Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Entity Addresses [Line Items] | ||
Document Type | 40-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Securities Act File Number | 001-40413 | |
Entity Registrant Name | Quipt Home Medical Corp. | |
Entity Incorporation, State or Country Code | A1 | |
Entity Tax Identification Number | 98-1508109 | |
Entity Address, Address Line One | 1019 Town Drive | |
Entity Address, City or Town | Wilder | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 41076 | |
City Area Code | 859 | |
Local Phone Number | 878-2220 | |
Entity Primary SIC Number | 3841 | |
Title of 12(b) Security | Common Shares | |
Trading Symbol | QIPT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001540013 | |
Amendment Flag | false | |
Audited Annual Financial Statements | true | |
Annual Information Form | true | |
ICFR Auditor Attestation Flag | false | |
Entity Common Stock, Shares Outstanding | 35,605,280 | |
Auditor Name | BDO USA, P.C. | BDO USA, P.C. |
Auditor Location | Cincinnati, Ohio | Cincinnati, Ohio |
Auditor Firm ID | 243 | 243 |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | 1015 15th Street N.W., Suite 1000 | |
Entity Address, City or Town | Washington | |
Entity Address, State or Province | DC | |
Entity Address, Postal Zip Code | 20005 | |
City Area Code | 202 | |
Local Phone Number | 572-3133 | |
Contact Personnel Name | CT Corporation System |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current Assets | ||
Cash | $ 17,209 | $ 8,516 |
Accounts receivable, net | 25,978 | 16,383 |
Inventory | 18,414 | 15,585 |
Prepaid and other current assets | 3,832 | 1,052 |
Total current assets | 65,433 | 41,536 |
Long-term assets | ||
Property, equipment, and right of use assets, net | 53,405 | 33,497 |
Goodwill | 52,825 | 28,208 |
Intangible assets, net | 74,040 | 28,887 |
Other assets | 1,705 | 86 |
Total long-term assets | 181,975 | 90,678 |
TOTAL ASSETS | 247,408 | 132,214 |
Current liabilities | ||
Accounts payable | 24,736 | 13,841 |
Accrued liabilities | 7,282 | 3,451 |
Current portion of equipment loans | 14,114 | 5,473 |
Current portion of lease liabilities | 5,122 | 3,304 |
Current portion of senior credit facility | 3,352 | 6,857 |
Deferred revenue | 4,511 | 3,036 |
Purchase price payable | 1,457 | 5,778 |
Total current liabilities | 60,574 | 41,740 |
Long-term liabilities | ||
Equipment loans | 233 | 234 |
Lease liabilities | 14,028 | 7,195 |
Senior credit facility | 61,114 | 3,378 |
Deferred income taxes | 344 | 0 |
SBA Loan | 120 | |
TOTAL LIABILITIES | 136,293 | 52,667 |
SHAREHOLDERS' EQUITY | ||
Capital stock | 247,530 | 214,254 |
Contributed surplus | 27,393 | 26,317 |
Accumulated deficit | (163,808) | (161,024) |
TOTAL SHAREHOLDERS' EQUITY | 111,115 | 79,547 |
TOTAL LIABILITIES AND EQUITY | $ 247,408 | $ 132,214 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||
Rentals of medical equipment | $ 96,237,000 | $ 69,192,000 |
Sales of medical equipment and supplies | 125,505,000 | 70,670,000 |
Total revenues | 221,742,000 | 139,862,000 |
Cost of inventory sold | 57,897,000 | 33,213,000 |
Operating expenses | 103,224,000 | 65,203,000 |
Bad debt expense | 10,065,000 | 12,225,000 |
Depreciation | 34,966,000 | 20,453,000 |
Amortization of intangible assets | 5,197,000 | 2,587,000 |
Stock-based compensation | 5,280,000 | 5,493,000 |
Acquisition-related costs | 1,269,000 | 797,000 |
Loss (gain) on disposals of property and equipment | (75,000) | 45,000 |
Other income from government grant | (4,885,000) | |
Operating income | 3,919,000 | 4,731,000 |
Financing expenses | ||
Interest expense, net | 6,607,000 | 2,079,000 |
Loss on extinguishment of debt | 30,000 | 281,000 |
(Gain) loss on foreign currency transactions | (108,000) | 144,000 |
Share of loss in equity method investment | 89,000 | |
Change in fair value of debentures | (1,150,000) | |
Loss on settlement of shares to be issued | 442,000 | |
Income (loss) before taxes | (2,699,000) | 2,935,000 |
Provision (benefit) for income taxes | 85,000 | (1,904,000) |
Net income (loss) | $ (2,784,000) | $ 4,839,000 |
Net income (loss) per share (Note 15) | ||
Basic earnings per share | $ (0.07) | $ 0.14 |
Diluted earnings per share | $ (0.07) | $ 0.13 |
Weighted average number of common shares outstanding: | ||
Basic | 38,607 | 33,647 |
Diluted | 38,607 | 36,302 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Capital stock | Contributed surplus | Shares to be issued | Accumulated deficit | Total |
Balance at beginning of period at Sep. 30, 2021 | $ 202,827 | $ 21,001 | $ 657 | $ (165,863) | $ 58,622 |
Balance at beginning of period (in shares) at Sep. 30, 2021 | 33,350 | ||||
Net income (loss) | 4,839 | 4,839 | |||
Cash in lieu of shares to be issued | $ (657) | (657) | |||
Conversion of debentures | $ 10,683 | 10,683 | |||
Conversion of debentures (in shares) | 2,107 | ||||
Stock-based compensation | 5,493 | 5,493 | |||
Stock options exercised | $ 216 | (25) | 191 | ||
Stock options exercised (in shares) | 33 | ||||
Compensation options exercised | $ 528 | (152) | 376 | ||
Compensation options exercised (in shares) | 115 | ||||
Balance at end of period at Sep. 30, 2022 | $ 214,254 | 26,317 | (161,024) | 79,547 | |
Balance at end of period (in shares) at Sep. 30, 2022 | 35,605 | ||||
Net income (loss) | (2,784) | (2,784) | |||
Acquisition of Great Elm | $ 2,060 | 2,060 | |||
Acquisition of Great Elm(shares) | 432 | ||||
Issuance of shares, net of issuance costs of $3,303 | $ 27,866 | 27,866 | |||
Issuance of shares, net of issuance costs of $3,303 (shares) | 5,409 | ||||
Settlement of restricted stock units | $ 2,791 | (4,129) | (1,338) | ||
Settlement of restricted stock units(shares) | 526 | ||||
Stock-based compensation | 5,280 | 5,280 | |||
Stock options exercised | $ 559 | (75) | 484 | ||
Stock options exercised (in shares) | 130 | ||||
Balance at end of period at Sep. 30, 2023 | $ 247,530 | $ 27,393 | $ (163,808) | $ 111,115 | |
Balance at end of period (in shares) at Sep. 30, 2023 | 42,102 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |
Stock issuance cost | $ 3,303 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||
Net income (loss) | $ (2,784,000) | $ 4,839,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 40,163,000 | 23,040,000 |
Stock-based compensation | 5,280,000 | 5,493,000 |
Loss (gain) on disposal of property and equipment | (75,000) | 45,000 |
Other income from government grant | (4,885,000) | |
Loss on extinguishment of debt | 30,000 | 281,000 |
Amortization of financing costs and accretion of purchase price payable | 591,000 | 251,000 |
Interest expense, net of amortization and accretion | 6,016,000 | 1,828,000 |
Cash paid for interest | (6,026,000) | (2,007,000) |
Loss (gain) on foreign currency transactions | (108,000) | 144,000 |
Share of loss in equity method investment | 89,000 | |
Loss (gain) loss on fair value of convertible debentures | (1,150,000) | |
Loss on settlement of shares to be issued | 442,000 | |
Provision (benefit) for income taxes | 85,000 | (1,904,000) |
Cash paid for income taxes | (680,000) | (653,000) |
Adjustments to purchase price payable | (96,000) | (178,000) |
Change in working capital, net of acquisitions: | ||
Net increase in accounts receivable | (3,063,000) | (201,000) |
Net increase in inventory | (60,000) | (2,419,000) |
Net (increase) decrease in prepaid and other current assets | (2,239,000) | 450,000 |
Net increase in deferred revenue | 240,000 | 31,000 |
Net increase in accounts payables and accrued liabilities | 3,173,000 | 2,897,000 |
Net cash flow provided by operating activities | 40,536,000 | 26,344,000 |
Investing activities | ||
Purchase of property and equipment | (6,852,000) | (9,161,000) |
Cash proceeds from sale of property and equipment | 65,000 | 193,000 |
Cash paid for acquisitions, net of cash acquired | (76,038,000) | (33,525,000) |
Net cash flow used in investing activities | (82,825,000) | (42,493,000) |
Financing activities | ||
Repayments of loans | (20,447,000) | (11,900,000) |
Repayments of leases | (4,377,000) | (3,822,000) |
Issuance of debt under senior credit facility | 64,000,000 | |
Repayments of senior credit facility | (2,650,000) | |
Net (payments) borrowings on the revolving credit facility | (7,000,000) | 12,000,000 |
Issuance costs relating to credit facility | (581,000) | (1,779,000) |
Issuance of shares, net of issuance costs | 27,866,000 | |
Settlement of restricted stock units | (1,338,000) | |
Proceeds from exercise of stock options | 484,000 | 567,000 |
Cash in lieu of shares to be issued | (1,100,000) | |
Payments of purchase price payable | (5,083,000) | (3,817,000) |
Net cash flow (used in) provided by financing activities | 50,874,000 | (9,851,000) |
Net increase (decrease) in cash | 8,585,000 | (26,000,000) |
Effect of exchange rate changes on cash held in foreign currencies | 108,000 | (96,000) |
Cash, beginning of year | 8,516,000 | 34,612,000 |
Cash, end of year | $ 17,209,000 | $ 8,516,000 |
Nature of operations
Nature of operations | 12 Months Ended |
Sep. 30, 2023 | |
Nature of operations | |
Nature of operations | 1. Nature of operations Reporting entity 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 redomiciled 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’s shares are traded on the TSX Exchange in Canada and on NASDAQ in the United States, both under the symbol QIPT. |
Basis of Presentation and summa
Basis of Presentation and summary of significant accounting policies | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and summary of significant accounting policies | |
Basis of Presentation and summary of significant accounting policies | 2. Basis of Presentation and summary of significant accounting policies Basis of accounting These financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issue by the Board of Directors on December 21, 2023. The consolidated financial statements, which are presented in US dollars, have been prepared under the historical cost convention, as modified by the measurement at fair values of certain financial assets and financial liabilities. 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 operation. Functional currency The consolidated financial statements of the Company are presented in US dollars, which is the Company’s functional currency. Determined using management’s judgment that the primary economic environment in which it will derive its revenue and expenses incurred to generate those revenues is the United States. Management has exercised judgment in selecting the functional currency of each of the entities that it consolidates based on the primary economic environment in which the entity operates and in reference to the various indicators including the currency that primarily influences or determines the selling prices of goods and services and the cost of production, including labor, material and other costs and the currency whose competitive forces and regulations mainly determine selling prices. Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated. The Company’s consolidated entities, which all have a functional currency of USD and ownership of 100% are as follows: 100 W. Commercial Street, LLC Medical West Healthcare Center, LLC Acadia Medical Supply, Inc. Metro-Med, Inc. Access Respiratory Home Care, L.L.C. Metro-Med, Inc. - Los Alamitos Alliance Home Care & Mobile Diagnostics, L.L.C. Metro-Med, Inc. - Ventura At Home Health Equipment, LLC NorCal Respiratory, Inc. Black Bear Medical, Inc. Northwest Medical, LLC Black Bear Medical Group, Inc. Oxygen Plus Black Bear Medical NH, Inc. Patient-Aids, Inc. Care Medical Atlanta, LLC Patient Home Monitoring, Inc Care Medical of Athens, Inc. QHM Holdings, Inc. Care Medical of Augusta, LLC QHM Investments I, LLC Care Medical of Gainesville, LLC Quipt Home Medical, Inc. Care Medical Partners, LLC Rejuvenight, LLC Care Medical Savannah, LLC Resource Medical, Inc. Central Oxygen, Inc. Resource Medical Group Charleston, LLC Coastal Med-Tech Corp. Resource Medical Group, LLC Cooley Medical Equipment, Incorporated Respicare, Inc. Focus Respiratory, LLC Riverside Medical, Inc. Good Night Medical, LLC RTA Homecare, LLC Good Night Medical of Ohio, LLC Semo Drugs - Care Plus of Mo, Inc. Good Night Medical of Texas, Inc Sleep Health Diagnostics, LLC Great Elm Healthcare, LLC Sleepwell, LLC Health Technology Resources, LLC Southeastern Biomedical Services, LLC Heartland Health Therapy, LLC Southern Pharmaceutical Corporation Heckman Healthcare Service & Supplies Inc. Thrift Home Care, Inc. Hometown Medical LLC Tuscan, Inc. Legacy Oxygen and Home Care Equipment, LLC United Respiratory Services, LLC Mayhugh Drugs, Inc. West Home Healthcare, Inc. Med Supply Center, Inc. The Company’s share of loss in investment is recorded on the equity method whereby the Company records “share of loss in equity method investment” on the consolidated statements of income (loss) and comprehensive income (loss) for its pro rata share ownership percentage of the investee’s net income (loss). Critical accounting estimates The preparation of financial statements in accordance with IFRS requires management to make certain estimates, judgments, and assumptions concerning the future. The Company’s management reviews these estimates, judgments, and assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted prospectively in the period in which the estimates are revised. Estimates where management has made subjective judgments and where there is significant risk of material adjustments to assets and liabilities in future accounting periods include fair value measurements for financial instruments and share-based transactions, useful lives and impairment of non-financial assets (property and equipment and intangible assets), provision for expected credit losses, fair value measurements for assets and liabilities acquired in business acquisitions, and calculation of deferred taxes. The following are the key estimate and assumption uncertainties that have a significant risk of resulting in a material adjustment within the next financial year: a) Revenue recognition Revenues are billed to, and collections are received from customers. Because of continuing changes in the health care industry and third-party reimbursement, the consideration receivable from these insurance companies is variable as these billings can be challenged by the payor. Therefore, the amount billed by the Company is reduced by an estimate of the amount that the Company believes is an amount to be ultimately allowed by the insurance contract, including co-pays and deductibles. This estimate involves significant judgment including an analysis of past collections and historical modification rates. Management regularly reviews the actual claims approved by the insurance companies, adjusting estimated revenue as necessary. The Company does not offer warranties to customers in excess of the manufacturer’s warranty. Any taxes due upon sale of the products or services are not recognized as revenue. The Company does not have any partially or unfilled performance obligations related to contracts with customers and as such, the Company has no contract liabilities during the years ended September 30, 2023 and 2022. Rental of medical equipment The Company rents medical equipment to customers for a fixed monthly amount on a month-to-month basis. The customer has the right to cancel the lease at any time during the rental period. The Company considers these rentals to be operating leases. Under IFRS 16 - Leases Sales of medical equipment and supplies The Company sells equipment, consumable supplies, and replacement parts to customers and recognizes revenue based at delivery, as all performance obligations have been met. b) Valuation of accounts receivable The measurement of expected credit losses considers information about past events and current conditions. Significant judgments are made in order to incorporate forward-looking information into the estimation of reserves and may result in changes to the provision from period to period which may significantly affect our results of operations. The Company estimates that a certain portion of receivables from customers may not be collected and maintains a reserve for expected credit losses. The Company evaluates the net realizable value of accounts receivable as of the date of the consolidated balance sheets, considering current and historical cash collections, the age of the accounts receivable, and relevant business conditions. If circumstances related to certain customers change or actual results differ from expectations, the estimate of the recoverability of receivables could fluctuate from that provided for in our consolidated financial statements. A change in estimate could impact bad debt expense and accounts receivable. c) Property and equipment Property and equipment are stated at cost less accumulated depreciation. Major renewals and improvements are charged to the property accounts, while maintenance, and repairs which do not extend the useful life of the respective assets, are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives of the assets are as follows: Description Estimated Useful Life Rental equipment 1 - 5 years Computer equipment 3 - 5 years Office furniture and fixtures 5 - 10 years Leasehold improvements Life of lease 1 - 7 years Right-of-use vehicles Life of lease 1 - 5 years Right-of-use real estate leases Life of lease 1 - 10 years Depreciation of rental equipment commences once it has been delivered to a patient’s address and put in use. Property and equipment and other non-current assets with definite useful lives are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. d) Intangible assets The Company has recorded various intangible assets consisting primarily of non-compete agreements, trademarks, customer contracts and customer relationships. Non-compete agreements are the value associated with the non-compete agreements entered by the sellers of acquired companies. Trademarks are the purchase price allocation for the value associated with the trade name of the acquired company. Customer contracts are comprised of the purchase price allocation of the present value of expected future customer billings based on the statistical life of a customer. Customer relationships are the value given in the purchase price allocation to the long-term associations with referral sources such as doctors, medical centers, etc. Definite life intangible assets are amortized on a straight-line basis over the estimated useful lives of the related assets as follows: Description Estimated Useful Life Non-compete agreements 5 Years Trademarks 10 Years Customer contracts 2 Years Customer relationships 10 - 20 Years The Company reviews the estimates for useful lives on an annual basis, or more frequently if events during the year indicate that a change may be required, with consideration given to technological obsolescence and other relevant business factors. A change in management’s estimate could impact depreciation/amortization expense and the carrying value of property and equipment and intangible assets. e) Share-based payments The amounts used to estimate fair values of stock options issued are based on estimates of future volatility of the Company’s share price, expected lives of the options, expected dividends to be paid by the Company and other relevant assumptions. By their nature, these estimates are subject to measurement uncertainty and the effect of changes in such estimates on the consolidated financial statements of future periods could be significant. f) Income taxes Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Company recognizes liabilities and contingencies for anticipated tax audit issues based on the Company’s current understanding of the tax law. For matters where it is probable that an adjustment will be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision. Management believes they have adequately provided for the probable outcome of these matters; however, the final outcome may result in a materially different outcome than the amount included in the tax liabilities. In addition, the Company recognizes deferred tax assets relating to tax losses carried forward to the extent there are sufficient taxable temporary differences (deferred tax liabilities) relating to the same taxation authority and the same taxable entity against which the unused tax losses can be utilized. Utilization of the tax losses depends on the ability of the taxable entity to satisfy certain tests at the time the losses are recouped. g) Lease liabilities Estimate of lease term When the Company recognizes a lease, it assesses the lease term based on the conditions of the lease and determines whether it is probable that it will choose to extend the lease at the end of the initial lease term. This significant estimate could affect future results if the Company extends the lease or exercises an early termination option. Incremental borrowing rate When the Company recognizes a lease, the future lease payments are discounted using the Company’s incremental borrowing rate. This significant estimate impacts the carrying amount of the lease liabilities and the interest expense recorded on the consolidated statement of income (loss) and comprehensive income (loss). Critical accounting judgements The following are the critical judgments, apart from those involving estimations, which have been made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements. a) Business combinations In accordance with IFRS 3 – Business Combinations b) Goodwill impairment Management has evaluated the recoverable amount for its cash generating unit and applied judgment in the discount rate and other underlying assumptions used in impairment analysis of goodwill. For the purposes of impairment testing, assets are grouped at the lowest levels of integrated assets that generate identifiable cash inflows that are largely independent of the cash inflows of other assets or groups of assets, termed as a cash-generating unit (“CGU”). The allocation of assets into a CGU requires significant judgment and interpretations with respect to the integration between assets, the existence of active markets, similar exposure to market risks, shared infrastructures and the way in which management monitors the operations. Effective July 1, 2023, the Company changed its CGUs to align with its internal regional management and reporting. The Company reviews the value in use versus the carrying value both in total and for each of the individual assets. The recoverable amount of the CGUs was estimated based on an assessment of value in use using a discounted cash flow approach. The approach uses cash flow projections based upon a financial forecast approved by management, covering a five-year period. Cash flows for the years thereafter are extrapolated using the estimated terminal growth rate. The risk premiums expected by market participants related to uncertainties about the industry and assumptions relating to future cash flows may differ or change quickly, depending on economic conditions and other events. c ) Foreign currency transactions Transactions in foreign currencies are initially recorded by the Company’s entities in their respective functional currency at the foreign currency spot rate or the rate realized in the transaction. Monetary items are translated at the foreign currency spot rate as of the reporting date. Exchange differences from monetary items are recognized in profit or loss. Non-monetary items that are not carried at fair value are translated using the exchange rates at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The assets and liabilities of foreign operations are translated into US dollars at the rate of exchange prevailing at the reporting date and their statements of operations are translated at the weighted average monthly rates of exchange. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that foreign operation is recognized in the statement of loss and comprehensive loss. Financial instruments Fair value measurement Financial instruments carried at fair value on the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 – Where financial instruments are traded in active financial markets; fair value is determined by reference to the appropriate quoted market price at the reporting date. Active markets are those in which transactions occur in significant frequency and volume to provide pricing information on an ongoing basis; Level 2 – If there is no active market, fair value is established using valuation techniques, including discounted cash flow models. The inputs to these models are taken from observable market data where possible, including recent arm’s length market transaction and comparisons to the current fair value of similar instruments, but where this is not feasible, inputs such as liquidity risk, credit risk, and volatility are used; and Level 3 – In this level, fair value determinations are made with inputs other than observable market data. Cash is classified as Level 1. |
Acquisitions of and investment
Acquisitions of and investment in businesses | 12 Months Ended |
Sep. 30, 2023 | |
Acquisitions of and investment in businesses | |
Acquisitions of and investment in businesses | 3. Acquisitions of and investment in businesses Acquisition of Great Elm Healthcare, LLC On January 3, 2023, the Company, through QHM Holdings, LLC, acquired Great Elm Healthcare, LLC (“Great Elm”). Great Elm is an Arizona-based company with operations in seven states in the same industry as the Company. The purchase price was $73,569,000, comprised of $72,689,000 in cash at closing to the sellers, plus 431,996 Quipt common shares at a closing price per share of $4.77 for $2,060,000, less $820,000 of cash acquired, and less $360,000 for cash received from a working capital adjustment. The cash at closing was obtained from the delayed-draw term loan and revolving credit facility of the senior credit facility described in Note 10. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $1,238,000 of professional fees in conjunction with the acquisition for the year ended September 30, 2023. The pro forma revenues and net income for Great Elm for the year ended September 30, 2023 as if the acquisition had occurred on October 1, 2022, was approximately $67,500,000 and $2,300,000, respectively, of which approximately $50,800,000 and $2,100,000 were recognized in the period from January 3, 2023 to September 30, 2023. The fair value of the acquired assets and liabilities is as follows: Accounts receivable $ 5,531 Inventory 1,398 Prepaid and other current assets 584 Property, equipment, and right of use assets 13,261 Goodwill 22,826 Intangible assets 47,820 Other assets 161 Accounts payable (6,085) Accrued liabilities (3,845) Deferred revenue (1,022) Equipment loans (4,259) Lease liabilities (2,801) Net assets acquired $ 73,569 Cash paid at closing $ 72,689 Cash received from working capital adjustment (360) Cash acquired (820) Equity issued at closing 2,060 Consideration paid or payable $ 73,569 The goodwill is attributable to expected synergies from the combining operations. All of the goodwill is deductible for income tax purposes. 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. Acquisition of Southern Pharmaceutical Corporation On September 1, 2023, the Company, through QHM Holdings, LLC, acquired Southern Pharmaceutical Corporation (“Southern”). Southern is a Mississippi-based company with operations in three states in the same industry as the Company. The purchase price was $4,303,000, which is comprised of $3,153,000 in cash to the sellers, plus $1,274,000 of fair value of holdbacks discounted at 5.4% due on the six- and twelve-month anniversaries of the closing, less $124,000 of cash on hand. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $24,000 of professional fees in conjunction with the acquisition for the year ended September 30, 2023. The pro forma revenues and net income for Southern for the year ended September 30, 2023, as if the acquisition had occurred on October 1, 2022, was approximately $10,100,000 and $1,000,000, respectively, of which approximately $900,000 and $200,000 were recognized in the period from September 1, 2023 to September 30, 2023. The fair value of the acquired assets and liabilities is provisional pending final valuations of the assets and liabilities as follows: Accounts receivable $ 1,000 Inventory 1,374 Prepaid and other current assets 4 Property, equipment, and right of use assets 2,048 Goodwill 2,335 Intangible assets 2,530 Accounts payable (1,483) Accrued liabilities (197) Deferred revenue (212) Equipment loans (1,063) Lease liabilities (1,142) Deferred income taxes (891) Net assets acquired $ 4,303 Cash paid at closing $ 3,153 Cash acquired (124) Cash to be paid after closing, included in purchase price payable 1,274 Consideration paid or payable $ 4,303 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for income tax purposes. Prior year acquisitions Acquisition of Thrift Home Care, Inc. On October 1, 2021, the Company, through QHM Holdings, LLC, entered into a purchase agreement to acquire all the shares of Thrift Home Care, Inc. (“Thrift”), a Mississippi-based company in the same industry as the Company. The purchase price was $2,169,000, comprised of $1,804,000 of cash paid closing, plus holdbacks due on the six- and twelve-month anniversaries of the acquisition discounted at 3.3% for a fair value of $365,000. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $27,000 of professional fees in conjunction with the acquisition. The fair value of the acquired assets and liabilities is as follows: Cash $ 452 Accounts receivable 165 Inventory 107 Property, equipment, and right of use assets, net 1,158 Goodwill 802 Intangible assets 770 Accounts payable (140) Accrued liabilities (33) Deferred revenue (40) Deferred tax liability (262) Loans and leases (810) Net assets acquired $ 2,169 Cash paid at closing $ 1,804 Cash to be paid after closing, included in purchase price payable 365 Consideration paid or payable $ 2,169 The goodwill is attributable to expected synergies from the combined operations. None of the goodwill is deductible for income tax purposes. Acquisition of Heckman Healthcare Services & Supplies, Inc. On November 1, 2021, the Company, through QHM Holdings, LLC, entered into a purchase agreement to acquire all the shares of Heckman Healthcare Services & Supplies, Inc (“Heckman”). Heckman is an Illinois-based company in the same industry as the Company. The purchase price was $2,435,000, comprised of $2,103,000 was paid in cash at closing, and holdbacks due on the six- and twelve-month anniversaries of the acquisition discounted at 3.3% for a fair value of $332,000. During the year ended September 30, 2023, the Company reduced the amount of holdback paid by $146,000, which was recorded as a reduction to acquisition-related costs in the consolidated statement of income (loss) and comprehensive income (loss). The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $76,000 of professional fees in conjunction with the acquisition.The fair value of the acquired assets and liabilities is as follows: Cash $ 169 Accounts receivable 170 Inventory 280 Property, equipment, and right of use assets, net 1,165 Goodwill 965 Intangible assets 90 Accounts payable (159) Accrued liabilities (96) Deferred revenue (27) Deferred tax liability (122) Net assets acquired $ 2,435 Cash paid at closing $ 2,103 Cash to be paid after closing, included in purchase price payable 332 Consideration paid or payable $ 2,435 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for income tax purposes. Acquisition of Southeastern Biomedical Services, LLC On November 9, 2021, the Company, through newly-created subsidiary SE Biomedical Holdco, LLC (“Southeastern Bio”), a Kentucky limited liability company, entered into a purchase agreement to acquire substantially all of the assets of Southeastern Biomedical Services, LLC. Southeastern Bio provides repair parts and service, calibration, and electrical safety for the durable medical equipment industry, and was a vendor of the Company. The purchase price was $697,000, comprised of $600,000 of cash paid at closing, plus earnouts based on the two 12-month periods ending on the first and second anniversaries of the acquisition at a fair value of $97,000. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $19,000 of professional fees in conjunction with the acquisition. The fair value of the acquired assets and liabilities is as follows: Accounts receivable $ 112 Inventory 53 Property, equipment, and right of use assets, net 306 Goodwill 225 Intangible assets 270 Accounts payable (131) Loans and leases (138) Net assets acquired $ 697 Cash paid at closing $ 600 Cash to be paid after closing, included in purchase price payable 97 Consideration paid or payable $ 697 The goodwill is attributable to expected synergies from the combining operations. All of the goodwill is deductible for income tax purposes. Acquisition of At Home Health Equipment, LLC On January 1, 2022, the Company, through QHM Holdings, LLC, entered into a purchase agreement to acquire all the shares of At Home Health Equipment, LLC (“At Home”). At Home is an Indiana-based company in the same industry as the Company. The purchase price was $13,650,000, comprised of $11,978,000 of cash paid at closing, plus holdbacks due on the six- and twelve-month anniversaries of the acquisition discounted at 3.4% for a fair value of $1,288,000, plus the collection of certain accounts receivable that totaled $384,000. During the year ended September 30, 2023, the Company paid an additional $51,000 in working capital adjustments, which was recorded as acquisition-related expenses in the consolidated statement of income (loss) and comprehensive income (loss). The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $83,000 of professional fees in conjunction with the acquisition. The fair value of the acquired assets and liabilities is as follows: Cash $ 495 Accounts receivable 1,346 Inventory 1,211 Prepaid expenses 71 Property, equipment, and right of use assets, net 2,085 Goodwill 7,868 Intangible assets 4,170 Accounts payable (600) Accrued liabilities (346) Deferred revenue (135) Deferred tax liability (1,448) Loans and leases (1,067) Net assets acquired $ 13,650 Cash paid at closing $ 11,978 Cash to be paid after closing, included in purchase price payable 1,672 Consideration paid or payable $ 13,650 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for income tax purposes. Acquisition of Good Night Medical, LLC On April 1, 2022, the Company, through QHM Holdings, LLC, entered into a purchase agreement to acquire all the shares of Good Night Medical, LLC and its subsidiaries (“Good Night”). Good Night is an Ohio-based company in the same industry as the Company. The purchase price was $6,162,000, comprised of $4,361,000 of cash paid in cash at closing, plus holdbacks due on the six- and twelve-month anniversaries of the acquisition discounted at 3.4% for a fair value of $1,801,000. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $58,000 of professional fees in conjunction with the acquisition. The fair value of the acquired assets and liabilities is as follows: Cash $ 42 Accounts receivable 730 Inventory 369 Property, equipment, and right of use assets, net 696 Goodwill 3,277 Intangible assets 3,470 Accounts payable (1,200) Accrued liabilities (166) Deferred revenue (39) Loans and leases (1,017) Net assets acquired $ 6,162 Cash paid at closing $ 4,361 Cash to be paid after closing, included in purchase price payable 1,801 Consideration paid or payable $ 6,162 The goodwill is attributable to expected synergies from the combining operations. All of the goodwill is deductible for income tax purposes. Acquisition of Access Respiratory Home Care, LLC On June 1, 2022, the Company, through QHM Holdings, LLC, entered into a purchase agreement to acquire all the shares of Access Respiratory Home Care, LLC (“Access”). Access is a Louisiana-based company in the same industry as the Company. The purchase price was $6,595,000, comprised of $5,347,000 of cash paid at closing, plus holdbacks due on the six- and twelve-month anniversaries of the acquisition discounted at 3.4% for a fair value of $1,248,000. During the year ended September 30, 2023, the Company reduced the holdback payments by $180,000, which was reflected as a reduction to goodwill. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $99,000 of professional fees in conjunction with the acquisition. The fair value of the acquired assets and liabilities is as follows: Cash $ 417 Accounts receivable 741 Inventory 622 Property, equipment, and right of use assets, net 1,492 Goodwill 1,223 Intangible assets 3,180 Accounts payable (200) Accrued liabilities (319) Deferred revenue (90) Loans and leases (471) Net assets acquired $ 6,595 Cash paid at closing $ 5,347 Cash to be paid after closing, included in purchase price payable 1,248 Consideration paid or payable $ 6,595 The goodwill is attributable to expected synergies from the combining operations. All of the goodwill is deductible for income tax purposes. Acquisition of NorCal Respiratory, Inc. On June 3, 2022, the Company, through QHM Holdings, LLC, entered into a purchase agreement to acquire all the shares of NorCal Respiratory, Inc (“NorCal”). NorCal is a California-based company in the same industry as the Company. The purchase price was $3,080,000, comprised of $2,494,000 of cash paid at closing, plus holdbacks due on the six- and twelve-month anniversaries of the acquisition discounted at 3.4% for a fair value of $586,000. During the year ended September 30, 2023, the Company reduced the payments of the holdback by $117,000, which was reflected as a reduction of goodwill. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $29,000 of professional fees in conjunction with the acquisition. The fair value of the acquired assets and liabilities is as follows: Cash $ 503 Accounts receivable 315 Inventory 492 Property, equipment, and right of use assets, net 1,044 Goodwill 948 Intangible assets 1,400 Accounts payable (100) Accrued liabilities (67) Deferred revenue (93) Deferred tax liability (680) Loans and leases (682) Net assets acquired $ 3,080 Cash paid at closing $ 2,494 Cash to be paid after closing, included in purchase price payable 586 Consideration paid or payable $ 3,080 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for income tax purposes. Acquisition of Hometown Medical, LLC On July 1, 2022, the Company, through QHM Holdings, LLC, entered into a purchase agreement to acquire all the shares of Hometown Medical, LLC (“Hometown”). Hometown is a Mississippi-based company in the same industry as the Company. The purchase price was $5,892,000, comprised of $4,838,000 of cash paid at closing, plus holdbacks due on the six- and twelve-month anniversaries of the acquisition discounted at 5.3% for a fair value of $1,054,000. During the year ended September 30, 2023, the Company reduced the amount of payments on the holdbacks by $259,000, which was recorded as a reduction of goodwill. The Company has determined that the transaction is an acquisition of a business under IFRS 3, and it has been accounted for by applying the acquisition method. The Company expensed $22,000 of professional fees in conjunction with the acquisition. The fair value of the acquired assets and liabilities is as follows: Cash $ 723 Accounts receivable 665 Inventory 778 Property, equipment, and right of use assets, net 2,187 Goodwill 407 Intangible assets 3,250 Accounts payable (721) Accrued liabilities (66) Deferred revenue (129) Loans and leases (1,202) Net assets acquired $ 5,892 Cash paid at closing $ 4,838 Cash to be paid after closing, included in purchase price payable 1,054 Consideration paid or payable $ 5,892 The goodwill is attributable to expected synergies from the combining operations. All of the goodwill is deductible for income tax purposes. Purchase Price Payable The purchase price payable included on the consolidated statements of financial position consists of amounts related to prior period acquisitions as well as current fiscal year 2023 acquisitions less payments made to date. Below is the movement in Purchase Price Payable for the year ended September 30, 2023: Balance, September 30, 2021 (current $2,383, long-term $133) $ 2,516 Addition from acquisitions 7,155 Accretion of interest 102 Derecognition of purchase price payable (178) Payments (3,817) Balance, September 30, 2022 (current $5,778) $ 5,778 Accretion of interest 128 Addition from acquisitions 1,274 Derecognition of purchase price payable (640) Payments (5,083) Balance, September 30, 2023 (current $1,457) $ 1,457 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable | |
Accounts Receivable | 4. Accounts Receivable Accounts receivable represents amounts due from insurance companies and patients: As at As at September 30, 2023 September 30, 2022 Gross receivable $ 35,374 $ 27,122 Reserve for expected credit losses (9,396) (10,739) $ 25,978 $ 16,383 Below is the movement in the reserve for expected credit losses: Year ended Year ended September 30, September 30, Reserve for expected credit losses 2023 2022 Opening Balance $ 10,739 $ 3,475 Bad debt expense 10,065 12,225 Amounts written off (11,408) (4,961) Ending Balance $ 9,396 $ 10,739 |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2023 | |
Inventory | |
Inventory | 5. Inventory As at September 30, As of September 30, 2023 2022 Serialized $ 6,733 $ 5,814 Non-serialized 11,895 9,854 Reserve for slow-moving (214) (83) Total Inventory $ 18,414 $ 15,585 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). |
Property, equipment, and right
Property, equipment, and right of use assets | 12 Months Ended |
Sep. 30, 2023 | |
Property, equipment, and right of use assets | |
Property, equipment, and right of use assets | 6. Property, equipment, and right of use assets Office Buildings and Right of use Right of use Rental furniture and leasehold assets – assets – Real Cost equipment fixtures Land improvements Vehicles estate Total Balance September 30, 2021 $ 31,146 $ 482 $ — $ 1,498 $ 4,175 $ 7,750 $ 45,051 Transfers from inventory 17,797 — — — — — 17,797 Additions — 11 20 191 508 2,106 2,836 Acquisitions 3,952 218 140 802 1,274 3,747 10,133 Disposals and write offs (15,954) (262) — (60) (1,177) (1,217) (18,670) Balance September 30, 2022 $ 36,941 $ 449 $ 160 $ 2,431 $ 4,780 $ 12,386 $ 57,147 Transfers from inventory 29,279 — — — — — 29,279 Additions — 11 — 90 2,246 7,938 10,285 Acquisitions 9,452 820 — 546 931 3,560 15,309 Disposals and write offs (13,989) (156) — (20) (1,230) (2,657) (18,052) Balance September 30, 2023 $ 61,683 $ 1,124 $ 160 $ 3,047 $ 6,727 $ 21,227 $ 93,968 Office Buildings and Right of use Right of use Rental furniture and leasehold assets – assets – Real Accumulated depreciation equipment fixtures Land improvements Vehicles estate Total Balance September 30, 2021 $ 16,419 $ 383 $ — $ 431 $ 1,635 $ 2,677 $ 21,545 Depreciation 15,980 66 — 191 1,477 2,738 20,452 Disposals and write offs (15,954) (259) — (26) (990) (1,118) (18,347) Balance September 30, 2022 $ 16,445 $ 190 $ — $ 596 $ 2,122 $ 4,297 $ 23,650 Depreciation 28,945 151 — 204 1,598 4,067 34,965 Disposals and write offs (13,989) (156) — (20) (1,230) (2,657) (18,052) Balance September 30, 2023 $ 31,401 $ 185 $ — $ 780 $ 2,490 $ 5,707 $ 40,563 Office Buildings and Right of use Right of use Rental furniture and leasehold assets – assets – Real Net Book Value equipment fixtures Land improvements Vehicles estate Total Balance September 30, 2021 $ 14,727 $ 99 $ — $ 1,067 $ 2,540 $ 5,073 $ 23,506 Balance September 30, 2022 $ 20,496 $ 259 $ 160 $ 1,835 $ 2,658 $ 8,089 $ 33,497 Balance September 30, 2023 $ 30,282 $ 939 $ 160 $ 2,267 $ 4,237 $ 15,520 $ 53,405 Rental equipment transferred from inventory during the years ended September 30, 2023 and 2022 was $29,279,000 and $17,797,000. For the years ended September 30, 2023 and 2022, the Company obtained equipment loans (Note 10) of $22,419,000 and $9,602,000, respectively, with the balance of $6,860,000 and $8,195,000 paid in cash, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Sub-total intangibles Customer Other with finite Cost Goodwill relationships intangibles lives Total Balance September 30, 2021 $ 12,456 $ 20,690 $ 8,109 $ 28,799 $ 41,255 Acquisitions 15,752 14,210 2,390 16,600 32,352 Disposals — (2) — (2) (2) Balance September 30, 2022 $ 28,208 $ 34,898 $ 10,499 $ 45,397 $ 73,605 Acquisitions 25,161 44,190 6,160 50,350 75,511 Adjustments to prior year acquisitions (544) — — — (544) Disposals — — (517) (517) (517) Balance September 30, 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, 2021 $ — $ 8,267 $ 5,658 $ 13,925 $ 13,925 Amortization — 2,080 507 2,587 2,587 Disposals — (2) — (2) (2) Balance September 30, 2022 $ — $ 10,345 $ 6,165 $ 16,510 $ 16,510 Amortization — 4,142 1,055 5,197 5,197 Disposals — — (517) (517) (517) Balance September 30, 2023 $ — $ 14,487 $ 6,703 $ 21,190 $ 21,190 Sub-total intangibles Customer Other with finite Net carrying amount Goodwill relationships intangibles lives Total Balance September 30, 2021 $ 12,456 $ 12,423 $ 2,451 $ 14,874 $ 27,330 Balance September 30, 2022 $ 28,208 $ 24,553 $ 4,334 $ 28,887 $ 57,095 Balance September 30, 2023 $ 52,825 $ 64,601 $ 9,439 $ 74,040 $ 126,865 Goodwill Continuity Balance, September 30, 2021 $ 12,456 Acquisition through business combination: Medical West 37 Thrift 802 Heckman 965 Southeastern Bio 225 At Home 7,868 Good Night Medical 3,277 Access 1,223 NorCal 948 Hometown 407 Balance, September 30, 2022 $ 28,208 Acquisition through business combination: Access (180) Good Night Medical 12 Hometown (259) NorCal (117) Great Elm 22,826 Southern 2,335 Balance, September 30, 2023 $ 52,825 |
Government Grant
Government Grant | 12 Months Ended |
Sep. 30, 2023 | |
Government Grant | |
Government Grant | 8. Government Grant During the year ended September 30, 2020, the Company received payments related to the two separate provisions of the US CARES Act. Payroll Protection Plan (“PPP’) On April 16, 2020, the Company received $4,254,000 related to the PPP, which was to assist companies in maintaining their workforce. The loans and accrued interest were forgivable if the borrower used the loan proceeds for eligible purposes and maintained certain payroll levels. On March 23, 2022, the loan was forgiven, and other income in the amount of $4,254,000 has been recorded on the consolidated statements of income (loss) for the year ended September 30, 2022. Public health and Social Services Emergency Fund (“Relief Fund”) During the years ended September 30, 2020, the Company received $1,797,000 from the Relief Fund, which was established to support healthcare providers to prevent, prepare for, and respond to coronavirus, including health care related expenses or lost revenues, subject to certain terms and conditions. If those terms and conditions are met, payments do not need to be repaid. No expenses related to the PPP can be used to meet the terms and conditions for the Relief Fund. In September 2021, the Company submitted its filing with the HHS supporting the use of the funds under the terms and conditions of the Relief Fund. The HHS has not indicated whether any formal notification of acceptance will be provided. The Company has accounted for the proceeds under IAS 20. The original proceeds were recognized as a liability, which was reduced based on certain related costs incurred. During the year ended September 30, 2022, the Company reduced the liability by $631,000, which was been included in other income in the consolidated statements of income (loss) and comprehensive income (loss). |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Sep. 30, 2023 | |
Deferred Revenue | |
Deferred Revenue | 9. Deferred Revenue Activity for deferred revenue for the years ended September 30, 2023 and 2022 is as follows: For the year ended For the year ended September 30, 2023 September 30, 2022 Beginning balance $ 3,036 $ 2,452 Acquisitions 1,234 553 Operations 241 31 Ending balance $ 4,511 $ 3,036 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Sep. 30, 2023 | |
Long-term Debt | |
Long-term Debt | 10. Long-term Debt Senior Credit Facility In September 2022, the Company entered into $110,000,000 senior credit facility (“Facility”) with a group of US banks that matures in September 2027. The facility consists of a delayed-draw term loan facility of $85,000,000, a term loan of $5,000,000 that was drawn at closing, and a $20,000,000 revolving credit facility. The facility amends the $20,000,000 revolving credit facility that was entered into in September 2020. The Facility is secured by substantially all assets of the Company and is subject to certain financial covenants. As of September 30, 2023, the Facility bears interest at 8.2% that will reprice on November 30, 2023 and has fees for unused balances. The rate is based on a secured overnight financing rate plus a spread of 2.1% to 2.85% (2.6% as of September 30, 2023) based on the Company’s leverage ratio. The Company is required to obtain interest rate protection agreements covering at least half of the outstanding principal amount. Effective November 30, 2023, the Company entered into an agreement whereby $34,000,000 of principal balance will receive a fixed secured overnight financing rate (before the spread discussed above) of 4.4% until the September 2027 maturity. As of September 30, 2023, the outstanding balances under the Facility are repayable in total quarterly installments of $862,500, with the balance due at maturity. The revolving credit facility has no balance as of September 30, 2023. Interest expense on the Facility was $4,415,000 and $26,000 for the years ended September 30, 2023 and 2022, respectively. The fair value of the facility approximates the carrying value as of September 30, 2023 and 2022. The Company has cumulatively incurred $2,360,000 in financing costs to obtain the Facility, which is reflected as a reduction of the outstanding balance and is being amortized as interest expense using the effective interest method over the life of the Facility. During the years ended September 30, 2023 and 2022, amortization of deferred financing costs of $462,000 and $15,000, respectively was recorded. The revolving credit facility that was replaced with the Facility incurred interest expense of $126,000 and amortization of deferred financing costs of $135,000 for the year ended September 30, 2022. A loss on extinguishment of long-term debt of $281,000 was also recorded for the year ended September 30, 2022 for the remaining unamortized financing costs. A summary of the balances on the Facility as of September 30, 2023 and 2022 is as follows: As of As of September 30, 2023 September 30, 2022 Delayed-draw term loan $ 61,600 $ — Term loan 4,750 5,000 Revolving credit facility — 7,000 Total principal 66,350 12,000 Deferred financing costs (1,884) (1,765) Net carrying value $ 64,466 $ 10,235 Current portion 3,352 6,857 Long-term portion 61,114 3,378 Net carrying value $ 64,466 $ 10,235 Debentures On March 7, 2019, the Company issued C$15,000,000 in 8.0% Convertible Unsecured Debentures. Each C$1,000 (US$807) debenture was convertible at the option of the holder into 192.31 common shares. Beginning March 9, 2022, the Company could force conversion of the outstanding principal at a conversion price of C$5.20 per share under certain criteria. The Company exercised this option during the year ended September 30, 2022. During the year ended September 30, 2022, C$10,959,000 of principal amount of debentures were converted (both voluntary by the holder and at the Company’s forced conversion in September 2022) into common shares. The fair value of the debentures on the dates of conversion totaled C$13,665,000 (US$10,683,000). No debentures remain outstanding as of September 30, 2023 or 2022. The debentures contained multiple embedded derivatives including conversion right, forced conversion option and payment in lieu of common shares. Since the Company was unable to measure the fair value of embedded derivatives reliably, it had chosen to designate the convertible debentures in their entirety (including conversion right, forced conversion option and payment in lieu of common shares) to be subsequently measured at fair value through profit or loss (FVTPL). A gain of $1,150,000 was recorded for the year ended September 30, 2022. Following is the movement of the debentures for the year ended September 30, 2022: Year Ended September 30, 2022 Beginning Balance $ 11,784 Conversion to common shares (10,683) Change in fair value (1,150) Change in foreign exchange rate 49 Ending Balance $ — Equipment Loans The Company is offered financing arrangements from the Company’s suppliers and the supplier’s designated financial institution, in 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 uses its incremental borrowing rate of 7.0% to 8.0% to impute interest on these arrangements. The Company has also assumed equipment loans in conjunction with several of its acquisitions. There are no covenants with the loans and the carrying value of the equipment that is pledged as security against the loans is $20,262,000 and $14,949,000 for years ended September 30, 2023 and 2022, respectively. Following is the activity in equipment loans for the years ended September 30, 2023 and 2022: Year Ended Year Ended September 30, 2023 September 30, 2022 Beginning Balance $ 5,707 7,384 Additions: Acquisitions 5,322 1,161 Operations 23,615 9,062 Repayments (20,297) (11,900) Ending Balance 14,347 5,707 Current portion, less than 1 year 14,114 5,473 Long-term portion, due between 1 and 5 years $ 233 $ 234 Leases Liabilities 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 an incremental borrowing rate of 6.1% 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 12.2%. Below is the movement in lease liabilities for the year ended September 30, 2023 and 2022 respectively: Real Vehicles estate Total Balance, September 30, 2021 $ 2,414 $ 5,351 $ 7,765 Additions during the period: Acquisitions 571 3,655 4,226 Operations 347 2,063 2,410 Lease terminations — (80) (80) Repayments (1,339) (2,483) (3,822) Balance, September 30, 2022 $ 1,993 $ 8,506 $ 10,499 Additions during the period: Acquisitions 583 3,361 3,944 Operations 1,159 7,938 9,097 Lease terminations — (13) (13) Repayments (821) (3,556) (4,377) Balance, September 30, 2023 $ 2,914 $ 16,236 $ 19,150 Future payments pursuant to lease liabilities are as follows: As at As at September 30, 2023 September 30, 2022 Less than 1 year $ 6,422 $ 3,979 Between 1 and 5 years 15,280 7,443 More than five years 760 1,108 Gross lease payments 22,462 12,530 Less amounts relating to interest (3,312) (2,031) Net lease liabilities $ 19,150 $ 10,499 SBA Loan In conjunction with an acquisition in February 2021, the Company assumed an SBA Loan. The face amount of the loan was $150,000 and bore interest at a stated interest rate of 3.75%. Due to the below-market interest rate on the acquisition date, the Company valued the loan at the net present value of the payments using its incremental borrowing rate of 6%, resulting in a fair value on the acquisition date of $119,000. The loan was repayable in 360 monthly installments of $731 which began in September 2021 and was secured by substantially all the assets of the acquired subsidiary. The loan was paid off during the year ended September 30, 2023 and a loss on extinguishment of long-term debt of $30,000 was recorded. Following is the activity in the SBA Loan for the years ended September 30, 2023 and 2022: Year Ended Year Ended September 30, 2023 September 30, 2022 Beginning Balance $ 120 $ 121 Loss on extinguishment of debt 30 — Repayments (150) (1) Ending Balance $ — $ 120 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Shareholders' Equity | |
Shareholders' Equity | 11. Shareholders’ Equity The Company’s shareholders’ equity is comprised of share capital, contributed surplus, and accumulated deficit. Authorized share capital The Company’s authorized share capital consists of an unlimited number of common shares and an unlimited number of preferred shares issuable in series. The preferred shares issuable in series will have the rights, privileges, restrictions, and conditions assigned to the series upon the Board of Directors approving their issuance. Issued share capital The Company has only one class of common stock outstanding. Common share are classified as equity, and costs related to the issuance of shares are recognized as a reduction of equity. Issuance of common shares On April 25, 2023, the Company completed a bought deal public offering and brokered private placement. The Company issued a total of 5,409,000 common shares for aggregate gross proceeds of approximately C$42,500,000, or $31,200,000. Underwriters received a commission of approximately C$2,100,000, or $1,500,000, and other professional fees of approximately $1,800,000 were incurred for net proceeds of approximately $27,900,000. A portion of the net proceeds have been used to fully pay down the revolver portion of the Facility during the twelve months ended September 30, 2023. The Company issued shares in June 2020, and in connection therewith, issued compensation options to the underwriter at the issue price of C$4.60 for a period of two years from the closing of the offering. Activity for the compensation options for the year ended September 30, 2022 is as follows: Number Weighted (000s) average exercise price Balance, September 30, 2021 115 C$ 4.60 Exercised (115) 4.60 Balance, September 30, 2022 — C$ — The weighted average share price on the dates of exercise during the year ended September 30, 2022 was C$5.75. Shares to be issued In conjunction with an acquisition in October 2020, a portion of the purchase price was payable in shares in August 2022. The stock scheduled to be issued was settled, upon mutual agreement of the parties, with a cash payment of $1,100,000. A loss of $442,000 was recorded as “Loss on settlement of shares to be issued” on the consolidated statements of income (loss) and comprehensive income (loss). Employee, director, and consultant options The Company has a stock option plan, which it uses for grants to directors, officers, employees, and consultants. Options granted under the plan are non-assignable and may be granted for a term not exceeding ten years. Stock options having varying vesting periods and the options granted during the year ended September 30, 2023 vest quarterly over eight or twelve quarters. A summary of stock options is provided below: Weighted Number of options (000’s) average exercise price Balance, September 30, 2021 3,786 C$ 4.15 Granted 195 6.93 Exercised (33) 0.99 Expired (55) 2.40 Forfeited (142) 6.87 Balance, September 30, 2022 3,751 C$ 4.24 Granted 435 8.30 Exercised (130) 5.01 Expired (48) 6.94 Forfeited (51) 7.22 Balance, September 30, 2023 3,957 C$ 4.49 At September 30, 2023, the Company had 3,232,000 vested stock options with a weighted average exercise price of C$3.65. The weighted average share price on the dates of exercise in fiscal years 2023 and 2022 was C$8.69 and C$6.56, respectively. The fair value of the stock options was C$5.43 for the year ended September 30, 2023 and C$3.33 to C$4.42 for the year ended September 30, 2022. The Company used the Black-Scholes option pricing model calculated using the following assumptions: Year Ended Year Ended September 30, September 30, 2023 2022 Share price at grant date C$8.30 C$6.20 - C$6.75 Risk-free interest rate 3.29% 1.78 - 3.33% Expected volatility 51.95% 54.54 - 55.67% Expected life of option 10 years 10 years Expected dividend yield Nil Nil Restricted stock units On May 20, 2021, 953,750 restricted stock units were granted to officers and directors. Each unit represents the right to receive one common share, and vests over a period of two years from the grant date at the rate of one On February 20, 2023, 831,000 restricted stock units were granted to officers and directors. Each unit represents the right to receive one common share, and vests over a period of two years from the grant date at the rate of one The fair value of the restricted stock units on the date of grant are discounted to reflect the difference between the vesting dates and the expected issuance dates, to be expensed over the respective vesting periods with an increase to contributed surplus. A summary of restricted stock units: Number Weighted average of units (000’s) grant-date price Balance, September 30, 2021 954 C$ 8.48 Forfeited (105) 8.48 Granted 81 6.83 Balance, September 30, 2022 930 C$ 8.34 Settled (727) 8.30 Granted 831 8.30 Balance, September 30, 2023 1,034 C$ 8.34 The Company accounts for stock-based compensation using the fair value method as prescribed by International Financial Reporting Standards 2 For the years ended September 30, 2023 and 2022, the Company recorded stock-based compensation expense as follows: Year Ended Year Ended September 30, September 30, 2023 2022 Restricted stock units $ 3,383 $ 2,659 Stock options 1,897 2,834 Stock-based compensation expense $ 5,280 $ 5,493 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and contingencies | |
Commitments and contingencies | 12. Commitments and contingencies Commitments The Company leases certain facilities with terms of less than a year that are classified as operating leases. Future payments pursuant to these leases are $34,000 as of September 30, 2023, which are due in less than one year. Contingencies From time to time, the Company is involved in various legal proceedings arising from the ordinary course of business. None of the matters in which the Company is currently involved, either individually, or in the aggregate, is expected to have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. |
Operating expenses
Operating expenses | 12 Months Ended |
Sep. 30, 2023 | |
Operating expenses | |
Operating expenses | 13. Operating expenses Year Ended Year Ended September 30, September 30, 2023 2022 Payroll and employee benefits $ 67,720 $ 41,456 Facilities 5,000 3,360 Billing 9,140 6,346 Professional fees 3,561 3,100 Outbound freight 4,157 2,165 Vehicle fuel and maintenance 4,166 2,905 Bank and credit card fees 1,752 989 Technology 1,461 814 Insurance 1,651 1,609 All other 4,616 2,459 Total operating expenses $ 103,224 $ 65,203 |
Income taxes
Income taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income taxes | |
Income taxes | 14. Income taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, current income taxes are recognized for the estimated income taxes payable for the current year. Deferred income tax assets and liabilities are recognized for temporary differences between the tax and accounting basis of assets and liabilities as well as for the benefit of losses available to be carried forward to future years for tax purposes and are measured using the current or substantively enacted tax rates expected to apply when the differences reverse. A deferred tax asset is recognized to the extent that the recoverability of deferred income tax assets is considered probable. The Company’s provision (benefit) for income taxes differs from the amount that is computed by applying the combined federal and state statutory income tax rates in the US of 27.6% and 25.9% for the years ended September 30, 2023 and 2022, respectively, to the Company’s income (loss) before income tax expense (benefit) as follows: Year Ended Year Ended September 30, September 30, 2023 2022 Income (loss) before taxes $ (2,699) $ 2,935 Expected income tax provision (benefit) (748) 759 Difference in foreign tax rates 33 (57) Compensation and non-deductible expenses 1,355 1,436 Recognition of deferred tax assets not previously recognized (713) (3,820) Other income from government grant — (1,101) State taxes — 609 Tax rate changes and other adjustments 158 270 Provision (benefit) for income taxes $ 85 $ (1,904) Deferred tax The following table summarizes the components of deferred tax: Year Ended Year Ended September 30, September 30, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 1,450 $ 5,403 Lease liabilities 4,519 2,202 Reserve for expected credit losses 2,481 2,779 Accrued and stock-based compensation 3,107 — Goodwill 2,185 — Interest expense 1,103 — Other 621 171 Deferred tax liabilities: Property, equipment, and right of use assets, net (11,716) (8,498) Intangible assets, net (4,094) (2,034) Other — (23) Net deferred tax liability $ (344) $ — Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. Year Ended Year Ended September 30, September 30, 2023 2022 Balance at beginning of year $ — $ — Recognized in consolidated statement of income (loss) (547) (2,513) Recognized in goodwill 891 2,513 Balance at end of year $ 344 $ — Unrecognized deferred tax assets Deferred tax assets have not been recognized in respect of the following deductible temporary differences. The following is the activity for deferred taxes: Year Ended Year Ended September 30, September 30, 2023 2022 Net operating and capital loss carryforwards $ 15,073 $ 7,672 Share issuance costs 839 292 Other temporary differences 150 47 $ 16,062 $ 8,011 The US loss carryforwards of approximately $22,000,000 expire in 2031 through 2038 whereas the remaining US loss of approximately $13,000,000 can be carried forward indefinitely. A deferred tax asset has been recognized to the extent that it can be utilized to offset taxable income generated by the reversal of deferred tax liabilities. The remaining amount has not been recognized because it is not probable that future profit will be available to utilize the benefit. The Canadian non-capital loss carry-forwards of approximately $27,700,000 have various expiry dates starting in 2027 through 2043. The net capital losses of approximately $1,000,000 can be carried forward indefinitely. A deferred tax asst has not been recognized because it is not probable that future profit will be available to utilize the benefit. |
Income (loss) per share
Income (loss) per share | 12 Months Ended |
Sep. 30, 2023 | |
Income (loss) per share | |
Income (loss) per share | 15. Income (loss) per share Income (loss) per common share is calculated using the weighted average number of common shares outstanding during the period. Diluted loss per share amounts are calculated giving effect to the potential dilution that would occur from the incremental shares issued if in-the-money equity awards were exercised or converted to common shares by assuming the proceeds received from the exercise of stock options are used to purchase common shares at the prevailing market price. For periods with a net loss, the potential dilutive shares were excluded because their effect is anti-dilutive. The following reflects the earnings and share data used in the basic and diluted income (loss) per share computations: Year Ended Year Ended September 30, September 30, 2023 2022 Net income (loss) $ (2,784) $ 4,839 Basic weighted average number of shares 38,607 33,647 Diluted weighted average number of shares 38,607 36,302 Total - Basic $ (0.07) $ 0.14 Total - Diluted $ (0.07) $ 0.13 The effect of instruments exercisable or convertible to common shares for the year ended September 30, 2023 were excluded from the calculation of diluted loss per share because their effect is anti-dilutive. |
Related party transactions
Related party transactions | 12 Months Ended |
Sep. 30, 2023 | |
Related party transactions | |
Related party transactions | 16. Related party transactions The Company has six leases for office, warehouse, and retail space with a rental company affiliated with the Company’s Chief Executive Officer, the majority of which were entered into in 2015. The leases have a combined area of 74,520 square feet. Lease payments under these leases are approximately $52,000 per month for the year ended September 30, 2022, and increased to approximately $65,000 per month beginning October 2022, with increases on October 1 of each year equal to the greater of (i) the Consumer Price Index for All Urban Consumers (CPI-U), and (ii) 3%. One lease expires in June 2026 and the remaining five leases expire on September 30, 2029. Expense for Board of Directors’ fees were $294,000 and $287,000 for the years ended September 30, 2023 and 2022, respectively. Stock-based compensation for the Board of Directors was $1,517,000 and $381,000 for the years ended September 30, 2023 and 2022, respectively. Key management personnel also participate in the Company’s share option program (see Note 11). The Company paid or accrued compensation to key management personnel the following: Year Ended Year Ended September 30, September 30, 2023 2022 Salaries and benefits paid during the year $ 1,102 $ 1,030 Stock-based compensation 1,669 2,626 Total $ 2,771 $ 3,656 |
Basis of Presentation and sum_2
Basis of Presentation and summary of significant accounting policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and summary of significant accounting policies | |
Basis of accounting | Basis of accounting These financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issue by the Board of Directors on December 21, 2023. The consolidated financial statements, which are presented in US dollars, have been prepared under the historical cost convention, as modified by the measurement at fair values of certain financial assets and financial liabilities. |
Basis of measurement | 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 operation. |
Functional currency | Functional currency The consolidated financial statements of the Company are presented in US dollars, which is the Company’s functional currency. Determined using management’s judgment that the primary economic environment in which it will derive its revenue and expenses incurred to generate those revenues is the United States. Management has exercised judgment in selecting the functional currency of each of the entities that it consolidates based on the primary economic environment in which the entity operates and in reference to the various indicators including the currency that primarily influences or determines the selling prices of goods and services and the cost of production, including labor, material and other costs and the currency whose competitive forces and regulations mainly determine selling prices. |
Principles of consolidation | Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated. The Company’s consolidated entities, which all have a functional currency of USD and ownership of 100% are as follows: 100 W. Commercial Street, LLC Medical West Healthcare Center, LLC Acadia Medical Supply, Inc. Metro-Med, Inc. Access Respiratory Home Care, L.L.C. Metro-Med, Inc. - Los Alamitos Alliance Home Care & Mobile Diagnostics, L.L.C. Metro-Med, Inc. - Ventura At Home Health Equipment, LLC NorCal Respiratory, Inc. Black Bear Medical, Inc. Northwest Medical, LLC Black Bear Medical Group, Inc. Oxygen Plus Black Bear Medical NH, Inc. Patient-Aids, Inc. Care Medical Atlanta, LLC Patient Home Monitoring, Inc Care Medical of Athens, Inc. QHM Holdings, Inc. Care Medical of Augusta, LLC QHM Investments I, LLC Care Medical of Gainesville, LLC Quipt Home Medical, Inc. Care Medical Partners, LLC Rejuvenight, LLC Care Medical Savannah, LLC Resource Medical, Inc. Central Oxygen, Inc. Resource Medical Group Charleston, LLC Coastal Med-Tech Corp. Resource Medical Group, LLC Cooley Medical Equipment, Incorporated Respicare, Inc. Focus Respiratory, LLC Riverside Medical, Inc. Good Night Medical, LLC RTA Homecare, LLC Good Night Medical of Ohio, LLC Semo Drugs - Care Plus of Mo, Inc. Good Night Medical of Texas, Inc Sleep Health Diagnostics, LLC Great Elm Healthcare, LLC Sleepwell, LLC Health Technology Resources, LLC Southeastern Biomedical Services, LLC Heartland Health Therapy, LLC Southern Pharmaceutical Corporation Heckman Healthcare Service & Supplies Inc. Thrift Home Care, Inc. Hometown Medical LLC Tuscan, Inc. Legacy Oxygen and Home Care Equipment, LLC United Respiratory Services, LLC Mayhugh Drugs, Inc. West Home Healthcare, Inc. Med Supply Center, Inc. The Company’s share of loss in investment is recorded on the equity method whereby the Company records “share of loss in equity method investment” on the consolidated statements of income (loss) and comprehensive income (loss) for its pro rata share ownership percentage of the investee’s net income (loss). |
Critical accounting estimates | Critical accounting estimates The preparation of financial statements in accordance with IFRS requires management to make certain estimates, judgments, and assumptions concerning the future. The Company’s management reviews these estimates, judgments, and assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted prospectively in the period in which the estimates are revised. Estimates where management has made subjective judgments and where there is significant risk of material adjustments to assets and liabilities in future accounting periods include fair value measurements for financial instruments and share-based transactions, useful lives and impairment of non-financial assets (property and equipment and intangible assets), provision for expected credit losses, fair value measurements for assets and liabilities acquired in business acquisitions, and calculation of deferred taxes. The following are the key estimate and assumption uncertainties that have a significant risk of resulting in a material adjustment within the next financial year: a) Revenue recognition Revenues are billed to, and collections are received from customers. Because of continuing changes in the health care industry and third-party reimbursement, the consideration receivable from these insurance companies is variable as these billings can be challenged by the payor. Therefore, the amount billed by the Company is reduced by an estimate of the amount that the Company believes is an amount to be ultimately allowed by the insurance contract, including co-pays and deductibles. This estimate involves significant judgment including an analysis of past collections and historical modification rates. Management regularly reviews the actual claims approved by the insurance companies, adjusting estimated revenue as necessary. The Company does not offer warranties to customers in excess of the manufacturer’s warranty. Any taxes due upon sale of the products or services are not recognized as revenue. The Company does not have any partially or unfilled performance obligations related to contracts with customers and as such, the Company has no contract liabilities during the years ended September 30, 2023 and 2022. Rental of medical equipment The Company rents medical equipment to customers for a fixed monthly amount on a month-to-month basis. The customer has the right to cancel the lease at any time during the rental period. The Company considers these rentals to be operating leases. Under IFRS 16 - Leases Sales of medical equipment and supplies The Company sells equipment, consumable supplies, and replacement parts to customers and recognizes revenue based at delivery, as all performance obligations have been met. |
Revenue recognition | a) Revenue recognition |
Valuation of accounts receivable | b) Valuation of accounts receivable The measurement of expected credit losses considers information about past events and current conditions. Significant judgments are made in order to incorporate forward-looking information into the estimation of reserves and may result in changes to the provision from period to period which may significantly affect our results of operations. The Company estimates that a certain portion of receivables from customers may not be collected and maintains a reserve for expected credit losses. The Company evaluates the net realizable value of accounts receivable as of the date of the consolidated balance sheets, considering current and historical cash collections, the age of the accounts receivable, and relevant business conditions. If circumstances related to certain customers change or actual results differ from expectations, the estimate of the recoverability of receivables could fluctuate from that provided for in our consolidated financial statements. A change in estimate could impact bad debt expense and accounts receivable. c) Property and equipment Property and equipment are stated at cost less accumulated depreciation. Major renewals and improvements are charged to the property accounts, while maintenance, and repairs which do not extend the useful life of the respective assets, are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives of the assets are as follows: Description Estimated Useful Life Rental equipment 1 - 5 years Computer equipment 3 - 5 years Office furniture and fixtures 5 - 10 years Leasehold improvements Life of lease 1 - 7 years Right-of-use vehicles Life of lease 1 - 5 years Right-of-use real estate leases Life of lease 1 - 10 years Depreciation of rental equipment commences once it has been delivered to a patient’s address and put in use. Property and equipment and other non-current assets with definite useful lives are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. |
Property and equipment | c) Property and equipment |
Intangible assets | d) Intangible assets The Company has recorded various intangible assets consisting primarily of non-compete agreements, trademarks, customer contracts and customer relationships. Non-compete agreements are the value associated with the non-compete agreements entered by the sellers of acquired companies. Trademarks are the purchase price allocation for the value associated with the trade name of the acquired company. Customer contracts are comprised of the purchase price allocation of the present value of expected future customer billings based on the statistical life of a customer. Customer relationships are the value given in the purchase price allocation to the long-term associations with referral sources such as doctors, medical centers, etc. Definite life intangible assets are amortized on a straight-line basis over the estimated useful lives of the related assets as follows: Description Estimated Useful Life Non-compete agreements 5 Years Trademarks 10 Years Customer contracts 2 Years Customer relationships 10 - 20 Years The Company reviews the estimates for useful lives on an annual basis, or more frequently if events during the year indicate that a change may be required, with consideration given to technological obsolescence and other relevant business factors. A change in management’s estimate could impact depreciation/amortization expense and the carrying value of property and equipment and intangible assets. |
Share-based payments | e) Share-based payments The amounts used to estimate fair values of stock options issued are based on estimates of future volatility of the Company’s share price, expected lives of the options, expected dividends to be paid by the Company and other relevant assumptions. By their nature, these estimates are subject to measurement uncertainty and the effect of changes in such estimates on the consolidated financial statements of future periods could be significant. |
Income taxes | f) Income taxes Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Company recognizes liabilities and contingencies for anticipated tax audit issues based on the Company’s current understanding of the tax law. For matters where it is probable that an adjustment will be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision. Management believes they have adequately provided for the probable outcome of these matters; however, the final outcome may result in a materially different outcome than the amount included in the tax liabilities. In addition, the Company recognizes deferred tax assets relating to tax losses carried forward to the extent there are sufficient taxable temporary differences (deferred tax liabilities) relating to the same taxation authority and the same taxable entity against which the unused tax losses can be utilized. Utilization of the tax losses depends on the ability of the taxable entity to satisfy certain tests at the time the losses are recouped. |
Lease liabilities | g) Lease liabilities Estimate of lease term When the Company recognizes a lease, it assesses the lease term based on the conditions of the lease and determines whether it is probable that it will choose to extend the lease at the end of the initial lease term. This significant estimate could affect future results if the Company extends the lease or exercises an early termination option. Incremental borrowing rate When the Company recognizes a lease, the future lease payments are discounted using the Company’s incremental borrowing rate. This significant estimate impacts the carrying amount of the lease liabilities and the interest expense recorded on the consolidated statement of income (loss) and comprehensive income (loss). |
Business combinations | a) Business combinations In accordance with IFRS 3 – Business Combinations |
Goodwill impairment | Management has evaluated the recoverable amount for its cash generating unit and applied judgment in the discount rate and other underlying assumptions used in impairment analysis of goodwill. For the purposes of impairment testing, assets are grouped at the lowest levels of integrated assets that generate identifiable cash inflows that are largely independent of the cash inflows of other assets or groups of assets, termed as a cash-generating unit (“CGU”). The allocation of assets into a CGU requires significant judgment and interpretations with respect to the integration between assets, the existence of active markets, similar exposure to market risks, shared infrastructures and the way in which management monitors the operations. Effective July 1, 2023, the Company changed its CGUs to align with its internal regional management and reporting. The Company reviews the value in use versus the carrying value both in total and for each of the individual assets. The recoverable amount of the CGUs was estimated based on an assessment of value in use using a discounted cash flow approach. The approach uses cash flow projections based upon a financial forecast approved by management, covering a five-year period. Cash flows for the years thereafter are extrapolated using the estimated terminal growth rate. The risk premiums expected by market participants related to uncertainties about the industry and assumptions relating to future cash flows may differ or change quickly, depending on economic conditions and other events. |
Foreign currency transactions | c ) Foreign currency transactions Transactions in foreign currencies are initially recorded by the Company’s entities in their respective functional currency at the foreign currency spot rate or the rate realized in the transaction. Monetary items are translated at the foreign currency spot rate as of the reporting date. Exchange differences from monetary items are recognized in profit or loss. Non-monetary items that are not carried at fair value are translated using the exchange rates at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The assets and liabilities of foreign operations are translated into US dollars at the rate of exchange prevailing at the reporting date and their statements of operations are translated at the weighted average monthly rates of exchange. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that foreign operation is recognized in the statement of loss and comprehensive loss. |
Financial instruments | Financial instruments Fair value measurement Financial instruments carried at fair value on the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 – Where financial instruments are traded in active financial markets; fair value is determined by reference to the appropriate quoted market price at the reporting date. Active markets are those in which transactions occur in significant frequency and volume to provide pricing information on an ongoing basis; Level 2 – If there is no active market, fair value is established using valuation techniques, including discounted cash flow models. The inputs to these models are taken from observable market data where possible, including recent arm’s length market transaction and comparisons to the current fair value of similar instruments, but where this is not feasible, inputs such as liquidity risk, credit risk, and volatility are used; and Level 3 – In this level, fair value determinations are made with inputs other than observable market data. Cash is classified as Level 1. |
Basis of Presentation and sum_3
Basis of Presentation and summary of significant accounting policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and summary of significant accounting policies | |
Schedule of subsidiaries | 100 W. Commercial Street, LLC Medical West Healthcare Center, LLC Acadia Medical Supply, Inc. Metro-Med, Inc. Access Respiratory Home Care, L.L.C. Metro-Med, Inc. - Los Alamitos Alliance Home Care & Mobile Diagnostics, L.L.C. Metro-Med, Inc. - Ventura At Home Health Equipment, LLC NorCal Respiratory, Inc. Black Bear Medical, Inc. Northwest Medical, LLC Black Bear Medical Group, Inc. Oxygen Plus Black Bear Medical NH, Inc. Patient-Aids, Inc. Care Medical Atlanta, LLC Patient Home Monitoring, Inc Care Medical of Athens, Inc. QHM Holdings, Inc. Care Medical of Augusta, LLC QHM Investments I, LLC Care Medical of Gainesville, LLC Quipt Home Medical, Inc. Care Medical Partners, LLC Rejuvenight, LLC Care Medical Savannah, LLC Resource Medical, Inc. Central Oxygen, Inc. Resource Medical Group Charleston, LLC Coastal Med-Tech Corp. Resource Medical Group, LLC Cooley Medical Equipment, Incorporated Respicare, Inc. Focus Respiratory, LLC Riverside Medical, Inc. Good Night Medical, LLC RTA Homecare, LLC Good Night Medical of Ohio, LLC Semo Drugs - Care Plus of Mo, Inc. Good Night Medical of Texas, Inc Sleep Health Diagnostics, LLC Great Elm Healthcare, LLC Sleepwell, LLC Health Technology Resources, LLC Southeastern Biomedical Services, LLC Heartland Health Therapy, LLC Southern Pharmaceutical Corporation Heckman Healthcare Service & Supplies Inc. Thrift Home Care, Inc. Hometown Medical LLC Tuscan, Inc. Legacy Oxygen and Home Care Equipment, LLC United Respiratory Services, LLC Mayhugh Drugs, Inc. West Home Healthcare, Inc. Med Supply Center, Inc. |
Schedule of depreciation on Property and Equipment Using the Straight Line Method | Description Estimated Useful Life Rental equipment 1 - 5 years Computer equipment 3 - 5 years Office furniture and fixtures 5 - 10 years Leasehold improvements Life of lease 1 - 7 years Right-of-use vehicles Life of lease 1 - 5 years Right-of-use real estate leases Life of lease 1 - 10 years |
Schedule of estimated Useful Lives of Intangible Assets | Description Estimated Useful Life Non-compete agreements 5 Years Trademarks 10 Years Customer contracts 2 Years Customer relationships 10 - 20 Years |
Acquisitions of and investmen_2
Acquisitions of and investment in businesses (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Acquisition of businesses and purchase accounting | |
Schedule of purchase price allocation | Balance, September 30, 2021 (current $2,383, long-term $133) $ 2,516 Addition from acquisitions 7,155 Accretion of interest 102 Derecognition of purchase price payable (178) Payments (3,817) Balance, September 30, 2022 (current $5,778) $ 5,778 Accretion of interest 128 Addition from acquisitions 1,274 Derecognition of purchase price payable (640) Payments (5,083) Balance, September 30, 2023 (current $1,457) $ 1,457 |
Great Elm Healthcare, LLC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Accounts receivable $ 5,531 Inventory 1,398 Prepaid and other current assets 584 Property, equipment, and right of use assets 13,261 Goodwill 22,826 Intangible assets 47,820 Other assets 161 Accounts payable (6,085) Accrued liabilities (3,845) Deferred revenue (1,022) Equipment loans (4,259) Lease liabilities (2,801) Net assets acquired $ 73,569 Cash paid at closing $ 72,689 Cash received from working capital adjustment (360) Cash acquired (820) Equity issued at closing 2,060 Consideration paid or payable $ 73,569 |
SPC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Accounts receivable $ 1,000 Inventory 1,374 Prepaid and other current assets 4 Property, equipment, and right of use assets 2,048 Goodwill 2,335 Intangible assets 2,530 Accounts payable (1,483) Accrued liabilities (197) Deferred revenue (212) Equipment loans (1,063) Lease liabilities (1,142) Deferred income taxes (891) Net assets acquired $ 4,303 Cash paid at closing $ 3,153 Cash acquired (124) Cash to be paid after closing, included in purchase price payable 1,274 Consideration paid or payable $ 4,303 |
Thrift Home Care, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 452 Accounts receivable 165 Inventory 107 Property, equipment, and right of use assets, net 1,158 Goodwill 802 Intangible assets 770 Accounts payable (140) Accrued liabilities (33) Deferred revenue (40) Deferred tax liability (262) Loans and leases (810) Net assets acquired $ 2,169 Cash paid at closing $ 1,804 Cash to be paid after closing, included in purchase price payable 365 Consideration paid or payable $ 2,169 |
Heckman Healthcare Services & Supplies, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 169 Accounts receivable 170 Inventory 280 Property, equipment, and right of use assets, net 1,165 Goodwill 965 Intangible assets 90 Accounts payable (159) Accrued liabilities (96) Deferred revenue (27) Deferred tax liability (122) Net assets acquired $ 2,435 Cash paid at closing $ 2,103 Cash to be paid after closing, included in purchase price payable 332 Consideration paid or payable $ 2,435 |
Southeastern Biomedical Services, LLC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Accounts receivable $ 112 Inventory 53 Property, equipment, and right of use assets, net 306 Goodwill 225 Intangible assets 270 Accounts payable (131) Loans and leases (138) Net assets acquired $ 697 Cash paid at closing $ 600 Cash to be paid after closing, included in purchase price payable 97 Consideration paid or payable $ 697 |
At Home Health Equipment, LLC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 495 Accounts receivable 1,346 Inventory 1,211 Prepaid expenses 71 Property, equipment, and right of use assets, net 2,085 Goodwill 7,868 Intangible assets 4,170 Accounts payable (600) Accrued liabilities (346) Deferred revenue (135) Deferred tax liability (1,448) Loans and leases (1,067) Net assets acquired $ 13,650 Cash paid at closing $ 11,978 Cash to be paid after closing, included in purchase price payable 1,672 Consideration paid or payable $ 13,650 |
Good Night Medical, LLC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 42 Accounts receivable 730 Inventory 369 Property, equipment, and right of use assets, net 696 Goodwill 3,277 Intangible assets 3,470 Accounts payable (1,200) Accrued liabilities (166) Deferred revenue (39) Loans and leases (1,017) Net assets acquired $ 6,162 Cash paid at closing $ 4,361 Cash to be paid after closing, included in purchase price payable 1,801 Consideration paid or payable $ 6,162 |
Access Respiratory Home Care, LLC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 417 Accounts receivable 741 Inventory 622 Property, equipment, and right of use assets, net 1,492 Goodwill 1,223 Intangible assets 3,180 Accounts payable (200) Accrued liabilities (319) Deferred revenue (90) Loans and leases (471) Net assets acquired $ 6,595 Cash paid at closing $ 5,347 Cash to be paid after closing, included in purchase price payable 1,248 Consideration paid or payable $ 6,595 |
NorCal Respiratory, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 503 Accounts receivable 315 Inventory 492 Property, equipment, and right of use assets, net 1,044 Goodwill 948 Intangible assets 1,400 Accounts payable (100) Accrued liabilities (67) Deferred revenue (93) Deferred tax liability (680) Loans and leases (682) Net assets acquired $ 3,080 Cash paid at closing $ 2,494 Cash to be paid after closing, included in purchase price payable 586 Consideration paid or payable $ 3,080 |
Hometown Medical LLC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 723 Accounts receivable 665 Inventory 778 Property, equipment, and right of use assets, net 2,187 Goodwill 407 Intangible assets 3,250 Accounts payable (721) Accrued liabilities (66) Deferred revenue (129) Loans and leases (1,202) Net assets acquired $ 5,892 Cash paid at closing $ 4,838 Cash to be paid after closing, included in purchase price payable 1,054 Consideration paid or payable $ 5,892 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable | |
Schedule of accounts receivable | As at As at September 30, 2023 September 30, 2022 Gross receivable $ 35,374 $ 27,122 Reserve for expected credit losses (9,396) (10,739) $ 25,978 $ 16,383 |
Schedule of movement in the reserve for expected credit losses | Year ended Year ended September 30, September 30, Reserve for expected credit losses 2023 2022 Opening Balance $ 10,739 $ 3,475 Bad debt expense 10,065 12,225 Amounts written off (11,408) (4,961) Ending Balance $ 9,396 $ 10,739 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventory | |
Schedule of inventory | As at September 30, As of September 30, 2023 2022 Serialized $ 6,733 $ 5,814 Non-serialized 11,895 9,854 Reserve for slow-moving (214) (83) Total Inventory $ 18,414 $ 15,585 |
Property, equipment, and righ_2
Property, equipment, and right of use assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, equipment, and right of use assets | |
Schedule of property, equipment, and right of use assets | Office Buildings and Right of use Right of use Rental furniture and leasehold assets – assets – Real Cost equipment fixtures Land improvements Vehicles estate Total Balance September 30, 2021 $ 31,146 $ 482 $ — $ 1,498 $ 4,175 $ 7,750 $ 45,051 Transfers from inventory 17,797 — — — — — 17,797 Additions — 11 20 191 508 2,106 2,836 Acquisitions 3,952 218 140 802 1,274 3,747 10,133 Disposals and write offs (15,954) (262) — (60) (1,177) (1,217) (18,670) Balance September 30, 2022 $ 36,941 $ 449 $ 160 $ 2,431 $ 4,780 $ 12,386 $ 57,147 Transfers from inventory 29,279 — — — — — 29,279 Additions — 11 — 90 2,246 7,938 10,285 Acquisitions 9,452 820 — 546 931 3,560 15,309 Disposals and write offs (13,989) (156) — (20) (1,230) (2,657) (18,052) Balance September 30, 2023 $ 61,683 $ 1,124 $ 160 $ 3,047 $ 6,727 $ 21,227 $ 93,968 Office Buildings and Right of use Right of use Rental furniture and leasehold assets – assets – Real Accumulated depreciation equipment fixtures Land improvements Vehicles estate Total Balance September 30, 2021 $ 16,419 $ 383 $ — $ 431 $ 1,635 $ 2,677 $ 21,545 Depreciation 15,980 66 — 191 1,477 2,738 20,452 Disposals and write offs (15,954) (259) — (26) (990) (1,118) (18,347) Balance September 30, 2022 $ 16,445 $ 190 $ — $ 596 $ 2,122 $ 4,297 $ 23,650 Depreciation 28,945 151 — 204 1,598 4,067 34,965 Disposals and write offs (13,989) (156) — (20) (1,230) (2,657) (18,052) Balance September 30, 2023 $ 31,401 $ 185 $ — $ 780 $ 2,490 $ 5,707 $ 40,563 Office Buildings and Right of use Right of use Rental furniture and leasehold assets – assets – Real Net Book Value equipment fixtures Land improvements Vehicles estate Total Balance September 30, 2021 $ 14,727 $ 99 $ — $ 1,067 $ 2,540 $ 5,073 $ 23,506 Balance September 30, 2022 $ 20,496 $ 259 $ 160 $ 1,835 $ 2,658 $ 8,089 $ 33,497 Balance September 30, 2023 $ 30,282 $ 939 $ 160 $ 2,267 $ 4,237 $ 15,520 $ 53,405 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets | |
Schedule of goodwill and intangible assets | Sub-total intangibles Customer Other with finite Cost Goodwill relationships intangibles lives Total Balance September 30, 2021 $ 12,456 $ 20,690 $ 8,109 $ 28,799 $ 41,255 Acquisitions 15,752 14,210 2,390 16,600 32,352 Disposals — (2) — (2) (2) Balance September 30, 2022 $ 28,208 $ 34,898 $ 10,499 $ 45,397 $ 73,605 Acquisitions 25,161 44,190 6,160 50,350 75,511 Adjustments to prior year acquisitions (544) — — — (544) Disposals — — (517) (517) (517) Balance September 30, 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, 2021 $ — $ 8,267 $ 5,658 $ 13,925 $ 13,925 Amortization — 2,080 507 2,587 2,587 Disposals — (2) — (2) (2) Balance September 30, 2022 $ — $ 10,345 $ 6,165 $ 16,510 $ 16,510 Amortization — 4,142 1,055 5,197 5,197 Disposals — — (517) (517) (517) Balance September 30, 2023 $ — $ 14,487 $ 6,703 $ 21,190 $ 21,190 Sub-total intangibles Customer Other with finite Net carrying amount Goodwill relationships intangibles lives Total Balance September 30, 2021 $ 12,456 $ 12,423 $ 2,451 $ 14,874 $ 27,330 Balance September 30, 2022 $ 28,208 $ 24,553 $ 4,334 $ 28,887 $ 57,095 Balance September 30, 2023 $ 52,825 $ 64,601 $ 9,439 $ 74,040 $ 126,865 |
Schedule of goodwill, Acquisition through business combination | Balance, September 30, 2021 $ 12,456 Acquisition through business combination: Medical West 37 Thrift 802 Heckman 965 Southeastern Bio 225 At Home 7,868 Good Night Medical 3,277 Access 1,223 NorCal 948 Hometown 407 Balance, September 30, 2022 $ 28,208 Acquisition through business combination: Access (180) Good Night Medical 12 Hometown (259) NorCal (117) Great Elm 22,826 Southern 2,335 Balance, September 30, 2023 $ 52,825 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Deferred Revenue | |
Schedule of Deferred Revenue | For the year ended For the year ended September 30, 2023 September 30, 2022 Beginning balance $ 3,036 $ 2,452 Acquisitions 1,234 553 Operations 241 31 Ending balance $ 4,511 $ 3,036 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Long-term Debt | |
Schedule of lease liabilities | Real Vehicles estate Total Balance, September 30, 2021 $ 2,414 $ 5,351 $ 7,765 Additions during the period: Acquisitions 571 3,655 4,226 Operations 347 2,063 2,410 Lease terminations — (80) (80) Repayments (1,339) (2,483) (3,822) Balance, September 30, 2022 $ 1,993 $ 8,506 $ 10,499 Additions during the period: Acquisitions 583 3,361 3,944 Operations 1,159 7,938 9,097 Lease terminations — (13) (13) Repayments (821) (3,556) (4,377) Balance, September 30, 2023 $ 2,914 $ 16,236 $ 19,150 |
Schedule of future payments of lease liabilities | As at As at September 30, 2023 September 30, 2022 Less than 1 year $ 6,422 $ 3,979 Between 1 and 5 years 15,280 7,443 More than five years 760 1,108 Gross lease payments 22,462 12,530 Less amounts relating to interest (3,312) (2,031) Net lease liabilities $ 19,150 $ 10,499 |
Senior credit facility | |
Long-term Debt | |
Schedule of borrowings | As of As of September 30, 2023 September 30, 2022 Delayed-draw term loan $ 61,600 $ — Term loan 4,750 5,000 Revolving credit facility — 7,000 Total principal 66,350 12,000 Deferred financing costs (1,884) (1,765) Net carrying value $ 64,466 $ 10,235 Current portion 3,352 6,857 Long-term portion 61,114 3,378 Net carrying value $ 64,466 $ 10,235 |
Convertible unsecured debentures | |
Long-term Debt | |
Schedule of borrowings | Year Ended September 30, 2022 Beginning Balance $ 11,784 Conversion to common shares (10,683) Change in fair value (1,150) Change in foreign exchange rate 49 Ending Balance $ — |
Equipment loans | |
Long-term Debt | |
Schedule of borrowings | Year Ended Year Ended September 30, 2023 September 30, 2022 Beginning Balance $ 5,707 7,384 Additions: Acquisitions 5,322 1,161 Operations 23,615 9,062 Repayments (20,297) (11,900) Ending Balance 14,347 5,707 Current portion, less than 1 year 14,114 5,473 Long-term portion, due between 1 and 5 years $ 233 $ 234 |
SBA loan | |
Long-term Debt | |
Schedule of borrowings | Year Ended Year Ended September 30, 2023 September 30, 2022 Beginning Balance $ 120 $ 121 Loss on extinguishment of debt 30 — Repayments (150) (1) Ending Balance $ — $ 120 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Stockholder's Equity | |
Schedule of fair value of the stock options | Year Ended Year Ended September 30, September 30, 2023 2022 Share price at grant date C$8.30 C$6.20 - C$6.75 Risk-free interest rate 3.29% 1.78 - 3.33% Expected volatility 51.95% 54.54 - 55.67% Expected life of option 10 years 10 years Expected dividend yield Nil Nil |
Summary of restricted stock units | Number Weighted average of units (000’s) grant-date price Balance, September 30, 2021 954 C$ 8.48 Forfeited (105) 8.48 Granted 81 6.83 Balance, September 30, 2022 930 C$ 8.34 Settled (727) 8.30 Granted 831 8.30 Balance, September 30, 2023 1,034 C$ 8.34 |
Schedule of stock-based compensation expense | Year Ended Year Ended September 30, September 30, 2023 2022 Restricted stock units $ 3,383 $ 2,659 Stock options 1,897 2,834 Stock-based compensation expense $ 5,280 $ 5,493 |
Compensation options to underwriters | |
Stockholder's Equity | |
Summary of options activity | Number Weighted (000s) average exercise price Balance, September 30, 2021 115 C$ 4.60 Exercised (115) 4.60 Balance, September 30, 2022 — C$ — |
Stock options | |
Stockholder's Equity | |
Summary of options activity | Weighted Number of options (000’s) average exercise price Balance, September 30, 2021 3,786 C$ 4.15 Granted 195 6.93 Exercised (33) 0.99 Expired (55) 2.40 Forfeited (142) 6.87 Balance, September 30, 2022 3,751 C$ 4.24 Granted 435 8.30 Exercised (130) 5.01 Expired (48) 6.94 Forfeited (51) 7.22 Balance, September 30, 2023 3,957 C$ 4.49 |
Operating expenses (Tables)
Operating expenses (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Operating expenses | |
Schedule of operating expenses | Year Ended Year Ended September 30, September 30, 2023 2022 Payroll and employee benefits $ 67,720 $ 41,456 Facilities 5,000 3,360 Billing 9,140 6,346 Professional fees 3,561 3,100 Outbound freight 4,157 2,165 Vehicle fuel and maintenance 4,166 2,905 Bank and credit card fees 1,752 989 Technology 1,461 814 Insurance 1,651 1,609 All other 4,616 2,459 Total operating expenses $ 103,224 $ 65,203 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income taxes | |
Schedule of Company's provision for (recovery of) income taxes differs from the amount that is computed by applying the combined federal and state statutory income tax rate | Year Ended Year Ended September 30, September 30, 2023 2022 Income (loss) before taxes $ (2,699) $ 2,935 Expected income tax provision (benefit) (748) 759 Difference in foreign tax rates 33 (57) Compensation and non-deductible expenses 1,355 1,436 Recognition of deferred tax assets not previously recognized (713) (3,820) Other income from government grant — (1,101) State taxes — 609 Tax rate changes and other adjustments 158 270 Provision (benefit) for income taxes $ 85 $ (1,904) |
Summary of components of deferred tax | Year Ended Year Ended September 30, September 30, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 1,450 $ 5,403 Lease liabilities 4,519 2,202 Reserve for expected credit losses 2,481 2,779 Accrued and stock-based compensation 3,107 — Goodwill 2,185 — Interest expense 1,103 — Other 621 171 Deferred tax liabilities: Property, equipment, and right of use assets, net (11,716) (8,498) Intangible assets, net (4,094) (2,034) Other — (23) Net deferred tax liability $ (344) $ — |
Schedule of Deferred tax assets and liabilities offset related to income taxes | Year Ended Year Ended September 30, September 30, 2023 2022 Balance at beginning of year $ — $ — Recognized in consolidated statement of income (loss) (547) (2,513) Recognized in goodwill 891 2,513 Balance at end of year $ 344 $ — |
Schedule of Deferred taxes are provided as a result of temporary differences that arise due to the differences between the income tax values and the carrying number of assets and liabilities | Year Ended Year Ended September 30, September 30, 2023 2022 Net operating and capital loss carryforwards $ 15,073 $ 7,672 Share issuance costs 839 292 Other temporary differences 150 47 $ 16,062 $ 8,011 |
Income (loss) per share (Tables
Income (loss) per share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income (loss) per share | |
Schedule of earnings and share data used in the basic and diluted gain (loss) per share computation | Year Ended Year Ended September 30, September 30, 2023 2022 Net income (loss) $ (2,784) $ 4,839 Basic weighted average number of shares 38,607 33,647 Diluted weighted average number of shares 38,607 36,302 Total - Basic $ (0.07) $ 0.14 Total - Diluted $ (0.07) $ 0.13 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Related party transactions | |
Schedule of compensation to key management personnel | Year Ended Year Ended September 30, September 30, 2023 2022 Salaries and benefits paid during the year $ 1,102 $ 1,030 Stock-based compensation 1,669 2,626 Total $ 2,771 $ 3,656 |
Basis of Presentation and sum_4
Basis of Presentation and summary of significant accounting policies - Principles of consolidation (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and summary of significant accounting policies | |
Ownership percentages | 100% |
Basis of Presentation and sum_5
Basis of Presentation and summary of significant accounting policies - Revenue recognition (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Basis of Presentation and summary of significant accounting policies | ||
Contract liabilities sale of medical equipment and supplies | $ 0 | $ 0 |
Basis of Presentation and sum_6
Basis of Presentation and summary of significant accounting policies - Property and equipment (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Rental equipment | Minimum | |
Property and equipment | |
Useful economic life | 1 year |
Rental equipment | Maximum | |
Property and equipment | |
Useful economic life | 5 years |
Computer equipment | Minimum | |
Property and equipment | |
Useful economic life | 3 years |
Computer equipment | Maximum | |
Property and equipment | |
Useful economic life | 5 years |
Office furniture and fixtures | Minimum | |
Property and equipment | |
Useful economic life | 5 years |
Office furniture and fixtures | Maximum | |
Property and equipment | |
Useful economic life | 10 years |
Leasehold improvements | Minimum | |
Property and equipment | |
Useful economic life | 1 year |
Leasehold improvements | Maximum | |
Property and equipment | |
Useful economic life | 7 years |
Right-of-use vehicles | Minimum | |
Property and equipment | |
Useful economic life | 1 year |
Right-of-use vehicles | Maximum | |
Property and equipment | |
Useful economic life | 5 years |
Right-of-use real estate leases | Minimum | |
Property and equipment | |
Useful economic life | 1 year |
Right-of-use real estate leases | Maximum | |
Property and equipment | |
Useful economic life | 10 years |
Basis of Presentation and sum_7
Basis of Presentation and summary of significant accounting policies - Intangible assets (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Non-compete agreements | |
Intangible assets | |
Useful economic life | 5 years |
Trademarks | |
Intangible assets | |
Useful economic life | 10 years |
Customer contracts | |
Intangible assets | |
Useful economic life | 2 years |
Customer relationships | Minimum | |
Intangible assets | |
Useful economic life | 10 years |
Customer relationships | Maximum | |
Intangible assets | |
Useful economic life | 20 years |
Basis of Presentation and sum_8
Basis of Presentation and summary of significant accounting policies - Goodwill impairment (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and summary of significant accounting policies | |
Projected cash flows period | 5 years |
Acquisitions of and investmen_3
Acquisitions of and investment in businesses - Great Elm Healthcare, LLC - Narratives (Details) - Great Elm Healthcare, LLC | 9 Months Ended | 12 Months Ended | |
Jan. 03, 2023 USD ($) shares state $ / shares | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Acquisition of businesses and purchase accounting | |||
Number of states in which acquiree operates in same industry as company | state | 7 | ||
Purchase price | $ 73,569,000 | ||
Cash consideration | $ 72,689,000 | ||
Consideration in shares (Shares) | shares | 431,996 | ||
Issue price per share | $ / shares | $ 4.77 | ||
Equity issued at closing | $ 2,060,000 | ||
Cash acquired | 820,000 | ||
Cash received from working capital adjustment | $ 360,000 | ||
Professional fees in conjunction with the acquisition | $ 1,238,000 | ||
Revenue of acquiree since acquisition date | $ 50,800,000 | 67,500,000 | |
Profit (loss) of acquiree since acquisition date | $ 2,100,000 | $ 2,300,000 |
Acquisitions of and investmen_4
Acquisitions of and investment in businesses - Great Elm Healthcare, LLC - Asset and Liabilities acquired (Details) - Great Elm Healthcare, LLC | Jan. 03, 2023 USD ($) |
Acquisition of businesses and purchase accounting | |
Accounts receivable | $ 5,531,000 |
Inventory | 1,398,000 |
Prepaid and other current assets | 584,000 |
Property, equipment, and right of use assets, net | 13,261,000 |
Goodwill | 22,826,000 |
Intangible assets | 47,820,000 |
Other assets | 161,000 |
Accounts payable | (6,085,000) |
Accrued liabilities | (3,845,000) |
Deferred revenue | (1,022,000) |
Equipment loans | (4,259,000) |
Lease liabilities | (2,801,000) |
Net assets acquired | 73,569,000 |
Cash paid at closing/To be paid after closing, included i purchase price payable | 72,689,000 |
Cash received from working capital adjustment | (360,000) |
Cash acquired | (820,000) |
Equity issued at closing | 2,060,000 |
Consideration paid or payable | $ 73,569,000 |
Acquisitions of and investmen_5
Acquisitions of and investment in businesses - Investment in DMEScripts & SPC - Asset and Liabilities (Details) - SPC - USD ($) | Sep. 30, 2023 | Sep. 01, 2023 |
Disclosure of detailed information about business combination [line items] | ||
Accounts receivable | $ 1,000,000 | |
Inventory | 1,374,000 | |
Prepaid and other current assets | 4,000 | |
Property, equipment, and right of use assets, net | 2,048,000 | |
Goodwill | 2,335,000 | |
Intangible assets | 2,530,000 | |
Accounts payable | (1,483,000) | |
Accrued liabilities | (197,000) | |
Deferred revenue | (212,000) | |
Equipment loans | (1,063,000) | |
Lease liabilities | (1,142,000) | |
Deferred income taxes | (891,000) | |
Net assets acquired | 4,303,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 1,274,000 | 3,153,000 |
Consideration paid or payable | $ 4,303,000 |
Acquisitions of and investmen_6
Acquisitions of and investment in businesses - Investment in DMEScripts, LLC - Narratives (Details) | 1 Months Ended | 12 Months Ended | ||
Sep. 01, 2023 USD ($) state | Sep. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Acquisition of businesses and purchase accounting | ||||
Fair value of holdback consideration discounted in a business combination | 5.40% | |||
QHM Investments I, LLC | DMEScripts, LLC | ||||
Acquisition of businesses and purchase accounting | ||||
Ownership percentage | 8.30% | |||
Investments accounted for using equity method | $ 1,500,000 | |||
SPC | ||||
Acquisition of businesses and purchase accounting | ||||
Number of states in which acquiree operates in same industry as company | state | 3 | |||
Purchase price | $ 4,303,000 | |||
Cash consideration | 3,153,000 | $ 1,274,000 | $ 1,274,000 | |
Fair value of holdbacks | 1,274,000 | |||
Cash acquired | $ 124,000 | |||
Professional fees in conjunction with the acquisition | 24,000 | |||
Revenue of combined entity as if combination occurred at beginning of period | 10,100,000 | |||
Profit (loss) of combined entity as if combination occurred at beginning of period | $ 1,000,000 | |||
Revenue of acquiree since acquisition date | 900,000 | |||
Profit (loss) of acquiree since acquisition date | $ 200,000 |
Acquisitions of and investmen_7
Acquisitions of and investment in businesses - Thrift Home Care, Inc. - Asset and Liabilities (Details) - Thrift Home Care Inc - USD ($) | Sep. 30, 2022 | Oct. 01, 2021 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 452,000 | |
Accounts receivable | 165,000 | |
Inventory | 107,000 | |
Property, equipment, and right of use assets, net | 1,158,000 | |
Goodwill | 802,000 | |
Intangible assets | 770,000 | |
Accounts payable | (140,000) | |
Accrued liabilities | (33,000) | |
Deferred revenue | (40,000) | |
Deferred tax liability | (262,000) | |
Loans and Leases | (810,000) | |
Net assets acquired | 2,169,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 365,000 | 1,804,000 |
Consideration paid or payable | 2,169,000 | |
Goodwill deductible for tax purposes | $ 0 |
Acquisitions of and investmen_8
Acquisitions of and investment in businesses - Thrift Home Care, Inc. - Narratives (Details) - Thrift Home Care Inc - USD ($) | Oct. 01, 2021 | Sep. 30, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Purchase price | $ 2,169,000 | |
Cash consideration | $ 1,804,000 | $ 365,000 |
Discount rate | 3.30% | |
Fair value of holdback consideration | $ 365,000 | |
Professional fees in conjunction with the acquisition | $ 27,000 |
Acquisitions of and investmen_9
Acquisitions of and investment in businesses - Heckman Healthcare Services & Supplies, Inc. - Asset and Liabilities (Details) - Heckman Healthcare Services & Supplies, Inc - USD ($) | Sep. 30, 2022 | Nov. 01, 2021 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 169,000 | |
Accounts receivable | 170,000 | |
Inventory | 280,000 | |
Property, equipment, and right of use assets, net | 1,165,000 | |
Goodwill | 965,000 | |
Intangible assets | 90,000 | |
Accounts payable | (159,000) | |
Accrued liabilities | (96,000) | |
Deferred revenue | (27,000) | |
Deferred tax liability | (122,000) | |
Net assets acquired | 2,435,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 332,000 | 2,103,000 |
Consideration paid or payable | 2,435,000 | |
Goodwill deductible for tax purposes | $ 0 |
Acquisitions of and investme_10
Acquisitions of and investment in businesses - Heckman Healthcare Services & Supplies, Inc. - Narratives (Details) - Heckman Healthcare Services & Supplies, Inc - USD ($) | 12 Months Ended | ||
Nov. 01, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disclosure of detailed information about business combination [line items] | |||
Purchase price | $ 2,435,000 | ||
Cash consideration | $ 2,103,000 | $ 332,000 | |
Discount rate | 3.30% | ||
Fair value of holdback consideration | $ 332,000 | ||
Professional fees in conjunction with the acquisition | $ 76,000 | ||
Acquisition-related costs | |||
Disclosure of detailed information about business combination [line items] | |||
Reduction amount of holdback part of purchase consideration treated as acquisition cost | $ 146,000 |
Acquisitions of and investme_11
Acquisitions of and investment in businesses - Southeastern Biomedical Services, LLC - Narratives (Details) - Southeastern Biomedical Services, LLC - USD ($) | Nov. 09, 2021 | Sep. 30, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Purchase price | $ 697,000 | |
Cash consideration | 600,000 | $ 97,000 |
Fair value of holdback consideration | 97,000 | |
Professional fees in conjunction with the acquisition | $ 19,000 |
Acquisitions of businesses and
Acquisitions of businesses and purchase accounting - Southeastern Biomedical Services, LLC - Asset and Liabilities (Details) - Southeastern Biomedical Services, LLC - USD ($) | Sep. 30, 2022 | Nov. 09, 2021 |
Disclosure of detailed information about business combination [line items] | ||
Accounts receivable | $ 112,000 | |
Inventory | 53,000 | |
Property, equipment, and right of use assets, net | 306,000 | |
Goodwill | 225,000 | |
Intangible assets | 270,000 | |
Accounts payable | (131,000) | |
Loans and Leases | (138,000) | |
Net assets acquired | 697,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 97,000 | 600,000 |
Consideration paid or payable | $ 697,000 |
Acquisitions of and investme_12
Acquisitions of and investment in businesses - At Home Health Equipment, LLC - Narratives (Details) - At Home Health Equipment, LLC - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disclosure of detailed information about business combination [line items] | |||
Purchase price | $ 13,650,000 | ||
Cash consideration | $ 11,978,000 | $ 1,672,000 | |
Discount rate | 3.40% | ||
Fair value of holdback consideration | $ 1,288,000 | ||
Collection of certain accounts receivable | 384,000 | ||
Professional fees in conjunction with the acquisition | $ 83,000 | ||
Acquisition-related costs | |||
Disclosure of detailed information about business combination [line items] | |||
Additional consideration paid in working adjustment | $ 51,000 |
Acquisitions of and investme_13
Acquisitions of and investment in businesses - At Home Health Equipment, LLC - Asset and Liabilities (Details) - At Home Health Equipment, LLC - USD ($) | Sep. 30, 2022 | Jan. 01, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 495,000 | |
Accounts receivable | 1,346,000 | |
Inventory | 1,211,000 | |
Prepaid expenses | 71,000 | |
Property, equipment, and right of use assets, net | 2,085,000 | |
Goodwill | 7,868,000 | |
Intangible assets | 4,170,000 | |
Accounts payable | (600,000) | |
Accrued liabilities | (346,000) | |
Deferred revenue | (135,000) | |
Deferred tax liability | (1,448,000) | |
Loans and Leases | (1,067,000) | |
Net assets acquired | 13,650,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 1,672,000 | 11,978,000 |
Consideration paid or payable | 13,650,000 | |
Goodwill deductible for tax purposes | $ 0 |
Acquisitions of and investme_14
Acquisitions of and investment in businesses - Good Night Medical, LLC - Narratives (Details) - Good Night Medical, LLC - USD ($) | Apr. 01, 2022 | Sep. 30, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Purchase price | $ 6,162,000 | |
Cash consideration | $ 4,361,000 | $ 1,801,000 |
Discount rate | 3.40% | |
Fair value of holdback consideration | $ 1,801,000 | |
Professional fees in conjunction with the acquisition | $ 58,000 |
Acquisitions of businesses an_2
Acquisitions of businesses and purchase accounting - Good Night Medical, LLC - Asset and Liabilities (Details) - Good Night Medical, LLC - USD ($) | Sep. 30, 2022 | Apr. 01, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 42,000 | |
Accounts receivable | 730,000 | |
Inventory | 369,000 | |
Property, equipment, and right of use assets, net | 696,000 | |
Goodwill | 3,277,000 | |
Intangible assets | 3,470,000 | |
Accounts payable | (1,200,000) | |
Accrued liabilities | (166,000) | |
Deferred revenue | (39,000) | |
Loans and Leases | (1,017,000) | |
Net assets acquired | 6,162,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 1,801,000 | 4,361,000 |
Consideration paid or payable | $ 6,162,000 |
Acquisitions of and investme_15
Acquisitions of and investment in businesses - Access Respiratory Home Care, LLC - Narratives (Details) - Access Respiratory Home Care, LLC - USD ($) | 12 Months Ended | ||
Jun. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disclosure of detailed information about business combination [line items] | |||
Purchase price | $ 6,595,000 | ||
Cash consideration | $ 5,347,000 | $ 1,248,000 | |
Discount rate | 3.40% | ||
Fair value of holdback consideration | $ 1,248,000 | ||
Reduction of hold back part of purchase consideration treated as reduction to goodwill | $ 180,000 | ||
Professional fees in conjunction with the acquisition | $ 99,000 |
Acquisitions of and investme_16
Acquisitions of and investment in businesses - Access Respiratory Home Care, LLC - Asset and Liabilities (Details) - Access Respiratory Home Care, LLC - USD ($) | Sep. 30, 2022 | Jun. 01, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 417,000 | |
Accounts receivable | 741,000 | |
Inventory | 622,000 | |
Property, equipment, and right of use assets, net | 1,492,000 | |
Goodwill | 1,223,000 | |
Intangible assets | 3,180,000 | |
Accounts payable | (200,000) | |
Accrued liabilities | (319,000) | |
Deferred revenue | (90,000) | |
Loans and Leases | (471,000) | |
Net assets acquired | 6,595,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 1,248,000 | 5,347,000 |
Consideration paid or payable | $ 6,595,000 |
Acquisitions of and investme_17
Acquisitions of and investment in businesses - NorCal Respiratory, Inc. - Narratives (Details) - NorCal Respiratory, Inc. - USD ($) | 12 Months Ended | ||
Jun. 03, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disclosure of detailed information about business combination [line items] | |||
Purchase price | $ 3,080,000 | ||
Cash consideration | $ 2,494,000 | $ 586,000 | |
Discount rate | 3.40% | ||
Fair value of holdback consideration | $ 586,000 | ||
Reduction of hold back part of purchase consideration treated as reduction to goodwill | $ 117,000 | ||
Professional fees in conjunction with the acquisition | $ 29,000 |
Acquisitions of and investme_18
Acquisitions of and investment in businesses - NorCal Respiratory, Inc. - Asset and Liabilities (Details) - NorCal Respiratory, Inc. - USD ($) | Sep. 30, 2022 | Jun. 03, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 503,000 | |
Accounts receivable | 315,000 | |
Inventory | 492,000 | |
Property, equipment, and right of use assets, net | 1,044,000 | |
Goodwill | 948,000 | |
Intangible assets | 1,400,000 | |
Accounts payable | (100,000) | |
Accrued liabilities | (67,000) | |
Deferred revenue | (93,000) | |
Deferred tax liability | (680,000) | |
Loans and Leases | (682,000) | |
Net assets acquired | 3,080,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 586,000 | 2,494,000 |
Consideration paid or payable | 3,080,000 | |
Goodwill deductible for tax purposes | $ 0 |
Acquisitions of and investme_19
Acquisitions of and investment in businesses - Hometown Medical, LLC - Narratives (Details) - Hometown Medical LLC - USD ($) | 12 Months Ended | ||
Jul. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disclosure of detailed information about business combination [line items] | |||
Purchase price | $ 5,892,000 | ||
Cash consideration | $ 4,838,000 | $ 1,054,000 | |
Discount rate | 5.30% | ||
Fair value of holdback consideration | $ 1,054,000 | ||
Reduction of hold back part of purchase consideration treated as reduction to goodwill | $ 259,000 | ||
Professional fees in conjunction with the acquisition | $ 22,000 |
Acquisitions of and investme_20
Acquisitions of and investment in businesses - Hometown Medical, LLC - Asset and Liabilities (Details) - Hometown Medical LLC - USD ($) | Sep. 30, 2022 | Jul. 01, 2022 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 723,000 | |
Accounts receivable | 665,000 | |
Inventory | 778,000 | |
Property, equipment, and right of use assets, net | 2,187,000 | |
Goodwill | 407,000 | |
Intangible assets | 3,250,000 | |
Accounts payable | (721,000) | |
Accrued liabilities | (66,000) | |
Deferred revenue | (129,000) | |
Loans and Leases | (1,202,000) | |
Net assets acquired | 5,892,000 | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 1,054,000 | 4,838,000 |
Consideration paid or payable | $ 5,892,000 |
Acquisitions of and investme_21
Acquisitions of and investment in businesses - Purchase Price Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Acquisitions of and investment in businesses | |||
Beginning Balance | $ 5,778 | $ 2,516 | |
Addition from acquisitions | 1,274 | 7,155 | |
Accretion of interest | 128 | 102 | |
Derecognition of purchase price payable | (640) | (178) | |
Payments | (5,083) | (3,817) | |
Ending Balance | 1,457 | 5,778 | |
Contingent consideration, Current | $ 1,457 | $ 5,778 | $ 2,383 |
Contingent consideration, Non-Current | $ 133 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Accounts Receivable | ||
Net receivables | $ 25,978 | $ 16,383 |
Gross receivable | ||
Accounts Receivable | ||
Net receivables | 35,374 | 27,122 |
Reserve for expected credit losses. | ||
Accounts Receivable | ||
Net receivables | $ 9,396 | $ 10,739 |
Accounts Receivable - Movement
Accounts Receivable - Movement in reserve for expected credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Opening Balance | $ 10,739 | $ 3,475 |
Bad debt expense | 10,065 | 12,225 |
Amounts written off | (11,408) | (4,961) |
Ending Balance | $ 9,396 | $ 10,739 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Inventory | ||
Serialized | $ 6,733 | $ 5,814 |
Non-serialized | 11,895 | 9,854 |
Reserve for slow-moving | (214) | (83) |
Total Inventory | $ 18,414 | $ 15,585 |
Property, equipment, and righ_3
Property, equipment, and right of use assets (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property and equipment | ||
Property, plant and equipment at beginning of period | $ 33,497,000 | $ 23,506,000 |
Transfers from inventory | 29,279,000 | 17,797,000 |
Property, plant and equipment at end of period | 53,405,000 | 33,497,000 |
Payment made in cash to acquire rental equipment | 6,852,000 | 9,161,000 |
Rental equipment | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 20,496,000 | 14,727,000 |
Property, plant and equipment at end of period | 30,282,000 | 20,496,000 |
Office furniture and fixtures | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 259,000 | 99,000 |
Property, plant and equipment at end of period | 939,000 | 259,000 |
Land | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 160,000 | |
Property, plant and equipment at end of period | 160,000 | 160,000 |
Buildings and leasehold improvements | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 1,835,000 | 1,067,000 |
Property, plant and equipment at end of period | 2,267,000 | 1,835,000 |
Right of use assets, Vehicles | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 2,658,000 | 2,540,000 |
Property, plant and equipment at end of period | 4,237,000 | 2,658,000 |
Right of use assets, Real estate | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 8,089,000 | 5,073,000 |
Property, plant and equipment at end of period | 15,520,000 | 8,089,000 |
Equipment loans | Rental equipment | ||
Property and equipment | ||
Equipment loans obtained to acquire rental equipment | 22,419,000 | 9,602,000 |
Payment made in cash to acquire rental equipment | 6,860,000 | 8,195,000 |
Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 57,147,000 | 45,051,000 |
Transfers from inventory | 29,279,000 | 17,797,000 |
Additions | 10,285,000 | 2,836,000 |
Acquisitions | 15,309,000 | 10,133,000 |
Disposals and write offs | (18,052,000) | (18,670,000) |
Property, plant and equipment at end of period | 93,968,000 | 57,147,000 |
Gross receivable | Rental equipment | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 36,941,000 | 31,146,000 |
Transfers from inventory | 29,279,000 | 17,797,000 |
Acquisitions | 9,452,000 | 3,952,000 |
Disposals and write offs | (13,989,000) | (15,954,000) |
Property, plant and equipment at end of period | 61,683,000 | 36,941,000 |
Gross receivable | Office furniture and fixtures | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 449,000 | 482,000 |
Additions | 11,000 | 11,000 |
Acquisitions | 820,000 | 218,000 |
Disposals and write offs | (156,000) | (262,000) |
Property, plant and equipment at end of period | 1,124,000 | 449,000 |
Gross receivable | Land | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 160,000 | |
Additions | 20,000 | |
Acquisitions | 140,000 | |
Property, plant and equipment at end of period | 160,000 | 160,000 |
Gross receivable | Buildings and leasehold improvements | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 2,431,000 | 1,498,000 |
Additions | 90,000 | 191,000 |
Acquisitions | 546,000 | 802,000 |
Disposals and write offs | (20,000) | (60,000) |
Property, plant and equipment at end of period | 3,047,000 | 2,431,000 |
Gross receivable | Right of use assets, Vehicles | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 4,780,000 | 4,175,000 |
Additions | 2,246,000 | 508,000 |
Acquisitions | 931,000 | 1,274,000 |
Disposals and write offs | (1,230,000) | (1,177,000) |
Property, plant and equipment at end of period | 6,727,000 | 4,780,000 |
Gross receivable | Right of use assets, Real estate | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 12,386,000 | 7,750,000 |
Additions | 7,938,000 | 2,106,000 |
Acquisitions | 3,560,000 | 3,747,000 |
Disposals and write offs | (2,657,000) | (1,217,000) |
Property, plant and equipment at end of period | 21,227,000 | 12,386,000 |
Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (23,650,000) | (21,545,000) |
Depreciation | 34,965,000 | 20,452,000 |
Disposals and write offs | 18,052,000 | 18,347,000 |
Property, plant and equipment at end of period | (40,563,000) | (23,650,000) |
Accumulated depreciation/amortization | Rental equipment | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (16,445,000) | (16,419,000) |
Depreciation | 28,945,000 | 15,980,000 |
Disposals and write offs | 13,989,000 | 15,954,000 |
Property, plant and equipment at end of period | (31,401,000) | (16,445,000) |
Accumulated depreciation/amortization | Office furniture and fixtures | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (190,000) | (383,000) |
Depreciation | 151,000 | 66,000 |
Disposals and write offs | 156,000 | 259,000 |
Property, plant and equipment at end of period | (185,000) | (190,000) |
Accumulated depreciation/amortization | Buildings and leasehold improvements | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (596,000) | (431,000) |
Depreciation | 204,000 | 191,000 |
Disposals and write offs | 20,000 | 26,000 |
Property, plant and equipment at end of period | (780,000) | (596,000) |
Accumulated depreciation/amortization | Right of use assets, Vehicles | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (2,122,000) | (1,635,000) |
Depreciation | 1,598,000 | 1,477,000 |
Disposals and write offs | 1,230,000 | 990,000 |
Property, plant and equipment at end of period | (2,490,000) | (2,122,000) |
Accumulated depreciation/amortization | Right of use assets, Real estate | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (4,297,000) | (2,677,000) |
Depreciation | 4,067,000 | 2,738,000 |
Disposals and write offs | 2,657,000 | 1,118,000 |
Property, plant and equipment at end of period | $ (5,707,000) | $ (4,297,000) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | $ 57,095 | $ 27,330 |
Goodwill and intangible assets, ending balance | 126,865 | 57,095 |
Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 73,605 | 41,255 |
Acquisitions | 75,511 | 32,352 |
Disposals | (517) | (2) |
Adjustments to prior year acquisitions | (544) | |
Goodwill and intangible assets, ending balance | 148,055 | 73,605 |
Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (16,510) | (13,925) |
Amortization | (5,197) | (2,587) |
Disposals | 517 | 2 |
Goodwill and intangible assets, ending balance | (21,190) | (16,510) |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 28,208 | 12,456 |
Goodwill and intangible assets, ending balance | 52,825 | 28,208 |
Goodwill | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 28,208 | 12,456 |
Acquisitions | 25,161 | 15,752 |
Adjustments to prior year acquisitions | (544) | |
Goodwill and intangible assets, ending balance | 52,825 | 28,208 |
Sub-total intangibles with finite lives | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 28,887 | 14,874 |
Goodwill and intangible assets, ending balance | 74,040 | 28,887 |
Sub-total intangibles with finite lives | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 45,397 | 28,799 |
Acquisitions | 50,350 | 16,600 |
Disposals | (517) | (2) |
Goodwill and intangible assets, ending balance | 95,230 | 45,397 |
Sub-total intangibles with finite lives | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (16,510) | (13,925) |
Amortization | (5,197) | (2,587) |
Disposals | 517 | 2 |
Goodwill and intangible assets, ending balance | (21,190) | (16,510) |
Customer relationships | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 24,553 | 12,423 |
Goodwill and intangible assets, ending balance | 64,601 | 24,553 |
Customer relationships | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 34,898 | 20,690 |
Acquisitions | 44,190 | 14,210 |
Disposals | (2) | |
Goodwill and intangible assets, ending balance | 79,088 | 34,898 |
Customer relationships | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (10,345) | (8,267) |
Amortization | (4,142) | (2,080) |
Disposals | 2 | |
Goodwill and intangible assets, ending balance | (14,487) | (10,345) |
Other intangibles | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 4,334 | 2,451 |
Goodwill and intangible assets, ending balance | 9,439 | 4,334 |
Other intangibles | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 10,499 | 8,109 |
Acquisitions | 6,160 | 2,390 |
Disposals | (517) | |
Goodwill and intangible assets, ending balance | 16,142 | 10,499 |
Other intangibles | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (6,165) | (5,658) |
Amortization | (1,055) | (507) |
Disposals | 517 | |
Goodwill and intangible assets, ending balance | $ (6,703) | $ (6,165) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquisition Through Business Combination: (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Acquisition through business combination | ||
Goodwill at beginning of period | $ 28,208,000 | |
Goodwill at end of period | 52,825,000 | $ 28,208,000 |
Medical West Healthcare Center, LLC | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 37,000 | |
Thrift | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 802,000 | |
Heckman Healthcare Services & Supplies, Inc. | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 965,000 | |
Southeastern Bio | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 225,000 | |
At Home | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 7,868,000 | |
Good Night Medical | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 12,000 | 3,277,000 |
Access | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 1,223,000 | |
Goodwill reduction (reduction of hold back consideration) | (180,000) | |
NorCal | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 948,000 | |
Goodwill reduction (reduction of hold back consideration) | (117,000) | |
Hometown | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | $ 407,000 | |
Goodwill reduction (reduction of hold back consideration) | (259,000) | |
Great Elm Healthcare, LLC | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | 22,826,000 | |
Southern | ||
Acquisition through business combination | ||
Goodwill, acquisitions through business combinations | $ 2,335,000 |
Government Grant - Payroll Prot
Government Grant - Payroll Protection Plan (Details) | 12 Months Ended | ||
Mar. 23, 2022 USD ($) | Sep. 30, 2020 item | Apr. 16, 2020 USD ($) | |
Government Grants | |||
Number of provisions | item | 2 | ||
Payroll Protection Plan | |||
Government Grants | |||
Principal amount | $ 4,254,000 | ||
Income Due to Loan Forgiven | $ 4,254,000 |
Government Grant - Relief Fund
Government Grant - Relief Fund (Details) - Public health and Social Services Emergency Fund - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2020 | Sep. 30, 2022 | |
Government Grants | |||
Amount of public health and social services emergency fund | $ 1,797,000 | ||
Amount of expenses related to PPP | $ 0 | ||
Other expense (income) | |||
Government Grants | |||
Amount of reduction in the liability | $ 631,000 |
Deferred Revenue (Details)
Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred Revenue | ||
Beginning balance | $ 3,036 | $ 2,452 |
Acquisitions | 1,234 | 553 |
Operations | 241 | 31 |
Ending balance | $ 4,511 | $ 3,036 |
Long-term Debt - Senior Credit
Long-term Debt - Senior Credit Facility (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Nov. 30, 2023 | |
Long-term Debt | |||
Loss on extinguishment of debt | $ 30,000 | $ 281,000 | |
Floating interest rate | |||
Long-term Debt | |||
Interest rate | 8.20% | ||
Secured overnight financing rate index swap rate | |||
Long-term Debt | |||
Interest rate | 2.60% | ||
Minimum | Secured overnight financing rate index swap rate | |||
Long-term Debt | |||
Interest rate | 2.10% | ||
Maximum | Secured overnight financing rate index swap rate | |||
Long-term Debt | |||
Interest rate | 2.85% | ||
Senior credit facility | |||
Long-term Debt | |||
Principal amount | 110,000,000 | ||
Borrowings | $ 66,350,000 | 12,000,000 | |
Interest expense on facility | 4,415,000 | 26,000 | |
Financing costs | 2,360,000 | ||
Amortization of deferred financing costs | 462,000 | 15,000 | |
Senior credit facility | Fixed SOFR @ 4.4% | Senior Credit Facility, Interest rate protection agreement | |||
Long-term Debt | |||
Principal amount | $ 34,000,000 | ||
Interest rate | 4.40% | ||
Delayed draw term loan facility | |||
Long-term Debt | |||
Principal amount | 85,000,000 | ||
Borrowings | 61,600,000 | ||
Term loan | |||
Long-term Debt | |||
Principal amount | 5,000,000 | ||
Borrowings | 4,750,000 | 5,000,000 | |
Quarterly installments | 862,500 | ||
Revolving credit facility | |||
Long-term Debt | |||
Principal amount | 20,000,000 | ||
Borrowings | $ 0 | 7,000,000 | |
Interest expense on facility | 126,000 | ||
Amortization of deferred financing costs | 135,000 | ||
Loss on extinguishment of debt | $ 281,000 |
Long-term Debt - Balances relat
Long-term Debt - Balances related to the Facility (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Delayed draw term loan | ||
Long-term Debt | ||
Borrowings | $ 61,600,000 | |
Term loan | ||
Long-term Debt | ||
Borrowings | 4,750,000 | $ 5,000,000 |
Revolving credit facility | ||
Long-term Debt | ||
Borrowings | 0 | 7,000,000 |
Senior Credit Facility | ||
Long-term Debt | ||
Borrowings | 66,350,000 | 12,000,000 |
Deferred financing costs | (1,884,000) | (1,765,000) |
Net carrying value | 64,466,000 | 10,235,000 |
Current portion | 3,352,000 | 6,857,000 |
Long-term portion | $ 61,114,000 | $ 3,378,000 |
Long-term Debt - Debentures (De
Long-term Debt - Debentures (Details) - Convertible unsecured debentures | 12 Months Ended | |||||||
Mar. 09, 2022 $ / shares | Mar. 07, 2019 USD ($) | Mar. 07, 2019 CAD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CAD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CAD ($) | Sep. 30, 2021 USD ($) | |
Long-term Debt | ||||||||
Principal amount | $ 15,000,000 | |||||||
Interest rate | 8% | |||||||
Principal amount denomination for conversion to common stock | $ 807 | $ 1,000 | ||||||
Conversion ratio | 0.19231 | 0.19231 | ||||||
Conversion price of mandated conversion | $ / shares | $ 5.20 | |||||||
Amount of debt converted | $ 10,959,000 | |||||||
Fair value of debentures | $ 10,683,000 | $ 13,665,000 | ||||||
Borrowings | 0 | $ 0 | $ 11,784,000 | |||||
Gains (losses) on change in the fair value | $ (1,150,000) |
Long-term Debt - Movement in De
Long-term Debt - Movement in Debentures (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Long-term Debt | ||
Change in foreign exchange rate | $ 108,000 | $ (144,000) |
Convertible unsecured debentures | ||
Long-term Debt | ||
Beginning Balance | 0 | 11,784,000 |
Conversion to common shares | (10,683,000) | |
Change in fair value | (1,150,000) | |
Change in foreign exchange rate | 49,000 | |
Ending Balance | $ 0 | $ 0 |
Long-term Debt - Equipment Loan
Long-term Debt - Equipment Loans (Details) | 12 Months Ended | |
Sep. 30, 2023 USD ($) installment | Sep. 30, 2022 USD ($) | |
Additions: | ||
Repayments | $ (20,447,000) | $ (11,900,000) |
Equipment loans | ||
Long-term Debt | ||
Equipment pledged as security | 20,262,000 | 14,949,000 |
Beginning Balance | 5,707,000 | 7,384,000 |
Additions: | ||
Acquisitions | 5,322,000 | 1,161,000 |
Operations | 23,615,000 | 9,062,000 |
Repayments | (20,297,000) | (11,900,000) |
Ending Balance | 14,347,000 | 5,707,000 |
Current portion, less than 1 year | 14,114,000 | 5,473,000 |
Long-term portion, due between 1 and 5 years | $ 233,000 | $ 234,000 |
Equipment loans | Repayment in twelve months | ||
Long-term Debt | ||
Interest rate | 0% | |
Number of equal monthly installments | installment | 12 | |
Equipment loans | Repayment in twelve months | Minimum | ||
Long-term Debt | ||
Incremental borrowing rate | 7% | |
Equipment loans | Repayment in twelve months | Maximum | ||
Long-term Debt | ||
Incremental borrowing rate | 8% |
Long-term Debt - Leases Liabili
Long-term Debt - Leases Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Lease liabilities | ||
Balance | $ 10,499 | $ 7,765 |
Additions during the period: | ||
Acquisitions | 3,944 | 4,226 |
Operations | 9,097 | 2,410 |
Lease terminations | (13) | (80) |
Repayments of leases | (4,377) | (3,822) |
Balance | 19,150 | 10,499 |
Gross lease payments | 22,462 | 12,530 |
Less: finance charges | (3,312) | (2,031) |
Net lease liabilities | 19,150 | 10,499 |
Less than 1 year | ||
Additions during the period: | ||
Gross lease payments | 6,422 | 3,979 |
Between 1 and 5 years | ||
Additions during the period: | ||
Gross lease payments | 15,280 | 7,443 |
More than five years | ||
Additions during the period: | ||
Gross lease payments | 760 | 1,108 |
Vehicle lease | ||
Lease liabilities | ||
Balance | 1,993 | 2,414 |
Additions during the period: | ||
Acquisitions | 583 | 571 |
Operations | 1,159 | 347 |
Repayments of leases | (821) | (1,339) |
Balance | 2,914 | 1,993 |
Net lease liabilities | $ 2,914 | 1,993 |
Vehicle lease | Minimum | ||
Lease liabilities | ||
Incremental borrowing rate | 3% | |
Vehicle lease | Maximum | ||
Lease liabilities | ||
Incremental borrowing rate | 12.20% | |
Real estate lease | ||
Lease liabilities | ||
Balance | $ 8,506 | 5,351 |
Additions during the period: | ||
Acquisitions | 3,361 | 3,655 |
Operations | 7,938 | 2,063 |
Lease terminations | (13) | (80) |
Repayments of leases | (3,556) | (2,483) |
Balance | 16,236 | 8,506 |
Net lease liabilities | $ 16,236 | $ 8,506 |
Real estate lease | Minimum | ||
Lease liabilities | ||
Incremental borrowing rate | 6.10% | |
Real estate lease | Maximum | ||
Lease liabilities | ||
Incremental borrowing rate | 8.80% |
Long-term Debt - SBA loan (Deta
Long-term Debt - SBA loan (Details) | 12 Months Ended | ||
Feb. 01, 2021 USD ($) installment | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Long-term Debt | |||
Loss on extinguishment of debt | $ 30,000 | $ 281,000 | |
Repayments | (20,447,000) | (11,900,000) | |
SBA loan | |||
Long-term Debt | |||
Principal amount | $ 150,000 | ||
Interest rate | 3.75% | ||
Incremental borrowing rate | 6% | ||
Fair value of debt | $ 119,000 | ||
Number of equal monthly installments | installment | 360 | ||
Monthly payments | $ 731 | ||
Beginning Balance | 120,000 | 121,000 | |
Loss on extinguishment of debt | 30,000 | ||
Repayments | $ (150,000) | (1,000) | |
Ending Balance | $ 120,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | Apr. 25, 2023 CAD ($) shares | Apr. 25, 2023 USD ($) shares | Dec. 31, 2018 item |
Stockholder's Equity | |||
Number of classes of common stock outstanding | item | 1 | ||
Private Placement | |||
Stockholder's Equity | |||
Proceeds from shares issued in bought deal (in shares) | shares | 5,409,000 | 5,409,000 | |
Proceeds from issue of common shares, Gross | $ 42,500,000 | $ 31,200,000 | |
Payments of stock issuance costs | $ 2,100,000 | 1,500,000 | |
Payment of other stock issuance cost | 1,800,000 | ||
Proceeds from issuance of common shares | $ 27,900,000 |
Shareholders' Equity - Issuance
Shareholders' Equity - Issuance Costs (Details) - Private Placement - Compensation options to underwriters | 12 Months Ended |
Sep. 30, 2023 $ / shares | |
Stockholder's Equity | |
Exercise price | $ 4.60 |
Contractual term | 2 years |
Shareholders' Equity - Compensa
Shareholders' Equity - Compensation options activity (Details) - Compensation options to underwriters EquityInstruments in Thousands | 12 Months Ended |
Sep. 30, 2022 EquityInstruments $ / shares | |
Stockholder's Equity | |
Balance (in shares) | EquityInstruments | 115 |
Exercised (in shares) | EquityInstruments | (115) |
Balance (in dollars per share) | $ 4.60 |
Exercised (in dollars per share) | 4.60 |
Weighted average share price | $ 5.75 |
Shareholders' Equity - Shares i
Shareholders' Equity - Shares issued on acquisition (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Aug. 31, 2022 | |
Stockholder's Equity | ||
Loss on settlement of shares to be issued | $ 442,000 | |
Sleepwell, LLC | ||
Stockholder's Equity | ||
Cash consideration | $ 1,100,000 |
Shareholders' Equity - Stock op
Shareholders' Equity - Stock option activity (Details) EquityInstruments in Thousands | 12 Months Ended | |
Sep. 30, 2023 EquityInstruments item $ / shares shares | Sep. 30, 2022 EquityInstruments $ / shares | |
Stockholder's Equity | ||
Fair value of stock options | $ 5.43 | |
Maximum | ||
Stockholder's Equity | ||
Fair value of stock options | $ 4.42 | |
Minimum | ||
Stockholder's Equity | ||
Fair value of stock options | $ 3.33 | |
Stock options | ||
Stockholder's Equity | ||
Balance (in shares) | EquityInstruments | 3,751 | 3,786 |
Granted (in shares) | EquityInstruments | 435 | 195 |
Exercised (in shares) | EquityInstruments | (130) | (33) |
Expired (in shares) | EquityInstruments | (48) | (55) |
Forfeited (in shares) | EquityInstruments | (51) | (142) |
Balance (in shares) | EquityInstruments | 3,957 | 3,751 |
Balance (in dollars per share) | $ 4.24 | $ 4.15 |
Granted (in dollars per share) | 8.30 | 6.93 |
Exercised (in dollars per share) | 5.01 | 0.99 |
Expired (in dollars per share) | 6.94 | 2.40 |
Forfeited (in dollars per share) | 7.22 | 6.87 |
Balance (in dollars per share) | $ 4.49 | 4.24 |
Vested (in shares) | shares | 3,232,000 | |
Vested (in dollars per share) | $ 3.65 | |
Weighted average share price | $ 8.69 | $ 6.56 |
Stock options | Maximum | ||
Stockholder's Equity | ||
Contractual term | 10 years | |
Number of quarters in vesting period | item | 12 | |
Stock options | Minimum | ||
Stockholder's Equity | ||
Number of quarters in vesting period | item | 8 |
Shareholders' Equity - Fair val
Shareholders' Equity - Fair value of options (Details) - Stock options | 12 Months Ended | |
Sep. 30, 2023 CAD ($) item $ / shares | Sep. 30, 2022 CAD ($) item $ / shares | |
Stockholder's Equity | ||
Share price at grant date | $ 8.30 | |
Risk-free interest rate | 3.29% | |
Expected volatility | 51.95% | |
Expected life of option | item | 10 | 10 |
Expected dividend yield | $ | ||
Minimum | ||
Stockholder's Equity | ||
Share price at grant date | $ 6.20 | |
Risk-free interest rate | 1.78% | |
Expected volatility | 54.54% | |
Maximum | ||
Stockholder's Equity | ||
Share price at grant date | $ 6.75 | |
Risk-free interest rate | 3.33% | |
Expected volatility | 55.67% |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted stock units (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Feb. 20, 2023 EquityInstruments shares | Feb. 01, 2022 EquityInstruments installment shares | May 20, 2021 EquityInstruments shares | Jun. 30, 2023 shares | Jun. 30, 2023 shares | Sep. 30, 2023 USD ($) EquityInstruments | Sep. 30, 2022 EquityInstruments | Sep. 30, 2022 shares | Sep. 30, 2021 EquityInstruments | |
Stockholder's Equity | |||||||||
Payments for settlement of restricted stock units | $ | $ 1,338,000 | ||||||||
Restricted stock units | |||||||||
Stockholder's Equity | |||||||||
Granted (in shares) | 831,000 | 953,750 | 526,193 | 526,193 | 831,000 | 81,000 | |||
Number of common shares for each unit | shares | 1 | 1 | 1 | ||||||
Vesting period | 2 years | 2 years | |||||||
Vesting percentage for every 3 months | 12.50% | 12.50% | |||||||
Vesting frequency within vesting period | 3 months | 3 months | |||||||
Commencement term | 3 months | ||||||||
Forfeited (in shares) | 105,000 | 105,000 | |||||||
Number of Installments for Vesting | installment | 4 | ||||||||
Restricted stock units being vested | EquityInstruments | 645,313 | 645,313 | |||||||
Payments for settlement of restricted stock units | $ | $ 1,338,000 | ||||||||
Restricted stock units | Officers | |||||||||
Stockholder's Equity | |||||||||
Granted (in shares) | EquityInstruments | 81,340 |
Shareholders' Equity - Restri_2
Shareholders' Equity - Restricted stock units activity (Details) - Restricted stock units | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Feb. 20, 2023 EquityInstruments | May 20, 2021 EquityInstruments | Jun. 30, 2023 shares | Jun. 30, 2023 shares EquityInstruments $ / shares | Sep. 30, 2023 EquityInstruments $ / shares | Sep. 30, 2022 EquityInstruments | Sep. 30, 2022 shares | Sep. 30, 2022 $ / shares | |
Stockholder's Equity | ||||||||
Balance at beginning (in shares) | EquityInstruments | 930,000 | 930,000 | 954,000 | |||||
Forfeited (in shares) | (105,000) | (105,000) | ||||||
Settled (in shares) | EquityInstruments | (727,000) | |||||||
Granted (in shares) | 831,000 | 953,750 | 526,193 | 526,193 | 831,000 | 81,000 | ||
Balance at ending (in shares) | EquityInstruments | 1,034,000 | 930,000 | ||||||
Balance at beginning (in dollars per share) | $ 8.34 | $ 8.34 | $ 8.48 | |||||
Forfeited (in dollars per share) | 8.48 | |||||||
Settled (in dollars per share) | 8.30 | |||||||
Granted (in dollars per share) | 8.30 | 6.83 | ||||||
Balance at ending (in dollars per share) | $ 8.34 | $ 8.34 |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Stockholder's Equity | ||
Stock-based compensation expense | $ 5,280 | $ 5,493 |
Restricted stock units | ||
Stockholder's Equity | ||
Stock-based compensation expense | 3,383 | 2,659 |
Stock options | ||
Stockholder's Equity | ||
Stock-based compensation expense | $ 1,897 | $ 2,834 |
Commitments and contingencies (
Commitments and contingencies (Details) | Sep. 30, 2023 USD ($) |
Less than 1 year | |
Commitments and contingencies | |
Future payments pursuant to the leases | $ 34,000 |
Operating expenses (Details)
Operating expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating expenses | ||
Payroll and employee benefits | $ 67,720 | $ 41,456 |
Facilities | 5,000 | 3,360 |
Billing | 9,140 | 6,346 |
Professional fees | 3,561 | 3,100 |
Outbound freight | 4,157 | 2,165 |
Vehicle fuel and maintenance | 4,166 | 2,905 |
Bank and credit card fees | 1,752 | 989 |
Technology | 1,461 | 814 |
Insurance | 1,651 | 1,609 |
All other | 4,616 | 2,459 |
Total operating expenses | $ 103,224 | $ 65,203 |
Income taxes - Reconciliation (
Income taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income taxes | ||
Federal and state statutory income tax rate | 27.60% | 25.90% |
Reconciliation | ||
Income (loss) before taxes | $ (2,699) | $ 2,935 |
Expected income tax provision (benefit) | (748) | 759 |
Difference in foreign tax rates | 33 | (57) |
Compensation and non-deductible expenses | 1,355 | 1,436 |
Recognition of deferred tax assets not previously recognized | (713) | (3,820) |
Other income from government grant | (1,101) | |
State taxes | 609 | |
Tax rate changes and other adjustments | 158 | 270 |
Provision (benefit) for income taxes | $ 85 | $ (1,904) |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax liability | $ (344) | $ 0 | $ 0 |
Net operating loss carryforwards | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 1,450 | 5,403 | |
Lease liabilities | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 4,519 | 2,202 | |
Reserve for expected credit losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 2,481 | 2,779 | |
Accrued and stock-based compensation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 3,107 | ||
Goodwill | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 2,185 | ||
Interest expense | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 1,103 | ||
Property, equipment, and right of use assets, net | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (11,716) | (8,498) | |
Intangible assets, net | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (4,094) | (2,034) | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 621 | 171 | |
Deferred tax liabilities | $ (23) |
Income taxes - Deferred tax a_2
Income taxes - Deferred tax assets and liabilities offset (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income taxes | ||
Balance at beginning of year | $ 0 | $ 0 |
Recognized in consolidated statement of income (loss) | (547) | (2,513) |
Recognized in goodwill | 891 | 2,513 |
Balance at end of year | $ 344 | $ 0 |
Income taxes - Unrecognized def
Income taxes - Unrecognized deferred tax assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | $ 16,062 | $ 8,011 |
Net operating and capital loss carryforwards | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 15,073 | 7,672 |
Share issuance costs | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 839 | 292 |
Other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | $ 150 | $ 47 |
Income taxes - Non-capital inco
Income taxes - Non-capital income tax losses (Details) | Sep. 30, 2023 USD ($) |
UNITED STATES | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, not subject to expiration | $ 13,000,000 |
UNITED STATES | Tax expiry period from 2031 to 2038 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 22,000,000 |
CANADA | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, not subject to expiration | 1,000,000 |
CANADA | Tax expiry period from 2027 to 2043 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | $ 27,700,000 |
Income (loss) per share - Basic
Income (loss) per share - Basic and diluted gain (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income (loss) per share | ||
Net income (loss) | $ (2,784) | $ 4,839 |
Basic weighted average number of shares | 38,607 | 33,647 |
Diluted weighted average number of shares | 38,607 | 36,302 |
Total - Basic | $ (0.07) | $ 0.14 |
Total - Diluted | $ (0.07) | $ 0.13 |
Related party transactions - Na
Related party transactions - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) ft² lease | Sep. 30, 2022 USD ($) | |
Chief Executive Officer | |||
Related party transactions | |||
Number of leases | lease | 6 | ||
Lease area | ft² | 74,520 | ||
Lease payments | $ 52,000 | ||
Increased lease rent per month | $ 65,000 | ||
Percentage of Increase in annual lease rent | 3% | ||
Chief Executive Officer | Lease expiring June 2026 | |||
Related party transactions | |||
Number of leases | lease | 1 | ||
Chief Executive Officer | Lease expiring September 2029 | |||
Related party transactions | |||
Number of leases | lease | 5 | ||
Director | |||
Related party transactions | |||
Fees for directors | $ 294,000 | 287,000 | |
Stock-based compensation for Directors | $ 1,517,000 | $ 381,000 |
Related party transactions - Co
Related party transactions - Compensation to key management personnel (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Related party transactions | ||
Salaries and benefits paid during the year | $ 1,102 | $ 1,030 |
Stock-based compensation | 1,669 | 2,626 |
Total | $ 2,771 | $ 3,656 |
Basis of Presentation and sum_9
Basis of Presentation and summary of significant accounting policies - Principles of consolidation (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and summary of significant accounting policies | |
Ownership percentages | 100% |
Basis of Presentation and su_10
Basis of Presentation and summary of significant accounting policies - Credit risk & Liquidity risk (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Credit risk & Liquidity risk | ||
Liabilities that are due within one year | $ 60,574,000 | $ 41,740,000 |
Current assets | 65,433,000 | 41,536,000 |
Revolving credit facility | ||
Credit risk & Liquidity risk | ||
Revolver borrowing availability | $ 0 | $ 7,000,000 |
Acquisitions of businesses an_3
Acquisitions of businesses and purchase accounting - Sleepwell, LLC - Narratives (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Aug. 31, 2022 | |
Acquisition of businesses and purchase accounting | ||
Loss on settlement of shares to be issued | $ 442,000 | |
Sleepwell, LLC | ||
Acquisition of businesses and purchase accounting | ||
Cash consideration | $ 1,100,000 |
Acquisitions of businesses an_4
Acquisitions of businesses and purchase accounting - Sleepwell, LLC - Asset and Liabilities (Details) | Aug. 31, 2022 USD ($) |
Sleepwell, LLC | |
Acquisition of businesses and purchase accounting | |
Cash paid at closing/To be paid after closing, included i purchase price payable | $ 1,100,000 |
Acquisitions of businesses an_5
Acquisitions of businesses and purchase accounting - Mayhugh Drugs, Inc. - Asset and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Acquisitions of and investment in businesses | |||
Expected credit loss on accounts receivable | $ 9,396 | $ 10,739 | $ 3,475 |
Long-term Debt - Compensation o
Long-term Debt - Compensation options (Details) - Compensation options to underwriters EquityInstruments in Thousands | 12 Months Ended |
Sep. 30, 2022 EquityInstruments $ / shares | |
Long-term Debt | |
Balance (in shares) | EquityInstruments | 115 |
Exercised (in shares) | EquityInstruments | (115) |
Balance (in dollars per share) | $ / shares | $ 4.60 |
Exercised (in dollars per share) | $ / shares | $ 4.60 |
N-2
N-2 | 12 Months Ended |
Sep. 30, 2023 | |
Cover [Abstract] | |
Entity Central Index Key | 0001540013 |
Amendment Flag | false |
Securities Act File Number | 001-40413 |
Document Type | 40-F |
Document Registration Statement | false |
Entity Registrant Name | Quipt Home Medical Corp. |
Entity Address, Address Line One | 1019 Town Drive |
Entity Address, City or Town | Wilder |
Entity Address, State or Province | KY |
Entity Address, Postal Zip Code | 41076 |
City Area Code | 859 |
Local Phone Number | 878-2220 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Business Contact [Member] | |
Cover [Abstract] | |
Entity Address, Address Line One | 1015 15th Street N.W., Suite 1000 |
Entity Address, City or Town | Washington |
Entity Address, State or Province | DC |
Entity Address, Postal Zip Code | 20005 |
City Area Code | 202 |
Local Phone Number | 572-3133 |
Contact Personnel Name | CT Corporation System |