What changed in this filing

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Item 1. Financial Statements

2024-11-06 compared with 2024-08-07 · 132 added, 130 removed, 648 unchanged (29% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

June 30, 2024 At

September 30, 2024 At

December 31, 2023

4 unchanged sentences

Inventory 2 4,311 4,628

Income tax receivable

Prepaid expenses and other assets 4,989 2,449

32 unchanged sentences

unlimited authorized;

38,825,799 and 38,506,161 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

38,932,247 and 38,506,161 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

8 $ 22,749 $ 18,702

13 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 2024 2023 2024 2023

16 unchanged sentences

96 270 ( 954 ) 442

Interest income (expense), net

Interest expense, net

6 ( 225 ) ( 237 ) ( 629 ) ( 168 )

29 unchanged sentences

Stock-based compensation - options — — 301 — — 301

Share-based compensation - restricted stock

Stock-based compensation - restricted stock

— — 1,170 — — 1,170

5 unchanged sentences

Shareholders' equity, June 30, 2023 38,400,422 $ 17,850 $ 13,488 $ 73,167 $ — $ 104,505

Stock-based compensation - options — — 263 — — 263

Stock-based compensation - restricted stock

— — 1,190 — — 1,190

Exercise of options 1,136 6 — — — 6

Shares issued for vesting of restricted stock units 95,944 777 ( 777 ) — — —

Shares redeemed to pay income tax

( 8,501 ) — — ( 69 ) — ( 69 )

Net income — — — 2,919 — 2,919

Shareholders' equity, September 30, 2023

38,489,001 $ 18,633 $ 14,164 $ 76,017 $ — $ 108,814

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 Noncontrolling interest in subsidiary

20 unchanged sentences

Shareholders' equity, June 30, 2024 38,825,799 $ 21,910 $ 15,867 $ 81,594 $ 1,809 $ 121,180

Stock-based compensation - options — — 61 — — 61

Stock-based compensation - restricted stock

— — 1,651 — — 1,651

Exercise of options 17,516 91 — — — 91

Shares issued for vesting of restricted stock units 101,438 748 ( 748 ) — — —

Shares redeemed to pay income tax ( 12,506 ) — — ( 93 ) — ( 93 )

Net income — — — 3,878 27 3,905

Shareholders' equity, September 30, 2024 38,932,247 $ 22,749 $ 16,831 $ 85,379 $ 1,836 $ 126,795

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 2024 2023

3 unchanged sentences

Depreciation and amortization

19,002 15,943

Stock-based compensation expense 8 4,764 4,315

6 unchanged sentences

Deferred income tax benefit

( 3,507 ) ( 791 )

Changes in working capital:

24 unchanged sentences

( 319 ) ( 32 )

Net cash provided by financing activities

Net cash provided by (used in) financing activities

$ ( 4,093 ) $ 5,856

15 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Nature of Business and Operations

1 unchanged sentence

(the "Company"), through its subsidiaries, is a provider of home medical equipment ("HME") and post-acute respiratory healthcare services in the United States.

The Company’s service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology.

The Company’s primary service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology.

The Company serves patients in all 50 states of the United States.

26 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Segment Reporting

4 unchanged sentences

Accounts Receivable

Accounts receivable and net revenues are based on contractually agreed-upon rates for services provided, reduced by estimated adjustments, including variable consideration for implicit price concessions for sales revenue.

Accounts receivable and revenues are based on contractually agreed-upon rates for services provided, reduced by estimated adjustments, including variable consideration for implicit price concessions.

The accounts receivable are presented on the Condensed Consolidated Balance Sheets net of the adjustments.

Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available.

2 unchanged sentences

These estimates are determined utilizing historical realization data under a portfolio approach, which is then assessed by management to evaluate whether adjustments should be made based on accounts receivable aging trends, other operating trends, and relevant business conditions such as governmental and managed care payor claims processing procedures.

The Company records a reserve for estimated probable losses as part of net rental revenue adjustments in order to report rental revenue at an expected collectable amount based on the total portfolio of operating lease receivables for which collectability has been deemed probable.

The Company records a reserve for estimated probable losses as part of rental revenue adjustments in order to report rental revenue at an expected collectable amount based on the total portfolio of operating lease receivables for which collectability has been deemed probable.

The accounts receivable are presented on the Condensed Consolidated Balance Sheets net of the adjustments.

1 unchanged sentence

Specific patient balances are written off after collection efforts have been followed and the account has been determined to be uncollectible.

Revisions in reserve estimates are recorded as an adjustment to net revenue in the period of revision.

The estimates of the allowance for uncollectible accounts was $ 15.9 million and $ 11.1 million as of June 30, 2024 and December 31, 2023, respectively.

Included in accounts receivable at June 30, 2024 are amounts due from Medicare and Medicaid representing 25 % and 2 % , respectively, and 27 % combined, of total outstanding net receivables.

As of December 31, 2023, 32 % of total outstanding net receivables were amounts due from Medicare and Medicaid.

Revisions in reserve estimates are recorded as an adjustment to revenue in the period of revision.

Included in accounts receivable at September 30, 2024 are amounts due from Medicare representing 23 % of total outstanding net receivables.

As of December 31, 2023, 28 % of total outstanding net receivables were amounts due from Medicare.

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

13 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Equity Investments

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

The following table details the Company’s equity investments:

June 30, 2024 December 31, 2023

Equity method investments $ 434 $ 320

Other equity investments 1,360 1,360

Balance, end of period $ 1,794 $ 1,680

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 any subsequent adjustments made to the carrying amount of the investment for the Company’s proportionate share of income or loss.

Distributions received from the investee reduce the Company’s carrying value of the investment.

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 June 30, 2024 that would impair the carrying value of equity method investments.

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

Equity investments on the Condensed Consolidated Balance Sheets are primarily comprised of equity investments without readily determinable fair values accounted for under the measurement alternative described in ASC 321-10-35-2.

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

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

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of June 30, 2024 on its investments in equity securities without a readily determinable fair value.

The balance of the Company’s equity investments was $ 1.8 million and $ 1.7 million as of September 30, 2024 and December 31, 2023, respectively.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of September 30, 2024 on its investments in equity securities without a readily determinable fair value.

Debt Investment

11 unchanged sentences

The agreements are evaluated at commencement and the start of each monthly renewal period to determine if it is reasonably certain that the monthly renewal or purchase options would be exercised.

The exercise of monthly renewal or purchase options by a patient has historically not been reasonably certain to occur at lease commencement or subsequent monthly renewal.

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, 2024 and 2023

The exercise of monthly renewal or purchase options by a patient has historically not been reasonably certain to occur at lease commencement or subsequent monthly renewals.

Revenues are recorded at amounts estimated to be received under reimbursement arrangements with payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients.

8 unchanged sentences

The sales transaction price is determined based on contractually agreed-upon rates, adjusted for estimates of variable consideration.

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, 2024 and 2023

The expected value method is used in determining the variable consideration as part of determining the sales transaction price using historical reimbursement experience, historical sales returns, and other operating trends.

5 unchanged sentences

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,

2024 2023 2024 2023

9 unchanged sentences

Total revenues $ 58,004 $ 49,402 $ 163,562 $ 132,269

Revenues from Medicare as percentages of the Company's total revenue for the six months ended June 30, 2024 and 2023 were 43 % and 45 %, 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)

June 30, 2024 and 2023

Revenues from Medicare as percentages of the Company's total revenue for the nine months ended September 30, 2024 and 2023 were 44 % and 45 %, respectively.

Stock-Based Compensation

15 unchanged sentences

Deferred income tax assets or liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be settled.

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 calculation of current and deferred income taxes requires

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, 2024 and 2023

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 filings by regulatory agencies.

12 unchanged sentences

Acquisition related costs are recognized separately from the business combination and are expensed as incurred.

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, 2024 and 2023

Impairment of Goodwill and Long-Lived Assets

13 unchanged sentences

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

There were no impairment charges to goodwill or long-lived assets recognized during the six months ended June 30, 2024 and June 30, 2023.

There were no impairment charges to goodwill or long-lived assets recognized during the nine months ended September 30, 2024 and September 30, 2023.

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, 2024 and 2023

Net Income per Share Attributable to Viemed Healthcare, Inc.'s Common Stockholders

3 unchanged sentences

See Note 11 for earnings per share computations.

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, 2024 and 2023

Recently adopted accounting pronouncements

20 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Business Combinations

41 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Property and Equipment

1 unchanged sentence

The following table details the Company’s fixed assets:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Medical equipment $ 114,730 $ 110,920

7 unchanged sentences

$ 74,397 $ 73,579

Depreciation in the amount of $ 5.9 million and $ 4.9 million is included in cost of revenue for the three months ended June 30, 2024 and 2023, respectively, and in the amount of $ 11.8 million and $ 9.4 million for the six months ended June 30, 2024 and 2023, respectively.

Depreciation in the amount of $ 6.1 million and $ 5.6 million is included in cost of revenue for the three months ended September 30, 2024 and 2023, respectively, and in the amount of $ 17.9 million and $ 15.0 million for the nine months ended September 30, 2024 and 2023, respectively.

Current Liabilities

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Accrued trade payables $ 4,096 $ 3,230

9 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Debt and Lease Liabilities

The following table summarizes the Company’s debt as of June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

The following table summarizes the Company’s debt as of September 30, 2024 and December 31, 2023:

September 30, 2024 December 31, 2023

2022 Senior Credit Facilities

16 unchanged sentences

• Consolidated Fixed Charge Coverage Ratio ( defined generally as (a) adjusted EBITDA minus capital expenditures minus cash taxes to (b) the sum of scheduled principal payments plus cash interest expense plus restricted payments) of not less than 1.25 :1.0.

The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at June 30, 2024.

The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at September 30, 2024.

The 2022 Senior Credit Facilities include provisions permitting the Company from time to time to, subject to certain terms and conditions, increase the aggregate amount of commitments under the 2022 Revolving Credit Facility and/or establish one or more additional term loans under the 2022 Term Loan Facility, in each case, with additional commitments from existing lenders or new commitments from financial institutions acceptable to the Administrative Agent in its reasonable discretion;

4 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Financing costs related to the issuance and amendments of 2022 Senior Credit Facilities are capitalized and amortized over the term of the loans using the effective interest method.

1 unchanged sentence

On May 28, 2024, the Company entered into a First Amendment to the 2022 Senior Credit Facilities that (a) extends the delayed draw term loan commitment expiration date to November 29, 2025, from its initial expiration date of May 29, 2024, and (b) provides for other technical amendments.

Payment for debt issuance costs associated with the amendment was $ 0.2 million during the six months ended June 30, 2024.

Payment for debt issuance costs associated with the amendment was $ 0.2 million during the nine months ended September 30, 2024.

Medical Equipment Financing

1 unchanged sentence

The financing obligations are primarily short term in nature and are payable in monthly installments.

As of June 30, 2024, $ 0.4 million of the outstanding medical equipment financing is presented on the condensed consolidated balance sheets as short term debt based on the scheduled repayment dates.

As of September 30, 2024, $ 0.4 million of the outstanding medical equipment financing is presented on the condensed consolidated balance sheets as short term debt based on the scheduled repayment dates.

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Lease liabilities $ 2,796 $ 3,250

5 unchanged sentences

These lease liabilities are recorded at present value based on a discount rate of 5.5 %, which was based on the Company's incremental borrowing rate at the time of assessment.

At June 30, 2024 , the weighted average lease term was approximately 3.88 years.

Future maturities of the Company's operating lease liabilities as of June 30, 2024 are summarized as follows:

At September 30, 2024 , the weighted average lease term was approximately 3.79 years.

Future maturities of the Company's operating lease liabilities as of September 30, 2024 are summarized as follows:

Lease Liability

2 unchanged sentences

Present value of lease liabilities $ 2,727

Operating rental expenses for the six months ended June 30, 2024 amounted to $ 0.7 million.

Operating rental expenses for the nine months ended September 30, 2024 amounted to $ 1.1 million .

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

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 measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:

At June 30, 2024

The following tables summarize the Company's assets measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023:

At September 30, 2024

(In thousands) Level 1 Level 2 Level 3 Total

11 unchanged sentences

The fair value of the Company’s available for sale debt instrument is classified within Level 3 in the fair value hierarchy as the Company evaluates adjustments using a combination of observable and unobservable inputs, such as operating results of the counterparty as well observable prices in transactions of debt and equity instruments of the issuing counterparty when available.

As of June 30, 2024, the analysis resulted in the determination that the decline in fair value was an other than temporary impairment (OTTI).

Accordingly, the Company recognized an OTTI loss of $ 1.3 million in Income (expense) from investments during the quarter ended June 30, 2024.

As of September 30, 2024, the analysis resulted in the determination that the decline in fair value was an other than temporary impairment (OTTI).

Accordingly, the Company recognized an OTTI loss of $ 0.1 million in Income (expense) from investments during the quarter ended September 30, 2024.

The recognized loss is equal to the difference between the debt security’s amortized cost basis and its fair value at the balance sheet date, based on management's estimate of fair value.

3 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

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

These assets include equity method investments, other equity investments, and the fair value allocation related to the Company’s acquisitions.

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.

These assets include other equity investments and the fair value allocation related to the Company’s acquisitions.

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

2 unchanged sentences

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 the Company owns.

The Company had no material adjustments of equity method investments or other equity investments measured at fair value on a nonrecurring basis during any of the periods presented.

The Company had no material adjustments of other equity investments measured at fair value on a nonrecurring basis during any of the periods presented.

The fair value allocation related to the Company’s acquisitions are determined using a discounted cash flow approach, or a replacement cost approach, which are based on significant unobservable inputs (Level 3).

11 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Shareholders' Equity

3 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 38,825,799 and 38,506,161 shares were issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.

The Company acquired and cancelled 129,983 common shares at a cost of $ 1.0 million to satisfy employee income tax withholding associated with RSUs vesting during the six months ended June 30, 2024.

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 38,932,247 and 38,506,161 shares were issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.

The Company acquired and cancelled 142,489 common shares at a cost of $ 1.1 million to satisfy employee income tax withholding associated with RSUs vesting during the nine months ended September 30, 2024.

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

5 unchanged sentences

The maximum amount of common shares that may be awarded under the 2024 Omnibus Plan as “incentive stock options” is 1,000,000 common shares.

As of June 30, 2024, the Company had outstanding options of 4,143,000 and RSUs of 1,538,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the three and six months ended June 30, 2024 and 2023 (in thousands):

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

As of September 30, 2024, the Company had outstanding options of 4,124,000 and RSUs of 1,547,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the three and nine months ended September 30, 2024 and 2023 (in thousands):

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

2024 2023 2024 2023

2 unchanged sentences

Total $ 1,712 $ 1,453 $ 4,764 $ 4,315

At June 30, 2024, there was approximately $ 147,000 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 0.67 years .

As of June 30, 2024, there was approximately $ 6,782,000 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 1.57 years .

At September 30, 2024, there was approximately $ 83,000 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 0.45 years.

As of September 30, 2024, there was approximately $ 5,920,000 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 1.43 years.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

The following table summarizes stock option activity for the six months ended June 30, 2024:

September 30, 2024 and 2023

The following table summarizes stock option activity for the nine months ended September 30, 2024:

Number of options

4 unchanged sentences

Expired / Forfeited ( 8 ) 5.21

Balance June 30, 2024 4,143 $ 5.25 5.4 years $ 7,198

Balance September 30, 2024 4,124 $ 5.25 5.1 years $ 9,725

(1) For presentation purposes, stock options issued with a Canadian dollar exercise price have been translated to U.S.

dollars 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 price of the Company's common shares on the last trading day of the period ( $ 6.55 and $ 7.85 on June 30, 2024 and December 31, 2023, respectively ).

The aggregate intrinsic value of options outstanding was $ 7,198,163 and options exercisable was $ 6,888,789 at June 30, 2024.

For the six months ended June 30, 2024, 64,130 common shares were issued pursuant to the exercise of stock options.

At June 30, 2024, the Company had 3,874,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.24 and a weighted average remaining contractual life of 5.2 years .

(2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing price of the Company's common shares on the last trading day of the period ($ 7.33 and $ 7.85 on September 30, 2024 and December 31, 2023, respectively ).

The aggregate intrinsic value of options outstanding was $ 9,725,000 and options exercisable was $ 9,226,000 at September 30, 2024.

For the nine months ended September 30, 2024, 81,646 common shares were issued pursuant to the exercise of stock options.

At September 30, 2024, the Company had 3,874,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.24 and a weighted average remaining contractual life of 5.0 years.

At December 31, 2023, the Company had 3,461,000 exercisable stock options outstanding with a weighted average exercise price of $ 4.99 and a weighted average remaining contractual life of 5.5 years .

5 unchanged sentences

Expected volatility is based on implied volatilities from traded options on the Company's common shares and historical volatility of the Company's common shares over the expected life of the option.

There were no issuances of options during the six months ended June 30, 2024.

There were no issuances of options during the nine months ended September 30, 2024.

Restricted Stock Units

3 unchanged sentences

The Company accounts for forfeitures of 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, 2024:

The following table summarizes RSU activity for the nine months ended September 30, 2024:

Number of RSUs (000's) Weighted average grant price Weighted average remaining contractual life Aggregate intrinsic value (1)

2 unchanged sentences

Vested ( 487 ) 7.07

Balance June 30, 2024 1,538 $ 7.83 1.57 years $ 10,074

(1) The aggregate intrinsic value of time-based RSUs outstanding was based on the closing price of the Company's common shares on the last trading day of the period ( $ 6.55 and $ 7.85 on June 30, 2024 and December 31, 2023, respectively ).

Balance September 30, 2024 1,547 $ 7.80 1.43 years $ 11,340

(1) The aggregate intrinsic value of time-based RSUs outstanding was based on the closing price of the Company's common shares on the last trading day of the period ($ 7.33 and $ 7.85 on September 30, 2024 and December 31, 2023, respectively ).

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

During the three months ended June 30, 2024, the Company issued 47,726 RSUs with equal annual vestings over a three year period and a fair value of $ 0.3 million .

During the six months ended June 30, 2024, the Company issued 798,000 RSUs with equal annual vestings over a three year period and a fair value of $ 6.4 million .

September 30, 2024 and 2023

During the three months ended September 30, 2024, the Company issued 117,417 RSUs with vestings over a one to three year period and a fair value of $ 0.9 million.

During the nine months ended September 30, 2024, the Company issued 915,000 RSUs with vestings over a one to three year period and a fair value of $ 7.3 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, 2024:

The following table summarizes phantom share unit activity for the nine months ended September 30, 2024:

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

3 unchanged sentences

( 16 ) ( 120 )

Balance June 30, 2024 460 $ 3,013

Balance September 30, 2024 452 $ 3,313

(1) The value of outstanding share equivalents at the beginning of the period is based on the market price of the Company’s common shares at that time, the value of issued share equivalents is based on the market price of the Company’s common shares at issuance, the value of vested share equivalents is based on the cash paid at the time of vesting, and the values of forfeited share equivalents and outstanding share equivalents at the end of the period are based on the market price of the Company's common shares at the end of the period.

The market price of the Company's common shares was $ 6.55 and $ 7.85 on June 30, 2024 and December 31, 2023, respectively.

The market price of the Company's common shares was $ 7.33 and $ 7.85 on September 30, 2024 and December 31, 2023, respectively.

The change in fair value of the phantom share units has been charged to the Condensed Consolidated Statements of 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, 2024 is $ 1,427,000 , with $ 986,000 of this amount included in current accrued liabilities and the remaining portion of $ 441,000 included in long-term accrued liabilities.

The total liability associated with phantom share units at September 30, 2024 is $ 1,989,000 , with $ 1,337,000 of this amount included in current accrued liabilities and the remaining portion of $ 652,000 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.

The following table summarizes expense (benefit) associated with the phantom share units for the three and six months ended June 30, 2024 and 2023 (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, 2024 and 2023 (in thousands):

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

2024 2023 2024 2023

Selling, general, and administrative $ 619 $ ( 333 ) $ 1,172 $ 1,504

The Company paid cash settlements of $ 1.6 million and $ 2.3 million during the six months ended June 30, 2024 and 2023, respectively, pertaining to vestings of cash-settled phantom share units.

The Company paid cash settlements of $ 1.6 million and $ 2.4 million during the nine months ended September 30, 2024 and 2023, respectively, pertaining to vestings of cash-settled phantom share units.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Commitments and Contingencies

5 unchanged sentences

Legal Proceedings

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

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

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

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

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

Vyaire filed a Reconventional Demand with the State Court alleging breach of contract and seeking damages of $ 4.7 million purportedly for the improper cancellation of the Purchase Order.

As previously disclosed, on November 5, 2020, the Company (through its subsidiary Sleep Management LLC) filed a lawsuit against Vyaire Medical, Inc.

d/b/a CareFusion Respiratory Technologies (“Vyaire”) in the 15th Judicial District Court for the Parish of Lafayette, Louisiana (the “State Court”) seeking damages for breach of contract and seeking declaratory judgment.

The State Court issued an order on September 5, 2023 granting the Company Partial Summary Judgment finding that Vyaire breached the contract.

However, on June 9, 2024, Vyaire and certain of its affiliates filed voluntary bankruptcy under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.

The Company continues to believe that it has valid legal and equitable claims to recover its outstanding prepayment as a result of Vyaire’s failure to deliver the vast majority of the respiratory equipment referenced in the Purchase Order.

However, as a result of the bankruptcy filing, collection of the outstanding prepaid amounts is no longer determined to be probable.

During the three months ended June 30, 2024, outstanding funds receivable in the amount of $ 0.9 million related to undelivered respiratory equipment were impaired through Other expense (income).

On June 9, 2024, Vyaire and certain of its affiliates filed voluntary bankruptcy under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).

A liquidation analysis subsequently submitted to the Bankruptcy Court disclosed that unsecured claims, including those subordinate to the super-priority claims of certain Vyaire creditors, would not receive any recovery under the proposed Chapter 11 reorganization plan or in the event of a Chapter 7 liquidation.

Consequently, collection of the Company's unsecured claim against Vyaire was determined to be not probable.

During the nine months ended September 30, 2024, outstanding funds receivable in the amount of $ 0.9 million related to undelivered respiratory equipment were impaired through Other expense (income).

Governmental and Regulatory Matters

1 unchanged sentence

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.

For the six months ended June 30, 2024, the Company recorded income tax expense of $ 1.3 million, which includes a discrete tax benefit of $ 0.1 million associated with stock-based compensation arrangements.

Excluding the impact of the discrete taxes, the effective rate for the six months ended June 30, 2024 is 30.9 %.

For the nine months ended September 30, 2024, the Company recorded income tax expense of $ 2.9 million , which includes a discrete tax benefit of $ 0.1 million associated with stock-based compensation arrangements.

Excluding the impact of the discrete taxes, the effective rate for the nine months ended September 30, 2024 is 30.3 % .

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.

At June 30, 2024 and 2023, 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, 2024 and 2023, 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.

8 unchanged sentences

Dollars, except per share amounts)

June 30, 2024 and 2023

September 30, 2024 and 2023

Earnings Per Share

2 unchanged sentences

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,

2024 2023 2024 2023

11 unchanged sentences

Anti-dilutive shares excluded from the calculation consisted of dilutive employee stock options and RSUs that were de minimis in all periods presented.

Subsequent Events

On July 31, 2024, the Company repaid $ 3.0 million of its 2022 Revolving Credit Facility, reducing the outstanding balance from $ 4.8 million to $ 1.8 million.

VIEMED HEALTHCARE, INC.

1 unchanged sentence

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

June 30, 2024 and 2023

September 30, 2024 and 2023

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