Part I [Condensed Consolidated Interim Statements of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) Quipt's total assets grew to **$225.5 million**, driven by acquisitions, while liabilities surged to **$143.7 million** due to increased debt Consolidated Balance Sheet Summary (in thousands of US Dollars) | Account | March 31, 2023 | September 30, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $49,492 | $41,536 | +19.2% | | **Total Long-term Assets** | $176,051 | $90,678 | +94.1% | | **TOTAL ASSETS** | **$225,543** | **$132,214** | **+70.6%** | | **Total Current Liabilities** | $68,170 | $41,740 | +63.3% | | **Total Long-term Liabilities** | $75,571 | $10,927 | +591.6% | | **TOTAL LIABILITIES** | **$143,741** | **$52,667** | **+172.9%** | | **TOTAL SHAREHOLDERS' EQUITY** | **$81,802** | **$79,547** | **+2.8%** | - The significant increase in long-term assets is mainly attributable to a rise in Goodwill (from **$28.2 million** to **$50.7 million**) and Intangible Assets (from **$28.9 million** to **$73.0 million**), reflecting the impact of recent business acquisitions[4](index=4&type=chunk) - The sharp rise in long-term liabilities was primarily caused by increased drawings on the senior credit facility, which grew from **$3.4 million** to **$63.0 million** to finance acquisitions[4](index=4&type=chunk) [Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Income%20(Loss)%20and%20Comprehensive%20Income%20(Loss)) Revenue grew **73.2%** to **$58.1 million**, but a net loss of **$0.7 million** resulted from higher expenses and no grant income Income Statement Summary (in thousands of US Dollars) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $58,120 | $33,553 | $98,935 | $63,077 | | **Operating Income** | $1,311 | $4,444 | $2,684 | $3,262 | | **Net Income (Loss)** | $(749) | $5,036 | $(425) | $2,905 | | **Basic EPS** | $(0.02) | $0.15 | $(0.01) | $0.09 | | **Diluted EPS** | $(0.02) | $0.14 | $(0.01) | $0.08 | - Revenue from sales of medical equipment and supplies grew more rapidly (**114.2%** YoY for the three months) than rentals of medical equipment (**37.2%** YoY)[6](index=6&type=chunk) - The prior year's results for the three and six months ended March 31, 2022, included a one-time income of **$4.25 million** from a government grant, which significantly impacts the year-over-year comparison of net income[6](index=6&type=chunk) [Condensed Consolidated Interim Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased to **$81.8 million**, driven by stock issuance for acquisitions and compensation, despite a net loss Reconciliation of Shareholders' Equity (in thousands of US Dollars) | Description | Amount | | :--- | :--- | | **Balance at September 30, 2022** | **$79,547** | | Net loss | $(425) | | Stock issued for Great Elm acquisition | $2,060 | | Settlement of restricted stock units | $(1,338) | | Exercise of options | $81 | | Stock-based compensation | $1,877 | | **Balance at March 31, 2023** | **$81,802** | [Condensed Consolidated Interim Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Operating cash flow rose to **$14.8 million**, but acquisitions led to a **$77.6 million** outflow, funded by **$56.4 million** in new debt Summary of Cash Flows (in thousands of US Dollars) | Cash Flow Activity | Six months ended March 31, 2023 | Six months ended March 31, 2022 | | :--- | :--- | :--- | | **Net cash flow from operating activities** | $14,816 | $11,821 | | **Net cash flow used in investing activities** | $(77,600) | $(19,941) | | **Net cash flow from financing activities** | $56,366 | $(9,021) | | **Net decrease in cash** | $(6,418) | $(17,141) | | **Cash, beginning of period** | $8,516 | $34,612 | | **Cash, end of period** | $2,087 | $17,394 | - The primary use of cash in investing activities was **$72.7 million** paid for acquisitions, a substantial increase from **$16.5 million** in the prior-year period[11](index=11&type=chunk) - Financing activities were dominated by the issuance of **$70.0 million** in debt under a new senior credit facility, which was used to fund acquisitions[11](index=11&type=chunk) Notes to the Condensed Consolidated Interim Financial Statements [Note 1: Nature of Operations](index=9&type=section&id=1.%20Nature%20of%20operations) Quipt Home Medical Corp. provides durable medical respiratory equipment and services as a Medicare provider - The company's core business is providing a range of home medical respiratory equipment and services as a participating Medicare provider[12](index=12&type=chunk) [Note 3: Business Acquisitions](index=9&type=section&id=3.%20Business%20acquisitions) Quipt acquired Great Elm Healthcare for **$74.7 million**, primarily cash, significantly boosting assets - On January 3, 2023, Quipt acquired Great Elm Healthcare, LLC for a purchase price of **$74,749,000**, comprised of approximately **$72,689,000** in cash and 431,996 Quipt common shares valued at **$2,060,000**[16](index=16&type=chunk) Provisional Fair Value of Net Assets Acquired from Great Elm (in thousands of US Dollars) | Account | Fair Value | | :--- | :--- | | Goodwill | $23,061 | | Intangible assets | $46,410 | | Property, equipment, and right of use assets | $15,199 | | Other Net Assets / (Liabilities) | $(9,821) | | **Net assets acquired** | **$74,749** | [Note 7: Goodwill and Intangible Assets](index=11&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to **$50.7 million** and intangible assets to **$73.0 million**, primarily due to recent acquisitions Changes in Goodwill and Intangible Assets (in thousands of US Dollars) | Account | Balance Sep 30, 2022 | Additions from Acquisitions | Balance Mar 31, 2023 | | :--- | :--- | :--- | :--- | | Goodwill | $28,208 | $23,061 | $50,725 | | Net Intangible Assets | $28,887 | $46,410 | $73,042 | [Note 8: Government Grant](index=12&type=section&id=8.%20Government%20Grant) Prior year's **$4.254 million** PPP loan forgiveness significantly impacts current period profitability comparisons - A **$4,254,000** PPP loan was forgiven on March 23, 2022, and recorded as income in the prior-year period. The absence of this one-time gain in the current period is a key factor in the decline in net income[29](index=29&type=chunk) [Note 10: Long-term Debt](index=14&type=section&id=10.%20Long-term%20Debt) New **$110 million** senior credit facility has **$81.1 million** outstanding, primarily funding the Great Elm acquisition - The company entered a new **$110 million** senior credit facility, consisting of an **$85 million** delayed draw term loan, a **$5 million** term loan, and a **$20 million** revolving credit facility[31](index=31&type=chunk) - As of March 31, 2023, the total outstanding balance under the new facility was **$81,075,000**. The cash from this facility was used to partially fund the acquisition of Great Elm[31](index=31&type=chunk)[32](index=32&type=chunk) - The company paid off its SBA Loan during the quarter, resulting in a loss on extinguishment of approximately **$30,000**[44](index=44&type=chunk) [Note 11: Share Capital](index=18&type=section&id=11.%20Share%20capital) Share capital activities involved issuing **435,000** options and **831,000** RSUs, with **526,193** shares issued for settlements Stock Option Activity (in thousands) | Description | Number of options | Weighted avg. exercise price (C$) | | :--- | :--- | :--- | | **Balance Sep 30, 2022** | **3,751** | **4.24** | | Issued | 435 | 8.30 | | Exercised | (50) | 2.20 | | Expired/Forfeited | (82) | - | | **Balance Mar 31, 2023** | **4,054** | **4.54** | - On February 20, 2023, **831,000** restricted stock units were granted to officers and directors, vesting over two years[53](index=53&type=chunk) - Stock-based compensation expense for the six months ended March 31, 2023, was **$1.9 million**, down from **$3.3 million** in the prior-year period[56](index=56&type=chunk) [Note 13: Operating Expenses](index=21&type=section&id=13.%20Operating%20expenses) Operating expenses rose **58.9%** to **$47.1 million**, driven by a **66.6%** increase in payroll and benefits from acquisitions Operating Expenses Breakdown (in thousands of US Dollars) | Expense Category | Six months ended Mar 31, 2023 | Six months ended Mar 31, 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Payroll and employee benefits | $30,955 | $18,583 | +66.6% | | Billing | $4,201 | $2,846 | +47.6% | | All other | $11,992 | $8,241 | +45.5% | | **Total operating expenses** | **$47,148** | **$29,670** | **+58.9%** | [Note 17: Subsequent Event](index=23&type=section&id=17.%20Subsequent%20event) April 25, 2023 public offering raised **$28.9 million** net proceeds, used to repay the revolving credit facility - The company raised approximately **$28.9 million** in net proceeds from a share offering on April 25, 2023[66](index=66&type=chunk) - A portion of the proceeds was used to fully repay the outstanding balance on the revolving credit facility[66](index=66&type=chunk)

Financial Data and Key Metrics Changes - Revenue for fiscal Q1 2023 was $40.8 million, representing a 38% increase year-over-year from $29.5 million in fiscal Q1 2022 [35] - Adjusted EBITDA for fiscal Q1 2023 was $9 million at a 22% margin, compared to $6 million at a 20.3% margin in fiscal Q1 2022, indicating a 50% increase year-over-year [11][32] - Net income for fiscal Q1 2023 was $325,000 or $0.01 per fully diluted share, compared to a loss of $2.1 million or $0.06 per fully diluted share in fiscal Q1 2022 [37] Business Line Data and Key Metrics Changes - Respiratory resupply setups and deliveries increased to 69,482 for the quarter ended December 31, 2022, compared to 51,137 for the same quarter in 2021, marking a 36% increase [10] - The customer base grew by 32% year-over-year to 99,420 unique patients served in fiscal Q1 2023 from 75,309 in fiscal Q1 2022 [10] - Unique setups and deliveries increased by 24% to 146,350 in fiscal Q1 2023 from 118,100 in fiscal Q1 2022 [10] Market Data and Key Metrics Changes - The company has expanded to 115 locations in 26 states, serving over 270,000 active patients [9][17] - The regulatory environment has improved significantly, with the cancellation of the 2021 competitive bidding program for 13 product categories, enhancing the market conditions for home medical equipment [31] Company Strategy and Development Direction - The company aims to expand its payer base and geographic reach, focusing on areas with high prevalence of cardio and pulmonary diseases [6][19] - The strategic growth plan includes a renewed emphasis on growing the sales team and enhancing technology platforms to improve operational efficiency [5][18] - The company plans to uplift to the Toronto Stock Exchange big board in the first half of 2023 to foster more liquidity and institutional ownership [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to historical organic growth levels of 8% to 10% as the year progresses, supported by improvements in the supply chain and regulatory environment [29][30] - The company anticipates that the recent CPI adjustment will positively impact net income starting in fiscal Q2 2023 [39] - Management highlighted the importance of maintaining operational excellence and a conservative balance sheet to support future growth [14][20] Other Important Information - The company paid down $3.9 million of its revolving line of credit during the quarter, maintaining a strong liquidity position with $38.9 million in current assets [13] - The recent acquisition was valued at $80 million, with expected synergies of $2 million to be realized within six months [15][40] Q&A Session Summary Question: What is the expected impact of the CPI adjustment on margins? - Management indicated that the CPI increase translates to around 6% to 7% for Medicare fees, which could enhance margins but is complex due to changes in product mix [72][75] Question: How sustainable is the current bad debt provision? - Management believes the current bad debt expense of 5.6% is sustainable, with improvements in billing and collection processes contributing to this reduction [12][52] Question: What percentage of the sales force is new and how long does it take for them to ramp up? - Approximately 20% to 22% of the sales team is new, and it typically takes about six to nine months for new sales personnel to reach full productivity [53] Question: What is the outlook for organic growth in relation to the Great Elm acquisition? - Management expects the entire business, including Great Elm, to grow at historical levels of 8% to 10%, driven by sales force expansion and improved supply chain conditions [54][87] Question: How does the company view future acquisition opportunities? - Management remains optimistic about acquiring larger companies at favorable multiples, with a focus on respiratory services [92][104]

[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the unaudited condensed consolidated interim financial statements, including the statements of financial position, income, changes in equity, and cash flows, along with their explanatory notes [Condensed Consolidated Interim Statements of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) As of December 31, 2022, total assets were **$131.7 million** and total liabilities were **$51.3 million**, with shareholders' equity at **$80.4 million**, reflecting slight shifts from September 30, 2022 Consolidated Balance Sheet (As of Dec 31, 2022 vs. Sep 30, 2022) | Account | Dec 31, 2022 ($ thousands) | Sep 30, 2022 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 38,955 | 41,536 | | **Total Long-term Assets** | 92,770 | 90,678 | | **TOTAL ASSETS** | **131,725** | **132,214** | | **Total Current Liabilities** | 37,100 | 41,740 | | **Total Long-term Liabilities** | 14,182 | 10,927 | | **TOTAL LIABILITIES** | **51,282** | **52,667** | | **TOTAL SHAREHOLDERS' EQUITY** | **80,443** | **79,547** | | **TOTAL LIABILITIES AND EQUITY** | **131,725** | **132,214** | [Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Income%20%28Loss%29%20and%20Comprehensive%20Income%20%28Loss%29) For the three months ended December 31, 2022, the company achieved a net income of **$325,000** and **38.2%** revenue growth to **$40.8 million**, a significant turnaround from a net loss in the prior year Income Statement Highlights (Three Months Ended Dec 31) | Metric | 2022 ($ thousands) | 2021 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | 40,815 | 29,525 | +38.2% | | Operating Income (Loss) | 1,374 | (1,180) | Turnaround to Profit | | Net Income (Loss) | 325 | (2,131) | Turnaround to Profit | | Basic EPS | $0.01 | $(0.06) | +$0.07 | | Diluted EPS | $0.01 | $(0.06) | +$0.07 | [Condensed Consolidated Interim Statements of Changes in Shareholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity increased from **$79.5 million** to **$80.4 million** during the quarter, primarily due to **$325,000** in net income and **$571,000** in stock-based compensation Changes in Shareholders' Equity (Three Months Ended Dec 31, 2022) | Description | Amount ($ thousands) | | :--- | :--- | | Balance at Sep 30, 2022 | 79,547 | | Net Income | 325 | | Stock-based compensation | 571 | | **Balance at Dec 31, 2022** | **80,443** | [Condensed Consolidated Interim Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) For the three months ended December 31, 2022, operating activities provided **$4.8 million** in cash, while investing and financing activities used **$1.3 million** and **$8.4 million** respectively, leading to a net cash decrease of **$4.9 million** Cash Flow Summary (Three Months Ended Dec 31, 2022) | Activity | Amount ($ thousands) | | :--- | :--- | | Net cash flow from operating activities | 4,832 | | Net cash flow used in investing activities | (1,301) | | Net cash flow used in financing activities | (8,388) | | **Net decrease in cash** | **(4,857)** | | Cash, beginning of period | 8,516 | | **Cash, end of period** | **3,656** | [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations of accounting policies and financial figures, covering business operations, acquisition strategy, asset and liability breakdowns, share capital, and significant subsequent events [Note 1: Nature of operations](index=8&type=section&id=Note%201%3A%20Nature%20of%20operations) This note describes the company's primary business as a Medicare provider of durable medical respiratory equipment and its active acquisition strategy - The company is a Medicare provider of durable medical respiratory equipment and services, including nebulizers, oxygen concentrators, CPAP/BiPAP units, and non-invasive ventilation equipment[11](index=11&type=chunk) - Quipt has an active acquisition strategy to drive revenue and profit growth[11](index=11&type=chunk) [Note 2: Summary of significant accounting policies](index=8&type=section&id=Note%202%3A%20Summary%20of%20significant%20accounting%20policies) This note outlines the significant accounting policies used in preparing the unaudited condensed consolidated interim financial statements, consistent with IFRS - The unaudited condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard (IAS) 34, 'Interim Financial Reporting', and are consistent with IFRS[13](index=13&type=chunk) [Note 3: Purchase Price Payable](index=9&type=section&id=Note%203%3A%20Purchase%20Price%20Payable) This note details the decrease in purchase price payable related to prior acquisitions, following payments made during the period - The purchase price payable, related to prior acquisitions, decreased from **$5.8 million** at September 30, 2022, to **$5.0 million** at December 31, 2022, after payments of **$823,000**[15](index=15&type=chunk) [Note 4: Accounts Receivable](index=9&type=section&id=Note%204%3A%20Accounts%20Receivable) This note provides a breakdown of accounts receivable, including gross amounts and reserves for expected credit losses, and highlights the portion due from Medicare Accounts Receivable Breakdown ($ thousands) | Category | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | | Gross receivable | 27,788 | 27,122 | | Reserve for expected credit losses | (10,610) | (10,739) | | **Total** | **17,178** | **16,383** | - As of December 31, 2022, approximately **9%** of the company's receivables were due from Medicare[16](index=16&type=chunk) [Note 5: Inventory](index=9&type=section&id=Note%205%3A%20Inventory) This note presents a detailed breakdown of inventory, distinguishing between serialized and non-serialized items and accounting for reserves Inventory Breakdown ($ thousands) | Category | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | | Serialized | 7,132 | 5,814 | | Non-serialized | 9,817 | 9,854 | | Reserve for shrink and slow-moving | (83) | (83) | | **Total Inventory** | **16,866** | **15,585** | [Note 7: Goodwill and Intangible Assets](index=10&type=section&id=Note%207%3A%20Goodwill%20and%20Intangible%20Assets) This note details the net carrying amount of goodwill and intangible assets, including the amortization expense for the period Net Carrying Amount of Goodwill & Intangibles ($ thousands) | Asset | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | | Goodwill | 28,208 | 28,208 | | Intangible Assets, net | 28,086 | 28,887 | | **Total** | **56,294** | **57,095** | - Amortization of intangible assets for the three months ended December 31, 2022, was **$801,000**[21](index=21&type=chunk) [Note 8: Government Grant](index=12&type=section&id=Note%208%3A%20Government%20Grant) This note clarifies the status of government grants, including the full forgiveness of the PPP loan and recognition of the Relief Fund - The **$4.25 million** Payroll Protection Plan (PPP) loan received in 2020 was fully forgiven in March 2022[23](index=23&type=chunk) - The **$1.8 million** from the Public Health and Social Services Emergency Fund (Relief Fund) has been fully recognized, with no remaining liability as of December 31, 2022[24](index=24&type=chunk)[25](index=25&type=chunk) [Note 10: Long-term Debt](index=12&type=section&id=Note%2010%3A%20Long-term%20Debt) This note provides details on the company's long-term debt, including the senior credit facility, equipment loans, lease liabilities, and the status of convertible debentures - In September 2022, the company entered a five-year, **$110 million** senior credit facility, consisting of an **$85 million** delayed draw term loan, a **$5 million** term loan, and a **$20 million** revolving credit facility[27](index=27&type=chunk) - As of December 31, 2022, the outstanding balance under the new facility was **$8.04 million**[28](index=28&type=chunk) - The C**$15 million** in **8.0%** Convertible Unsecured Debentures issued in 2019 were fully converted during the year ended September 30, 2022, with no balance outstanding[32](index=32&type=chunk) Key Debt Balances (as of Dec 31, 2022) | Debt Type | Balance ($ thousands) | | :--- | :--- | | Senior Credit Facility (Net) | 6,332 | | Equipment Loans | 6,559 | | Lease Liabilities | 13,660 | | SBA Loan | 120 | [Note 11: Share capital](index=18&type=section&id=Note%2011%3A%20Share%20capital) This note details the components of share capital, including total shareholders' equity, outstanding stock options, restricted stock units, and stock-based compensation expense - Total shareholders' equity was **$80.4 million** as of December 31, 2022[41](index=41&type=chunk) - As of December 31, 2022, there were **3,689,000** stock options outstanding with a weighted average exercise price of C**$4.09**[48](index=48&type=chunk) - As of December 31, 2022, there were **848,750** restricted stock units (RSUs) from the May 2021 grant and **81,340** from the February 2022 grant outstanding[49](index=49&type=chunk)[50](index=50&type=chunk) - Stock-based compensation expense was **$571,000** for the three months ended December 31, 2022, a significant decrease from **$2,110,000** in the prior-year period[53](index=53&type=chunk) [Note 13: Operating expenses](index=22&type=section&id=Note%2013%3A%20Operating%20expenses) This note provides a detailed breakdown of the company's operating expenses for the three months ended December 31, comparing current and prior-year figures Operating Expenses Breakdown (Three Months Ended Dec 31) | Expense Category | 2022 ($ thousands) | 2021 ($ thousands) | | :--- | :--- | :--- | | Payroll and employee benefits | 12,359 | 8,618 | | Facilities | 1,044 | 600 | | Billing | 1,879 | 1,387 | | Professional fees | 992 | 635 | | All other | 3,188 | 2,174 | | **Total operating expenses** | **19,462** | **13,414** | [Note 15: Income (loss) per share](index=22&type=section&id=Note%2015%3A%20Income%20%28loss%29%20per%20share) This note details the calculation of basic and diluted earnings per share, reflecting the net income or loss and weighted average shares outstanding Earnings Per Share Calculation (Three Months Ended Dec 31) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net income (loss) ($ thousands) | 325 | (2,131) | | Basic weighted average shares (000's) | 35,605 | 33,346 | | Diluted weighted average shares (000's) | 38,148 | 33,346 | | **Basic EPS** | **$0.01** | **$(0.06)** | | **Diluted EPS** | **$0.01** | **$(0.06)** | [Note 16: Related party transactions](index=22&type=section&id=Note%2016%3A%20Related%20party%20transactions) This note discloses transactions with related parties, including lease agreements with an affiliated rental company and compensation for key management personnel - The company leases six facilities from a rental company affiliated with its CEO, with monthly lease payments of approximately **$65,000** for the three months ended December 31, 2022[60](index=60&type=chunk)[62](index=62&type=chunk) Key Management Personnel Compensation (Three Months Ended Dec 31) | Category ($ thousands) | 2022 | 2021 | | :--- | :--- | | Salaries and Benefits | 291 | 267 | | Stock-based compensation | 237 | 1,096 | | **Total** | **528** | **1,363** | [Note 17: Subsequent event](index=24&type=section&id=Note%2017%3A%20Subsequent%20event) This note describes a significant subsequent event, the acquisition of Great Elm Healthcare, LLC, including its funding and pro forma financial impact - On January 3, 2023, the company acquired Great Elm Healthcare, LLC for a purchase price of **$80 million**[64](index=64&type=chunk) - The acquisition was funded with approximately **$73 million** in cash from the senior credit facility, **$5 million** in assumed debt, and **$2 million** (**431,996 shares**) in Quipt common stock[64](index=64&type=chunk) - Pro forma results for the three months starting October 1, 2022, indicate Great Elm would have generated approximately **$15 million** in revenue and a net loss of **$500,000**[65](index=65&type=chunk)

Financial Data and Key Metrics Changes - Quipt Home Medical reported revenue of $40.1 million for Q4 2022, a 37.8% increase from $29.1 million in Q4 2021, and total revenue for fiscal year 2022 reached $139.9 million, up 36.7% from $102.4 million in fiscal year 2021 [14][21][22] - Adjusted EBITDA for Q4 2022 was $8.4 million with a margin of 21%, compared to $5.5 million in Q4 2021, representing a 54% increase [22] - The company achieved an adjusted EBITDA of $29.2 million for fiscal year 2022, with a margin of 20.9%, up from $21.4 million in fiscal year 2021 [21][24] Business Line Data and Key Metrics Changes - Respiratory resupply setups and deliveries increased to 231,495 for the year ended September 30, 2022, a 46.4% increase from 158,072 in the previous year [20] - The customer base grew by 23% year-over-year, reaching 173,203 unique patients served in fiscal year 2022 [20] Market Data and Key Metrics Changes - The company operates in a favorable regulatory environment, with Medicare fee schedule adjustments resulting in a CPI increase for DME providers of 6.4% to 9.1% for calendar 2023 [10][12] - The cancellation of the 2021 competitive bidding program for 13 product categories has provided a clear margin outlook across the product mix [12] Company Strategy and Development Direction - Quipt aims to transition from a regional to a national at-home respiratory care provider, focusing on expanding its sales team and enhancing patient accessibility [7][8] - The company plans to continue its growth strategy through strategic acquisitions, with five acquisitions completed in 2022, adding over 45,000 active patients and $35 million in revenue [27][40] - The company is focused on increasing market share through organic growth initiatives, technology deployment, and strategic acquisitions [38][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the guidance of $180 million in revenue by the end of calendar year 2023, despite some uncertainties regarding acquisition timing [53][54] - The company anticipates organic growth to return to historical rates of 7% to 10% in 2023, driven by increased device availability and CPI adjustments [76][77] Other Important Information - Quipt has a strong balance sheet with $110 million in senior secured credit facilities, providing financial flexibility for future growth [28][43] - The company has surpassed 200,000 active patients and operates 94 locations across 19 states [18][34] Q&A Session Summary Question: Outlook for growth across various products - Management expects the product mix to remain steady, with 80% from respiratory products and 20% from other DME supplies [46] Question: Integration of acquisitions - The integration of recent acquisitions is winding down, with expectations of margin improvement as full integration is completed [48] Question: Sales team growth - The company plans to increase its sales team by 50% in 2023, focusing on ramping up new hires [49] Question: Guidance for top line revenue - Management is confident in meeting the $180 million guidance but acknowledges the unpredictability of acquisition timing [53][54] Question: Pricing of deals in the pipeline - The current environment is expected to favor buyers, with lower multiples observed compared to previous months [56][58] Question: Status of sleep device backlog - Supply levels are approaching pre-pandemic levels, and the backlog is not being monitored as closely due to improved supply chain conditions [61][62] Question: Organic growth for the quarter - Organic growth was flat from Q3 to Q4, but management expects a reversal of the previous casketing effect leading to increased growth in 2023 [65][75] Question: Wage inflation and labor market - Wage inflation has been steady, but improvements in talent pools have led to greater efficiencies [66] Question: Run rate guidance for 2023 - The company is not providing run rate guidance for 2023 at this time but may do so later in the year [71]

Exhibit 99.1 QUIPT HOME MEDICAL REPORTS RECORD FOURTH QUARTER AND FISCAL YEAR 2022 FINANCIAL RESULTS POSTING POSITIVE NET INCOME, REVENUE GROWTH OF 37% AND ADJUSTED EBITDA GROWTH OF 37% POSTS STRONG ADJUSTED EBITDA MARGIN OF 20.9% FOR FISCAL YEAR 2022 Cincinnati, Ohio – December 21, 2022 – Quipt Home Medical Corp. (the "Company") (NASDAQ:QIPT; TSXV:QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, today announced its fourth quarter and fiscal year 2022 financial re ...

Financial Data and Key Metrics Changes - The company reported revenue of $36.7 million for Q3 2022, a 40% increase from Q3 2021 and a 2% sequential growth from Q2 2022 [23][18] - Adjusted EBITDA for Q3 2022 was $7.7 million, up 44% year-over-year, with an adjusted EBITDA margin of 21% [25][19] - For the nine months ended June 30, 2022, revenue increased to $99.8 million, a 36.2% increase compared to the same period in 2021 [26] - Operating expenses as a percentage of revenue increased to 46.7% from 43% in the same period last year, attributed to higher wages and fuel costs [28] Business Line Data and Key Metrics Changes - The company completed 133,704 unique setups in Q3 2022, a 40% increase from the previous year, with respiratory resupply setups increasing by 55% [27] - Recurring revenue now represents approximately 77% of total revenue, indicating a stable revenue base [28][34] Market Data and Key Metrics Changes - The backlog of patients waiting for sleep device setups was approximately 6,000, down from a peak of over 8,000 [14] - The company has expanded its operational footprint to over 90 locations across 19 states, serving over 200,000 active patients [43] Company Strategy and Development Direction - The company aims to expand as a national provider of at-home respiratory services, focusing on organic and inorganic growth through acquisitions and enhancing its healthcare network [6][20] - A national contract with UnitedHealthcare has been secured, significantly expanding patient accessibility and supporting growth initiatives [12] - The company is also pursuing a supply contract with Cardinal Health to enhance cross-selling opportunities and improve buying power [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the improving supply chain dynamics and regulatory environment, which is expected to positively impact margins [14][16] - The company anticipates continued strong demand for its respiratory products, particularly as the supply chain stabilizes [19][20] - Management expects to maintain adjusted EBITDA margins in the range of 20% to 21.5% over the next few quarters [65] Other Important Information - The company has closed four acquisitions since April 2022, adding over 30,000 active patients and contributing approximately $25 million in revenue [36][44] - A new credit facility of up to $80 million has been committed, which will support future growth and acquisitions [39][40] Q&A Session Summary Question: Can you talk about the Cardinal relationship and its expected sales impact? - Management is optimistic about the Cardinal contract and expects it to contribute to organic revenue growth starting in 2023 [62] Question: What operating leverage will the recent acquisitions add? - Management indicated that while there may be a slight initial impact on margins from new acquisitions, they expect to maintain EBITDA margins around 20% to 21.5% [64][65] Question: How quickly can you integrate acquisitions into the resupply program? - Integration typically takes three to six months, and management expects growth in the resupply program as device setups increase [67] Question: Will new de novo locations be in existing or new states? - New locations will primarily be in states where the company already operates to maximize operational leverage [70] Question: How will the CMS inflation adjustments impact margins? - Management believes the inflation adjustments will positively impact margins, with expectations of remaining stable despite potential vendor price increases [80] Question: What are the potential new service verticals? - Management is exploring expansion into supply businesses and technology for remote monitoring [94] Question: How does the company view the economic sensitivity of private pay patients? - Historically, the company has not seen significant impacts on this segment during recessionary periods [90]

Table of Contents Exhibit 99.1 Quipt Home Medical Corp. (Formerly, Protech Home Medical Corp.) Condensed Consolidated Interim Financial Statements 2022 Third Quarter For the three and nine months ended June 30, 2022 and 2021 (UNAUDITED) (Expressed in US Dollars) Table of Contents TABLE OF CONTENTS | Condensed Consolidated Interim Statements of Financial Position | Page 1 | | --- | --- | | Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income | | | (Loss) | Page 2 | | Condensed ...

Quipt Home Medical Corp. (NASDAQ:QIPT) Q2 2022 Earnings Conference Call May 17, 2022 10:00 AM ET Company Participants Greg Crawford - Chairman and CEO Hardik Mehta - CFO Conference Call Participants Doug Cooper - Beacon Securities Sepehr Manochehry - Eight Capital Tania Armstrong-Whitworth - Canaccord Genuity Raul Sarugaser - Raymond James Paul Stewardson - IA Capital Markets Justin Keywood - Stifel Stefan Quenneville - Echelon Capital Markets Operator Thank you for standing by. This is the conference opera ...

[Condensed Consolidated Interim Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statements of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) Total assets grew to $110.5 million, driven by a goodwill increase from acquisitions, while cash decreased significantly **Key Balance Sheet Items (in thousands of US Dollars)** | Account | March 31, 2022 | September 30, 2021 | Change | | :--- | :--- | :--- | :--- | | Cash | $17,394 | $34,612 | ($17,218) | | Accounts receivable, net | $13,710 | $11,938 | $1,772 | | Goodwill | $25,999 | $12,456 | $13,543 | | Total Assets | $110,526 | $108,573 | $1,953 | | Total Liabilities | $44,816 | $49,951 | ($5,135) | | Total Shareholders' Equity | $65,710 | $58,622 | $7,088 | [Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Income%20(Loss)%20and%20Comprehensive%20Income%20(Loss)) The company achieved a net income of $5.0 million in Q2 2022, a turnaround driven by revenue growth and a government grant **Income Statement Highlights (in thousands of US Dollars)** | Metric | Q2 2022 (3 months) | Q2 2021 (3 months) | YoY Change | Six Months 2022 | Six Months 2021 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $33,553 | $24,240 | +38.4% | $63,077 | $46,995 | +34.2% | | Operating Income | $4,444 | $1,418 | +213.4% | $3,262 | $2,847 | +14.6% | | Other Income (Gov't Grant) | $4,254 | $0 | N/A | $4,254 | $0 | N/A | | Net Income (Loss) | $5,036 | ($12,490) | Turnaround | $2,905 | ($11,125) | Turnaround | | Basic EPS | $0.15 | ($0.43) | Turnaround | $0.09 | ($0.39) | Turnaround | [Condensed Consolidated Interim Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity grew to $65.7 million, primarily driven by net income and stock-based compensation **Reconciliation of Shareholders' Equity (in thousands of US Dollars)** | Description | Amount | | :--- | :--- | | **Balance at September 30, 2021** | **$58,622** | | Net income | $2,905 | | Conversion of debentures | $887 | | Stock options exercised | $25 | | Stock-based compensation | $3,271 | | **Balance at March 31, 2022** | **$65,710** | [Condensed Consolidated Interim Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Operating cash flow doubled to $12.2 million, but cash decreased by $17.3 million due to acquisition and financing activities **Cash Flow Summary (Six months ended March 31, in thousands of US Dollars)** | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash flow provided by operating activities | $12,193 | $6,624 | | Net cash flow used in investing activities | ($19,941) | ($8,695) | | Net cash flow used in financing activities | ($9,553) | ($962) | | **Net decrease in cash** | **($17,301)** | **($3,033)** | | Cash, beginning of period | $34,612 | $29,227 | | **Cash, end of period** | **$17,394** | **$27,158** | - Cash paid for acquisitions was a major use of cash, increasing to **$16.5 million** in the first six months of fiscal 2022 from $7.7 million in the prior-year period[10](index=10&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Note 1: Nature of Operations](index=9&type=section&id=1.%20Nature%20of%20operations) The company provides medical respiratory equipment, pursues an acquisition-based growth strategy, and faces COVID-19 related risks - The company provides durable medical respiratory equipment and services and is actively pursuing an **acquisition-based growth strategy**[11](index=11&type=chunk) - The company changed its name to Quipt Home Medical Corp on May 13, 2021, and began trading on **NASDAQ** under the symbol **QIPT** on May 27, 2021[12](index=12&type=chunk)[13](index=13&type=chunk) - The company identifies **significant risks from the COVID-19 pandemic**, including potential disruptions to supply chains, changes in patient demand, and general economic deterioration[15](index=15&type=chunk)[16](index=16&type=chunk)[19](index=19&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=12&type=section&id=2.%20Summary%20of%20significant%20accounting%20policies) Key accounting policies include critical estimates for revenue recognition, accounts receivable valuation, and business combinations - **Revenue recognition is a critical estimate**, as amounts billed to third-party insurers are variable and reduced by an estimated allowance based on historical collection data[26](index=26&type=chunk)[27](index=27&type=chunk) - The **valuation of accounts receivable** and the associated reserve for expected credit losses involve significant judgment, incorporating historical data and forward-looking factors like unemployment and inflation[36](index=36&type=chunk)[37](index=37&type=chunk) - **Accounting for business combinations requires management judgment** to determine if a transaction is a business or asset acquisition and to estimate the fair value of acquired assets and liabilities[48](index=48&type=chunk) [Note 3: Acquisition of Businesses](index=23&type=section&id=3.%20Acquisition%20of%20businesses%20and%20purchase%20accounting) The company completed four acquisitions for $16.5 million in cash, adding $13.5 million to goodwill **Summary of Acquisitions (Six Months Ended March 31, 2022)** | Acquired Company | Date | Purchase Price (in thousands) | Goodwill (in thousands) | | :--- | :--- | :--- | :--- | | Thrift Home Care, Inc | Oct 1, 2021 | $2,171 | $1,373 | | Heckman Healthcare | Nov 1, 2021 | $2,434 | $1,351 | | Southeastern Biomedical | Nov 9, 2021 | $697 | $487 | | At Home Health Equipment | Jan 1, 2022 | $13,265 | $10,332 | - The balance of **purchase price payable for acquisitions increased** from $2.5 million at September 30, 2021, to **$3.4 million** at March 31, 2022, after additions from new acquisitions and payments on prior ones[75](index=75&type=chunk) [Note 4: Accounts Receivable](index=30&type=section&id=4.%20Accounts%20Receivable) Net accounts receivable increased to $13.7 million, with a corresponding rise in the reserve for credit losses **Accounts Receivable Aging (in thousands of US Dollars)** | Aging | Gross Receivable (Mar 31, 2022) | Net Receivable (Mar 31, 2022) | Gross Receivable (Sep 30, 2021) | Net Receivable (Sep 30, 2021) | | :--- | :--- | :--- | :--- | :--- | | 0 – 90 days | $15,144 | $12,245 | $11,279 | $9,861 | | 91 – 180 days | $2,591 | $1,163 | $2,027 | $1,296 | | Over 180 days | $1,999 | $302 | $2,107 | $781 | | **Total** | **$19,734** | **$13,710** | **$15,413** | **$11,938** | [Note 7: Goodwill and Intangible Assets](index=32&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) Goodwill more than doubled to $26.0 million due to a $13.5 million increase from business acquisitions **Change in Goodwill and Intangibles (in thousands of US Dollars)** | Account | March 31, 2022 | September 30, 2021 | Change | | :--- | :--- | :--- | :--- | | Goodwill | $25,999 | $12,456 | +$13,543 | | Intangibles with finite lives, net | $13,959 | $14,874 | -$915 | | **Total** | **$39,958** | **$27,330** | **+$12,628** | [Note 8: Government Grant](index=34&type=section&id=8.%20Government%20Grant) The company recognized $4.25 million in other income from the forgiveness of a Payroll Protection Program (PPP) loan - On March 23, 2022, the company's **$4,254,000 Payroll Protection Plan (PPP) loan was forgiven**, and this amount was recognized as other income[85](index=85&type=chunk) [Note 11: Long-Term Debt](index=36&type=section&id=11.%20Long-term%20Debt) Long-term debt includes convertible debentures and loans, with an undrawn $20 million credit facility providing liquidity - The company has **C$10.1 million ($8.1 million) in face value of convertible debentures** outstanding, resulting in a fair value **gain of $1.1 million** for the six months ended March 31, 2022[94](index=94&type=chunk)[96](index=96&type=chunk) - The company has a **$20 million asset-based revolving credit facility** that matures in September 2024, with **no borrowings** as of March 31, 2022[107](index=107&type=chunk) [Note 12: Share Capital](index=41&type=section&id=12.%20Share%20capital) Stock-based compensation expense increased substantially to $3.3 million, driven by stock options and new RSU grants **Stock-Based Compensation Expense (in thousands of US Dollars)** | Period | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Three Months Ended Mar 31 | $1,161 | $12 | +$1,149 | | Six Months Ended Mar 31 | $3,271 | $27 | +$3,244 | - The company granted **81,340 restricted stock units (RSUs)** to officers on February 1, 2022, and had a total of **895,000 RSUs outstanding** as of March 31, 2022[123](index=123&type=chunk)[125](index=125&type=chunk) [Note 14: Operating Expenses](index=47&type=section&id=14.%20Operating%20expenses) Operating expenses increased 45% to $35.2 million, driven by higher payroll, bad debt, and professional fees **Operating Expense Breakdown (Six months ended March 31, in thousands of US Dollars)** | Expense Category | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Payroll and employee benefits | $18,583 | $13,435 | +$5,148 | | Bad debt expense | $5,579 | $4,289 | +$1,290 | | Professional fees | $1,970 | $1,000 | +$970 | | Billing | $2,846 | $1,609 | +$1,237 | | **Total operating expenses** | **$35,249** | **$24,263** | **+$10,986** | [Note 17: Subsequent Event](index=49&type=section&id=17.%20Subsequent%20event) The company acquired Good Night Medical for $6.1 million on April 1, 2022, after the reporting period - On April 1, 2022, the company acquired **Good Night Medical, LLC** for a purchase price of **$6.1 million**[137](index=137&type=chunk) - The pro forma six-month revenues and net income for Good Night are estimated to be **$5.3 million** and **$280,000**, respectively[138](index=138&type=chunk)

Exhibit 99.1 Notice to Reader The unaudited condensed consolidated interim financial statements for the three months ended December 31, 2021 and 2020 are being refiled now that they have been reviewed by the Company's auditor. Accordingly, apart from the removal of the Notice of No Auditor Review, no other changes were made to the information initially filed, Quipt Home Medical Corp. (Formerly, Protech Home Medical Corp.) Amended Condensed Consolidated Interim Financial Statements 2022 First Quarter For the ...