Full Press Release Details
The unaudited condensed
consolidated interim financial statements for the three months ended December 31, 2021 and 2020 are being refiled now that they
have been reviewed by the Company's auditor. Accordingly, apart from the removal of the Notice of No Auditor Review, no other changes
were made to the information initially filed,
Protech Home Medical Corp.)
Consolidated Interim Financial Statements
For the three months
| Amended Condensed Consolidated Interim Statements of Financial Position | Page 1 |
| Amended Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) | Page 2 |
| Amended Condensed Consolidated Interim Statements of Changes in Shareholders' Equity | Page 3 |
| Amended Condensed Consolidated Interim Statements of Cash Flows | Page 4 |
| Amended Notes to the Condensed Consolidated Interim Financial Statements | Pages 5 30 |
Corp. (formerly, Protech Home Medical Corp.)
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
in thousands of US Dollars, except per share amounts)
| As at | As at | |||||||||||
| December 31, | September 30, | |||||||||||
| Notes | 2021 | 2021 | ||||||||||
| ASSETS | ||||||||||||
| Current Assets | ||||||||||||
| Cash | $ | 30,089 | $ | 34,612 | ||||||||
| Accounts receivable, net | 4 | 10,453 | 11,938 | |||||||||
| Inventory | 5 | 9,846 | 9,253 | |||||||||
| Prepaid and other current assets | 2,043 | 1,430 | ||||||||||
| Total current assets | 52,431 | 57,233 | ||||||||||
| Long-term assets | ||||||||||||
| Property, equipment, and right of use assets, net | 6 | 24,404 | 23,506 | |||||||||
| Goodwill | 7 | 15,654 | 12,456 | |||||||||
| Intangible assets, net | 7 | 14,427 | 14,874 | |||||||||
| Deferred financing costs | 11 | 381 | 416 | |||||||||
| Deposits | 79 | 88 | ||||||||||
| Total long-term assets | 54,945 | 51,340 | ||||||||||
| TOTAL ASSETS | $ | 107,376 | $ | 108,573 | ||||||||
| LIABILITIES | ||||||||||||
| Current Liabilities | ||||||||||||
| Accounts payable | $ | 9,570 | $ | 9,842 | ||||||||
| Accrued liabilities | 1,961 | 3,202 | ||||||||||
| Current portion of equipment loans | 11 | 6,303 | 6,992 | |||||||||
| Current portion of leases | 11 | 2,819 | 2,981 | |||||||||
| Government grant | 8 | 4,885 | 4,885 | |||||||||
| Deferred revenue | 9 | 2,387 | 2,452 | |||||||||
| Purchase price payable | 3 | 2,949 | 2,383 | |||||||||
| Total current liabilities | 30,874 | 32,737 | ||||||||||
| Long-term Liabilities | ||||||||||||
| Debentures | 11 | 12,102 | 11,784 | |||||||||
| Equipment loans | 11 | 312 | 392 | |||||||||
| Lease liabilities | 11 | 5,232 | 4,784 | |||||||||
| SBA Loan | 11 | 121 | 121 | |||||||||
| Long-term purchase price payable | 3 | 133 | 133 | |||||||||
| TOTAL LIABILITIES | 48,774 | 49,951 | ||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Capital stock | 12 | 202,829 | 202,827 | |||||||||
| Contributed surplus | 23,111 | 21,001 | ||||||||||
| Shares to be issued | 3 | 657 | 657 | |||||||||
| Accumulated deficit | (167,995 | ) | (165,863 | ) | ||||||||
| TOTAL SHAREHOLDERS' EQUITY | 58,602 | 58,622 | ||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 107,376 | $ | 108,573 |
notes are an integral part of these condensed consolidated interim financial statements
Corp. (formerly, Protech Home Medical Corp.)
CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS) AND
in thousands of US Dollars, except per share amounts)
| Three Months | Three Months | |||||||||||
| Ended December 31, | Ended December 31, | |||||||||||
| Notes | 2021 | 2020 | ||||||||||
| Revenue | ||||||||||||
| Rentals of medical equipment | $ | 14,982 | $ | 12,353 | ||||||||
| Sales of medical equipment and supplies | 14,543 | 10,402 | ||||||||||
| Total revenues | 29,525 | 22,755 | ||||||||||
| Cost of inventory sold | 7,659 | 6,071 | ||||||||||
| Operating expenses | 14 | 15,826 | 11,529 | |||||||||
| Depreciation | 6 | 4,566 | 3,366 | |||||||||
| Amortization of intangible assets | 7 | 447 | 315 | |||||||||
| Stock-based compensation | 12 | 2,110 | 15 | |||||||||
| Acquisition-related costs | 3 | 62 | 56 | |||||||||
| (Gain) loss on disposal of property and equipment | 35 | (27 | ) | |||||||||
| Operating income (loss) from continuing operations | (1,180 | ) | 1,430 | |||||||||
| Financing expenses | ||||||||||||
| Interest expense on convertible debenture | 174 | 230 | ||||||||||
| Interest expense on leases | 11 | 168 | 125 | |||||||||
| Interest expense on loans | 11 | 99 | 85 | |||||||||
| Interest expense on revolver | 13 | 12 | ||||||||||
| Amortization of financing costs | 11 | 35 | 34 | |||||||||
| Other interest expense, net | 12 | - | ||||||||||
| Loss on foreign currency transactions | 41 | 2 | ||||||||||
| Change in fair value of warrants | - | 348 | ||||||||||
| Change in fair value of debentures | 11 | 261 | 635 | |||||||||
| Income (loss) before taxes from continuing operations | (1,983 | ) | (41 | ) | ||||||||
| Provision for income taxes | 148 | (1,407 | ) | |||||||||
| Net income (loss) | $ | (2,131 | ) | $ | 1,366 | |||||||
| Net income (loss) per share (Note 15) | ||||||||||||
| Basic earnings (loss) per share | $ | (0.06 | ) | $ | 0.05 | |||||||
| Diluted earnings (loss) per share | $ | (0.06 | ) | $ | 0.04 | |||||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 33,346 | 28,177 | ||||||||||
| Diluted | 33,346 | 30,466 |
notes are an integral part of these condensed consolidated interim financial statements
Quipt Home Medical Corp. (Formerly,
Protech Home Medical Corp.)
AMENDED CONDENSED CONSOLIDATED INTERIM STATEMENTS
OF CHANGES IN SHAREHOLDERS'
thousands of US Dollars, except per share amounts)
| Number of | Total | ||||||||||||||||||||||||||
| Shares | Capital | Contributed | Shares to | Accumulated | shareholders' | ||||||||||||||||||||||
| Notes | (000's) | stock | surplus | be Issued | Deficit | equity | |||||||||||||||||||||
| Balance September 30, 2020 | 28,069 | 171,405 | 16,519 | - | (159,689 | ) | $ | 28,235 | |||||||||||||||||||
| Net income | - | - | - | - | 1,366 | 1,366 | |||||||||||||||||||||
| Stock-based compensation | 12 | - | - | 15 | - | - | 15 | ||||||||||||||||||||
| Exercise of warrants, including transfer of derivative warrant liability of $35 | 12 | 29 | 177 | - | - | - | 177 | ||||||||||||||||||||
| Shares to be issued for acquisition | - | - | - | 3,033 | - | 3,033 | |||||||||||||||||||||
| Compensation options exercised | 12 | 104 | 523 | (108 | ) | - | - | 415 | |||||||||||||||||||
| Stock options exercised | 12 | 15 | 85 | (40 | ) | - | - | 45 | |||||||||||||||||||
| Balance December 31, 2020 | 28,217 | $ | 172,190 | $ | 16,386 | $ | 3,033 | $ | (158,323 | ) | $ | 33,286 | |||||||||||||||
| Balance September 30, 2021 | 33,350 | $ | 202,827 | $ | 21,001 | $ | 657 | $ | (165,863 | ) | $ | 58,622 | |||||||||||||||
| Net loss | - | - | - | - | (2,132 | ) | (2,132 | ) | |||||||||||||||||||
| Stock options exercised | 12 | 4 | 2 | - | - | - | 2 | ||||||||||||||||||||
| Stock-based compensation | 12 | - | - | 2,110 | - | - | 2,110 | ||||||||||||||||||||
| Balance December 31, 2021 | 33,354 | $ | 202,829 | $ | 23,111 | $ | 657 | $ | (167,995 | ) | $ | 58,602 |
The accompanying notes are an integral part of
these condensed consolidated interim financial statements
Quipt Home Medical Corp. (Formerly, Protech
AMENDED CONDENSED CONSOLIDATED INTERIM STATEMENTS
OF CASH FLOWS (UNAUDITED)
thousands of US Dollars, except per share amounts)
| Three months | Three months | |||||||||||
| ended December 31, | ended December 31, | |||||||||||
| Notes | 2021 | 2020 | ||||||||||
| Operating activities | ||||||||||||
| Income (loss) from continuing operations | $ | (2,131 | ) | 1366 | ||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 6,7 | 5,013 | 3,681 | |||||||||
| Amortization of financing costs | 11 | 35 | 34 | |||||||||
| Accretion of purchase price payable | 3 | 12 | - | |||||||||
| Interest expense on leases and loans | 11 | 269 | 210 | |||||||||
| Loss on foreign currency transactions | 41 | 2 | ||||||||||
| Loss on fair value of warrants | 11 | - | 348 | |||||||||
| Loss on fair value of convertible debentures | 11 | 261 | 635 | |||||||||
| (Gain) loss on disposal of property and equipment | 35 | (27 | ) | |||||||||
| Stock-based compensation | 12 | 2,110 | 15 | |||||||||
| Bad debt expense | 4 | 2,412 | 2,079 | |||||||||
| Change in inventory reserve | 44 | 540 | ||||||||||
| Change in working capital: | ||||||||||||
| Net increase in accounts receivable | (498 | ) | (1,266 | ) | ||||||||
| Net increase in inventory | (43 | ) | (1,479 | ) | ||||||||
| Net (increase) decrease in prepaid and other current assets | (612 | ) | 91 | |||||||||
| Net decrease in deferred revenue | (132 | ) | - | |||||||||
| Net increase in accounts payables and accrued liabilities | (1,424 | ) | (3,139 | ) | ||||||||
| Net cash flow provided by operating activities | 5,392 | 3,090 | ||||||||||
| Investing activities | ||||||||||||
| Purchase of property and equipment | 6 | (973 | ) | (387 | ) | |||||||
| Cash proceeds from sale of property and equipment | 140 | 137 | ||||||||||
| Cash paid for acquisitions | 3 | (4,507 | ) | (6,623 | ) | |||||||
| Net cash flow used in investing activities | (5,340 | ) | (6,873 | ) | ||||||||
| Financing activities | ||||||||||||
| Repayments of long-term debt | 11 | (4,351 | ) | (2,925 | ) | |||||||
| Payments of purchase price payable | 3 | (241 | ) | (250 | ) | |||||||
| Proceeds from exercise of warrants | 12 | - | 142 | |||||||||
| Proceeds from exercise of options | 12 | 2 | 460 | |||||||||
| Net cash flow used in financing activities | (4,590 | ) | (2,573 | ) | ||||||||
| Net decrease in cash | (4,538 | ) | (6,356 | ) | ||||||||
| Effect of exchange rate changes on cash held in foreign currencies | 15 | 722 | ||||||||||
| Cash, beginning of period | 34,612 | 29,227 | ||||||||||
| Cash, end of period | $ | 30,089 | $ | 23,593 |
The accompanying notes are an integral part of
these condensed consolidated interim financial statements
Quipt Home Medical Corp. (Formerly,
Protech Home Medical Corp.)
AMENDED NOTES TO THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
(UNAUDITED) DECEMBER 31, 2021 AND 2020
(Tabular dollar amounts
expressed in thousands of US Dollars, except per share amounts)
Quipt Home Medical Corp. ("Quipt"
or the "Company") was incorporated under the Business Corporations Act (Alberta) on March 5, 1993. On December 30,
2013, the Company was continued into British Columbia, Canada. The address of the registered office is 666 Burrard St, Vancouver, British
Columbia, V6C 2Z7. The head office is located at 1019 Town Drive, Wilder, Kentucky, United States. The Company is a participating Medicare
provider that provides i) nebulizers, oxygen concentrators, and CPAP and BiPAP units; ii) traditional and non-traditional durable medical
respiratory equipment and services; and iii) non-invasive ventilation equipment, supplies and services. The Company has embarked on an
acquisition strategy for additional revenue and profit growth.
The Company changed its name from Protech Home
Medical Corp. to Quipt Home Medical Corp. on May 13, 2021.
The Company's shares are traded on the
TSX Venture Exchange under the symbol QIPT. On May 27, 2021 the stock began trading on NASDAQ in the United States under the symbol
QIPT. Effective May 13, 2021, the Company consolidated its issued and outstanding common shares based on one post-consolidation
common share for every four pre-consolidation common shares. Unless otherwise stated, the share, options and warrants along with corresponding
exercise prices and per-share amounts have been restated retrospectively to reflect this share consolidation.
Basis of measurement
These consolidated financial statements have
been prepared on a going concern basis that assumes that the Company will continue its operations for the foreseeable future and be able
to realize its assets and discharge its liabilities and commitments in the normal course of operations.
On March 11, 2020, the World Health Organization
declared the outbreak of a novel strain of coronavirus ("COVID 19") a global pandemic. In response to the
outbreak, governmental authorities in the United States and internationally have introduced various recommendations and measures
to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations,
shelters-in-place, and social distancing. The COVID 19 outbreak and the response of governmental authorities to try to limit
it are having a significant impact on the private sector and individuals, including unprecedented business, employment, and economic
Although the Company has taken steps to mitigate
the impact of COVID 19, the continued presence and spread of COVID 19 nationally and globally could have a material adverse
impact on the Company's business, operations, and financial results and position, including through employee attrition,
disruptions to the Company's supply chains and sales channels, restrictions of operations at our retail stores, changes
in the number of Americans with health insurance resulting in a change in demand for the Company's products, as well as a deterioration
of general economic conditions including a possible national or global recession. Due to the speed with which the COVID 19
situation is developing and the uncertainty of its magnitude, outcome, and duration, it is not possible to estimate its
impact on the Company's business, operations, financial results and position or prospects at this time.
The Company continues to monitor the situation
and work with its stakeholders (including customers, employees, and suppliers) in order to assess further possible implications
to its business, supply chain, and customers, and, where practicable, mitigate adverse consequences and responsibly address this
The actual and threatened spread of COVID 19
globally could adversely affect global economies and financial markets, resulting in a prolonged economic downturn and a decline
in the value of the Company's share price. The extent to which COVID 19 (or any other disease, epidemic, or pandemic)
impacts business activity or financial results, and the duration of any such negative impact, will depend on future developments,
which are highly uncertain and cannot be predicted, including new information which may emerge concerning COVID 19 and the
actions required to contain or treat its impact, among others.
See Note 8 for relief payments the Company
received related to the U.S. Coronavirus Aid, Relief and Economic Security ("CARES") Act.
Quipt Home Medical Corp. (Formerly,
Protech Home Medical Corp.)
AMENDED NOTES TO THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
(UNAUDITED) DECEMBER 31, 2021 AND 2020
(Tabular dollar amounts expressed in thousands
of US Dollars, except per share amounts)
Unreserved statement of compliance
These unaudited condensed consolidated interim
financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting
using accounting policies consistent with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board. These condensed consolidated interim financial statements do not include all the disclosures required in annual consolidated
financial statements and should be read in conjunction with the Company's audited consolidated financial statements for the years
ended September 30, 2021 and 2020.
The Company has followed the same basis of presentation,
accounting policies and method of computation for these condensed consolidated interim financial statements as disclosed in the annual
audited consolidated financial statements for the years ended September 30, 2021 and 2020.