What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-03-10 compared with 2024-03-06 · 239 added, 271 removed, 633 unchanged (45% of the section changed)

10 unchanged sentences

We have audited the accompanying consolidated balance sheets of Viemed Healthcare, Inc.

(the Company) as of December 31, 2023 and 2022, the related consolidated statements of income and comprehensive income, changes in shareholders' equity and cash flows for each of the two years in the period ended December 31, 2023, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2023 in conformity with U.S.

(the Company) as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 10, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

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Our responsibility is to express an opinion on the Company’s financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

1 unchanged sentence

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.

Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

2 unchanged sentences

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue and Accounts Receivable, net

Description of the Matter

As described in Note 2 to the consolidated financial statements, the Company records accounts receivable and revenues for rentals and sales based upon contractually agreed-upon rates, reduced by adjustments for estimated probable collectability losses related to rental revenues and variable consideration for implicit price concessions related to sales revenues.

The adjustments to revenue and accounts receivables are estimated 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 recognized $204.1 million in rental and sales revenues for the year ended December 31, 2024 and recorded $24.9 million in accounts receivable, net at December 31, 2024.

Auditing the Company's estimate of the adjustments to rental and sales revenues and net accounts receivable was judgmental due to the subjectivity in assessing the appropriateness of the assumptions made by management.

Those assumptions include an expectation that the Company’s collection of accounts receivables will be consistent with historical collections experience adjusted for consideration of current or forecasted conditions that may affect the Company’s expected collectable amount.

How We Addressed the Matter in Our Audit

To test the adjustments to rental and sales revenues and net accounts receivable, we performed audit procedures that included, among others, testing management's process for developing the estimate of net accounts receivable, testing the completeness, accuracy, and relevance of the data used;

and evaluating significant assumptions used by management, including assessing the Company’s expected collection rates based on historical experience, adjusted for consideration of current or forecasted conditions.

For example, we compared management’s prior year estimated net accounts receivable to actual amounts collected during the current year, and reviewed trends in management’s estimate over time.

We also performed a predictive analytical procedure by utilizing prior year hindsight results to develop an expectation of current year net accounts receivable.

Additionally, we performed a sensitivity analysis to evaluate the changes in rental and sales revenue and net accounts receivable that would result from changes in assumptions.

/s/ Ernst & Young LLP

13 unchanged sentences

2 4,320 4,628

Income tax receivable — 26

Prepaid expenses and other assets

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Identifiable intangibles, net

3 32,989 29,765

Other long-term assets 9 — 887

9 unchanged sentences

Operating lease liabilities, current portion

Current portion of long-term debt

Total current liabilities $ 37,326 $ 32,124

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Retained earnings 89,691 79,495

TOTAL VIEMED HEALTHCARE, INC.'S SHAREHOLDERS' EQUITY

$ 131,393 $ 113,895

Noncontrolling interest in subsidiary

TOTAL SHAREHOLDERS' EQUITY 133,301 113,895

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Depreciation and amortization

Loss on disposal of property and equipment 645 346

Other income, net

1,483 1,391 1,012

Loss (gain) on disposal of property and equipment

( 1,905 ) 645 346

Other expense (income), net

173 ( 98 ) ( 989 )

Income from operations $ 17,900 $ 14,330 $ 8,252

Non-operating income and expenses

Income from equity method investments 485 935

Income (expense) from investments

( 954 ) 485 935

Interest expense, net

3 unchanged sentences

Net income $ 11,409 $ 10,243 $ 6,222

Net income attributable to noncontrolling interest

Net income attributable to Viemed Healthcare, Inc.

$ 11,265 $ 10,243 $ 6,222

Other comprehensive income

Change in unrealized gain/loss on derivative instruments, net of tax — 278

Change in unrealized gain on derivative instruments, net of tax

Other comprehensive income

$ — $ — $ 278

Comprehensive income

$ 11,265 $ 10,243 $ 6,500

Net income per share

9 unchanged sentences

Dollars, except share and per share amounts)

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

Common Stock Additional paid-in capital Accumulated other comprehensive loss Noncontrolling interest in subsidiary

Total Shareholders'

Shares Amount Retained

Shareholders' equity December 31, 2021

39,640,388 $ 14,014 $ 7,749 $ ( 278 ) $ 73,335 $ — $ 94,820

Stock-based compensation - options — — 3,094 — — — 3,094

9 unchanged sentences

Shareholders' equity, December 31, 2022

38,049,739 $ 15,123 $ 12,125 $ — $ 69,846 $ — $ 97,094

Stock-based compensation - options — — 1,165 — — — 1,165

5 unchanged sentences

Shareholders' equity, December 31, 2023

38,506,161 $ 18,702 $ 15,698 $ — $ 79,495 $ — $ 113,895

Stock-based compensation - options — — 269 — — — 269

Stock-based compensation - restricted stock — — 6,016 — — — 6,016

Exercise of options 281,121 1,017 — — — — 1,017

Shares issued for vesting of restricted stock units 488,600 3,646 ( 3,646 ) — — — —

Shares redeemed to pay income tax ( 142,985 ) — — — ( 1,069 ) — ( 1,069 )

Acquired non-controlling interest

— — — — — 1,800 1,800

Distribution to non-controlling interest

— — — — — ( 36 ) ( 36 )

Net income — — — — 11,265 144 11,409

Shareholders' equity, December 31, 2024

39,132,897 $ 23,365 $ 18,337 $ — $ 89,691 $ 1,908 $ 133,301

See accompanying notes to the consolidated financial statements

14 unchanged sentences

Income from equity method investments ( 261 ) ( 485 ) ( 935 )

Income from debt investment

Loss on disposal of property and equipment 645 346

Deferred income tax (benefit) expense

Loss (income) from debt investment

1,344 ( 219 ) —

Changes in working capital, net of effects from acquisitions:

Loss (gain) on disposal of property and equipment

( 1,905 ) 645 346

Amortization of deferred financing costs

Deferred income tax expense (benefit)

( 3,840 ) ( 1,439 ) 1,746

Changes in working capital:

Accounts receivable, net

( 6,073 ) ( 1,058 ) ( 2,556 )

574 ( 472 ) 301

Prepaid expenses and other assets

4 unchanged sentences

Accrued liabilities

2,857 4,959 2,549

Income tax payable/receivable

1,730 2,179 1,867

Net cash provided by operating activities $ 39,089 $ 45,212 $ 27,748

2 unchanged sentences

Investment in equity investments 2 ( 1,000 ) ( 20 ) ( 141 )

Cash paid for acquisition of HMP, net of cash acquired

Cash paid for acquisitions, net of cash acquired

3 ( 2,999 ) ( 28,588 ) —

Investment in debt security 2 — — ( 2,000 )

Proceeds from sale of debt security

Proceeds from sale of property and equipment 4 10,321 2,588 1,063

6 unchanged sentences

Proceeds from revolving credit facilities

Payments on revolving credit facilities

6 3,000 8,000 —

Principal payments on revolving credit facilities

( 5,000 ) ( 7,005 ) —

Payments for debt issuance costs

Shares redeemed to pay income tax 8 ( 1,069 ) ( 594 ) ( 143 )

Shares repurchased under the share repurchase program — — ( 9,568 )

Repayments of lease liabilities ( 157 ) ( 42 )

Repayments of finance lease liabilities

( 338 ) ( 157 ) ( 42 )

Distributions to non-controlling interest

Net cash provided by (used in) financing activities

$ ( 3,689 ) $ 2,826 $ ( 15,266 )

Net decrease in cash and cash equivalents ( 4,075 ) ( 11,494 )

Net increase (decrease) in cash and cash equivalents

4,701 ( 4,075 ) ( 11,494 )

Cash and cash equivalents at beginning of year 12,839 16,914 28,408

9 unchanged sentences

$ — $ ( 41 ) $ 530

Equipment and other fixed asset purchases payable at end of period

$ 2,179 $ 1,396 $ 739

Equipment sales receivable at end of period

$ 2,844 $ — $ —

Non-cash consideration received for sale of debt security

$ 125 $ — $ —

See accompanying notes to the consolidated financial statements

VIEMED HEALTHCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Notes to Consolidated Financial Statements

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(the "Company"), through its subsidiaries, is a provider of home medical equipment 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.

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Kaliste Saloom Road, Lafayette, Louisiana 70508.

As of June 30, 2023, the Company determined that it no longer qualifies as a “smaller reporting company,” but the Company is not required to comply with the larger company disclosure obligations (subject to certain exemptions and relief from various reporting requirements that are applicable to emerging growth companies) until our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024.

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

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

public company reporting requirements.

The Company’s common shares are traded on the Nasdaq Capital Market under the symbol "VMD".

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In the opinion of management, all adjustments, consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations, and cash flows have been made.

Prior to December 31, 2024, the Company qualified as an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the Securities Act), as modified by the Jumpstart our Business Startups Act of 2012 (the JOBS Act), and took advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and other exemptions.

As of December 31, 2024, the Company no longer qualified as an emerging growth company, and as a result is no longer exempt from the reporting requirements discussed above.

Reporting Currency

2 unchanged sentences

Basis of Consolidation

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.

These consolidated financial statements include the accounts of the Company and its subsidiaries in which it has a controlling financial interest.

All intercompany transactions have been eliminated.

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

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

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

Actual results could differ from these estimates.

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The corporate office is responsible for contract negotiation with vendors and payors, corporate compliance with healthcare laws and regulations, and revenue cycle management, among other corporate supporting functions.

Accordingly, the Company has a single reportable segment and operating segment structure based on ASC 280, Segment Reporting .

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Accordingly, the Company has a single reportable segment and operating segment structure.

All expense categories on the Consolidated Statements of Income and Comprehensive Income are significant and there are no other significant segment expenses that require disclosure.

Cash and Cash Equivalents

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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.

The accounts receivable are presented on the Consolidated Balance Sheets net of adjustments, including variable consideration for implicit price concessions related to sales revenues and an estimate for probable losses related to net rental revenues.

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

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.

Receivables are considered past due when not collected by established due dates.

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 $ 11.1 million and $ 8.5 million as of December 31, 2023 and 2022, respectively.

Included in accounts receivable at December 31, 2023 are amounts due from Medicare and Medicaid representing 28 % and 4 % , respectively, and 32 % combined, of total outstanding net receivables.

As of December 31, 2022, 48 % of total outstanding 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 December 31, 2024 are amounts due from Medicare representing 27 % 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.

7 unchanged sentences

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

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

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

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Equity Investments

Equity investments on the 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:

December 31, 2023 December 31, 2022

Equity method investments $ 320 $ 816

Other equity investments 1,360 1,339

Balance, end of period $ 1,680 $ 2,155

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.

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

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 Consolidated Statements of Income and Comprehensive Income.

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

No events or changes have occurred as of December 31, 2023 that would impair 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.

Equity investments on the 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 balance of the Company’s equity investments was $ 2.8 million and $ 1.7 million as of December 31, 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 December 31, 2024 on its investments in equity securities without a readily determinable fair value.

Debt Investment

The Company's debt investment is a variable rate secured convertible note issued by Healthcare DX, Inc.

(d/b/a ModoHealth) on December 21, 2022, classified as an available-for-sale debt instrument.

Accrued interest is due upon the 18 month maturity of the note and is included in the amortized cost basis at each reporting period.

At each financial statement date until a conversion event, the debt instrument is required to be remeasured at fair value.

Changes in unrealized gains and losses are included in accumulated other comprehensive income, net of tax effect, until realized.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

The debt investment presented on the historical Consolidated Balance Sheets was a variable rate secured convertible note, classified as an available-for-sale debt instrument.

Accrued interest was included in the amortized cost basis at each reporting period.

At each financial statement date until a conversion event, the debt instrument was remeasured at fair value.

Changes in unrealized gains and losses were recorded in accumulated other comprehensive income, net of tax effect, until realized.

When changes were determined to be other than temporary, the Company recognized an other-than-temporary impairment expense in earnings, equal to the difference between the debt security’s amortized cost basis and its fair value at the balance sheet date.

On October 4, 2024, the Company sold its available-for-sale debt investment.

The sale resulted in proceeds of $ 0.9 million and a gross realized loss of $ 1.4 million, which was recognized in earnings for the year ended December 31, 2024.

The debt instrument is no longer included in the Consolidated Balance Sheet as of December 31, 2024.

Intangible Assets

Intangible assets include trade names and other identifiable intangible assets which are amortized on a straight-line basis over a period of their expected useful lives, generally five years .

During the year ended December 31, 2023, the Company recorded $ 0.5 million in trade names and $ 0.1 million of other intangibles related to the acquisition of HMP (as defined below).

Amortization expense related to identifiable intangible assets, which is included in depreciation and amortization in the accompanying Consolidated Statements of Income and Comprehensive Income , was $ 75,000 for the year ended December 31, 2023.

The weighted average remaining useful life of intangible assets was 4.4 years as of December 31, 2023.

Intangible assets include trade names and other identifiable intangible assets.

During the year ended December 31, 2024, the Company recorded $ 0.4 million for an indefinite-lived trade name related to the acquisition of HomeMed.

During the year ended December 31, 2023, the Company recorded $ 0.5 million in trade names and $ 0.1 million of other intangibles related to the acquisition of HMP, which are amortized on a straight-line basis over a period of their expected useful lives of five years .

Amortization expense related to identifiable intangible assets, which is included in depreciation and amortization in the accompanying Consolidated Statements of Income and Comprehensive Income, was $ 0.1 million and $ 0.1 million for the years ended December 31, 2024 and December 31, 2023, respectively.

The weighted average remaining useful life of definite-lived intangible assets was 3.4 years as of December 31, 2024.

Comprehensive Income

1 unchanged sentence

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

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

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

Revenue Recognition

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Revenue generated from equipment that is rented to patients is recognized over the non-cancellable rental period (typically one month) and commences on delivery of the equipment to the patients.

The lease agreements are evaluated at lease 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.

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

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 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.

Rental revenue, less estimated adjustments, is recognized as earned on a straight-line basis over the non-cancellable lease term.

5 unchanged sentences

Revenue related to sales of equipment and supplies is recognized on the date of delivery as this is when control of the promised goods is transferred to patients and is presented net of applicable sales taxes.

Revenues are recorded only to the extent it is probable that a significant reversal will not occur in the future as amounts may include implicit price concessions under reimbursement arrangements with third-party payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients.

Revenues are recorded only to the extent it is probable that a significant reversal will not occur in the future as amounts may include implicit price concessions under reimbursement arrangements with payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients.

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

5 unchanged sentences

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.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

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

Year Ended December 31,

2024 2023 2022

Revenue from rentals

Ventilator rentals, non-invasive and invasive $ 124,577 $ 108,258 $ 92,710

Other durable medical equipment rentals 38,315 21,446

Other home medical equipment rentals

48,651 38,315 21,446

Revenue from sales and services

3 unchanged sentences

Service revenues

20,133 10,665 8,471

Total revenues $ 224,257 $ 183,008 $ 138,832

Revenues from Medicare and Medicaid as percentages of the Company's traditional revenue streams, excluding COVID-19 response sales and services, for the years ended December 31, 2023 and 2022 were as follows:

Year Ended December 31,

Medicare revenues 44 % 47 %

Medicaid revenues 2 % 9 %

Total Medicare and Medicaid revenues 46 % 56 %

Revenues from Medicare as a percentage of the Company's traditional revenue streams, excluding COVID-19 response sales and services, for the years ended December 31, 2024, 2023, and 2022 were 41 % , 44 % , and 47 %, respectively.

Stock-Based Compensation

5 unchanged sentences

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

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

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

Interest Rate Swaps

7 unchanged sentences

During the year ended December 31, 2022, the Company settled its interest rate swap in connection with the refinancing of its credit facilities and recognized the realized gain of $ 0.2 million in Other Income.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

The Company is subject to income taxes in numerous U.S.

jurisdictions.

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

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

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The results of operations of the business acquired by the Company are included as of the respective acquisition date.

The acquisition-date fair value of the consideration transferred, including the fair value of any contingent consideration, is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition.

To the extent the acquisition-date fair value of the consideration transferred exceeds the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill.

The acquisition-date fair value of the consideration transferred, including the fair value of any contingent consideration, is allocated to the underlying assets acquired, liabilities assumed, and noncontrolling interest in the acquiree based upon their estimated fair values at the date of acquisition.

To the extent the acquisition-date fair value of the consideration transferred exceeds the fair value of the identifiable tangible and intangible assets acquired, liabilities assumed, and any noncontrolling interests, such excess is allocated to goodwill.

Patient relationships, medical records and patient lists are not reported as separate intangible assets due to the regulatory requirements and lack of contractual agreements but are part of goodwill.

2 unchanged sentences

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

I mpairment of Goodwill and Long-Lived Assets

Impairment of Goodwill and Long-Lived Assets

Goodwill resulting from business combinations is not amortized, rather, it is assessed for impairment annually and upon the occurrence of a triggering event or change in circumstances indicating a possible impairment.

7 unchanged sentences

As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual or interim goodwill impairment test will prove to be accurate predictions of the future.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

For the year ended December 31, 2023, the Company performed an assessment of qualitative factors and determined that no events or circumstances existed that would lead to a determination that it is more likely than not that the fair value of indefinite-lived assets were less than the carrying amount.

For the year ended December 31, 2024, the Company performed an assessment of qualitative factors and determined that no events or circumstances existed that would lead to a determination that it is more likely than not that the fair value of indefinite-lived

assets were less than the carrying amount.

As such, a quantitative analysis was not required to be performed and the Company did not record any goodwill impairment charges.

3 unchanged sentences

There were no impairment charges recognized during the years ended December 31, 2024, 2023, and 2022.

Net Income per Share Attributable to Common Stockholders

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

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

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

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

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

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

1 unchanged sentence

Recently Adopted Accounting Pronouncements

On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses:

Measurement of Credit Losses on Financial Instruments.

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

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

While the adoption of ASC 326 could result in a higher allowance recorded in the future for credit losses on receivables within the scope of the standard due to the prescribed measurement principles, the impact of the adoption on the Company's consolidated financials statements was not material.

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.

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually.

Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280.

The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024.

The guidance is applied retrospectively to all periods presented in the financial statements, unless it is impracticable.

The Company adopted this standard during the year ended December 31, 2024, which did not have a material impact on its consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements

The Company is an “emerging growth company” as defined by the JOBS Act.

The JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards.

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

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

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

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

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

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The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which specifies additional disclosure requirements.

The new guidance requires additional disclosures, including the composition of certain income expense line items (such as purchases of inventory, employee compensation, and 'other expenses') and a separate disclosure for selling expenses.

This change is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, however, early adoption is permitted.

The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

Business Combinations

On June 1, 2023, Viemed, Inc., a wholly-owned subsidiary of the Company, completed the acquisition of Home Medical Products, Inc.

(“HMP”), which operates in Tennessee, Alabama, and Mississippi.

The Company acquired 100 % of the equity ownership of HMP in exchange for approximately $ 29 million in cash or cash payable, subject to customary post-closing net working capital and other adjustments.

Approximately $ 16 million of the purchase consideration was funded by cash on hand, $ 8 million was funded by a borrowing on the 2022 Revolving Credit Facility, and $ 5 million was funded by a borrowing on the 2022 Term Loan Facility.

The results of HMP’s operations have been included in the consolidated financial statements since the date of acquisition.

The Company expensed $ 538,000 of acquisition and integration costs in conjunction with the acquisition for the year ended December 31, 2023.

These costs include system conversion and integrating operations charges, as well as legal and consulting expenses, and are included in selling, general, and administrative expense in the accompanying Consolidated Statements of Income and Comprehensive Income .

East Alabama HomeMed, LLC

On April 1, 2024, the Company acquired a controlling 60 % equity interest in East Alabama HomeMed, LLC ("HomeMed").

The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805.

As a result of the acquisition, goodwill of $ 3.2 million and a trade name of $ 0.4 million were recognized.

The Company expects its portion of the goodwill to be fully tax-deductible.

Additionally, a noncontrolling interest of $ 1.8 million was recorded at the acquisition date.

The accompanying financial statements include the results of HomeMed's operations from the acquisition date.

Changes in the noncontrolling interests after the acquisition date are accounted for pursuant to ASC 810, Consolidation .

Home Medical Products, Inc.

On June 1, 2023, the Company completed the acquisition of HMP, which operates in Tennessee, Alabama, and Mississippi.

The Company acquired 100 % of the equity ownership of HMP in exchange for approximately $ 29 million in cash.

The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

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Resulting goodwill $ 29,765

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

The fair value of accounts receivables acquired is $ 2.0 million, with the gross contractual amount being $ 2.9 million.

The Company expects $ 0.9 million to be uncollectible.

The amounts of revenue and pre-tax income of HMP included in the Company's Consolidated Statements of Income and Comprehensive Income from the acquisition date to December 31, 2023 was $ 16.2 million and $ 1.3 million, respectively.

After the Company's June 30, 2023 financial statements were issued, management identified and recorded immaterial measurement period adjustments to the provisional balances pertaining to the acquired cash and cash equivalents, prepaid expenses and other assets, trade payables, and long-term lease liability accounts.

As a result of these adjustments, there was an increase in the provisional goodwill balance, which resulted in no impact on the current period's income or expenses.

Also after the Company's June 30, 2023 financial statements were issued, the Company received a final valuation report from a third-party valuation firm.

After considering the results of that valuation report, the Company has estimated that the fair value of the identified intangible assets acquired as part of the business combination to be $ 641,000 .

As a result, the fair value of the identifiable intangibles were decreased by $ 47,000 on December 31, 2023, due to this new information, with a corresponding increase to goodwill.

In addition, the change to the provisional amount resulted in a decrease in amortization expense and accumulated amortization of $ 5,500 .

Goodwill resulted from a combination of synergies and cost savings, and further expansion into Tennessee, Alabama, and Mississippi.

1 unchanged sentence

There are no contingent consideration arrangements included in the transaction.

The results of HMP’s operations have been included in the consolidated financial statements since the date of acquisition.

There were no acquisitions during the year ended December 31, 2022.

Property and Equipment

9 unchanged sentences

Accumulated depreciation ( 58,003 ) ( 52,937 )

Property and equipment, net of accumulated depreciation and amortization $ 73,579 $ 67,743

Depreciation in the amount of $ 20.5 million and $ 14.6 million is included in cost of revenue for the years ended December 31, 2023 and 2022, respectively.

Property and equipment, net of accumulated depreciation

$ 76,279 $ 73,579

Depreciation in the amount of $ 23.9 million, $ 20.5 million, and $ 14.6 million is included in cost of revenue for the years ended December 31, 2024, 2023, and 2022, respectively.

Medical equipment purchases with a cost of $ 2.2 million and $ 1.4 million were included in accounts payable at December 31, 2024 and 2023, respectively.

9 unchanged sentences

Total accrued liabilities $ 20,157 $ 17,578

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Debt and Lease Liabilities

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

December 31, 2024 December 31, 2023

2022 Senior Credit Facilities

$ 4,563 $ 6,875

Medical equipment financing

Financing costs and commitment fees

( 599 ) ( 594 )

Current portion

( 409 ) ( 1,072 )

Long-term portion

$ 3,589 $ 6,002

2018 Senior Credit Facility

12 unchanged sentences

The proceeds of the 2022 Term Loan Facility and any additional term loans established in accordance with the 2022 Senior Credit Facilities may be used to finance permitted acquisitions and to pay transaction fees, costs and expenses related to such acquisitions.

The interest rates per annum applicable to the 2022 Senior Credit Facilities are Term SOFR (as defined in the 2022 Senior Credit Facilities) plus an applicable margin, which ranges from 2.625 % to 3.375 %, or, at the option of the Company, a Base Rate (as defined in the 2022 Senior Credit Facilities) plus an applicable margin, which ranges from 1.625 % to 2.375 %.

The interest rates per annum applicable to the 2022 Senior Credit Facilities are a forward looking term rate based on a secured overnight financing rate ("Term SOFR") plus an applicable margin ranging from 2.625 % to 3.375 %, or, at the option of the Company, a Base Rate (as defined in the 2022 Senior Credit Facilities) plus an applicable margin, which ranges from 1.625 % to 2.375 %.

The 2022 Senior Credit Facilities require the Company to comply with certain affirmative, as well as certain negative covenants that, among other things, will restrict, subject to certain exceptions, the ability of the Company to incur indebtedness, grant liens, make investments, engage in acquisitions, mergers or consolidations and pay dividends and other restricted payments.

5 unchanged sentences

provided, that, (a) the aggregate principal amount of any increases in the 2022 Revolving Credit Facility, and (b) the aggregate principal amount of all additional term loans under the 2022 Term Loan Facility established after the closing date will not exceed $ 30.0 million.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

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

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.

Upon the initial draw of debt under the 2022 Senior Credit Facilities during the year ended December 31, 2023, the Company reclassified the deferred financing fees previously recorded in other long-term assets to long-term debt in the consolidated balance sheets.

The recorded balances associated with the 2022 Senior Credit Facilities are as follows:

December 31, 2023 December 31, 2022

Outstanding balance

Financing costs and commitment fees

Current portion of notes payable ( 313 ) —

Net long-term notes payable $ 5,968 $ —

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 2022 Senior Credit Facilities was $ 0.2 million during the year ended December 31, 2024 .

Medical Equipment Financing

As a result of the acquisition of HMP, the Company assumed equipment financing obligations consisting of installment payments for medical equipment which secure the financing.

The financing obligations are payable in monthly installments through 2026 and include interest at rates ranging from 0 % to 7.99 %.

As of December 31, 2023 , $ 0.8 million of the outstanding medical equipment financing obligations is presented on the consolidated balance sheets as short term debt based on the scheduled repayment dates.

The Company enters into medical equipment financing obligations through supplier finance programs.

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

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:

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The exercise of lease renewal options is at the Company's sole discretion and is included in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases.

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.

These lease liabilities are recorded at their present value using a discount rate ranging from 5.50 % to 7.87 %, based on the Company's incremental borrowing rate at the time of assessment.

At December 31, 2024, the weighted average lease term was approximately 3.52 years.

5 unchanged sentences

Operating rental expenses for the years ended December 31, 2024, 2023, and 2022 amounted to $ 1,484,000 , $ 999,000 , and $ 539,000 , respectively.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Fair Value Measurement

Under ASC Topic 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price).

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

ASC Topic 820 establishes a hierarchy for inputs to valuation techniques used in measuring fair value that maximizes the use of observable inputs and

minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

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

12 unchanged sentences

Money market mutual funds $ 10,582 $ — $ — $ 10,582

Available for sale debt instrument — — 2,219 2,219

Total $ 10,582 $ — $ — $ 10,582

7 unchanged sentences

Available for Sale Debt Instrument

The fair value of the Company’s available for sale debt instrument approximates its amortized cost basis due to the short maturity and indexed interest rate terms.

The fair value 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 December 31, 2023, the analysis resulted in no adjustments to the carrying value impacting unrealized gains or losses.

All changes to measured fair value during the period were the result of accrued interest.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

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.

On October 4, 2024, the Company sold its available-for-sale debt investment.

The sale resulted in proceeds of $ 0.9 million and a gross realized loss of $ 1.4 million, which was recognized in earnings for the year ended December 31, 2024.

The debt instrument is no longer included in the Consolidated Balance Sheet as of December 31, 2024.

Assets 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).

15 unchanged sentences

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

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Stock-Based Compensation

On June 6, 2024 (the "Effective Date"), the Company’s shareholders approved the Company's 2024 Long Term Incentive Plan (the "2024 Omnibus Plan") to provide an incentive to attract, retain, and reward directors, officers, employees, and consultants who provide services to the Company or any of its subsidiaries.

Upon approval of the Omnibus Plan, no future awards are available to be made under the Company's previous RSU and Option Plans (collectively, the "Former Plan"), and the common shares that were not settled or awarded under the Former Plan as of the Effective Date are available for awards under the Omnibus Plan.

The maximum number of common shares that are available for awards under the Omnibus Plan and under any other security based compensation arrangements adopted by the Company, including the Former Plan, may not exceed 7,758,211 shares (equal to 20 % of the issued and outstanding common shares of the Company on the Effective Date).

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 December 31, 2023, the Company had outstanding options of 4,214,000 and RSUs of 1,226,000 associated with common shares under the Omnibus Plan.

All directors, officers, employees, and consultants of the Company and/or its affiliates are eligible to receive awards under the 2024 Omnibus Plan, subject to its terms.

Awards include common share purchase options, restricted stock, stock appreciation rights, performance awards, or other stock-based awards, including restricted stock units, deferred stock units, and dividends and dividend equivalents.

The maximum number of common shares that will be available for awards and issuance under the 2024 Omnibus Plan and that may be reserved for issuance at any time, including under previous plans such as the 2020 Long Term Incentive Plan (effective June 11, 2020), the Amended and Restated Stock Option Plan (effective as of July 17, 2018), the Amended and Restated Restricted Share Unit Plan (effective as of July 17, 2018),

and the Deferred Share Unit Plan (effective July 17, 2018), will be 7,800,000 shares.

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 December 31, 2024, the Company had outstanding options of 3,917,000 and restricted stock units ("RSUs") of 1,514,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the years ended December 31, 2024, 2023 and 2022 (in thousands):

Year Ended December 31,

2024 2023 2022

Stock-based compensation - options $ 269 $ 1,165 $ 3,094

15 unchanged sentences

Balance December 31, 2023 4,214 $ 5.25 5.9 years $ 11,698

Exercised ( 281 ) 3.62

Expired / Forfeited ( 16 ) 5.21

Balance December 31, 2024 3,917 $ 5.36 5.0 years $ 10,984

(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 ($ 7.85 and $ 7.56 on December 31, 2023 and December 31, 2022, respectively).

(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 ($ 8.02 , $ 7.85 and $ 7.56 on December 31, 2024, 2023 and 2022, respectively).

The aggregate intrinsic value of options outstanding was $ 10,984,000 and options exercisable were $ 10,369,000 at December 31, 2024.

2 unchanged sentences

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.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

The fair value of the stock options has been charged to the Consolidated Statements of Income and Comprehensive Income and credited to additional paid-in capital over the vesting period, using the grant date fair value based on the Black-Scholes option pricing model.

15 unchanged sentences

Vested ( 149 ) 6.27

Expired / Forfeited ( 9 ) 6.45

Balance December 31, 2022 629 $ 5.62 0.88 years $ 4,755

1 unchanged sentence

Vested ( 286 ) 5.82

Expired / Forfeited ( 38 ) 6.98

Balance December 31, 2023 1,226 $ 7.23 0.86 years $ 9,624

(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 ($ 7.85 and $ 7.56 on December 31, 2023 and December 31, 2022, respectively ).

Issued 915 8.18

Vested ( 489 ) 7.07

Balance December 31, 2024 1,514 $ 7.80 1.38 years $ 12,141

(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 ($ 8.02 , $ 7.85 and $ 7.56 on December 31, 2024, 2023 and 2022, respectively) .

During the year ended December 31, 2024, the Company issued 915,043 RSUs, with a vesting term of one or three years and a fair value betwee n $ 7.05 and $ 8.39 per share.

During the year ended December 31, 2023, the Company issued 920,588 RSUs, with a vesting term of one to three years and a fair value betwe en $ 7.10 and $ 7.93 per share.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

During the year ended December 31, 2022, the Company issued 580,962 RSUs, with a vesting term of one to three years and a fair value betwe en $ 5.21 and $ 6.34 per share.

Phantom Share Units

The Company has a phantom share unit plan, which it uses for grants to directors, officers, and employees.

Phantom share units granted under the plan are non-assignable and are settled in cash at vesting based on the fair value of the Company's common stock on the vesting date.

Phantom share units vest annually over a three-year period.

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 years ended December 31, 2023 and 2022:

PSUs granted under the plan are non-assignable and are settled in cash at vesting based on the fair value of the Company's common stock on the vesting date.

PSUs vest annually over a three-year period.

The cash-settled PSUs 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 PSU activity for the years ended December 31, 2024, 2023 and 2022:

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

2 unchanged sentences

Vested ( 263 ) ( 1,383 )

Expired / Forfeited ( 53 ) ( 401 )

( 53 ) ( 401 )

Balance December 31, 2022 513 $ 3,878

1 unchanged sentence

Vested ( 245 ) ( 2,354 )

Expired / Forfeited ( 31 ) ( 241 )

( 31 ) ( 241 )

Balance December 31, 2023 418 $ 3,281

Issued 268 2,161

Vested ( 218 ) ( 1,607 )

( 27 ) ( 214 )

Balance December 31, 2024 441 $ 3,537

(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;

1 unchanged sentence

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

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

The market price of the Company's common shares was $ 7.85 and $ 7.56 on December 31, 2023 and December 31, 2022, respectively.

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

The total liability associated with phantom share units at December 31, 2023 is $ 2,425,000 , with $ 1,867,000 of this amount included in current accrued liabilities and the remaining portion of $ 558,000 included in long-term accrued liabilities.

At December 31, 2022, the total liability associated with phantom share units was $ 2,593,000 , with $ 1,704,000 of this amount included in current accrued liabilities and the remaining portion of $ 889,000 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 Consolidated Statements of Income and Comprehensive Income.

The following table summarizes expense associated with the phantom share units for the years ended December 31, 2023 and 2022:

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 $ 8.02 , $ 7.85 and $ 7.56 on December 31, 2024, 2023 and 2022, respectively.

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

The total liability associated with PSUs at December 31, 2024 is $ 2,546,000 , with $ 1,700,000 of this amount included in current accrued liabilities and the remaining portion of $ 846,000 included in long-term accrued liabilities.

At December 31, 2023, the total liability associated with PSUs was $ 2,425,000 , with $ 1,867,000 of this amount included in current accrued liabilities and the remaining portion of $ 558,000 included in long-term accrued liabilities.

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

The following table summarizes expense associated with the PSUs for the years ended December 31, 2024, 2023 and 2022:

Year Ended December 31,

2024 2023 2022

Selling, general and administrative $ 1,729 $ 2,189 $ 2,316

The Company paid cash settlements of $ 2.4 million and $ 1.4 million during the years ended December 31, 2023 and 2022, respectively, pertaining to vestings of cash-settled phantom share units.

The Company paid cash settlements of $ 1.6 million, $ 2.4 million and $ 1.4 million during the years ended December 31, 2024, 2023 and 2022, respectively, pertaining to vestings of cash-settled PSUs.

Commitments and Contingencies

4 unchanged sentences

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

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Legal Proceedings

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

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

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

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

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

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

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

The Company filed its Answer to the Reconventional Demand on February 12, 2021 and the parties completed discovery on July 17, 2023.

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.

The remaining issue of the damages suffered by the Company as a result of the breach will be determined at a non-jury trial pending resolution of Vyaire’s interlocutory appeal of the State Court’s partial summary judgment ruling.

The Company continues to believe that it has valid legal and equitable grounds 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.

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

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

At December 31, 2023, outstanding funds in the amount of $ 0.9 million related to undelivered respiratory equipment are included within other long-term assets.

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 year ended December 31, 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.

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

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

The Company firmly believed that the Report ignored each patient’s diagnosis and supporting documentation of that diagnosis from treating and prescribing physicians and applied clinical guidelines that were contrary to CMS’s accepted standard of care.

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

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

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

In November 2021, the Company filed Reconsideration Appeals with CMS's designated Qualified Independent Contractor ("QIC").

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, reduced and recalculated principal overpayment requests totaling $ 1.1 million were issued by the MACs.

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

In December 2022, an Administrative Law Judge overturned all of the remaining appealed claims and instructed the MACs to refund all funds previously remitted by the Company.

Accordingly, the funds remitted to the MACs were recorded in Prepaid expenses and other assets at December 31, 2022 and were received during the year ended December 31, 2023.

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

1 unchanged sentence

Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in the years in which the differences are expected to reverse.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

The Company is required to make certain estimates and judgments about the application of tax law, the expected resolution of uncertain tax positions and other matters.

6 unchanged sentences

The Company is generally not subject to examination by taxing authorities for years prior to 2021.

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

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

December 31, 2023 December 31, 2022

Net income before income taxes $ 14,391 $ 8,990

Statutory income tax rate 21.0 % 21.0 %

Computed provision for income taxes 3,022 1,888

State income tax expense 549 278

A reconciliation of the effective tax rate with the federal statutory tax rate for the years ended December 31, 2024, 2023, and 2022 are as follows:

December 31, 2024 December 31, 2023 December 31, 2022

Federal statutory tax rate

21.0 % 21.0 % 21.0 %

State income taxes, net of federal benefit

2.5 % 3.8 % 3.1 %

Permanent differences 5.1 % 3.6 % 4.8 %

Prior Year True Ups — % 0.4 % 1.7 %

Tax rate changes

0.8 % — % — %

Changes in valuation allowance for deferred tax assets — % — % 0.2 %

Provision for income taxes $ 4,148 $ 2,768

Effective tax rate

29.4 % 28.8 % 30.8 %

The significant components of the provision for income taxes for the years ended December 31, 2024, 2023, and 2022 are as follows:

December 31, 2023 December 31, 2022

December 31, 2024 December 31, 2023 December 31, 2022

Current taxes:

15 unchanged sentences

This includes, but is not limited to, recent earnings, internally prepared income projections, and historical financial performance.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

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

9 unchanged sentences

Lease liability 705 842

Capital loss carryover

Other 193 170

Total deferred tax assets $ 21,491 $ 20,566

7 unchanged sentences

Net deferred tax asset $ 8,398 $ 4,558

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Earnings Per Share

3 unchanged sentences

Year Ended December 31,

2024 2023 2022

Numerator - basic and diluted:

Net income attributable to shareholders $ 10,243 $ 6,222

Net income attributable to Viemed Healthcare, Inc.

$ 11,265 $ 10,243 $ 6,222

Basic weighted average number of common shares 38,754,893 38,354,071 38,655,403

7 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.

VIEMED HEALTHCARE, INC.

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

Dollars, except per share amounts)

December 31, 2023 and 2022

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data