What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-07 compared with 2024-11-06 · 119 added, 297 removed, 483 unchanged (46% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

September 30, 2024 At

March 31, 2025 At

December 31, 2024

3 unchanged sentences

Accounts receivable, net

2 26,789 24,911

Inventory 2 4,510 4,320

6 unchanged sentences

Equity investments 2 2,794 2,794

Debt investment 2 875 2,219

Deferred tax asset 10 8,398 8,398

Identifiable intangibles, net

Goodwill 3 32,989 29,765

Other long-term assets 9 — 887

3 32,989 32,989

Total long-term assets $ 128,959 $ 124,189

5 unchanged sentences

Accrued liabilities 5

17,543 20,157

Finance lease liabilities, current portion

4 unchanged sentences

Accrued liabilities 8

Finance lease liabilities, less current portion — 132

Operating lease liabilities, less current portion

Long-term debt

5 3,530 3,589

Total long-term liabilities $ 5,843 $ 6,442

4 unchanged sentences

unlimited authorized;

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

39,523,787 and 39,132,897 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

28,151 23,365

5 unchanged sentences

TOTAL SHAREHOLDERS' EQUITY $ 136,749 $ 133,301

126,795 113,895

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 178,079 $ 177,069

$ 169,526 $ 154,895

See accompanying notes to the condensed consolidated financial statements

3 unchanged sentences

Dollars, except share and per share amounts)

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

Three Months Ended March 31,

Note 2025 2024

7 unchanged sentences

Depreciation and amortization

348 419 1,140 957

Loss (gain) on disposal of property and equipment

( 2,368 ) 213

Other expense (income), net

Other income, net

( 75 ) ( 26 )

1 unchanged sentence

Non-operating income and expenses

Income (expense) from investments

96 270 ( 954 ) 442

Income from investments

Interest expense, net

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

Net income before taxes 3,662 2,121

5 unchanged sentences

Net income per share

Basic 11 $ 0.10 $ 0.08 $ 0.18 $ 0.18

Diluted 11 $ 0.10 $ 0.07 $ 0.17 $ 0.17

$ 0.07 $ 0.04

$ 0.06 $ 0.04

Weighted average number of common shares outstanding:

Basic 11 39,426,753 38,717,123

Diluted 11 40,779,414 40,420,615 40,702,001 40,391,729

41,627,876 40,580,634

See accompanying notes to the condensed consolidated financial statements

9 unchanged sentences

Stock-based compensation - restricted stock — — 1,321 — — 1,321

— — 1043 — — 1,043

Exercise of options 60,130 304 — — — 304

3 unchanged sentences

Shareholders' equity, March 31, 2024 38,816,766 $ 21,842 $ 14,294 $ 80,137 $ — $ 116,273

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

Stock-based compensation - restricted stock

— — 1,170 — — 1,170

Exercise of options 119,356 684 — — — 684

Shares issued for vesting of restricted stock units 6,655 70 ( 70 ) — — —

Shares redeemed to pay income tax

( 1,978 ) — — ( 21 ) — ( 21 )

Net income — — — 2,330 — 2,330

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

4 unchanged sentences

Stock-based compensation - restricted stock — — 2,295 — — 2,295

— — 1,321 — — 1,321

Exercise of options 2,225 11 — — — 11

3 unchanged sentences

Shareholders' equity, March 31, 2025 39,523,787 $ 28,151 $ 15,873 $ 90,732 $ 1,993 $ 136,749

Stock-based compensation - options — — 59 — — 59

Stock-based compensation - restricted stock

— — 1,561 — — 1,561

Exercise of options 4,000 21 — — — 21

Shares issued for vesting of restricted stock units 6,654 47 ( 47 ) — — —

Shares redeemed to pay income tax ( 1,621 ) — — ( 11 ) — ( 11 )

Acquired noncontrolling interest

— — — — 1,800 1,800

Net income — — — 1,468 9 1,477

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.

Nine Months Ended September 30,

Three Months Ended March 31,

Note 2025 2024

3 unchanged sentences

Depreciation and amortization

19,002 15,943

Stock-based compensation expense 8 2,311 1,432

1 unchanged sentence

Income from equity method investments — ( 67 )

Loss (income) from debt investment

1,344 ( 164 )

Income from debt investment — ( 55 )

Loss (gain) on disposal of property and equipment

Amortization of deferred financing costs

Deferred income tax benefit

( 2,368 ) 213

Amortization of deferred financing costs

Changes in working capital:

Accounts receivable, net

Inventory 583 ( 514 )

( 1,878 ) ( 6,026 )

Prepaid expenses and other assets

2 unchanged sentences

Accrued liabilities

( 3,050 ) ( 3,632 )

Income tax payable/receivable

( 2,005 ) 522

Net cash provided by operating activities $ 2,854 $ 1,175

1 unchanged sentence

Purchase of property and equipment 4 ( 15,483 ) ( 6,006 )

Investment in equity investments — ( 7 )

Cash paid for acquisitions, net of cash acquired

3 ( 2,999 ) ( 28,580 )

Proceeds from sale of property and equipment 4 6,953 641

2 unchanged sentences

Proceeds from exercise of options 8 11 304

Proceeds from term notes 6 — 5,000

Principal payments on term notes

Proceeds from revolving credit facilities 6 3,000 8,000

Payments on revolving credit facilities ( 5,000 ) ( 5,005 )

Payments for debt issuance costs

6 ( 113 ) ( 589 )

Shares redeemed to pay income tax 8 ( 1,584 ) ( 961 )

1 unchanged sentence

( 18 ) ( 94 )

Net cash provided by (used in) financing activities

Net cash used in financing activities

$ ( 1,704 ) $ ( 1,340 )

Net decrease in cash and cash equivalents

( 7,380 ) ( 5,530 )

Cash and cash equivalents at beginning of year 17,540 12,839

3 unchanged sentences

Cash paid during the period for income taxes, net of refunds

$ 6,416 $ 3,218

Supplemental disclosures of non-cash transactions

7 unchanged sentences

Dollars, except per share amounts)

September 30, 2024 and 2023

Nature of Business and Operations

6 unchanged sentences

Kaliste Saloom Road, Lafayette, Louisiana 70508.

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

5 unchanged sentences

The Company's fiscal year ends on December 31.

The Condensed Consolidated Balance Sheet as of December 31, 2023 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP.

The Condensed Consolidated Balance Sheet as of March 31, 2025 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP.

These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto and the report of the Company's independent registered public accounting firm included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

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

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, as modified by the Jumpstart our Business Startups Act of 2012, 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

All values are in U.S.

dollars ($ or "USD").

Tabular dollar amounts expressed in thousands of U.S.

Dollars, except per share amounts.

Basis of Consolidation

6 unchanged sentences

Actual results could differ from these estimates.

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

Segment Reporting

2 unchanged sentences

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 .

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

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

Accounts Receivable

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.

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 Condensed 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.

3 unchanged sentences

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.

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

1 unchanged sentence

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.

Included in accounts receivable at March 31, 2025 are amounts due from Medicare representing 29 % of total outstanding net receivables.

As of December 31, 2024, 27 % of total outstanding net receivables were amounts due from Medicare.

10 unchanged sentences

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

VIEMED HEALTHCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Dollars, except per share amounts)

September 30, 2024 and 2023

Equity Investments

2 unchanged sentences

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 $ 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

The Company's debt investment is a variable rate secured convertible note and is classified as an available-for-sale debt instrument.

Accrued interest 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 accounted for in accumulated other comprehensive income, net of tax effect, until realized.

When changes are determined to be other than temporary in nature, the Company recognizes 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.

The balance of the Company’s equity investments was $ 2.8 million as of March 31, 2025 and December 31, 2024.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of March 31, 2025 on its investments in equity securities without a readily determinable fair value.

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 .

Intangible assets include trade names and other identifiable intangible assets.

Amortization expense related to definite lived identifiable intangible assets is included in depreciation and amortization in the accompanying Condensed Consolidated Statements of Income.

Revenue Recognition

14 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 September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Revenue from rentals

4 unchanged sentences

Equipment and supply sales

8,440 7,742 21,956 19,287

Service revenues

5,333 2,219 14,598 7,360

Total revenues $ 59,129 $ 50,593

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.

Revenues from Medicare as a percentage of the Company's total revenue for the three months ended March 31, 2025 and 2024 were 41 % and 43 %, 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.

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

7 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

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

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

27 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 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

There were no impairment charges recognized during the three months ended March 31, 2025 and March 31, 2024.

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.

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

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

1 unchanged sentence

Recently Adopted Accounting Pronouncements

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 Financial Accounting Standards Board (“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 Company's condensed consolidated financial statements may not be comparable to the financial statements of issuers that are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies.

To date, however, the Company has not delayed the adoption of any accounting standards.

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.

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

2023-09, Income Taxes (Topic 740):

1 unchanged sentence

The ASU is effective for public business entities' annual periods beginning after December 15, 2024, with early adoption permitted.

The Company adopted this pronouncement and is evaluating the impact it will have on its upcoming annual filing on Form 10-K for the year ended December 31, 2025;

however, the Company currently does not believe the adoption will have a material impact on its consolidated financial statements and disclosures for that Form 10-K filing.

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 ASU 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.

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

Business Combinations

7 unchanged sentences

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, 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.

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

Purchase Price

Identifiable Assets

Cash and cash equivalents 829

Accounts receivable 2,014

Inventory 582

Prepaid expenses and other assets 498

Property and Equipment

Lease assets 743

Identifiable intangibles 641

Other long-term assets 25

TOTAL ASSETS 9,690

Identifiable Liabilities

Trade payables 1,985

Deferred revenue 732

Accrued liabilities 1,195

Current portion of lease liabilities 536

Current debt 4,558

Long-term lease liabilities 196

Long-term debt 836

TOTAL LIABILITIES 10,038

Net assets (liabilities) acquired ( 348 )

Resulting goodwill $ 29,765

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

All of the goodwill is deductible for income tax purposes.

There are no contingent consideration arrangements included in the transaction.

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

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

Property and Equipment

The Company’s fixed assets consist of its medical equipment held for rental, furniture and equipment, real property and related improvements, and vehicles and other various small equipment.

The following table details the Company’s fixed assets:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Medical equipment $ 118,103 $ 116,938

7 unchanged sentences

$ 81,054 $ 76,279

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.

Depreciation in the amount of $ 6.3 million and $ 5.9 million is included in cost of revenue for the three months ended March 31, 2025 and 2024, respectively.

Medical equipment purchases with a cost of $ 3.6 million and $ 2.2 million were included in accounts payable at March 31, 2025 and December 31, 2024, respectively.

Current Liabilities

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Accrued trade payables $ 4,693 $ 4,016

5 unchanged sentences

Total accrued liabilities $ 17,543 $ 20,157

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

Debt and Lease Liabilities

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

September 30, 2024 December 31, 2023

The following table summarizes the Company’s debt as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

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 September 30, 2024.

The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at March 31, 2025.

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;

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.

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

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.

Financing costs related to the 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 condensed consolidated balance sheets.

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 nine months ended September 30, 2024.

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

Medical Equipment Financing

1 unchanged sentence

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

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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Lease liabilities $ 2,840 $ 2,868

4 unchanged sentences

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 5.5 %, which was based on the Company's incremental borrowing rate at the time of assessment.

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:

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 March 31, 2025, the weighted average lease term was approximately 3.23 years.

Future maturities of the Company's operating lease liabilities as of March 31, 2025 are summarized as follows:

Lease Liability

2 unchanged sentences

Present value of lease liabilities $ 2,808

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

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

Operating rental expenses were $ 386,000 and $ 355,000 during the three months ended March 31, 2025 and March 31, 2024 , respectively.

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 September 30, 2024 and December 31, 2023:

At September 30, 2024

The following tables summarize the Company's assets measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024:

At March 31, 2025

(In thousands) Level 1 Level 2 Level 3 Total

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Money market mutual funds $ 253 — — $ 253

Available for sale debt instrument — — 875 875

Total $ 253 $ — $ — $ 253

3 unchanged sentences

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

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

Total $ 10,582 $ — $ — $ 10,582

Available for Sale Debt Instrument

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 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.

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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets Measured at Fair Value on a Nonrecurring Basis

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

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The Company’s estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential.

Developing discounted future cash flows in applying the income approach requires the Company to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates of revenue growth, operating margins, capital requirements, inflation and working capital management.

Developing discounted future cash flows in applying the income approach requires the Company to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates of

revenue growth, operating margins, capital requirements, inflation and working capital management.

The development of appropriate rates to discount the estimated future cash flows requires the selection of risk premiums, which can materially impact the present value of future cash flows.

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

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

Shareholders' Equity

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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 38,932,247 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 authorized stock consists of an unlimited number of common shares with no stated par value, of which 39,523,787 and 39,132,897 shares were issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.

The Company acquired and cancelled 193,173 common shares at a cost of $ 1.6 million to satisfy employee income tax withholding associated with RSUs vesting during the three months ended March 31, 2025.

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

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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 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

As of March 31, 2025, the Company had outstanding options of 3,898,000 and RSUs of 2,224,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

Stock-based compensation - options $ 16 $ 111

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Total $ 2,311 $ 1,432

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.

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

At March 31, 2025, there was approximately $ 9,000 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 0.36 years.

As of March 31, 2025, there was approximately $ 12,442,000 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 1.71 years.

The following table summarizes stock option activity for the three months ended March 31, 2025:

Number of options

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Expired / Forfeited ( 17 ) 10.44

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

Balance March 31, 2025 3,898 $ 5.34 4.8 years $ 8,677

(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 ($ 7.33 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.

(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 perio d ( $ 7.28 and $ 8.02 on March 31, 2025 and December 31, 2024, respectively).

The aggregate intrinsic value of options outstanding was $ 8,677,000 and options exercisable was $ 8,643,000 at March 31, 2025.

For the three months ended March 31, 2025, 2,225 common shares were issued pursuant to the exercise of stock options.

At March 31, 2025, the Company had 3,871,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.34 and a weighted average remaining contractual life of 4.8 years.

At December 31, 2024, the Company had 3,691,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.37 and a weighted average remaining contractual life of 4.9 years.

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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 nine months ended September 30, 2024.

There were no issuances of options during the three months ended March 31, 2025.

Restricted Stock Units

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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 nine months ended September 30, 2024:

The following table summarizes RSU activity for the three months ended March 31, 2025:

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

2 unchanged sentences

Vested ( 582 ) 7.49

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.

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

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.

Balance March 31, 2025 2,224 $ 8.08 1.71 years $ 16,188

(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 p eriod ( $ 7.28 and $ 8.02 on March 31, 2025 and December 31, 202 4 , respectively ) .

During the three months ended March 31, 2025, the Company issued 1,291,631 RSUs with equal annual vestings over a three year period and a fair value of $ 8.15 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 nine months ended September 30, 2024:

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 three months ended March 31, 2025:

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

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Vested ( 199 ) 1,641

( 16 ) ( 120 )

Balance September 30, 2024 452 $ 3,313

Balance March 31, 2025

(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 $ 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 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 nine months ended September 30, 2024 and 2023 (in thousands):

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

2024 2023 2024 2023

The market price of the Company's common shares wa s $ 7.28 and $ 8.02 on March 31, 2025 and December 31, 2024, respectively.

The change in fair value of the PSUs 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 PSUs at March 31, 2025 is $ 1,327,000 , with $ 917,000 of this amount included in current accrued liabilities and the remaining portion of $ 410,000 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 unaudited Condensed Consolidated Statements of Income.

The following table summarizes expense associated with the PSUs for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

Selling, general, and administrative $ 411 $ 840

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.

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 Company paid cash settlements of $ 1.6 million and $ 1.0 million during the three months ended March 31, 2025 and 2024, respectively, pertaining to vestings of cash-settled PSUs.

Commitments and Contingencies

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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).

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

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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 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 % .

For the three months ended March 31, 2025, the Company recorded income tax expe nse of $ 1.0 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 three months ended March 31, 2025 is 29.7 %.

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

The Company's effective tax rate is based on forecasted annual results which may fluctuate significantly through the rest of the year.

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.

At March 31, 2025 and 2024, 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.

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

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

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 September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Numerator - basic and diluted:

2 unchanged sentences

Basic weighted average number of common shares

39,426,753 38,717,123

Diluted weighted average number of shares

41,627,876 40,580,634

Basic earnings per share $ 0.07 $ 0.04

2 unchanged sentences

Basic weighted average number of common shares

39,426,753 38,717,123

Stock options and other dilutive securities 2,201,123 1,863,511

Diluted weighted average number of shares

41,627,876 40,580,634

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.

MANAGEMENT'S DISCUSSION AND ANALYSIS

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

September 30, 2024 and 2023

Subsequent Events

On May 6, 2025, the Company, through its a wholly-owned subsidiary Viemed, Inc., entered into a definitive agreement to acquire Lehan Drugs, Inc.

(“Lehan”), a privately held provider of home medical equipment headquartered in DeKalb, Illinois, for a base purchase price of $ 26 million, subject to customary adjustments for net working capital and an estimated $ 2.2 million of additional contingent payments.

The acquisition is expected to be funded through a combination of cash on hand and borrowings under the Company’s existing credit facilities.

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