Full Press Release Details
Quipt Home Medical Corp.
Condensed Consolidated Interim Financial Statements
For the three months ended
December 31, 2023 and 2022
(Expressed in US Dollars)
| Condensed Consolidated Interim Statements of Financial Position | Page 1 | |
| Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) | Page 2 | |
| Condensed Consolidated Interim Statements of Changes in Shareholders' Equity | Page 3 | |
| Condensed Consolidated Interim Statements of Cash Flows | Page 4 | |
| Notes to the Condensed Consolidated Interim Financial Statements | Pages 5-13 |
Quipt Home Medical Corp.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands of US Dollars, except per share amounts)
| As at | As at | |||||||
| December 31, | September 30, | |||||||
| Notes | 2023 | 2023 | ||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 18,326 | $ | 17,209 | ||||
| Accounts receivable, net | 4 | 23,984 | 25,978 | |||||
| Inventory | 5 | 19,717 | 18,414 | |||||
| Prepaid and other current assets | 3,748 | 3,832 | ||||||
| Total current assets | 65,775 | 65,433 | ||||||
| Long-term assets | ||||||||
| Property, equipment, and right of use assets, net | 6 | 51,051 | 53,405 | |||||
| Goodwill | 7 | 52,825 | 52,825 | |||||
| Intangible assets, net | 7 | 72,508 | 74,040 | |||||
| Other assets | 1,734 | 1,705 | ||||||
| Total long-term assets | 178,118 | 181,975 | ||||||
| TOTAL ASSETS | $ | 243,893 | $ | 247,408 | ||||
| LIABILITIES | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 25,661 | $ | 24,736 | ||||
| Accrued liabilities | 4,555 | 7,282 | ||||||
| Current portion of equipment loans | 9 | 13,086 | 14,114 | |||||
| Current portion of lease liabilities | 9 | 5,347 | 5,122 | |||||
| Current portion of senior credit facility | 9 | 3,357 | 3,352 | |||||
| Deferred revenue | 8 | 4,619 | 4,511 | |||||
| Purchase price payable | 3 | 1,385 | 1,457 | |||||
| Total current liabilities | 58,010 | 60,574 | ||||||
| Long-term Liabilities | ||||||||
| Equipment loans | 9 | 174 | 233 | |||||
| Lease liabilities | 9 | 13,497 | 14,028 | |||||
| Senior credit facility | 9 | 60,369 | 61,114 | |||||
| Derivative liability - interest rate swap | 9 | 902 | - | |||||
| Deferred income taxes | 344 | 344 | ||||||
| TOTAL LIABILITIES | 133,296 | 136,293 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Capital stock | 10 | 247,530 | 247,530 | |||||
| Contributed surplus | 28,363 | 27,393 | ||||||
| Accumulated deficit | (164,394) | (163,808) | ||||||
| Accumulated other comprehensive loss | 9 | (902) | - | |||||
| TOTAL SHAREHOLDERS' EQUITY | 110,597 | 111,115 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 243,893 | $ | 247,408 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Quipt Home Medical Corp.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
(Expressed in thousands of US Dollars, except per share amounts)
| Three Months | Three Months | |||||||
| Ended December 31, | Ended December 31, | |||||||
| Notes | 2023 | 2022 | ||||||
| Revenue | ||||||||
| Rentals of medical equipment | $ | 27,410 | $ | 18,425 | ||||
| Sales of medical equipment and supplies | 37,953 | 22,390 | ||||||
| Total revenue | 65,363 | 40,815 | ||||||
| Cost of inventory sold | 17,897 | 10,075 | ||||||
| Operating expenses | 12 | 29,807 | 19,462 | |||||
| Bad debt expense | 2,790 | 2,283 | ||||||
| Depreciation | 10,814 | 5,992 | ||||||
| Amortization of intangible assets | 7 | 1,532 | 801 | |||||
| Stock-based compensation | 10 | 970 | 571 | |||||
| Acquisition-related costs | 188 | 257 | ||||||
| Gain on disposal of property and equipment | (10) | - | ||||||
| Operating income | 1,375 | 1,374 | ||||||
| Financing expenses | ||||||||
| Interest expense, net | 1,958 | 712 | ||||||
| Loss (gain) on foreign currency transactions | (298) | 4 | ||||||
| Share of loss in equity method investment | 3 | 81 | - | |||||
| Income (loss) before taxes | (366) | 658 | ||||||
| Provision for income taxes | 13 | 220 | 333 | |||||
| Net income (loss) | $ | (586) | $ | 325 | ||||
| Other comprehensive loss | ||||||||
| Change in derivative liability - interest rate swap | (902) | - | ||||||
| Comprehensive income (loss) | $ | (1,488) | $ | 325 | ||||
| Net income (loss) per share | 14 | |||||||
| Basic earnings (loss) per share | $ | (0.01) | $ | 0.01 | ||||
| Diluted earnings (loss) per share | $ | (0.01) | $ | 0.01 | ||||
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 39,311 | 35,605 | ||||||
| Diluted | 39,311 | 38,148 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Quipt Home Medical Corp.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS'
(Expressed in thousands of US Dollars, except per share amounts)
| Number of | Accumulated | Total | |||||||||||||||||
| Shares | Capital | Contributed | Accumulated | Other Comprehensive | shareholders' | ||||||||||||||
| Notes | (000's) | stock | surplus | Deficit | Loss | equity | |||||||||||||
| Balance September 30, 2022 | 35,605 | $ | 214,254 | $ | 26,317 | $ | (161,024) | $ | - | $ | 79,547 | ||||||||
| Net income | - | - | - | 325 | - | 325 | |||||||||||||
| Stock-based compensation | 10 | - | - | 571 | - | - | 571 | ||||||||||||
| Balance December 31, 2022 | 35,605 | $ | 214,254 | $ | 26,888 | $ | (160,699) | $ | - | $ | 80,443 | ||||||||
| Balance September 30, 2023 | 42,102 | $ | 247,530 | $ | 27,393 | $ | (163,808) | $ | - | $ | 111,115 | ||||||||
| Net loss | - | - | - | (586) | - | (586) | |||||||||||||
| Change in derivative liability - interest rate swap | 9 | - | - | - | - | (902) | (902) | ||||||||||||
| Stock-based compensation | 10 | - | - | 970 | - | - | 970 | ||||||||||||
| Balance December 31, 2023 | 42,102 | $ | 247,530 | $ | 28,363 | $ | (164,394) | $ | (902) | $ | 110,597 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Quipt Home Medical Corp.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)
(Expressed in thousands of US Dollars, except per share amounts)
| Three months | Three months | |||||||
| ended December 31, | ended December 31, | |||||||
| Notes | 2023 | 2022 | ||||||
| Operating activities | ||||||||
| Net income (loss) | $ | (586) | 325 | |||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 12,346 | 6,793 | ||||||
| Amortization of financing costs and accretion of purchase price payable | 3, 9 | 138 | 118 | |||||
| Interest expense, net of amortization and accretion | 1,820 | 594 | ||||||
| Cash paid for interest | (2,041) | (595) | ||||||
| Loss (gain) on foreign currency transactions | (298) | 4 | ||||||
| Share of loss in equity method investment | 81 | - | ||||||
| Gain on disposal of property and equipment | (10) | - | ||||||
| Stock-based compensation | 10 | 970 | 571 | |||||
| Provision for income taxes | 220 | 333 | ||||||
| Cash paid for income taxes | (19) | - | ||||||
| Change in working capital: | ||||||||
| Net decrease (increase) in accounts receivable | 1,994 | (795) | ||||||
| Net increase in inventory | (1,302) | (1,283) | ||||||
| Net decrease (increase) in prepaid and other current assets | 99 | (223) | ||||||
| Net increase in deferred revenue | 108 | 38 | ||||||
| Net decrease in accounts payables and accrued liabilities | (1,786) | (1,048) | ||||||
| Net cash flow provided by operating activities | 11,734 | 4,832 | ||||||
| Investing activities | ||||||||
| Purchase of property and equipment | 6 | (1,571) | (1,301) | |||||
| Cash proceeds from sale of property and equipment | 62 | - | ||||||
| Cash paid for equity method investment | 3 | (124) | - | |||||
| Net cash flow used in investing activities | (1,633) | (1,301) | ||||||
| Financing activities | ||||||||
| Repayments of loans | 9 | (6,864) | (2,722) | |||||
| Repayments of leases | 9 | (1,471) | (849) | |||||
| Repayments on revolving credit facility, net | - | (3,900) | ||||||
| Repayments of senior credit facility | (863) | (63) | ||||||
| Issuance costs related to credit facility | (8) | (31) | ||||||
| Payments of purchase price payable | 3 | (80) | (823) | |||||
| Net cash flow used in financing activities | (9,286) | (8,388) | ||||||
| Effect of exchange rate changes on cash held in foreign currencies | 302 | (3) | ||||||
| Net increase (decrease) in cash | 1,117 | (4,860) | ||||||
| Cash, beginning of period | 17,209 | 8,516 | ||||||
| Cash, end of period | $ | 18,326 | $ | 3,656 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Quipt Home Medical Corp.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS (UNAUDITED) DECEMBER 31, 2023 and 2022
(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 (continuous positive airway pressure) and BiPAP (bi level positive air pressure) units; ii) traditional and non-traditional durable medical equipment and services; and iii) non-invasive ventilation equipment, supplies and services.
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.
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 year ended September 30, 2023.
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 year ended September 30, 2023.
The unaudited consolidated financial statements were approved and authorized for issuance by the Board of Directors on February 14, 2024.
Investment in DMEScripts, LLC
In July 2023, the Company, through QHM Investments I, LLC, acquired an 8.3% stake in DMEScripts, LLC for $1,500,000. DMEScripts, LLC is an independent e-prescribe company in the US that automates the medical equipment ordering process. This technology is dedicated to improving the patient, prescriber, and provider experience by eliminating inefficiencies and reducing paperwork. In the three months ended December 31, 2023, an additional investment of $124,000 was made, which increased the Company's ownership to 8.6%.
Quipt Home Medical Corp.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS (UNAUDITED) DECEMBER 31, 2023 and 2022
(Tabular dollar amounts expressed in thousands of US Dollars, except per share amounts)
Purchase Price Payable
The purchase price payable included on the statements of financial position consists of amounts related to prior period acquisitions. Below is the movement in purchase price payable for the three months ended December 31, 2023 and 2022, respectively:
| Amount | |||
| Balance September 30, 2022 | $ | 5,778 | |
| Accretion of interest | 29 | ||
| Payments | (823) | ||
| Balance December 31, 2022 | $ | 4,984 | |
| Balance September 30, 2023 | $ | 1,457 | |
| Accretion of interest | 8 | ||
| Payments | (80) | ||
| Balance December 31, 2023 | $ | 1,385 |
Accounts receivable represent amounts due from insurance companies and patients. As of December 31, 2023, the Company has approximately 9% of the Company's receivables due from Medicare:
| As at | As at | |||||
| December 31, 2023 | September 30, 2023 | |||||
| Gross receivable | $ | 32,312 | $ | 35,374 | ||
| Reserve for expected credit losses | (8,328) | (9,396) | ||||
| Total | $ | 23,984 | $ | 25,978 |
Inventory was comprised of the following as at December 31, 2023 and September 30, 2023:
| As at December 31, | As at September 30, | |||||
| 2023 | 2023 | |||||
| Serialized | $ | 7,444 | $ | 6,733 | ||
| Non-serialized | 12,487 | 11,895 | ||||
| Reserve for slow-moving | (214) | (214) | ||||
| Total Inventory | $ | 19,717 | $ | 18,414 |
The expense for slow-moving inventory is included within cost of inventory sold in the condensed consolidated statement of income (loss) and comprehensive income (loss).
The property and equipment and right of use assets was comprised of the following:
Quipt Home Medical Corp.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS (UNAUDITED) DECEMBER 31, 2023 and 2022
(Tabular dollar amounts expressed in thousands of US Dollars, except per share amounts)
| As at | As at | |||||
| Cost | December 31, 2023 | September 31, 2023 | ||||
| Property and equipment, net | $ | 31,934 | $ | 33,648 | ||
| Right of use assets, net | 19,117 | 19,757 | ||||
| Total | $ | 51,051 | $ | 53,405 |
Rental equipment transferred from inventory during the three months ended December 31, 2023 and 2022 was $7,312,000 and $4,559,000 respectively. For the three months ended December 31, 2023 and 2022, the Company obtained equipment loans (Note 9) of $5,777,000 and $3,574,000, respectively, with the balance of $1,535,000 and $985,000 paid in cash, respectively.
The following is the activity in goodwill and intangible assets for the three months ended December 31, 2023 and 2022:
| Sub-total | |||||||||||||||
| intangibles | |||||||||||||||
| Customer | Other | with finite | |||||||||||||
| Cost | Goodwill | relationships | Intangibles | lives | Total | ||||||||||
| Balance September 30, 2022 | $ | 28,208 | $ | 34,898 | $ | 10,499 | $ | 45,397 | $ | 73,605 | |||||
| Balance December 31, 2022 | $ | 28,208 | $ | 34,898 | $ | 10,499 | $ | 45,397 | $ | 73,605 | |||||
| Balance September 30, 2023 | $ | 52,825 | $ | 79,088 | $ | 16,142 | $ | 95,230 | $ | 148,055 | |||||
| Balance December 31, 2023 | $ | 52,825 | $ | 79,088 | $ | 16,142 | $ | 95,230 | $ | 148,055 |
| Sub-total | |||||||||||||||
| intangibles | |||||||||||||||
| Customer | Other | with finite | |||||||||||||
| Accumulation amortization | Goodwill | relationships | Intangibles | lives | Total | ||||||||||
| Balance September 30, 2022 | $ | - | $ | 10,345 | $ | 6,165 | $ | 16,510 | $ | 16,510 | |||||
| Amortization | - | 645 | 156 | 801 | 801 | ||||||||||
| Balance December 31, 2022 | $ | - | $ | 10,990 | $ | 6,321 | $ | 17,311 | $ | 17,311 | |||||
| Balance September 30, 2023 | $ | - | $ | 14,487 | $ | 6,703 | $ | 21,190 | $ | 21,190 | |||||
| Amortization | - | 1,218 | 314 | 1,532 | 1,532 | ||||||||||
| Balance December 31, 2023 | $ | - | $ | 15,705 | $ | 7,017 | $ | 22,722 | $ | 22,722 |
| Sub-total | |||||||||||||||
| intangibles | |||||||||||||||
| Customer | Other | with finite | |||||||||||||
| Net carrying amount | Goodwill | relationships | Intangibles | lives | Total | ||||||||||
| Balance September 30, 2022 | $ | 28,208 | $ | 24,553 | $ | 4,334 | $ | 28,887 | $ | 57,095 | |||||
| Balance December 31, 2022 | $ | 28,208 | $ | 23,908 | $ | 4,178 | $ | 28,086 | $ | 56,294 | |||||
| Balance September 30, 2023 | $ | 52,825 | $ | 64,601 | $ | 9,439 | $ | 74,040 | $ | 126,865 | |||||
| Balance December 31, 2023 | $ | 52,825 | $ | 63,383 | $ | 9,125 | $ | 72,508 | $ | 125,333 |
Quipt Home Medical Corp.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS (UNAUDITED) DECEMBER 31, 2023 and 2022
(Tabular dollar amounts expressed in thousands of US Dollars, except per share amounts)
Activity for deferred revenue for the three months ended December 31, 2023 and 2022 is as follows:
| For the three | For the three | |||||
| months ended | months ended | |||||
| December 31, 2023 | December 31, 2022 | |||||
| Beginning Balance | $ | 4,511 | $ | 3,036 | ||
| Net change | 108 | 37 | ||||
| Ending Balance | $ | 4,619 | $ | 3,073 |
Senior Credit Facility
In September 2022, the Company entered into a five-year, $110,000,000 senior credit facility ("Facility") with a group of US banks. The facility consists of a.) a delayed draw term loan facility of $85,000,000, of which $64,000,000 was drawn on January 3, 2023, to partially fund the acquisition of Great Elm, b.) a term loan of $5,000,000 that was drawn at closing, and c.) a $20,000,000 revolving credit facility. The Facility is secured by substantially all assets of the Company and is subject to certain financial covenants.
As of December 31, 2023, the outstanding balances under the Facility totaled $65,488,000, comprised of $60,800,000 on the delayed-draw term loan and $4,688,000 on the term loan, both bearing interest at 8.1%. The delayed-draw term loan is repayable in quarterly installments of $800,000, with the balance due at maturity. The term loan is repayable in quarterly installments of $62,500, with the balance due at maturity. The revolving credit facility has no balance as of December 31, 2023.
The Facility bears interest at variable rates ranging in length from one to six months (three months as of December 31, 2023) and has fees for unused balances. The rate is based on a secured overnight financing rate ("SOFR"), with a floor of 0.5%, plus a spread of 2.1% to 2.85% (2.6% as of December 31, 2023) based on the Company's leverage ratio.
To manage the risks of the cash flows related to interest expense, the Company entered into an interest rate swap, effective November 30, 2023, on $34,000,000 of the Facility. The swap carries a fixed SOFR of 4.4% (resulting in a combined 7.0% rate) and is settled quarterly until its September 2027 maturity date.
The Company entered into the arrangement with an intent to apply hedge accounting, in accordance with the criteria outlined in International Financial Reporting Standards (IFRS) 9, "Financial Instruments." The Company determined that the swap qualified as a cash flow hedge and is highly effective, and as such, the changes in fair value of the instrument are recorded in accumulated other comprehensive loss in the condensed consolidated interim statements of financial position. As of December 31, 2023, the fair value of the interest rate swap liability was $902,000. This liability is recorded in derivative liability - interest rate swap in the condensed consolidated statements of financial position.
For the three months ended December 31, 2023, the change in fair value of the interest rate swap was a loss of $902,000 recorded in other comprehensive loss in the condensed consolidated interim statements of income (loss) and comprehensive income (loss). The fair value of interest rate swap is determined based on the market conditions and the terms of the interest rate swap agreement using the discounted cash flow methodology. Any difference between the Facility's SOFR rate and the swap's rate is recorded as interest expense. For the three months ended December 31, 2023, a $29,000 reduction to interest expense was recorded in the condensed consolidated interim statements of income (loss) and comprehensive income (loss).
Quipt Home Medical Corp.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS (UNAUDITED) DECEMBER 31, 2023 and 2022
(Tabular dollar amounts expressed in thousands of US Dollars, except per share amounts)
Interest expense on the Facility was $1,392,000 and $213,000 for the three months ended December 31, 2023 and 2022, respectively. The fair value of the facility approximates the carrying value as of December 31, 2023 and September 30, 2023.
The Company has cumulatively incurred $2,368,000 in financing costs to obtain the Facility, which is reflected as a reduction of the outstanding balance and will be amortized as interest expense using the effective interest method over the life of the Facility. During the three months ended December 31, 2023 and 2022, $130,000 and $89,000 of amortization of deferred financing costs was recorded, respectively.
A summary of the balances related to the Facility as of December 31, 2023 and September 30, 2023 is as follows:
| As of | As of | ||||||
| December 31, 2023 | September 30, 2023 | ||||||
| Delayed-draw term loan | $ | 60,800 | $ | 61,600 | |||
| Term loan | 4,688 | 4,750 | |||||
| Total principal | 65,488 | 66,350 | |||||
| Deferred financing costs | (1,762) | (1,884) | |||||
| Net carrying value | $ | 63,726 | $ | 64,466 | |||
| Current portion | 3,357 | 3,352 | |||||
| Long-term portion | 60,369 | 61,114 | |||||
| Net carrying value | $ | 63,726 | $ | 64,466 |
The Company is offered financing arrangements from the Company's suppliers and the suppliers' designated financial institutions, under which payments for certain invoices or products can be financed and paid over an extended period. The financial institution pays the supplier when the original invoice becomes due, and the Company pays the third-party financial institution over a period of time. In most cases, the supplier accepts a discounted amount from the financial institution and the Company repays the financial institution the face amount of the invoice with no stated interest, in twelve equal monthly installments. The Company used an incremental borrowing rate of 7% - 8% to impute interest on these arrangements. There are no covenants with the loans and the carrying value of the equipment that is pledged as security against the loans is $16,409,000 and $8,693,000 as of December 31, 2023 and September 30, 2023, respectively.
Following is the activity in equipment loans for the three months ended December 31, 2023 and 2022:
| Three months ended | Three months ended | |||||
| December 31, 2023 | December 31, 2022 | |||||
| Beginning Balance | $ | 14,347 | $ | 5,707 | ||
| Additions | 5,777 | 3,574 | ||||
| Repayments | (6,864) | (2,722) | ||||
| Ending Balance | 13,260 | 6,559 | ||||
| Current portion | 13,086 | 6,388 | ||||
| Long-term portion | $ | 174 | $ | 171 |
Quipt Home Medical Corp.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS (UNAUDITED) DECEMBER 31, 2023 and 2022
(Tabular dollar amounts expressed in thousands of US Dollars, except per share amounts)
The Company enters into leases for real estate and vehicles. Real estate leases are valued at the net present value of the future lease payments at incremental borrowing rates ranging from 6.3% to 8.8%. Vehicle leases are recorded at rate implicit in the lease based on the current value and the estimated residual value of the vehicle, equating to rates ranging from 3.0% to 11.5%.
Following is the activity in lease liabilities for the three months ended December 31, 2023 and 2022:
| Real | |||||||||
| Vehicles | estate | Total | |||||||
| Balance September 30, 2022 | $ | 1,993 | $ | 8,506 | $ | 10,499 | |||
| Additions: | |||||||||
| Operations | - | 4,010 | 4,010 | ||||||
| Repayments | (137) | (712) | (849) | ||||||
| Balance December 31, 2022 | $ | 1,856 | $ | 11,804 | $ | 13,660 | |||
| Balance September 30, 2023 | $ | 2,914 | $ | 16,236 | $ | 19,150 | |||
| Additions: | |||||||||
| Operations | 582 | 583 | 1,165 | ||||||
| Repayments | (343) | (1,128) | (1,471) | ||||||
| Balance December 31, 2023 | $ | 3,153 | $ | 15,691 | $ | 18,844 |
Future payments pursuant to lease liabilities are as follows:
| As at | As at | |||||
| December 31, 2023 | September 30, 2023 | |||||
| Less than 1 year | $ | 6,600 | $ | 6,422 | ||
| Between 1 and 5 years | 14,826 | 15,280 | ||||
| More than five years | 666 | 760 | ||||
| Gross lease payments | 22,092 | 22,462 | ||||
| Less: finance charges | (3,248) | (3,312) | ||||
| Net lease liabilities | 18,844 | 19,150 | ||||
| Current portion | 5,347 | 5,122 | ||||
| Long-term portion | $ | 13,497 | $ | 14,028 |
The Company considers its capital to be shareholders' equity, which is comprised of capital stock, contributed surplus, accumulated deficit, and accumulated other comprehensive loss in the amount of $110,597,000 and $111,115,000 as at December 31, 2023 and September 30, 2023, respectively.
Issued share capital
The Company has only one class of common stock outstanding. Common shares are classified as equity, and costs related to the issuance of common shares are recognized as a reduction of equity.
Quipt Home Medical Corp.