What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-11-01 compared with 2022-08-02 · 172 added, 151 removed, 591 unchanged (35% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

June 30, 2022 At

September 30, 2022 At

December 31, 2021

2 unchanged sentences

Cash and cash equivalents $ 21,478 $ 28,408

Accounts receivable, net of allowance for doubtful accounts of $ 9,383 and $ 7,031 at June 30, 2022 and December 31, 2021, respectively

Accounts receivable, net of allowance for doubtful accounts of $ 8,516 and $ 7,031 at September 30, 2022 and December 31, 2021, respectively

2 14,982 12,823

Inventory, net of inventory reserve of $ 0 and $ 1,418 at June 30, 2022 and December 31, 2021, respectively

Inventory, net of inventory reserve of $ 0 and $ 1,418 at September 30, 2022 and December 31, 2021, respectively

2 3,178 2,457

26 unchanged sentences

unlimited authorized;

38,333,089 and 39,640,388 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

38,102,547 and 39,640,388 issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

7 $ 14,927 $ 14,014

Additional paid-in capital 10,808 7,749

Accumulated other comprehensive loss ( 56 ) ( 278 )

Accumulated other comprehensive income (loss) 56 ( 278 )

Retained earnings 68,118 73,335

6 unchanged sentences

Dollars, except share and per share amounts)

Three Months Ended June 30, Six Months Ended June 30,

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

Note 2022 2021 2022 2021

7 unchanged sentences

Depreciation 291 211 771 618

Loss (gain) on disposal of property and equipment ( 110 ) 83 ( 124 ) 159

Other expense ( 223 ) ( 32 ) ( 664 ) ( 53 )

Loss on disposal of property and equipment 292 145 168 304

Other expense (income) ( 57 ) ( 32 ) ( 721 ) ( 85 )

Income from operations $ 1,469 $ 2,919 $ 4,718 $ 6,915

5 unchanged sentences

Net income $ 1,055 $ 1,789 $ 3,784 $ 5,039

Other comprehensive income (loss)

Other comprehensive income

Change in unrealized gain/loss on derivative instruments, net of tax 112 21 334 121

Other comprehensive income (loss) $ 59 $ ( 6 ) $ 222 $ 100

Other comprehensive income $ 112 $ 21 $ 334 $ 121

Comprehensive income $ 1,167 $ 1,810 $ 4,118 $ 5,160

18 unchanged sentences

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

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

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

Net income — — — — 1,684 1,684

3 unchanged sentences

Exercise of options 11,011 47 — — — 47

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

Change in accumulated other comprehensive income (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

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

Stock-based compensation - options 1051 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 income (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

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 income (loss) Total Shareholders'

Shares Amount Retained

5 unchanged sentences

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

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

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

Net income — — — — 1,762 1,762

3 unchanged sentences

Shares repurchased under the share repurchase program ( 960,689 ) — — — ( 5,114 ) ( 5,114 )

Change in accumulated other comprehensive loss, net of tax — — — 59 — 59

Change in accumulated other comprehensive income (loss), net of tax — — — 59 — 59

Net income — — — — 967 967

Shareholders' equity, June 30, 2022 38,333,089 $ 14,348 $ 9,991 $ ( 56 ) $ 68,944 $ 93,227

Stock-based compensation - options — — 767 — — 767

Stock-based compensation - restricted stock — — 542 — — 542

Exercise of options 15,087 87 — — — 87

Shares issued for vesting of restricted stock units 81,394 492 ( 492 ) — — —

Shares redeemed to pay income tax ( 3,970 ) — — — ( 24 ) ( 24 )

Shares repurchased under the share repurchase program ( 323,053 ) — — — ( 1,857 ) ( 1,857 )

Change in accumulated other comprehensive income (loss), net of tax — — — 112 — 112

Net Income — — — — 1,055 1,055

Shareholders' equity, September 30, 2022 38,102,547 $ 14,927 $ 10,808 $ 56 $ 68,118 $ 93,909

See accompanying notes to the condensed consolidated financial statements

2 unchanged sentences

(Expressed in thousands of U.S.

Six Months Ended June 30,

Nine Months Ended September 30,

Note 2022 2021

5 unchanged sentences

Change in inventory reserve ( 1,418 ) ( 116 )

Share-based compensation 7 2,576 2,543

Share-based compensation expense 7 3,885 3,845

Distributions of earnings received from equity method investments 931 172

Income from equity method investments ( 853 ) ( 782 )

Loss (gain) on disposal of property and equipment ( 124 ) 159

Loss on disposal of property and equipment 168 304

Deferred income tax expense 745 2,410

1 unchanged sentence

Increase in accounts receivable ( 9,970 ) ( 5,573 )

Increase in inventory 1,022 ( 248 )

Increase (decrease) in prepaid expenses and other assets ( 634 ) 311

Increase (decrease) in trade payables ( 243 ) 362

Decrease (increase) in inventory 697 ( 196 )

Increase in prepaid expenses and other assets ( 2,870 ) ( 2,259 )

Increase in trade payables 33 2,638

Increase in deferred revenue 892 386

Decrease in accrued liabilities ( 87 ) ( 3,800 )

Increase (decrease) in accrued liabilities 3,170 ( 3,711 )

Change in income tax payable/receivable 1,802 ( 1,760 )

13 unchanged sentences

Net cash used in financing activities $ ( 10,396 ) $ ( 4,770 )

Net (decrease) increase in cash and cash equivalents ( 6,486 ) 170

Net decrease in cash and cash equivalents ( 6,930 ) ( 4,114 )

Cash and cash equivalents at beginning of year 28,408 30,981

11 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

Nature of Business and Operations

16 unchanged sentences

Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The accompanying condensed consolidated financial statements are unaudited, but reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income and Comprehensive Income, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Cash Flows for the interim periods presented.

Our fiscal year ends on December 31.

The accompanying condensed consolidated financial statements are unaudited, but reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company's Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income and Comprehensive Income, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Cash Flows for the interim periods presented.

The Company's fiscal year ends on December 31.

The Condensed Consolidated Balance Sheet as of December 31, 2021 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP.

These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto and the report of our independent registered public accounting firm included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

The nature of our business is such that the results of any interim period may not be indicative of the results to be expected for the entire year.

These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto and the report of the Company's independent registered public accounting firm included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

The nature of the Company's business is such that the results of any interim period may not be indicative of the results to be expected for the entire year.

Basis of consolidation

10 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

Accounts receivable

4 unchanged sentences

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

For the six months ended June 30, 2022, the Company's 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 nine months ended September 30, 2022, the Company's evaluation takes into consideration such factors as historical bad debt and billing modification 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 charge-offs for the allowance for doubtful accounts for each reporting period were as follows:

June 30, 2022 June 30, 2021

September 30, 2022 September 30, 2021

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

2 unchanged sentences

Balance, end of period $ 8,516 $ 7,115

Included in accounts receivable at June 30, 2022 are amounts due from Medicare and Medicaid representing 37 % and 12 %, respectively, and 49 % combined, of total outstanding receivables.

Included in accounts receivable at September 30, 2022 are amounts due from Medicare and Medicaid representing 36 % and 10 %, respectively, and 46 % 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 and six months ended June 30, 2022 and 2021 were as follows:

Three Months Ended June 30, Six Months Ended June 30,

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, 2022 and 2021 were as follows:

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

2022 2021 2022 2021

5 unchanged sentences

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

Inventory is presented net of a reserve balance of $ 0 and $ 1,418,000 at June 30, 2022 and December 31, 2021, respectively, that relates to COVID-19 response supplies.

During the six months ended June 30, 2022, these supplies were determined to be unavailable for sale due to expiration.

Accordingly, the previously established inventory reserves were eliminated through disposal.

Inventory is presented net of a reserve balance of $ 0 and $ 1,418,000 at September 30, 2022 and December 31, 2021, respectively, that relates to COVID-19 response supplies.

During the nine months ended September 30, 2022, these supplies were determined to be unavailable for sale due to expiration.

Accordingly, the previously established inventory reserves were eliminated upon disposal.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

Property and equipment

9 unchanged sentences

The following table details the Company’s equity investments:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Equity method investments $ 881 $ 959

1 unchanged sentence

Balance, end of period $ 2,220 $ 2,157

The Company's equity method investments include a 49 % equity interest in Solvet Services, LLC.

The Company's equity method investments include a 49 % equity interest in Solvet Services, LLC, an entity which provides health care support services to state and federal governments.

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.

3 unchanged sentences

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 June 30, 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.

No events or changes have occurred as of September 30, 2022 that would affect the carrying value of equity method investments.

Other equity investments include an equity interest in VeruStat, Inc, a remote patient monitoring entity, and an equity interest in DMEscripts, LLC, an e-prescribing platform.

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 June 30, 2022 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 September 30, 2022 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 Condensed 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.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

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

15 unchanged sentences

The Company would first consider the lease classification issue (sales-type lease or operating lease) and then appropriately recognize or defer rental revenue over the lease term .

Under the Company’s direct commercial staffing arrangements, the Company manages all or a part of a customer’s supplemental workforce needs utilizing its own network of healthcare professionals.

As a result, the Company is the principal in this arrangement for revenue recognition purposes.

The Company includes the contractual gross billings in revenues with a corresponding increase to cost of revenues for worksite employee payroll costs associated with these services.

Alternatively, when the Company acts as agent in the performance of workforce management, revenue is recorded based on contractually agreed upon fees based on the hourly labor of worksite employees.

Revenues associated with external staffing services are accrued on an hourly basis and are recorded based on the determination of whether the Company is acting as a principal or an agent.

In arrangements in which the Company manages customers' supplemental workforce needs utilizing its own network of healthcare professionals, the Company is determined to be a principal and includes the contractual gross billings in revenues with a corresponding increase to cost of revenues for worksite employee payroll costs associated with these services.

Alternatively, when the Company acts as agent in the performance of workforce management, revenue is recorded based on contractually agreed upon fees or commissions with no associated cost of revenues.

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, 2022 and 2021

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

Three Months Ended June 30, Six Months Ended June 30,

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

2022 2021 2022 2021

10 unchanged sentences

Total revenues $ 35,759 $ 29,285 $ 101,324 $ 85,100

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

June 30, 2022 and 2021

Revenue Accounting under Topic 842

21 unchanged sentences

The payment terms and conditions of customer contracts vary by customer type and the products and services offered.

For staffing services, performance obligations in the staffing agreements are satisfied over time when the customer simultaneously receives and consumes the benefits provided as the Company performs the services.

Accordingly, revenue from staffing services is recognized as the services are rendered in both principal and agent arrangements.

For staffing services, performance obligations in the staffing agreements are satisfied over time when the customer simultaneously receives and consumes the benefits provided.

Accordingly, revenues from staffing services are recognized on an hourly basis as services are rendered by the job site employee in both principal and agent arrangements.

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, 2022 and 2021

The Company determines its estimates of contractual allowances and discounts based upon contractual agreements, its policies and historical experience.

6 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)

June 30, 2022 and 2021

Returns and refunds are not accepted on equipment sales, sleep study services or contact and vaccine tracing services.

1 unchanged sentence

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 June 30, 2022.

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, 2022.

Stock-based compensation

15 unchanged sentences

The Company is subject to income taxes in numerous jurisdictions.

Significant judgment is required in determining the provision for income taxes.

Significant judgment is required in determining the provision for

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, 2022 and 2021

income taxes.

The Company's income tax provisions reflect management’s interpretation of country and state tax laws.

6 unchanged sentences

The calculation of current and deferred income taxes requires management to make estimates and assumptions and to exercise a certain amount of judgment concerning the carrying value of assets and liabilities.

The current and deferred income tax assets and liabilities are also impacted by expectations about future operating results and the timing of reversal of temporary differences as well as possible audits of tax

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

June 30, 2022 and 2021

filings by regulatory agencies.

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.

13 unchanged sentences

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.

In March 2020, the FASB issued ASU 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.

2 unchanged sentences

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):

In November 2021, the FASB issued ASU 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:

3 unchanged sentences

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.

The Company expects to satisfy the disclosure requirements when the the standard becomes effective in with respect to its consolidated financial statements for the year ended December 31, 2022.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

In September 2022, the FASB issued ASU No.

2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50):

Disclosure of Supplier Finance Program Obligations , which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about their obligations that are outstanding at the end of the reporting period.

The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023.

The Company does not expect the update to affect the recognition, measurement, or financial statement presentation of supplier finance program obligations, but is evaluating the impact of the update on related disclosures upon adoption.

Property and Equipment

1 unchanged sentence

The following table details the Company’s fixed assets:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Medical equipment $ 90,415 $ 76,864

6 unchanged sentences

Property and equipment, net of accumulated depreciation and amortization $ 68,109 $ 62,846

Depreciation in the amount of $ 3,497,000 and $ 2,509,000 is included in cost of revenue for the three months ended June 30, 2022 and 2021, respectively, and in the amount of $ 6,656,000 and $ 4,918,000 for the six months ended June 30, 2022 and 2021, respectively.

Included in medical equipment above is equipment acquired under finance lease obligations whose cost and accumulated depreciation at June 30, 2022 total $ 39,000 and $ 8,000 , respectively.

Depreciation in the amount of $ 3,829,000 and $ 2,656,000 is included in cost of revenue for the three months ended September 30, 2022 and 2021, respectively, and in the amount of $ 10,486,000 and $ 7,574,000 for the nine months ended September 30, 2022 and 2021, respectively.

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

At September 30, 2022, there were no outstanding finance lease obligations .

Current Liabilities

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Accrued trade payables $ 2,669 $ 2,011

8 unchanged sentences

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

The Company maintains a line of credit in the amount of $ 10.0 million that expires May 1, 2023 under the Commercial Business Loan Agreement.

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 June 30, 2022 or December 31, 2021.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

Line of Credit

The Company maintains a line of credit in the amount of $ 10.0 million that expires May 1, 2023 under the Commercial Business Loan Agreement.

There were no borrowings against this line of credit at September 30, 2022 or December 31, 2021.

Commercial Term Notes

8 unchanged sentences

The proceeds of the Term Note were utilized for general corporate purposes.

Beginning October 19, 2019, the Company started making monthly principal payments of $ 139,000 towards the outstanding balance.

The Term Note matures on September 19, 2022 and is secured by substantially all of the assets of the borrower.

The Term Note bears interest at the rate of 4.60 % per annum.

The Company incurred immaterial financing costs related to the above term notes.

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

The Term Note matured on September 19, 2022 at which time the entire unpaid balance of principal and accrued interest was repaid in full.

The Company incurred immaterial financing costs related to the Building Term Note.

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

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Notes payable $ 4,321 $ 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 June 30, 2022.

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Lease liabilities $ 456 $ 732

1 unchanged sentence

Net long-term lease liabilities $ 236 $ 268

Included in lease liabilities at June 30, 2022 are finance lease liabilities for medical equipment in the amount of $ 29,000 due between 2022 and 2024.

Operating lease liabilities

The Company has recognized operating lease liabilities that relate primarily to the lease of land and buildings.

These leases contain renewal options that we have not included as part of the Company's assessment of the lease term as it is not reasonably certain that we will exercise these options.

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 June 30, 2022, the weighted average

There are no finance lease liabilities associated with outstanding supplier finance program obligations at September 30, 2022.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

lease term was approximately 2.16 years.

Operating rental expenses were $ 124,000 and $ 250,000 for the three and six months ended June 30, 2022, respectively, and $ 190,000 and $ 375,000 for the three and six months ended June 30, 2021, respectively.

September 30, 2022 and 2021

Operating lease liabilities

The Company has recognized operating lease liabilities that relate primarily to the lease of land and buildings.

These leases contain renewal options that we have not included as part of the Company's assessment of the lease term as it is not reasonably certain that we will exercise these options.

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, 2022, the weighted average lease term was approximately 2.29 years.

Operating rental expenses were $ 138,000 and $ 388,000 for the three and nine months ended September 30, 2022, respectively, and $ 194,000 and $ 570,000 for the three and nine months ended September 30, 2021, respectively.

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

11 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 June 30, 2022 and December 31, 2021:

At June 30, 2022

The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021:

At September 30, 2022

(In thousands) Level 1 Level 2 Level 3 Total

13 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

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

As of September 30, 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 six months of 2022, ineffective portions of the hedge were immaterial.

The fair value was $ 0.1 million (determined based on Level 2 inputs) and is included in other long-term assets as of June 30, 2022.

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

The fair value was $ 0.3 million (determined based on Level 2 inputs) and is included in other long-term assets as of September 30, 2022.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

13 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 38,333,089 and 39,640,388 shares were issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.

For the six months ended June 30, 2022, the Company repurchased and canceled 1,350,567 common shares at a cost of $ 7.0 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 six months ended June 30, 2022.

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 38,102,547 and 39,640,388 shares were issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.

For the nine months ended September 30, 2022, the Company repurchased and canceled 1,673,620 common shares at a cost of $ 8.9 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 27,712 common shares at a cost of $ 0.1 million to satisfy employee income tax withholding associated with RSUs vesting during the nine months ended September 30, 2022.

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

4 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 June 30, 2022, the Company had outstanding options of 4,532,000 and RSUs of 596,000 associated with common shares under the Omnibus Plan.

As of September 30, 2022, the Company had outstanding options of 4,568,803 and RSUs of 631,437 associated with common shares under the Omnibus Plan.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

The following table summarizes stock-based compensation expense for the three and six months ended June 30, 2022 and 2021 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

September 30, 2022 and 2021

The following table summarizes stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021 (in thousands):

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

2022 2021 2022 2021

2 unchanged sentences

Total $ 1,309 $ 1,302 $ 3,885 $ 3,845

At June 30, 2022, there was approximately $ 2,965,000 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 1.99 years.

As of June 30, 2022, there was approximately $ 1,973,000 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 1.24 years.

The following table summarizes stock option activity for the six months ended June 30, 2022:

At September 30, 2022, there was approximately $ 2.4 million 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 1.87 years.

As of September 30, 2022, there was approximately $ 2.2 million 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 1.12 years.

The following table summarizes stock option activity for the nine months ended September 30, 2022:

Number of options

5 unchanged sentences

Expired / Forfeited ( 2 ) 5.21

Balance June 30, 2022 4,532 $ 5.22 7.3 years $ 4,139

Balance September 30, 2022 4,569 $ 5.23 7.1 years $ 6,025

(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 the Company's common stock on the last trading day of the period ($ 6.00 ).

The aggregate intrinsic value of options outstanding was $ 4,138,673 and options exercisable were $ 4,023,548 at June 30, 2022.

For the six months ended June 30, 2022, 0 shares of common stock were issued pursuant to the exercise of stock options.

At June 30, 2022, the Company had 2,864,000 exercisable stock options outstanding with a weighted average exercise price of $ 4.42 and a weighted average remaining contractual life of 6.5 years.

The aggregate intrinsic value of options outstanding was $ 6.0 million and options exercisable were $ 5.4 million at September 30, 2022.

For the nine months ended September 30, 2022, 15,087 shares of common stock were issued pursuant to the exercise of stock options.

At September 30, 2022, the Company had 2,868,668 exercisable stock options outstanding with a weighted average exercise price of $ 4.46 and a weighted average remaining contractual life of 6.3 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 6.6 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 six months ended June 30, 2022 were as follows:

The assumptions used to determine the grant date fair value of the stock options granted during the nine months ended September 30, 2022 were as follows:

Exercise price $ 5.21 - $ 6.34

8 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 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.

The following table summarizes RSU activity for the six months ended June 30, 2022:

The following table summarizes RSU activity for the nine months ended September 30, 2022:

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

4 unchanged sentences

Expired / Forfeited ( 7 ) 6.90

Balance June 30, 2022 596 $ 5.58 1.24 years $ 3,206

Balance September 30, 2022 631 $ 5.62 1.12 years $ 3,789

(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 the Company's closing stock price on the last trading day of the period ($ 6.00 ).

During the three months ended June 30, 2022, the Company issued 19,963 RSUs with a vesting term of three years and a fair value of $ 0.1 million.

During the six months ended June 30, 2022, the Company issued 461,132 RSUs with a vesting term of three years and a fair value of $ 2.4 million.

During the three months ended September 30, 2022, the Company issued 119,830 RSUs with a vesting term of three years and a fair value of $ 0.7 million.

During the nine months ended September 30, 2022, the Company issued 580,962 RSUs with a vesting term of three years and a fair value of $ 3.1 million.

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 six months ended June 30, 2022:

The following table summarizes phantom share unit activity for the nine months ended September 30, 2022:

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

3 unchanged sentences

Expired / Forfeited ( 45 ) ( 271 )

Balance June 30, 2022 516 $ 2,774

Balance September 30, 2022 520 $ 3,121

(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 $ 5.38 on June 30, 2022.

The market price of the Company's stock was $ 6.00 on September 30, 2022.

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 June 30, 2022 is $ 1,226,000 , with $ 841,000 of this amount included in current accrued liabilities and the remaining portion of $ 385,000 included in long-term accrued liabilities.

The total liability associated with phantom share units at September 30, 2022 is $ 1.2 million, with $ 0.8 million of this amount included in current accrued liabilities and the remaining portion of $ 0.4 million included in long-term accrued liabilities.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

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 (benefit) associated with the phantom share units for the three and six months ended June 30, 2022 and 2021 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes expense (benefit) associated with the phantom share units for the three and nine months ended September 30, 2022 and 2021 (in thousands):

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

2022 2021 2022 2021

Selling, general, and administrative $ 473 $ 41 $ 1,422 $ 2,400

The Company paid cash settlements of $ 1,389,000 and $ 6,282,000 during the six months ended June 30, 2022 and 2021, respectively, pertaining to vestings of cash-settled phantom share units.

The Company paid cash settlements of $ 1.4 million and $ 6.3 million during the nine months ended September 30, 2022 and 2021, respectively, pertaining to vestings of cash-settled phantom share units.

Commitments and Contingencies

16 unchanged sentences

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 June 30, 2022, outstanding funds in the amount of $ 0.9 million related to undelivered respiratory equipment are included within other long-term assets.

As of September 30, 2022, 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

5 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

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.

6 unchanged sentences

Based on its review, the QIC determined that approximately 77 % of the claims it reviewed were medically necessary and properly payable under Medicare rules and regulations, overturning OIG’s and the MACs' initial recommendations and determinations.

As a result of the QIC's reconsideration findings, recalculated principal overpayment requests totaling $ 1.1 million have been issued by the MACs .

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

As a result of the QIC's reconsideration findings, reduced and recalculated principal overpayment requests totaling $ 1.1 million have been issued by the MACs.

In order to limit the assessment of interest during the appeals period, the Company has remitted the associated funds to the MACs .

A hearing with an Administrative Law Judge with respect to the Company's appeals was conducted on November 1, 2022.

The Company is awaiting a decision from the Administrative Law Judge and intends to continue to defend itself vigorously through the remaining appeals processes which include, in successive order, 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.

1 unchanged sentence

Accordingly, no related accrual has been recorded.

The funds remitted to the MACs are recorded in other long-term assets.

The Company estimates that a possible loss, if any, will not exceed the amount of the recalculated overpayment requests.

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 six months ended June 30, 2022, the Company recorded income tax expense of $ 1.2 million.

Excluding the impact of the discrete taxes, the effective rate for the six months ended June 30, 2022 is 29.4 %.

For the nine months ended September 30, 2022, the Company recorded income tax expense of $ 1.6 million.

Excluding the impact of the discrete taxes, the effective rate for the nine months ended September 30, 2022 is 29.7 %.

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.

The Company's 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.

At June 30, 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.

At September 30, 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.

11 unchanged sentences

Dollars, except per share amounts)

June 30, 2022 and 2021

September 30, 2022 and 2021

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

Three Months Ended June 30, Six Months Ended June 30,

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

2022 2021 2022 2021

13 unchanged sentences

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

June 30, 2022 and 2021

September 30, 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