accrued liabilities.

The impact associated with the fair value re-measurement of phantom share units is recorded in selling, general and administrative expenses within the unaudited Condensed Consolidated Statements of Income and Comprehensive Income.

The following table summarizes expense associated with the phantom share units for the three and nine months ended September 30, 2021 and 2020 (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

The following table summarizes expense associated with the phantom share units for the three months ended March 31, 2022 and 2021 (in thousands):

Three Months Ended March 31,

Selling, general, and administrative $ 411 $ 2,465

The Company paid cash settlements of $ 6,282,000 and $ 4,201,000 during the nine months ended September 30, 2021 and 2020, respectively, pertaining to vestings of cash-settled phantom share units.

The Company paid cash settlements of $ 13,000 and $ 0 during the three months ended March 31, 2022 and 2021, pertaining to vestings of cash-settled phantom share units.

Commitments and Contingencies

The Company accrues estimates for resolution of any legal and other contingencies when losses are probable and reasonably estimable in accordance with ASC 450, Contingencies (“ASC 450”).

No less than quarterly, we review the status of each significant matter underlying a legal proceeding or claim and assess our potential financial exposure.

We accrue a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated.

Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to our management at the time the judgment is made, which may prove to be incomplete or inaccurate or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions.

No less than quarterly, the Company reviews the status of each significant matter underlying a legal proceeding or claim and assess our potential financial exposure.

The Company accrues a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated.

Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to the Company at the time the judgment is made, which may prove to be incomplete or inaccurate or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions.

Furthermore, the outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters.

8 unchanged sentences

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.

As of September 30, 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.

The Company continues to believe that it has 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.

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

Although a loss may be reasonably possible, the Company does 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.

As of March 31, 2022, outstanding funds in the amount of $ 0.9 million related to undelivered respiratory equipment are included within other long-term assets.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

September 30, 2021 and 2020

In May of 2021, a final report and recommendation (“Report”) was issued by the U.S.

Department of Health and Human Services Office of the Inspector General (“OIG”) regarding an audit by OIG of claims relating to one hundred (100) of the Company’s non-invasive ventilation at home (“NIVH”) patients.

March 31, 2022 and 2021

Governmental and Regulatory Matters

From time to time the Company is 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 the Company conducts 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.

3 unchanged sentences

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

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

The Reconsideration appeals are required to be submitted in writing to the designated Quality Independent Contractor ("QIC") within 180 days of receiving the redetermination appeals letter.

The QIC has 60 days to render a reconsideration decision.

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.

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

Accordingly, no related accrual has been recorded.

The value of the population of associated claims within the 4-year reopening period prescribed by statute, including any potential interest, is approximately $ 9 million.

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

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

The Company 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.

For the nine months ended September 30, 2021, the Company recorded income tax expense of $ 2.4 million, which includes a discrete tax benefit of $ 0.8 million for excess tax benefits associated with stock-based compensation arrangements.

Excluding the impact of the discrete tax benefit, the effective rate for the nine months ended September 30, 2021 is 43.4 %.

For the three months ended March 31, 2022, the Company recorded an income tax expense of $ 0.7 million, which includes a discrete tax expense of $ 0.1 million associated with stock-based compensation arrangements.

Excluding the impact of the discrete tax benefit, the effective rate for the three months ended March 31, 2022 is 28.9 %.

The effective rate differs from the amount computed by applying the statutory federal and state income tax rates to ordinary income before the provision for income taxes due to permanent non-deductible differences.

Our effective tax rate is based on forecasted annual results which may fluctuate significantly through the rest of the year, in particular due to the uncertainty in our annual forecasts resulting from the unpredictable impact of the COVID-19 pandemic on our operating results.

During the nine months ended September 30, 2020, the Company released a valuation allowance associated with deferred tax assets, resulting in a $ 5.3 million benefit during that period.

At September 30, 2021 and 2020, the Company had no amounts recorded for uncertain tax positions and does not expect any material changes in uncertain tax benefits during the next 12 months.

At March 31, 2022 and 2021, the Company had no amounts recorded for uncertain tax positions and does not expect any material changes in uncertain tax benefits during the next 12 months.

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

4 unchanged sentences

In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

Earnings Per Share

Income per common share is calculated using earnings for the year divided by the weighted average number of shares outstanding during the year .

Using the treasury stock method, diluted income per share amounts are calculated giving effect to the potential dilution that would occur if securities or other contracts to issue common shares were exercised or converted to common shares by assuming the proceeds received from the exercise of stock options and the vesting of RSUs are used to purchase common shares at the prevailing market rate.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

September 30, 2021 and 2020

March 31, 2022 and 2021

Earnings Per Share

Income per common share is calculated using earnings for the year divided by the weighted average number of shares outstanding during the year .

The following reflects the earnings and share data used in the basic and diluted earnings per share computations:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Numerator - basic and diluted:

12 unchanged sentences

(Tabular amounts expressed in thousands of US Dollars, except per share amounts)

September 30, 2021 and 2020

March 31, 2022 and 2021

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-Q

Item 1. Financial Statements