Quipt Home Medical (QIPT) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2025, was $57,376,000, a decrease of 2.9$61,251,000 for the same period in 2024[16] - Net loss for the six months ended March 31, 2025, was $4,125,000, compared to a net loss of$2,227,000 for the same period in 2024, representing an increase in loss of 85.5%[21] - Operating income for the three months ended March 31, 2025, was a loss of $999,000, compared to an operating income of$901,000 for the same period in 2024[16] - The company reported a basic loss per share of $0.07 for the three months ended March 31, 2025, compared to a loss of$0.02 per share for the same period in 2024[16] - Net loss for the three months ended March 31, 2025, increased to $3,042,000 from$739,000 for the same period in 2024[95] - Adjusted EBITDA for the three months ended March 31, 2025, was $13,351,000, compared to$14,897,000 for the same period in 2024[99] Assets and Liabilities - Total current assets increased to $74,968,000 as of March 31, 2025, from$73,054,000 as of September 30, 2024, reflecting a growth of 2.6%[15] - Total liabilities rose to $141,075,000 as of March 31, 2025, compared to$140,057,000 as of September 30, 2024, indicating a slight increase of 0.7%[15] - Total shareholders' equity decreased to $103,570,000 as of March 31, 2025, from$107,191,000 as of September 30, 2024, a decline of 3.0%[15] - The net carrying value of long-term debt is $70,285,000 as of March 31, 2025, up from$67,793,000 as of September 30, 2024[37] - The total principal balance of the senior credit facility is $71,475,000 as of March 31, 2025, compared to$69,223,000 as of September 30, 2024[37] Cash Flow - Cash at the end of the period increased to $17,145,000 from$16,174,000, marking a rise of 6.0%[21] - The company had a net cash flow provided by operating activities of $18,246,000 for the six months ended March 31, 2025, compared to$14,895,000 for the same period in 2024, an increase of 22.5%[21] - Net cash flow used in investing activities increased to $5,217,000 for the six months ended March 31, 2025, from$2,825,000 for the same period in 2024[104] - Net cash flow used in financing activities decreased to $11,219,000 for the six months ended March 31, 2025, from$14,713,000 for the same period in 2024[105] Expenses - The total operating expenses for the six months ended March 31, 2025, were $60,291,000, slightly down from$60,503,000 for the same period in 2024[57] - Operating expenses for the three months ended March 31, 2025, were $29,893,000, a decrease of$803,000, or 3%, from $30,696,000 in the same period of 2024[84] - Stock-based compensation expense for the three months ended March 31, 2025, was$298,000, compared to $701,000 for the same period in 2024, indicating a significant reduction[52] - Depreciation expense increased 6$9,829,000 for the three months ended March 31, 2025, compared to $9,258,000 for the same period in 2024[88] Shareholder Information - As of March 31, 2025, the company had 43,507,000 common shares outstanding, an increase from 43,091,000 as of September 30, 2024, representing a growth of approximately 1$103,570,000 as of March 31, 2025[106] Regulatory and Legal Matters - The company is involved in a civil investigative demand from the DOJ regarding potential false claims related to CPAP equipment, and is cooperating with the investigation[55] - The SEC concluded its investigation in November 2024 without recommending enforcement action against the company[56] - The Company has not recorded any activity in goodwill for the six months ended March 31, 2025[32] Market and Economic Conditions - The cumulative annual impact of various challenges on total revenue is estimated to be approximately $8,800,000[77] - The Medicare 75/25 blended rate was discontinued as of January 1, 2024, negatively impacting revenue and operating results[74] - The Company continues to monitor macroeconomic conditions, which could adversely affect its revenue and financial condition[130] Agreements and Contracts - The Company entered into a Cooperation Agreement with Philotimo Fund, LP, resolving a potential proxy contest and ensuring the election of its recommended director candidates[131] - On February 1, 2025, the Company entered into a Non-Disclosure and Standstill Agreement with Forager Fund, which includes a six-month standstill period preventing Forager from acquiring any equity securities or assets of the Company without prior Board approval[133] - Forager has agreed to vote all Common Shares beneficially owned by them in favor of the directors nominated by the Board and other proposals recommended for shareholder approval[135] Accounting and Financial Reporting - The Company has not experienced any material changes in its significant accounting policies compared to the previous fiscal year[112] - The Company is currently evaluating the impact of new accounting standards on its consolidated financial statements[27] - The Company has no changes in internal control over financial reporting that materially affected its operations during the three months ended March 31, 2025[122]