Document and Entity Information
Document and Entity Information | 12 Months Ended |
Sep. 30, 2021 | |
Entity Addresses [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Sep. 30, 2021 |
Entity 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 | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001540013 |
Amendment Flag | false |
Audited Annual Financial Statements | true |
Annual Information Form | true |
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, 2021 | Sep. 30, 2020 | Oct. 01, 2019 |
Current Assets | |||
Cash | $ 34,612 | $ 29,227 | $ 9,708 |
Accounts receivable, net | 11,938 | 9,089 | 9,357 |
Inventory | 9,253 | 6,415 | 3,578 |
Prepaid and other current assets | 1,430 | 552 | 604 |
Total current assets | 57,233 | 45,283 | 23,247 |
Long-term assets | |||
Property, equipment, and right of use assets, net | 23,506 | 16,667 | 14,723 |
Goodwill | 12,456 | 3,895 | 1,420 |
Intangible assets, net | 14,874 | 5,579 | 2,198 |
Deferred financing costs | 416 | 556 | |
Deposits | 88 | 85 | 71 |
Total long-term assets | 51,340 | 26,782 | 18,412 |
TOTAL ASSETS | 108,573 | 72,065 | 41,659 |
Current Liabilities | |||
Accounts payable | 9,842 | 7,434 | 6,134 |
Accrued liabilities | 3,202 | 3,488 | 1,750 |
Current portion of equipment loans | 6,992 | 4,311 | 6,176 |
Current portion of leases | 2,981 | 2,037 | 421 |
Government grant | 4,885 | 2,599 | |
Deferred revenue | 2,452 | 1,804 | 1,438 |
Purchase price payable | 2,383 | 857 | |
Derivative warrant liability | 1,855 | ||
Total current liabilities | 32,737 | 24,385 | 15,919 |
Long-term Liabilities | |||
Debentures | 11,784 | 12,930 | 10,547 |
Equipment loans | 392 | 439 | 1,130 |
Lease liabilities | 4,784 | 3,230 | 1,040 |
Government grant | 2,286 | ||
SBA Loan | 121 | ||
Long-term purchase price payable | 133 | 560 | |
TOTAL LIABILITIES | 49,951 | 43,830 | 28,636 |
SHAREHOLDERS' EQUITY | |||
Capital stock | 202,827 | 171,405 | 151,963 |
Contributed surplus | 21,001 | 16,519 | 16,177 |
Shares to be issued | 657 | ||
Accumulated deficit | (165,863) | (159,689) | (155,117) |
TOTAL SHAREHOLDERS' EQUITY | 58,622 | 28,235 | 13,023 |
TOTAL LIABILITIES AND EQUITY | $ 108,573 | $ 72,065 | $ 41,659 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||
Rentals of medical equipment | $ 55,338,000 | $ 41,251,000 |
Sales of medical equipment and supplies | 47,013,000 | 31,388,000 |
Total revenues | 102,351,000 | 72,639,000 |
Inventory sold | 28,172,000 | 19,934,000 |
Operating expenses | 52,762,000 | 38,626,000 |
Depreciation | 16,212,000 | 13,860,000 |
Amortization of intangible assets | 1,574,000 | 678,000 |
Stock-based compensation | 4,952,000 | 171,000 |
Acquisition-related costs | 233,000 | 89,000 |
Gain on sale of property and equipment | (94,000) | (74,000) |
Other income | (1,303,000) | |
Operating income (loss) from continuing operations | (1,460,000) | 658,000 |
Financing expenses | ||
Interest expense on convertible debenture | 838,000 | 887,000 |
Interest expense on leases | 551,000 | 461,000 |
Interest expense on loans | 376,000 | 489,000 |
Amortization of financing costs | 140,000 | 5,000 |
Other interest expense, net | 88,000 | |
Loss (gain) on foreign currency transactions | 173,000 | (454,000) |
Transaction costs on issuance of financial liabilities | 210,000 | |
Change in fair value of warrants | 2,112,000 | 198,000 |
Change in fair value of debentures | 3,591,000 | 2,437,000 |
Loss before taxes from continuing operations | (9,329,000) | (3,575,000) |
Provision for (recovery of) income taxes | (3,155,000) | 128,000 |
Net loss from continuing operations | (6,174,000) | (3,703,000) |
Income (loss) from discontinued operations | (869,000) | |
Net loss | $ (6,174,000) | $ (4,572,000) |
Net loss per share (Note 16) | ||
Basic earnings per share | $ (0.20) | $ (0.20) |
Diluted earnings per share | $ (0.20) | $ (0.20) |
Weighted average number of common shares outstanding: | ||
Basic | 30,438 | 22,721 |
Diluted | 30,438 | 22,721 |
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, 2019 | $ 151,963 | $ 16,177 | $ (155,117) | $ 13,023 | |
Balance at beginning of period (in shares) at Sep. 30, 2019 | 20,897 | ||||
Net loss | (4,572) | (4,572) | |||
Stock-based compensation | $ 26 | 145 | 171 | ||
Stock-based compensation (in shares) | 15 | ||||
Proceeds from shares issued in bought deal, net of transaction costs | $ 19,189 | 19,189 | |||
Proceeds from shares issued in bought deal, net of transaction costs (in shares) | 6,920 | ||||
Compensation options issued with bought deal | $ (462) | 462 | |||
Stock options exercised | $ 358 | (149) | 209 | ||
Stock options exercised (in shares) | 130 | ||||
Compensation options exercised | $ 331 | (116) | 215 | ||
Compensation options exercised (in shares) | 107 | ||||
Balance at end of period at Sep. 30, 2020 | $ 171,405 | 16,519 | (159,689) | 28,235 | |
Balance at end of period (in shares) at Sep. 30, 2020 | 28,069 | ||||
Net loss | (6,174) | (6,174) | |||
Stock-based compensation | 4,952 | 4,952 | |||
Stock options exercised | $ 355 | (154) | 201 | ||
Stock options exercised (in shares) | 117 | ||||
Stock to be issued from acquisition | $ 3,033 | 3,033 | |||
Issuance of stock for acquisitions | $ 2,376 | (2,376) | |||
Issuance of stock for acquisitions (in shares) | 629 | ||||
Conversion of debentures | $ 5,359 | 5,359 | |||
Conversion of debentures (in shares) | 777 | ||||
Compensation options exercised | $ 1,718 | (316) | 1,402 | ||
Compensation options exercised (in shares) | 368 | ||||
Exercise of warrants, including transfer of derivative warrant liability | $ 21,614 | 21,614 | |||
Exercise of warrants, including transfer of derivative warrant liability (in shares) | 3,390 | ||||
Balance at end of period at Sep. 30, 2021 | $ 202,827 | $ 21,001 | $ 657 | $ (165,863) | $ 58,622 |
Balance at end of period (in shares) at Sep. 30, 2021 | 33,350 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||
Transaction costs | $ 2,645 | |
Transfer of derivative warrant liability | $ 4,140 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Loss from continuing operations | $ (6,174,000) | $ (3,703,000) |
Loss from discontinued operations | (869,000) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 17,786,000 | 14,538,000 |
Amortization of financing costs | 140,000 | 5,000 |
Accretion of purchase price payable | 38,000 | |
Interest expense on leases and loans | 932,000 | 950,000 |
Loss (gain) on foreign currency transactions | 173,000 | (454,000) |
Loss on fair value of warrants | 2,112,000 | 198,000 |
Loss on fair value of convertible debentures | 3,591,000 | 2,437,000 |
Gain on disposal of property and equipment | (94,000) | (74,000) |
Transaction cost related to issuance of financial liability | 210,000 | |
Stock-based compensation | 4,952,000 | 171,000 |
Bad debt expense | 7,957,000 | 6,441,000 |
Change in inventory reserve | (45,000) | (31,000) |
Government grant | (1,166,000) | |
Deferred income taxes | (3,800,000) | |
Change in working capital: | ||
Net increase in accounts receivable | (8,825,000) | (5,115,000) |
Net increase in inventory | (44,000) | (1,730,000) |
Net increase in prepaid and other current assets | (858,000) | 115,000 |
Net decrease in deferred revenue | 333,000 | 366,000 |
Net increase in accounts payables and accrued liabilities | 518,000 | 1,745,000 |
Net cash flow provided by operating activities | 18,692,000 | 14,034,000 |
Investing activities | ||
Purchase of property and equipment | (5,046,000) | (91,000) |
Cash proceeds from sale of property and equipment | 98,000 | 253,000 |
Cash paid for acquisitions | (12,890,000) | (8,015,000) |
Net cash flow used in investing activities | (17,838,000) | (7,853,000) |
Financing activities | ||
Repayments of long-term debt | (13,893,000) | (12,970,000) |
Payments of purchase price payable | (1,274,000) | |
Issuance costs relating to revolving credit facility | (571,000) | |
Proceeds from government grant | 6,008,000 | |
Proceeds from exercise of warrants | 17,474,000 | 1,641,000 |
Proceeds from issuance of common shares | 19,189,000 | |
Proceeds from exercise of options | 1,603,000 | 424,000 |
Net cash flow provided by financing activities | 3,910,000 | 13,721,000 |
Net increase in cash | 4,764,000 | 19,902,000 |
Effect of exchange rate changes on cash held in foreign currencies | 621,000 | (383,000) |
Cash, beginning of year | 29,227,000 | 9,708,000 |
Cash, end of year | $ 34,612,000 | $ 29,227,000 |
Nature of operations
Nature of operations | 12 Months Ended |
Sep. 30, 2021 | |
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 continued into British Columbia, Canada. The address of the registered office is 666 Burrard St, Vancouver, British Columbia, V6C 2Z7. The head office is located at 1019 Town Drive, Wilder, Kentucky, United States. The Company is a participating Medicare provider that provides i) nebulizers, oxygen concentrators, and CPAP and BiPAP units; ii) traditional and non-traditional durable medical respiratory equipment and services; and iii) non-invasive ventilation equipment, supplies and services. The Company has embarked on an acquisition strategy for additional revenue and profit growth. The Company changed its name from Protech Home Medical Corp. to Quipt Home Medical Corp. on May 13, 2021. The Company’s shares are traded on the TSX Venture Exchange under the symbol QIPT. On May 27, 2021 the stock began trading on NASDAQ in the United States under the symbol QIPT. Effective May 13, 2021, the Company consolidated its issued and outstanding common shares based on one Basis of measurement These consolidated financial statements have been prepared on a going concern basis that assumes that the Company will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of operations. Change in presentation currency Effective October 1, 2020, the Company changed its presentation currency to United States (“US”) dollars from Canadian dollars. Since the Company operates in the United States and its functional currency is US dollars, the Company believes that the change in presentation currency will provide stakeholders with a better reflection of the Company’s business activities and enhance the comparability of the Company’s financial information. The change in presentation currency represents a change in accounting policy, which is accounted for retrospectively. The consolidated financial statements for all periods presented have been translated into the new presentation currency in accordance with International Accounting Standard (“IAS”) 21 - The Effects of Changes in Foreign Exchange Rates The consolidated statements of income (loss) and comprehensive loss and the consolidated statements of cash flows have been translated into the presentation currency using the average exchange rates prevailing during each reporting period. In the consolidated statements of financial position, all assets and liabilities have been translated using the period-end exchange rates, and all resulting exchange differences have been recognized as a foreign currency gain (loss) in the consolidated statements of income (loss) and comprehensive income (loss). Asset and liability amount previously reported in Canadian dollars have been translated into US dollars as at September 30, 2020, using the period-end exchange rates of 1.3339 C$/US$. The statements of income (loss) and comprehensive income (loss) and statement of cash flows have been translated at an exchange rate of 1.3458 C$/US$ for the year ended September 30, 2020. In prior reporting periods, the translation of the Company’s US entities, which had a US dollar functional currency, into the Company’s presentation currency of the Canadian dollar, gave rise to a translation adjustment which was recorded as a cumulative translation adjustment (“CTA”), a separate component of shareholders’ equity. With the retrospective application of the change in presentation currency from the Canadian dollar to the US dollar, the CTA was eliminated. COVID-19 pandemic On March 11, 2020, the World Health Organization declared the outbreak of a novel strain of coronavirus (“COVID 19”) a global pandemic. In response to the outbreak, governmental authorities in the US and internationally have introduced various recommendations and measures to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place, and social distancing. The COVID 19 outbreak and the response of governmental authorities to try to limit it are having a significant impact on the private sector and individuals, including business, employment, and economic disruptions. The Company’s priorities during the COVID-19 pandemic include protecting the health and safety of its employees (including patient-facing employees providing respiratory and other services), maximizing the availability of its services and products to support patient health needs, and the operational and financial stability of its business. The full extent to which the COVID-19 pandemic and the various responses to it impact the Company’s business, operations, and financial results will depend on numerous other evolving factors that we are not able to predict. Although the Company has taken steps to mitigate the impact of COVID 19, the continued presence and spread of COVID 19 nationally and globally could have a material adverse impact on the Company’s business, operations, and financial results and position, including through employee attrition, disruptions to the Company’s supply chains and sales channels, restrictions of operations at our retail stores, changes in the number of Americans with health insurance resulting in a change in demand for the Company’s products, as well as a deterioration of general economic conditions including a possible national or global recession. Due to the speed with which the COVID 19 situation is developing and the uncertainty of its magnitude, outcome, and duration, it is not possible to estimate its impact on the Company’s business, operations, financial results and position or prospects at this time. We will continue to actively monitor the issues raised by the COVID-19 pandemic and may take further actions that alter our business operations, as may be required by federal, state, or local authorities, or that we determine are in the best interests of our patients, employees, customers, and stockholders. It is not clear what the potential effects any such alterations or modifications may have on our business, including the effects on our customers, suppliers or vendors, or on our financial results. The Company continues to monitor the situation and work with its stakeholders (including customers, employees, and suppliers) in order to assess further possible implications to its business, supply chain, and customers, and, where practicable, mitigate adverse consequences and responsibly address this global pandemic. The actual and threatened spread of COVID 19 globally could adversely affect global economies and financial markets, resulting in a prolonged economic downturn and a decline in the value of the Company’s share price. The extent to which COVID 19 (or any other disease, epidemic, or pandemic) impacts business activity or financial results, and the duration of any such negative impact, will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning COVID 19 and the actions required to contain or treat its impact, among others. Federal, state, and local authorities have taken several actions designed to assist healthcare providers in providing care to COVID-19 and other patients and to mitigate the adverse economic impact of the COVID-19 pandemic. Legislative actions taken by the federal government include the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was signed into law on March 27, 2020. Through the CARES Act, the federal government has authorized payments to be distributed to healthcare providers through the Public Health and Social Services Emergency Fund (“Provider Relief Fund” or “PRF”). Additionally, the CARES Act revised the Medicare accelerated and advance payment program in an attempt to disburse payments to healthcare providers more quickly to mitigate the financial impact on healthcare providers. See Note 8 for relief payments the Company received related to the US Coronavirus Aid, Relief and Economic Security (“CARES”) Act. |
Basis of Presentation and summa
Basis of Presentation and summary of significant accounting policies | 12 Months Ended |
Sep. 30, 2021 | |
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 consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were authorized for issue by the Board of Directors on January 26, 2022. 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. 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, their functional currencies and ownership percentages are as follows: 100 W. Commercial Street, LLC USD 100% Acadia Medical Supply, Inc. USD 100% Black Bear Medical, Inc. USD 100% Black Bear Medical Group, Inc. USD 100% Black Bear Medical NH, Inc. USD 100% Care Medical Atlanta, LLC USD 100% Care Medical of Athens, Inc. USD 100% Care Medical of Augusta, LLC USD 100% Care Medical of Gainesville, LLC USD 100% Care Medical Partners, LLC USD 100% Care Medical Savannah, LLC USD 100% Central Oxygen, Inc. USD 100% Coastal Med-Tech Corp. USD 100% Cooley Medical Equipment, Inc. USD 100% Health Technology Resources, L.L.C. USD 100% Legacy Oxygen and Home Care Equipment, LLC USD 100% Mayhugh Drugs, Inc. USD 100% Med Supply Center USD 100% Medical West Healthcare USD 100% Oxygen Plus, Inc. USD 100% Patient Aids, Inc. USD 100% Patient Home Monitoring, Inc - discontinued USD 100% PHM Logistics Corporation USD 100% PHM Services, Inc. USD 100% Resource Medical, Inc. USD 100% Resource Medical Group Charleston, LLC USD 100% Resource Medical Group, LLC USD 100% Riverside Medical, Inc. USD 100% Semo Drugs - Care Plus of Mo, Inc. USD 100% Sleepwell, LLC USD 100% Tuscan, Inc. USD 100% West Home Healthcare, Inc. USD 100% Critical accounting estimates The preparation of financial statements in conformity 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 acquisition, 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 both third-party insurers and patients. 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 payer. Therefore, the amount billed by the Company is reduced by an estimate of the amount that the Company believes is an allowable charge to be ultimately allowed by the insurance contract. The above 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 required. Rental of medical equipment The Company rents medical equipment to customers for a fixed monthly amount on a month-to-month basis. The customer generally 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 Due to the nature of the industry and the reimbursement environment in which the Company operates, certain estimates are required to record net revenue and accounts receivable at their net realizable values. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payors may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of cash application or claim denial. Sales of medical equipment and supplies The Company sells equipment, replacement parts, and supplies to customers and recognizes revenue based on contractual payment rates as determined by the payors at the point in time where control of the good or service is transferred through delivery to the customer. The payors are generally charged at the time that the product is sold. The transaction price on equipment sales is the amount that the Company expects to receive in exchange for the goods and services provided. Due to the nature of the industry, gross charges are retail charges and generally do not reflect what the Company is ultimately paid. As such, the transaction price is constrained for the difference between the gross charge and what is estimated to be collected from payors and from patients. The transaction price therefore is predominantly based on contractual payment rates as determined by the payors. The Company does not generally contract with uninsured customers but does offer point-of-sale payments at retail outlets. The payment terms and conditions of customer contracts vary by customer type and the products and services offered. The Company determines its estimates of contractual allowances and discounts based upon contractual agreements and historical experience. While the rates are fixed for the product or service with the customer and the payors, such amounts typically include co-payments, co-insurance, and deductibles, which vary in amounts, and are due from secondary insurance providers and/or the patient. The Company includes in the transaction price only the amount that the Company expects to be entitled, which is substantially all of the payor billings at contractual rates. Due to the nature of the industry and the reimbursement environment in which the Company operates, certain estimates are required to record net revenue and accounts receivable at their net realizable values. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payors may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of claim approval or denial. Returns and refunds are not accepted on equipment sales. 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 as of September 30, 2021, relating to sale of medical equipment and supplies. b) Valuation of accounts receivable The measurement of expected credit losses considers information about past events and current conditions. Forward looking macro-economic factors are incorporated into the risk parameters, such as unemployment rates, inflation, and interest rates. Significant judgments are made in order to incorporate forward-looking information into the estimation of allowances 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 an allowance for doubtful accounts. The Company evaluates the net realizable value of accounts receivable as of the date of the consolidated balance sheets. Specifically, the Company considers historical realization data, including current and historical cash collections, accounts receivable aging trends, other operating trends, and relevant business conditions. Because of continuing changes in the health care industry and third-party reimbursement, it is possible that the estimates could change, which could have a material impact on the operations and cash flows. If circumstances related to certain customers change or actual results differ from expectations, our 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) Valuation of inventories Inventory is recorded at the lower of cost or market. Inventory is expensed through cost of inventory sold when shipped to customers or transferred to property and equipment when rented to customers. The Company estimates that a certain portion of inventory purchased may be excess, obsolete, or non-saleable. The Company maintains a provision for obsolescence for these items. Valuation of the inventory was assessed at year-end, and all inventory items which more than two years are old and not supported by recent sales were provided for 40% in accordance with Company’s policy. d) Convertible debentures In accordance with the substance of the contractual arrangement, convertible debentures are compound financial instruments that are accounted for separately by their components: a financial liability and an equity instrument. The identification of convertible debenture components is based on interpretations of the substance of the contractual arrangement and therefore requires judgment from management. The separation of the components affects the initial recognition of the convertible debenture at issuance and the subsequent recognition of interest on the liability component. The determination of the fair value of the liability is also based on a number of assumptions, including contractual future cash flows, discount factors, and the presence of any derivative financial instruments. e) Property and equipment Property and equipment is 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 5 years Right of use real estate leases Life of lease (1-6 years) Depreciation of rental equipment commences once it has been deployed 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. f) 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 purchased 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. Finite 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 Years Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) when the asset is derecognized. 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. g) Share based payments and warrants The amounts used to estimate fair values of stock options and warrants issued are based on estimates of future volatility of the Company’s share price, expected lives of the options and warrants, 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. h) Income taxes Significant judgment is required in determining the provision for future 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. i) 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 will extend the lease at the end of the lease contract or exercise an early termination option. As it is not reasonably certain that the extension or early termination options will be exercised, the Company determined that the term of its leases are the lesser of original lease term or the life of the leased asset. 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 loss and comprehensive loss. Critical Accounting Judgements The following are the critical judgments, apart from those involving estimations, that 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) 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. b) Business combinations In accordance with IFRS 3 – Business Combinations c) Recognition and initial measurement The Company recognizes financial assets when it becomes party to the contractual provisions of the instrument. Financial assets are measured initially at their fair value plus, in the case of financial assets not subsequently measured at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Transaction costs attributable to the acquisition of financial assets subsequently measured at fair value through profit or loss are expensed in the consolidated statement of loss and comprehensive loss when incurred. d) 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. The Company has ten CGUs with goodwill and reviews the value in use versus the carrying value both in total and for each of the individual assets. The recoverable amount of the CGU 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. e) Segment reporting International Financial Reporting Standards 8 f) Identification of cash-generating unit “CGU” 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 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. g) Loss per share Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average number of shares outstanding is increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The average number of shares is calculated by assuming that outstanding conversions were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. For the years ended September 30, 2021 and 2020, potentially dilutive common shares issuable upon the exercise of conversion option related to convertible debentures, warrants and options were not included in the computation of loss per share because their effect was anti-dilutive. h) 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 $ 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. Discontinued operations An operation is qualified as discontinued when it represents a separate major line of business and the Company has sold the asset. Discontinued operations are presented on a single line of the statement of loss and comprehensive loss for the periods reported, comprising the earnings after tax of discontinued operations until divestiture and the gain or loss after tax on sale or fair value measurement, less costs to sell the assets and liabilities making up the discontinued operations are presented on one separate line of the statement of consolidated cash flows for the periods presented. IFRS 16, Leases Effective October 1, 2019, the Company adopted IFRS 16. IFRS 16 eliminates the distinction between operating and finance leases from the perspective of the lessee. All contracts that meet the definition of a lease will be recorded in the statement of financial position with a “right of use” asset and a corresponding liability at the present value of the future lease payments using the lessee’s incremental borrowing rate of 8%. The Company elected to adopt IFRS 16 using the modified retrospective approach. Under this approach, the Company will not restate its comparative figures, but will recognize the cumulative effect of adopting IFRS 16 as an adjustment to opening statement of financial position, with the recognition of $2,603,000 of right of use assets and finance lease The Company elected to apply the practical expedient to exclude recognition of right of use assets and lease liabilities for real estate, computer equipment, and office furniture leases under 12 months in duration or for which the lease term ends within 12 months of initial application for leases, and for low-value assets. The Company also elected to apply IFRS 16 only to the contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 Leases were not reassessed for whether a lease exists. 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. The warrant derivative financial liability has been valued using level 3 inputs from the fair value hierarchy. The convertible debentures have been valued using Level 1 inputs. Financial instrument risk exposure The Company’s activities expose it to a variety of financial risks: market risk (including credit risk, liquidity risk and interest rate risk), credit risk, and liquidity risk. These risks arise from the normal course of operations and all transactions are undertaken to support the Company’s ability to continue as a going concern. Risk management is carried out by management under policies promulgated by the Board of Directors. The Company’s overall risk management program seeks to minimize potential adverse effects on the Company’s financial performance. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Financial instruments that potentially subject the Company to credit risk are primarily cash and accounts receivable. Each subsidiary places its cash with one major financial institution. At times, the cash in the financial institution is temporarily more than the amount insured by the Federal Deposit Insurance Corporation. Substantially all accounts receivable is due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Receivables generally are collected within industry norms for third-party payors. The Company continuously monitors collections from its clients and maintains an allowance for bad debts based upon any specific payor collection issues that are identified and historical experience. The expected loss rates are based on the historical loss rates and are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables, such as the unemployment rate of the states in which it conducts business. Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, a failure to make contractual payments after multiple collection efforts, including third party collection agencies. As of September 30, 2021, the Company has approximately 9% of the Company’s receivables that are due from Medicare. As this is a federal health insurance program in the United States, there is nominal credit risk associated with these balances. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach in managing liquidity is to ensure, to the extent possible, that it will have sufficient liquidity to meet its liabilities when due by continuously monitoring actual and budgeted cash flows and monitoring financial market conditions for signs of weakness. As of September 30, 2021, the Company faces no material liquidity risk and can meet all its current financial obligations as they become due and payable. The Company has $32,737,000 of liabilities that are due within one year but has $57,233,000 of current assets to meet those obligations. Interest rate risk Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate risk is limited to potential decreases on the interest rate offered on cash and cash equivalents held with Chartered Canadian and registered US financial institutions. The Company considers this risk to be immaterial. The interest on the debenture and equipment loans is not subject to cash flow interest rate risk as these instruments bear interest at fixed rates. |
Acquisition of businesses and p
Acquisition of businesses and purchase accounting | 12 Months Ended |
Sep. 30, 2021 | |
Acquisition of businesses and purchase accounting | |
Acquisition of businesses and purchase accounting | 3. Acquisition of businesses and purchase accounting Acquisition of Sleepwell, LLC Effective October 23, 2020, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Sleepwell, Inc. (Sleepwell), Georgia company in the same industry as the Company. The purchase price was $9,976,000 of which $6,623,000 was paid in cash at closing, $2,376,000 (629,000 shares at a fair value of $3.78 per share) was paid through the issuance of stock in January 2021, a holdback paid in March 2021 discounted at 3.46% for a fair value of $320,000, and $657,000 (246,000 shares at a fair value of $2.67) to be paid in stock in August 2022. The fair value of the stock has been discounted by 15% and 25%, respectively, using the Black-Scholes pricing model for put options, to reflect the inability to sell the stock for a period and for the time between the date of the acquisition and the dates the stock is to be issued. 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 $81,000 of professional fees in conjunction with the acquisition. The pro forma revenues and net income for Sleepwell for the year ended September 30, 2021 was approximately $11,100,000 and $2,800,000, respectively, of which approximately $10,400,000 and $2,700,000 were recognized in the period from October 23, 2020 through September 30, 2021. The fair value of the acquired assets was as follows: Cash $ 378 Accounts receivable 780 Inventory 769 Prepaid expenses and other current assets 2 Property and equipment 960 Right of use real estate ($390 net of unfavorable lease) 313 Goodwill 4,641 Intangible asset – Non-compete agreements 220 Intangible asset – Brand 520 Intangible asset – Customer relationships 4,670 Accounts payable (640) Accrued liabilities (166) Deferred revenue (100) Lease liabilities (390) Deferred tax liability (1,981) Net assets acquired $ 9,976 Cash paid at closing $ 6,623 Stock issued in January 2021 2,376 Cash to be paid after closing 320 Stock to be issued after closing, included in shares to be issued 657 Consideration paid or payable $ 9,976 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for tax purposes. Subsequent to the acquisition date, the deferred tax liability on the purchase price allocation of $1,981,000 was offset by the deferred tax asset from tax loss carry forwards and recorded as recovery of income taxes. Acquisition of Mayhugh Drugs, Inc. Effective February 1, 2021, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Mayhugh Drugs, Inc, dba Mayhugh Medical Equipment (Mayhugh). Mayhugh is a Florida based company in the same industry as the Company. The purchase price was $1,959,000, of which $1,047,000 was paid in cash at closing, holdbacks due on the six- and twelve-month anniversary of the acquisition discounted at 2.39% for a fair value of $662,000, and an earnout valued at $250,000. The earnout could be as high as $750,000 ($250,000 for each of the first three twelve-month periods following the acquisition), and the fair value was based on a Monte Carlo simulation. 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 $53,000 of professional fees in conjunction with the acquisition. The pro forma revenues and net income for Mayhugh for the year ended September 30, 2021 was approximately $6,300,000 and $700,000, respectively, of which approximately $4,300,000 and $700,000 were recognized in the period from February 1, 2021 to September 30, 2021. The fair value of the acquired assets was as follows: Cash $ 180 Accounts receivable, net of expected credit loss of $1,142 474 Inventory 487 Prepaid expenses and other current assets 7 Property and equipment 1,357 Right of use real estate 61 Goodwill 1,587 Intangible asset – Non-compete agreements 40 Intangible asset – Brand 290 Intangible asset – Customer relationships 2,500 Accounts payable (880) Accrued liabilities (14) Deferred revenue (84) Equipment loans (2,846) US Small Business Association (“SBA”) loan (119) Lease liabilities (134) Deferred tax liability (947) Net assets acquired $ 1,959 Cash paid at closing $ 1,047 Cash to be paid after closing, included in purchase price payable 912 Consideration paid or payable $ 1,959 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for income tax purposes. Subsequent to the acquisition date, the deferred tax liability on the purchase price allocation of $947,000 was offset by the deferred tax asset from tax loss carry forwards and recorded as recovery of income taxes. Acquisition of Med Supply Center, Inc. On June 21, 2021, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Med Supply Center, Inc. (“Med Supply”). Med Supply is a Mississippi based company in the same industry as the Company. The purchase price was $1,601,000, of which $1,279,000 was paid in cash at closing, $10,000 to be paid within two months of the acquisition, and holdbacks payable on the six- and twelve-month anniversaries of the acquisition discounted at 2.39% for a fair value of $312,000. 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 $25,000 of professional fees in conjunction with the acquisition. The pro forma revenues and net income for Med Supply for the year ended September 30, 2021 was approximately $2,400,000 and $60,000, respectively, of which approximately $900,000 and $40,000 were recognized in the period from June 21, 2021 to September 30, 2021. The fair value of the acquired assets was as follows: Cash $ 48 Accounts receivable 180 Inventory 597 Property and equipment 263 Right of use real estate 88 Goodwill 766 Intangible asset – Non-compete agreements 140 Intangible asset – Brand 20 Intangible asset – Customer relationships 210 Accounts payable (190) Accrued liabilities (40) Deferred revenue (53) Deferred tax liability (304) Lease liabilities (124) Net assets acquired $ 1,601 Cash paid at closing $ 1,279 Cash to be paid after closing, included in purchase price payable 322 Consideration paid or payable $ 1,601 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for tax purposes. Subsequent to the acquisition date, the deferred tax liability on the purchase price allocation of $304,000 was offset by the deferred tax asset from tax loss carry forwards and recorded as recovery of income taxes. Acquisition of Semo Drug-Care Plus of Mo. Inc On June 23, 2021, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Semo Drug-Care Plus of Mo. Inc, dba Care Plus Home Oxygen Therapy (“Care Plus”). Care Plus is a Missouri based company in the same industry as the Company. The purchase price was $1,626,000, of which $1,440,000 was paid in cash at closing, $10,000 to be paid within two months of the acquisition, and holdbacks payable on the six- and twelve-month anniversaries of the acquisition discounted at 2.39% for a fair value of $176,000. 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 $25,000 of professional fees in conjunction with the acquisition. The pro forma revenues and net income for Care Plus Oxygen for the year ended September 30, 2021 was approximately $2,200,000 and $300,000, respectively, of which approximately $700,000 and $40,000 were recognized in the period from June 23, 2021 to September 30, 2021. The fair value of the acquired assets was as follows: Cash $ 47 Accounts receivable 292 Inventory 475 Property and equipment 373 Goodwill 482 Intangible asset – Non-compete agreements 60 Intangible asset – Brand 100 Intangible asset – Customer relationships 370 Accounts payable (94) Accrued liabilities (51) Deferred tax liability (377) Deferred revenue (51) Net assets acquired $ 1,626 Cash paid at closing $ 1,440 Cash to be paid after closing, included in purchase price payable 186 Consideration paid or payable $ 1,626 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for tax purposes. Subsequent to the acquisition date, the deferred tax liability on the purchase price allocation of $377,000 was offset by the deferred tax asset from tax loss carry forwards and recorded as recovery of income taxes. Acquisition of Oxygen Plus, Inc. On June 29, 2021, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Oxygen Plus, Inc. Oxygen Plus is a California based company in the same industry as the Company. The purchase price was $730,000, of which $574,000 was paid in cash at closing and a holdback due on the six- and twelve-month anniversaries of the acquisition discounted at 2.39% for a fair value of $156,000. 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 $24,000 of professional fees in conjunction with the acquisition. The pro forma revenues and net income (loss) for Oxygen Plus for the year ended September 30, 2021 was approximately $1,100,000 and $40,000, respectively, of which approximately $300,000 and $(90,000) were recognized in the period from June 29, 2021 to September 30, 2021. The fair value of the acquired assets is as follows: Cash $ 114 Accounts receivable 60 Inventory 39 Property and equipment 88 Goodwill 327 Intangible asset – Non-compete agreements 10 Intangible asset – Brand 50 Intangible asset – Customer relationships 500 Accounts payable (98) Accrued liabilities (13) Deferred tax liability (180) Deferred revenue (12) Equipment loans (155) Net assets acquired $ 730 Cash paid at closing $ 574 Cash to be paid after closing, included in purchase price payable 156 Consideration paid or payable $ 730 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for tax purposes. Subsequent to the acquisition date, the deferred tax liability on the purchase price allocation of $180,000 was offset by the deferred tax asset from tax loss carry forwards and recorded as recovery of income taxes. Acquisition of Medical West Healthcare. On August 20, 2021, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Medical West Healthcare Center. Medical West is a Missouri based company in the same industry as the Company. The purchase price was $2,366,000, of which $1,927,000 was paid in cash at closing and a holdback due on the six- and twelve-month anniversaries of the acquisition discounted at 2.39% for a fair value of $439,000. 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 $25,000 of professional fees in conjunction with the acquisition. The pro forma revenues and net income for Medical West for the year ended September 30, 2021 was approximately $5,700,000 and $400,000, respectively, of which approximately $600,000 and $40,000 were recognized in the period from August 21, 2021 to September 30, 2021. The fair value of the acquired assets was as follows: Cash $ 234 Accounts receivable 195 Inventory 382 Prepaid expenses and other current assets 10 Property and equipment 1,121 Goodwill 758 Intangible asset – Non-compete agreements 20 Intangible asset – Brand 270 Intangible asset – Customer relationships 880 Deposits 2 Accounts payable (309) Accrued liabilities (107) Deferred tax liability (11) Deferred revenue (16) Equipment loans (1,063) Net assets acquired $ 2,366 Cash paid at closing $ 1,927 Cash to be paid after closing, included in purchase price payable 439 Consideration paid or payable $ 2,366 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is deductible for tax purposes. Subsequent to the acquisition date, the deferred tax liability on the purchase price allocation of $11,000 was offset by the deferred tax asset from tax loss carry forwards and recorded as recovery of income taxes. Prior year acquisitions Acquisition of Cooley Medical Equipment, Inc. Effective October 1, 2019, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Cooley Medical Equipment, Inc. (Cooley), a Kentucky company in the same industry as the Company. The purchase price was $2,732,000, of which $2,333,000 was paid in cash at closing , and the balance of $399,000 to be paid on the 18-month anniversary of the acquisition discounted at 3.86%. Of the cash portion of the purchase price, $1,824,000 was paid to the US Department of Justice to pay off a settlement agreement into which Cooley had entered. 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 $41,000 of legal expenses, included in acquisition-related costs, during the year ended September 30, 2020 in conjunction with the acquisition. During the year ended September 30, 2021, the Company settled the purchase price payable, resulting in income of $123,000, which is included as a reduction of operating expenses on the statement of income (loss) and comprehensive income (loss) for the year ended September 30, 2021. The fair value of the acquired assets was as follows: Cash $ 80 Accounts receivable 605 Inventory 769 Prepaid expenses and other current assets 42 Property and equipment 1,842 Right of use assets 1,080 Intangible asset – Brand 80 Intangible asset – Non-compete agreements 20 Intangible asset – Customer relationships 330 Goodwill 422 Accounts payable and accrued liabilities (815) Deferred revenue (204) Equipment loans (509) Lease liabilities (1,010) Net assets acquired $ 2,732 Cash paid at closing $ 2,333 Cash to be paid after closing, included in purchase price payable 399 Consideration paid or payable $ 2,732 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is expected to be deductible for tax purposes. Acquisition of Acadia Medical Supply, Inc. Effective December 1, 2019, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Acadia Medical Supply, Inc. (Acadia), a Maine company in the same industry as the Company. The purchase price was $1,476,000, of which $1,004,000 was paid in cash at closing, and the balance of $472,000 to be paid on the one- and two-year anniversaries of the acquisition discounted at 3.86%. 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 legal expenses included in operating expenses in conjunction with the acquisition. Pro forma revenues and net income for Acadia for the year ended September 30, 2020 were approximately $3,300,000 and $400,000, respectively. Of those amounts, revenues of approximately $2,800,000 and net income of approximately $300,000 contributed to the Company’s results for the period from December 1, 2019 through September 30, 2020. The fair value of the acquired assets was as follows: Cash $ 59 Accounts receivable 143 Inventory 246 Property and equipment 387 Right of use assets 243 Other assets 8 Intangible asset – Brand 130 Intangible asset – Non-compete agreements 30 Intangible asset – Customer relationships 460 Goodwill 375 Accounts payable and accrued liabilities (278) Deferred revenue (44) Equipment loans (136) Lease liabilities (147) Net assets acquired $ 1,476 Cash paid at closing $ 1,004 Cash to be paid after closing, indcluded in accrued liabilities 228 Cash to be paid after closing, included in other long-term liabilities 244 Consideration paid or payable $ 1,476 The goodwill is attributable to expected synergies from the combining operations. None of the goodwill is expected to be deductible for tax purposes. Acquisition of Health Technology Resources, L.L.C. Effective August 17, 2020, the Company, through PHM Logistics Corporation, entered into a purchase agreement to acquire all the shares of Health Technology Resources, L.L.C. (“HTR”), an Illinois company in the same industry as the Company. The purchase price was $5,347,000, of which $4,819,000 was paid in cash at closing, and the balance of $528,000 to be paid after closing. The $528,000 is comprised of (a) a holdback due on the two-year anniversary of the acquisition discounted at 3.86% for a value of $184,000, (b) Payroll Protection Plan funds of $207,000 to be paid on upon forgiveness, and (c) an earnout valued at $137,000. The earnout could be as high as $500,000 and the fair value was based on a Monte Carlo simulation. As of September 30, 2021, the earnout was revalued to $65,000, and a reduction to operating expenses of $72,000 was recorded in the statement of income (loss) and comprehensive income (loss for the year ended September 30, 2021 Operating expenses on the income statement. 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 $26,000 of legal expenses, included in acquisition-related expenses, during the year ended September 30, 2020 in conjunction with the acquisition. Pro forma revenues and net income for HTR for the year ended September 30, 2020 were approximately $4,100,000 and $1,500,000, respectively. Of those amounts, revenues of approximately $450,000 and net income of approximately $110,000 contributed to the Company’s results for the period from August 17, 2020 through September 30, 2020. The fair value of the acquired assets was as follows: Cash $ 140 Accounts receivable 400 Inventory 77 Property and equipment 216 Prepaid assets 15 Intangible asset – Brand 330 Intangible asset – Non-compete agreements 70 Intangible asset – Customer relationships 2,610 Goodwill 1,678 Accounts payable and accrued liabilities (107) Deferred revenue (82) Net assets acquired $ 5,347 Cash paid at closing $ 4,819 Cash to be paid after closing, indcluded in accrued liabilities 207 Cash to be paid after closing, included in other long-term liabilities 321 Consideration paid or payable $ 5,347 The goodwill is attributable to expected synergies from the combining operations. The goodwill is expected to be deductible for tax purposes. Acquistion Related Costs The acquisition related costs included on the consoldiated statements of loss and comprehensive loss consists of amounts related to professional expenses for acquisitions in addition to prior period acquisition related costs. The reconciliation of this expense is as follows for the year ended September 30, 2021: As at As at Acquisition Professional Fees: September 30, 2021 September 30, 2020 Cooley — 41 Acadia — 22 Health Technology Resources — 26 Sleepwell 81 — Mayhugh 53 — Med Supply 25 — Care Plus 25 — Oxygen Plus 24 — Medical West 25 — Balance, September 30, 2021 $ 233 $ 89 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 2021 acquisitions less payments made to date. Below is the movement in Purchase Price Payable for the year ended September 30, 2021: Year Ended September 30, 2021 Balance, September 30, 2020 (current $857 plus long-term $560) $ 1,417 Addition from acquisitions 2,335 Accretion of interest 38 Payments (1,274) Balance, September 30, 2021 (current $2,383 plus long-term $133) $ 2,516 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable | |
Accounts Receivable | 4. Accounts Receivable Accounts receivable represents amounts due from insurance companies and patients: As at As at September 30, 2021 September 30, 2020 Gross receivable $ 15,413 $ 14,125 Reserve for expected credit losses (3,475) (5,036) $ 11,938 $ 9,089 Allowance for Gross expected As at September 30, 2021 Receivables credit losses Net Receivables 0 – 90 days $ 11,279 $ (1,418) $ 9,861 91 – 180 days 2,027 (731) 1,296 Over 180 days 2,107 (1,326) 781 Total $ 15,413 $ (3,475) $ 11,938 Below is the movement in the reserve for expected credit losses: Year ended Year ended September 30, September 30, Reserve for expected credit losses 2021 2020 Opening Balance $ 5,036 $ 2,305 Bad debt expense 7,957 6,441 Amounts written off (9,518) (3,710) Ending Balance $ 3,475 $ 5,036 |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2021 | |
Inventory | |
Inventory | 5. Inventory As at September 30, As at September 30, 2021 2020 Serialized $ 2,369 $ 2,132 Non-serialized 6,922 4,366 Reserve for shrink and slow-moving (38) (83) Total Inventory $ 9,253 $ 6,415 The reserve for slow-moving inventory is included under 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, 2021 | |
Property, equipment, and right of use assets | |
Property, equipment, and right of use assets | 6. Property, equipment, and right of use assets Office Right of use Right of use Rental Computer furniture and Leasehold assets – assets – Real Cost equipment equipment fixtures improvements Vehicles estate Total Balance September 30, 2019 $ 26,717 $ 504 $ 433 $ 1,169 $ 2,588 $ — $ 31,411 Additions – adoption of IFRS 16 — — — — — 2,603 2,603 Transfers from inventory 7,676 — — — — — 7,676 Additions — 5 — 83 795 1,300 2,183 Acquisitions 2,332 — 1 184 159 1,092 3,768 Disposals (14,157) (338) (101) (72) (670) (5) (15,343) Balance September 30, 2020 $ 22,568 $ 171 $ 333 $ 1,364 $ 2,872 $ 4,990 $ 32,298 Transfers from inventory 14,988 — — — — — 14,988 Additions — 17 2 88 1,385 2,560 4,052 Acquisitions 2,740 — 3 54 302 1,526 4,625 Disposals (9,150) (33) (11) (8) (384) (1,326) (10,912) Balance September 30, 2021 $ 31,146 $ 155 $ 327 $ 1,498 $ 4,175 $ 7,750 $ 45,051 Office Right of use Right of use Rental Computer furniture and Leasehold assets – assets – Real Accumulated depreciation equipment equipment fixtures improvements Vehicles estate Total Balance September 30, 2019 $ 14,769 $ 371 $ 260 $ 257 $ 1,031 $ — $ 16,688 Depreciation 11,429 74 71 124 664 1,498 13,860 Disposals (13,887) (339) (102) (72) (513) (4) (14,917) Balance September 30, 2020 $ 12,311 $ 106 $ 229 $ 309 $ 1,182 $ 1,494 $ 15,631 Depreciation 13,213 31 61 131 789 1,987 16,212 Disposals (9,105) (33) (11) (9) (336) (804) (10,298) Balance September 30, 2021 $ 16,419 $ 104 $ 279 $ 431 $ 1,635 $ 2,677 $ 21,545 Office Right of use Right of use Rental Computer furniture and Leasehold assets – assets – Real Net Book Value equipment equipment fixtures improvements Vehicles estate Total Balance September 30, 2019 $ 11,948 $ 133 $ 173 $ 912 $ 1,557 $ — $ 14,723 Balance September 30, 2020 $ 10,257 $ 65 $ 104 $ 1,055 $ 1,690 $ 3,496 $ 16,667 Balance September 30, 2021 $ 14,727 $ 51 $ 48 $ 1,067 $ 2,540 $ 5,073 $ 23,506 Out of the $14,988,000 rental equipment transferred from inventory during the year ended September 30, 2021, the Company obtained equipment loans (Note 11) for $10,049,000 with the balance of $4,939,000 paid in cash. For the year ended September 30, 2020, the Company obtained equipment loans of $7,080,000. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Sub-total Non- intangibles compete Customer Customer with finite Cost Goodwill agreements Brand contracts relationships lives Total Balance September 30, 2019 $ 1,420 $ 517 $ 1,341 $ 3,851 $ 8,460 $ 14,169 $ 15,589 Acquisitions 2,475 120 540 — 3,399 4,059 6,534 Disposals — — — — (93) (93) (93) Balance September 30, 2020 $ 3,895 $ 637 $ 1,881 $ 3,851 $ 11,766 $ 18,135 $ 22,030 Acquisitions 8,561 370 1,370 — 9,129 10,869 19,430 Disposals — — — — (205) (205) (205) Balance September 30, 2021 $ 12,456 $ 1,007 $ 3,251 $ 3,851 $ 20,690 $ 28,799 $ 41,255 Sub-total Non- intangibles compete Customer Customer with finite Accumulation amortization Goodwill agreements Brand contracts relationships lives Total Balance September 30, 2019 $ — $ 480 $ 888 $ 3,728 $ 6,875 $ 11,971 $ 11,971 Amortization — 42 101 117 418 678 678 Disposals — — — — (93) (93) (93) Balance September 30, 2020 $ — $ 522 $ 989 $ 3,845 $ 7,200 $ 12,556 $ 12,556 Amortization — 85 211 6 1,272 1,574 1,574 Disposals — — — — (205) (205) (205) Balance September 30, 2021 $ — $ 607 $ 1,200 $ 3,851 $ 8,267 $ 13,925 $ 13,925 Sub-total Non- intangibles compete Customer Customer with finite Net carrying amount Goodwill agreements Brand contracts relationships lives Total Balance September 30, 2019 $ 1,420 $ 37 $ 453 $ 123 $ 1,585 $ 2,198 $ 3,618 Balance September 30, 2020 $ 3,895 $ 115 $ 892 $ 6 $ 4,566 $ 5,579 $ 9,474 Balance September 30, 2021 $ 12,456 $ 400 $ 2,051 $ — $ 12,423 $ 14,874 $ 27,330 Goodwill Continuity Balance September 30, 2020 $ 3,895 Acquisition through business combination: Sleepwell 4,641 Mayhugh 1,587 Med Supply 766 Care Plus 482 Oxygen Plus 327 Medical West 758 Balance September 30, 2021 $ 12,456 |
Government Grant
Government Grant | 12 Months Ended |
Sep. 30, 2021 | |
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 PPP provided for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses. The loans and accrued interest are forgivable if the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent, and utilities for up to twenty-four weeks, and maintains certain payroll levels. The unforgiven portion of the PPP loan is payable, with 1% interest over nine equal installments of $472,000 from September 2021 through April 2022. The Company applied for forgiveness of the loan in August 2021. In October 2021, the bank approved the application and forwarded the Company’s application to the SBA. The SBA has not yet completed their review of the application. The Company has concluded that the PPP loan represents, in substance, a grant that is expected to be forgiven, it has accounted for the proceeds under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Public health and Social Services Emergency Fund (“Relief Fund”) During the year 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 cash inflow has been reported as a financing activity. The original proceeds were recognized as a liability, which was reduced based on certain related costs incurred. During the years ended September 30, 2021 and 2020, the Company reduced the liability by $0 and $1,166,000, respectively, which was been included in other income in the consolidated statements of income (loss) and comprehensive income (loss). Current Long Term Total Balance September 30, 2020 $ 2,599 $ 2,286 $ 4,885 Change in current and long-term portions 2,286 (2,286) — Balance September 30, 2021 $ 4,885 $ — $ 4,885 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Sep. 30, 2021 | |
Deferred Revenue | |
Deferred Revenue | 9. Deferred Revenue Activity for deferred revenue for the years ended September 30, 2021 and 2020 is as follows: For the year ended For the year ended September 30, 2021 September 30, 2020 Beginning balance $ 1,804 $ 1,438 Acquisitions 316 330 Net addition 332 36 Ending balance $ 2,452 $ 1,804 |
Derivative warrant liability
Derivative warrant liability | 12 Months Ended |
Sep. 30, 2021 | |
Derivative warrant liability. | |
Derivative warrant liability | 10. Derivative warrant liability On June 29, 2020, the Company completed a bought deal public offering, a concurrent brokered private placement, and a non-brokered private placement to the Company’s Chief Executive Officer and a director of the Company, for 27,678,826 units, respectively. Each unit consisted of one common share and one-half As at September 30, 2020 Share price C$ 1.31 Risk-free interest rate 0.23 % Expected volatility 60.8 % Expected life of warrant 0.75 years Expected dividend yield 0 % Warrant activity for the years ended September 30, 2021 and 2020 is provided below: Amount Balance September 30, 2019 $ — Issued 1,627 Change in fair value 198 Change in foreign exchange rate 30 Balance September 30, 2020 1,855 Exercised at a weighted average Black-Scholes fair value of $0.31 (4,140) Change in fair value 2,112 Change in foreign exchange rate 173 Balance September 30, 2021 $ — |
Long-term Debt
Long-term Debt | 12 Months Ended |
Sep. 30, 2021 | |
Long-term Debt | |
Long-term Debt | 11. Long-term Debt Debentures On March 7, 2019, the Company issued C$15,000,000 in 8.0% Convertible Unsecured Debentures due March 7, 2024, with interest payable semi-annually on June 30 and December 31. Each C$1,000 (US$807) debenture is convertible at the option of the holder into 192.31 common shares. As of September 30, 2020, C$4,000 of debentures had been converted into common shares, and during the year ended September 30, 2021, C$4,037,000 of debentures were converted into common shares, leaving C$10,959,000 (US$8,601,000) of face value of the debentures remaining. The fair value of the debentures on the dates of conversion totaled C$6,766,000, or $5,359,000. After three years, the Company can force conversion of the outstanding principal at a conversion price of C$5.20 per share, if the daily volume weighted average price of the common shares exceeds C$6.48 per share for twenty The debentures contain multiple embedded derivatives including conversion right, forced conversion option and payment in lieu of common shares. Since the Company is unable to measure the fair value of embedded derivatives reliably, it has 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). The debentures are valued at fair value using the current trading price of C$137 ($109) and C$115 ($86) as of September 30, 2021 and September 30, 2020, respectively, per unit. A loss of $3,591,000 and $2,437,000 was recorded for the years ended September 30, 2021 and 2020, respectively. Following is the movement in these debentures: Year Ended Year Ended September 30, 2021 September 30, 2020 Beginning Balance $ 12,930 $ 10,547 Conversion to common shares (5,359) — Change in fair value 3,591 2,437 Change in foreign exchange rate 622 (54) Ending Balance $ 11,784 $ 12,930 In conjunction with issuance of the debentures, the Company issued compensation options to the underwriters for 129,808 shares of the Company at an exercise price of C$5.20 for a period of two years from the closing of the transaction. The fair value of the options has been valued at $1.02 for a total of $133,000 using the Black-Scholes pricing model. Compensation options activity for the year ended September 30, 2021 is provided below: Number Weighted (000s) average exercise price Balance, September 30, 2020 130 C$ 5.20 Exercised (130) 5.20 Balance, September 30, 2021 — C$ — 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 some 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 a 6% incremental borrowing rate to impute interest on these arrangements. In other cases, the supplier receives the full invoice price and Company pays a stated interest rate to the financial institution, ranging from 5.6% to 8.0%, with the terms of the financing ranging from 12 to 48 months. There are no covenants with the loans and the carrying value of the equipment that is pledged as security against the loans is $6,939,000. Following is the activity in equipment loans for the years ended September 30, 2021 and 2020: Year Ended Year Ended September 30, 2021 September 30, 2020 Beginning Balance $ 4,750 $ 7,306 Additions: Acquisitions 3,001 646 Operations 10,049 7,080 Interest expense 376 489 Repayments (10,792) (10,771) Ending Balance 7,384 4,750 Current portion, less than 1 year 6,992 4,311 Long-term portion, due between 1 and 5 years $ 392 $ 439 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 8% incremental borrowing rate. 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 1.7% to 10.4%. Below is the movement in lease liabilities for the year ended September 30, 2021: Real Vehicles estate Total Balance, September 30, 2020 $ 1,627 $ 3,640 $ 5,267 Additions during the period: Acquisitions 109 1,603 1,712 Operations 1,385 2,560 3,945 Interest 163 388 551 Lease Terminations — (612) (612) Repayments (870) (2,228) (3,098) Balance, September 30, 2021 $ 2,414 $ 5,351 $ 7,765 Future payments pursuant to lease liabilities are as follows: As at As at September 30, 2021 September 30, 2020 Less than 1 year $ 3,491 $ 2,394 Between 1 and 5 years 5,367 3,497 More than five years 38 70 Gross lease payments 8,896 5,961 Less: finance charges (1,131) (694) Net lease liabilities $ 7,765 $ 5,267 SBA Loan In conjunction with the acquisition of Mayhugh on February 1, 2021, the Company assumed an SBA Loan. The face amount of the loan is $150,000 and bears interest at stated interest rate of 3.75%. Due to the below-market interest rate, 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 $122,000. The loan is payable in 360 monthly installments of $731 beginning September 2021 and is secured by substantially all the assets of Mayhugh. Following is the activity in the SBA Loan for the year ended September 30, 2021: Year Ended September 30, 2021 Beginning Balance $ — Additions: Acquisitions 119 Interest expense 5 Repayments (3) Ending Balance $ 121 Revolving Credit Facility In September 2020, the Company entered a $20,000,000 asset-based revolving credit facility with a US bank. The facility matures in September 2024 and bears interest at floating rate of LIBOR plus 2.0% to 2.5%, with a LIBOR floor of 0.5% and has an unused fee of 0.3%. The Company has no borrowings from this facility as at September 30, 2021 and 2020. Interest expense for the facility for the year ended September 30, 2021 totaled $38,000 and primarily related to the unused fee. The facility is subject to a borrowing base based on a percentage of eligible accounts receivable and expected future revenues from existing customer rentals. Issuance costs are recorded in “deferred financing costs” on the consolidated statements of financial position and are being amortized on a straight-line over the four-year term of the facility for a total of $140,000 and $5,000 for the years ended September 30, 2021 and 2020 respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | 12. Shareholders’ Equity The Company considers its capital to be shareholders’ equity, which is comprised of share capital, contributed surplus, shares to be issued, accumulated other comprehensive income (loss), and accumulated deficit, in the amount of $57,408,000 at September 30, 2021. The Company raises capital, as necessary, to meet its needs and take advantage of perceived opportunities and, therefore, does not have a numeric target for its capital structure. Funds are primarily secured through equity, and long-term debt, including debentures, equipment loans and leases. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. The Company invests all capital that is surplus to its immediate operational needs in short-term, liquid and highly rated financial instruments, such as cash, and short-term guarantee deposits, held with major Canadian and US financial institutions. 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. Effective May 13, 2021, the Company consolidated its issued and outstanding common shares based on one Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares are recognized as a reduction of equity, net of any tax effects. Accumulated other comprehensive income represents items such as cumulative, foreign currency translation adjustments, the change in equity arising from unrealized gains and losses from financial instruments designated as available-for-sale, and changes in fair value of derivatives designated as cash flow hedges and is presented as a separate component of shareholders’ equity on the Consolidated Statements of Financial Position. The Company does not currently participate in hedging activities. Bought deals and private placements On June 29, 2020, the Company completed a bought deal public offering, a concurrent brokered private placement, and a non-brokered private placement to the Company’s Chief Executive Officer and a director of the Company, for a total of 27,678,826 pre-consolidation units, comprising 27,678,826 pre-consolidation shares, or 6,919,706 post-consolidation shares, and 27,678,826 warrants. Each unit issued was issued at a pre-consolidation price of C$1.15 for total gross proceeds of C$31,831,000 ($23,462,000) and consisted of one pre-consolidation common share and one Following the consolidation, for every four Warrants exercised in accordance with its terms, the holder will be entitled to acquire one common share for a period of 12 months following the closing at an exercise price of C$6.40 per share. During the year ended September 30, 2021, 13,559,300 Warrants for 3,389,825 common shares were exercised, for total proceeds of C$21,695,000, or $17,473,000. Warrant activity for the years ended September 30, 2021 and 2020 is provided below: Number Weighted (000s) average exercise price Balance, September 30, 2019 — C$ — Issued 3,460 6.40 Balance, September 30, 2020 3,460 C$ 6.40 Exercised (3,390) 6.40 Expired (70) 6.40 Balance, September 30, 2021 — C$ — The weighted average share price on the dates of exercise in fiscal year 2021 in was C$7.86. Issuance costs of $2,855,000 in cash were incurred. These costs were allocated ratably between common shares and warrant liability, with $2,645,000 recorded as a reduction of equity and $210,000 recorded as “Transaction costs on issuance of financial liabilities.” The Company issued compensation options to the underwriter for 367,826 shares at the issue price of C$4.60 for a period of two years from the closing of the offering. The fair value of the options has been valued at $1.24 for a total of $456,000. Activity for the June 2020 compensation options for the years ended September 30, 2021 and 2020 is as follows: Number Weighted (000s) average exercise price Balance, September 30, 2019 — C$ — Issued 368 4.60 Exercised (15) 4.60 Balance, September 30, 2020 353 C$ 4.60 Exercised (238) 4.60 Balance, September 30, 2021 115 C$ 4.60 The weighted average share price on the dates of exercise in fiscal years 2021 and 2020 was C$8.27 and C$5.36, respectively. Shares to be issued As discussed in Note 3, the Company acquired Sleepwell on October 23, 2020, with a portion of the purchase price in shares. $2,376,000 (629,000 shares at a fair value of $3.78 per share) was issued in January 2021, and $657,000 (246,000 shares at a fair value of $2.67) is expected to be issued in August 2022. The fair value of the stock has been discounted by 15% and 25%, respectively, using the Black-Scholes pricing model for put options, to reflect the inability to sell the stock for a period and for the time between the date of the acquisition and the dates the stock is to be issued. Employee, Director, and Consultant options The Company has a stock option plan, which it uses for grants to directors, officers, employees, and consultants. Options granted under the plan are non-assignable and may be granted for a term not exceeding ten years. Stock options having varying vesting periods and the options granted during the year ended September 30, 2021 vest annually over four years or quarterly over twelve quarters. A summary of stock options is provided below: Weighted Number of options (000’s) average exercise price Balance, September 30, 2019 2,848 C$ 1.96 Granted 25 4.40 Exercised (131) 2.32 Expired (110) 4.40 Forfeited (5) 1.52 Balance, September 30, 2020 2,627 C$ 1.99 Granted 1,396 8.40 Exercised (117) 2.20 Expired (65) 3.69 Forfeited (55) 8.39 Balance, September 30, 2021 3,786 C$ 4.15 At September 30, 2021, the Company had 2,554,196 vested stock options with a weighted average exercise price of C$2.10. The weighted average share price on the dates of exercise in fiscal years 2021 and 2020 was C$8.11 and C$4.20, respectively. The fair value of the stock options used the Black-Scholes option pricing model calculated using the following assumptions: Year Ended Year Ended September 30, September 30, 2021 2020 Share price at grant date C$8.48 – C$9.76 C$0.96 Risk-free interest rate 0.92 – 1.63 % 1.63 % Expected volatility 48.96 – 55.08 % 83.20 % Expected life of option 4.75 – 10 years 4 years Expected dividend yield Nil Nil Restricted stock units On May 20, 2021, there were 953,750 restricted stock units granted to officers and directors. Each unit represents the right to receive one common share, and vests over a period of two years from the grant date at the rate of one A summary of restricted stock units: Weighted Number of units (000’s) average exercise price Balance, September 30, 2020 — C$ — Granted 954 8.48 Balance, September 30, 2021 954 C$ 8.48 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, 2021 and 2020, the Company recorded stock-based compensation expense as follows: Year Ended Year Ended September 30, September 30, 2021 2020 Stock-based compensation expense $ 4,952 $ 171 The fair value of the stock options used the Black-Scholes option pricing model calculated using the following assumptions: |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 13. 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 $28,000 as of September 30, 2021, which are all due in less than one year. Contingencies The Company was in litigation with Lightwater Long Short Fund (“Lightwater”) during the years ended September 30, 2020 and 2021. The litigation was settled in December 2021 in the approximately $150,000, which was recorded in operating expenses for the year ended September 30, 2021. 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, 2021 | |
Operating expenses | |
Operating expenses | 14. Operating expenses Year Ended Year Ended September 30, September 30, 2021 2020 Payroll and employee benefits $ 29,549 $ 22,701 Facilities 2,101 2,069 Bad debt expense 7,957 6,441 Billing 3,887 1,890 Professional fees 2,566 826 Marketing costs 1,005 448 Outbound freight 1,378 898 All other 4,319 3,353 Total Operating expenses $ 52,762 $ 38,626 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 15. 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 for (recovery of) income taxes differs from the amount that is computed by applying the combined federal and state statutory income tax rate of 27.7% and 26.0% for the years ended September 30, 2021 and 2020 respectively in the US to the Company’s net income (loss) before income tax expense (recovery) as follows: Year Ended Year Ended September 30, September 30, 2021 2020 Loss from continuing operations before income taxes $ (9,329) $ (3,575) Expected income tax recovery (Statutory income tax rate of 27.7% and 26.0%, respectively) (2,586) (930) Difference in foreign tax rates 86 (39) Tax rate changes and other adjustments (614) (729) Stock-based compensation 2,964 800 State taxes - US 645 128 Prior period adjustments — (207) FX adjustments — (182) Share issuance cost booked through equity — (843) Deferred tax assets not recognized (recognized) 150 2,130 Tax benefit from losses previously unrecognized (3,800) — Current tax provision $ (3,155) $ 128 Deferred tax The following table summarizes the components of deferred tax: Year Ended Year Ended September 30, September 30, 2021 2020 Net operating losses - US $ 6,312 $ 3,170 Lease liabilities — 735 Deferred Tax Liabilities Property, plant and equipment - US (6,015) (3,889) Prepaid assets - US — (16) Obsolescense reserve - US (10) — Cash to accrual adjustment temporary - US (287) — Net deferred taxes $ — $ — 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 September 30, 2021 Balance at beginning of year $ — Recognized in profit/loss (3,800) Recognized in goodwill 3,800 Balance at end of year $ — Unrecognized deferred tax assets 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. Deferred tax assets have not been recognized in respect of the following deductible temporary differences: Year Ended Year Ended September 30, September 30, 2021 2020 Intangible asset - Canada $ 200 $ 205 Intangible asset - United States 984 11,247 Allowance for bad debts - United States 3,851 17,777 Net capital losses carried forward - Canada 1,042 995 Non-capital losses - United States 2,345 — Share issuance costs - Canada 1,855 2,431 Non-capital losses - Canada 26,911 23,783 Other temporary differences 6,448 3,301 $ 43,636 $ 59,739 The Canadian non-capital loss carryforwards expire noted in the table below. US loss carryforwards of $20,428,000 expire in 2038 whereas the remaining US loss of $5,015,000 can be carried forward indefinitely. Deferred tax assets have not been recognized in respect of these items because it is not probable that future profit will be available against which the Company can utilize the benefits therefrom. The Company’s Canadian non-capital income tax losses expire as follows: 2027 $ 722 2028 75 2029 41 2030 192 2031 293 2032 334 2033 1,730 2034 9,334 2035 901 2036 2,412 2037 1,150 2038 1,533 2039 3,517 2040 2,664 2041 2,013 $ 26,911 |
Loss per share
Loss per share | 12 Months Ended |
Sep. 30, 2021 | |
Loss per share | |
Loss per share | 16. Loss per share 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 securities or other contracts to issue common shares were exercised or converted to common shares by assuming the proceeds received from the exercise of stock options and warrants 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 loss per share computations: Year Ended Year Ended September 30, September 30, 2021 2020 Net income (loss) from continuing operations $ (6,174) $ (3,703) Net income (loss) from discontinued operations — (869) Basic weighted average number of shares 30,438 22,721 Diluted weighted average number of shares 30,438 22,721 Basic – continuing operations $ (0.20) $ (0.16) Diluted – continuing operations $ (0.20) $ (0.16) Basic – discontinuing operations $ — $ (0.04) Diluted – discontinuing operations $ — $ (0.04) Total - Basic $ (0.20) $ (0.20) Total - Diluted $ (0.20) $ (0.20) The effect of instruments exercisable or convertible to common shares for the years ended September 30, 2021 and 2020 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, 2021 | |
Related party transactions | |
Related party transactions | 17. Related party transactions The Company has six market rate 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, plus taxes, utilities, and maintenance. Expense for Board of Directors’ fees were $203,000 and $170,000 for the years ended September 30, 2021 and 2020, respectively. Stock-based compensation for the Board of Directors was $1,036,000 for the year ended September 30, 2021. Key management personnel also participate in the Company’s share option program (see Note 12). The Company paid or accrued compensation to key management personnel the following: Year Ended Year Ended September 30, September 30, 2021 2020 Salaries and Benefits paid during the year $ 968 $ 785 Stock-based compensation 1,036 — Total $ 2,004 $ 785 In addition to salaries and benefits above, bonuses of $485,000 and $785,000 for the years ended September 30, 2021 and 2020, respectively. In fiscal year 2021 these bonuses were recorded as payroll. In fiscal year 2020 these bonuses were recorded as reduction of equity through issuance costs and expensed as transaction costs related to issuance of securities. |
Discontinued operations
Discontinued operations | 12 Months Ended |
Sep. 30, 2021 | |
Discontinued operations | |
Discontinued operations | 18. Discontinued operations On July 29, 2019, the Company sold the assets of Patient Home Monitoring, Inc. The consolidated financial statements and the notes reflect the Patient Home Monitoring, Inc. as discontinued operations. During the year ended September 30, 2020, there were ongoing litigation matters involving Patient Home Monitoring, Inc. that resulted in loss from discontinued operations, as reflected in the following table for the years ended September 30, 2021 and 2020. Year Ended Year Ended September 30, September 30, 2021 2020 Operating expenses $ — $ (869) Net (loss) income from discontinued operations $ — $ (869) During the year ended September 30, 2020, the Company accrued $869,000 for defense and settlement costs. One of the matters was resolved in fiscal year 2020 and the other matter was resolved in fiscal year 2021. These matters are directly related to the operations of the disposed business, and as such, are reflected as discontinued operations. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent event | |
Subsequent event | 19. Subsequent event On October 1, 2021, the Company, through one of its indirect wholly-owned subsidiaries, entered into a purchase agreement to acquire Thrift Home Care Inc, (“Thrift”), a Mississippi based company. The purchase price was approximately $2,174,000, of which approximately $1,804,000 was paid in cash at closing, and approximately $195,000 of holdbacks are payable on the six- and twelve-month anniversaries of the acquisition, subject to normal post-closing adjustments, if any. Pro forma twelve-month revenues and net income of Thrift had the acquisition occurred on October 1, 2020 are approximately $2,900,000 and $400,000, respectively. The Company is in the process of gathering the information required to allocate the purchase price to the acquired tangible and intangible assets as of the acquisition date. On November 1, 2021, the Company, through one of its indirect wholly-owned subsidiaries, entered into a purchase agreement to acquire Heckman Healthcare Services & Supplies, Inc, (“Heckman”), an Illinois based company. The purchase price was approximately $2,289,000, of which approximately $1,949,000 was paid in cash at closing, and approximately $340,000 of holdbacks are payable on the six- and twelve-month anniversaries of the acquisition, subject to normal post-closing adjustments, if any. Pro forma twelve-month revenues and net income of Heckman had the acquisition occurred on October 1, 2020 are approximately $2,600,000 and $60,000, respectively. The Company is in the process of gathering the information required to allocate the purchase price to the acquired tangible and intangible assets as of the acquisition date. On November 9, 2021, the Company, through one of its indirect wholly-owned subsidiaries, entered into a purchase agreement to acquire Southeastern Biomedical Services, LLC, (“Southeastern Bio”), an Alabama based company. The purchase price was approximately $298,000, of which approximately $198,000 was paid in cash at closing, and approximately $100,000 of earn outs are payable on the one and two year anniversaries of the acquisition, subject to normal post-closing adjustments, if any. Pro forma twelve-month revenues and net income of Southeastern Bio had the acquisition occurred on October 1, 2020 are approximately $1,600,000 and $250,000, respectively. The Company is in the process of gathering the information required to allocate the purchase price to the acquired tangible and intangible assets as of the acquisition date. On January 1, 2022, the Company, through one of its indirect wholly-owned subsidiaries, entered into a purchase agreement to acquire At Home Health Equipment, LLC, (“At Home”), an Indiana based company. The purchase price was approximately $13,117,000, of which approximately $11,797,000 was paid in cash at closing, and approximately $1,220,000 of holdbacks are payable on the six- and twelve-month anniversaries of the acquisition, subject to normal post-closing adjustments, if any. Pro forma twelve-month revenues and net income of At Home had the acquisition occurred on October 1, 2020 are approximately $12,800,000 and $90,000, respectively. The Company is in the process of gathering the information required to allocate the purchase price to the acquired tangible and intangible assets as of the acquisition date. |
Restatement
Restatement | 12 Months Ended |
Sep. 30, 2021 | |
Restatement | |
Restatement | 20. Restatement For comparative purposes, the consolidated statements of financial position as at September 30, 2021 and 2020 include adjustments to reflect the change in accounting policy resulting from the change in the presentation currency to the US dollar. The amounts previously reported in Canadian dollars as shown below have been translated into US dollars as at September 30, 2020 and October 1, 2019 exchange rate of 1.3339 US$:C$ and 1.3242 US$:C$, respectively. Consolidated financial statements as at September 30, 2020 Previously As Restated Reported in C$ in US$ Current assets $ 60,402 $ 45,283 Long-term assets 35,733 26,782 Total assets 96,135 72,065 Current liabilities 32,526 24,385 Long-term liabilities 25,938 19,445 Total liabilities 58,464 43,830 Shareholders’ equity 37,671 28,235 Total liabilities and shareholders’ equity 96,135 72,065 Consolidated financial statements as at October 1, 2019 Previously As Restated Reported in C$ in US$ Current assets $ 30,783 $ 23,247 Long-term assets 24,382 18,412 Total assets 55,165 41,659 Current liabilities 21,081 15,919 Long-term liabilities 16,839 12,717 Total liabilities 37,920 28,636 Shareholder’s equity 17,245 13,023 Total liabilities and shareholders’ equity 55,165 41,659 The statements of income (loss) and comprehensive income (loss) and statement of cash flows have been adjusted for foreign exchange gain and translated at an exchange rate of 1.3458 C$/US$ for the year ended September 30, 2020. Consolidated statement of loss for the year ended September 30, 2020 Previously As Restated Reported in C$ in US$ Total revenue $ 97,755 $ 72,639 Operating income (loss) from continuing operations 885 658 Income (loss) before taxes from continuing operations (5,425) (3,575) Net income (loss) from continuing operations (5,597) (3,703) Net income (loss) (6,755) (4,572) Consolidated statement of cash flows for the year ended September 30, 202 0 Previously As Restated Reported in C$ in US$ Loss from continuing operations $ (5,597) $ (3,703) Loss from discontinuing operations (1,158) (869) Net cash flows provided by operating activities 17,631 14,034 Net cash flows used in investing activities (10,570) (7,853) Net cash flow used in financing activities 18,676 13,721 Net increase in cash 25,737 19,902 |
Basis of Presentation and sum_2
Basis of Presentation and summary of significant accounting policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Basis of Presentation and summary of significant accounting policies | |
Basis of accounting | Basis of accounting These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were authorized for issue by the Board of Directors on January 26, 2022. 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. |
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, their functional currencies and ownership percentages are as follows: 100 W. Commercial Street, LLC USD 100% Acadia Medical Supply, Inc. USD 100% Black Bear Medical, Inc. USD 100% Black Bear Medical Group, Inc. USD 100% Black Bear Medical NH, Inc. USD 100% Care Medical Atlanta, LLC USD 100% Care Medical of Athens, Inc. USD 100% Care Medical of Augusta, LLC USD 100% Care Medical of Gainesville, LLC USD 100% Care Medical Partners, LLC USD 100% Care Medical Savannah, LLC USD 100% Central Oxygen, Inc. USD 100% Coastal Med-Tech Corp. USD 100% Cooley Medical Equipment, Inc. USD 100% Health Technology Resources, L.L.C. USD 100% Legacy Oxygen and Home Care Equipment, LLC USD 100% Mayhugh Drugs, Inc. USD 100% Med Supply Center USD 100% Medical West Healthcare USD 100% Oxygen Plus, Inc. USD 100% Patient Aids, Inc. USD 100% Patient Home Monitoring, Inc - discontinued USD 100% PHM Logistics Corporation USD 100% PHM Services, Inc. USD 100% Resource Medical, Inc. USD 100% Resource Medical Group Charleston, LLC USD 100% Resource Medical Group, LLC USD 100% Riverside Medical, Inc. USD 100% Semo Drugs - Care Plus of Mo, Inc. USD 100% Sleepwell, LLC USD 100% Tuscan, Inc. USD 100% West Home Healthcare, Inc. USD 100% |
Critical accounting estimates | Critical accounting estimates The preparation of financial statements in conformity 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 acquisition, 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: |
Revenue recognition | a) Revenue recognition Revenues are billed to and collections are received from both third-party insurers and patients. 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 payer. Therefore, the amount billed by the Company is reduced by an estimate of the amount that the Company believes is an allowable charge to be ultimately allowed by the insurance contract. The above 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 required. Rental of medical equipment The Company rents medical equipment to customers for a fixed monthly amount on a month-to-month basis. The customer generally 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 Due to the nature of the industry and the reimbursement environment in which the Company operates, certain estimates are required to record net revenue and accounts receivable at their net realizable values. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payors may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of cash application or claim denial. Sales of medical equipment and supplies The Company sells equipment, replacement parts, and supplies to customers and recognizes revenue based on contractual payment rates as determined by the payors at the point in time where control of the good or service is transferred through delivery to the customer. The payors are generally charged at the time that the product is sold. The transaction price on equipment sales is the amount that the Company expects to receive in exchange for the goods and services provided. Due to the nature of the industry, gross charges are retail charges and generally do not reflect what the Company is ultimately paid. As such, the transaction price is constrained for the difference between the gross charge and what is estimated to be collected from payors and from patients. The transaction price therefore is predominantly based on contractual payment rates as determined by the payors. The Company does not generally contract with uninsured customers but does offer point-of-sale payments at retail outlets. The payment terms and conditions of customer contracts vary by customer type and the products and services offered. The Company determines its estimates of contractual allowances and discounts based upon contractual agreements and historical experience. While the rates are fixed for the product or service with the customer and the payors, such amounts typically include co-payments, co-insurance, and deductibles, which vary in amounts, and are due from secondary insurance providers and/or the patient. The Company includes in the transaction price only the amount that the Company expects to be entitled, which is substantially all of the payor billings at contractual rates. Due to the nature of the industry and the reimbursement environment in which the Company operates, certain estimates are required to record net revenue and accounts receivable at their net realizable values. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payors may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of claim approval or denial. Returns and refunds are not accepted on equipment sales. 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 as of September 30, 2021, relating to sale of medical equipment and supplies. |
Valuation of accounts receivable | b) Valuation of accounts receivable The measurement of expected credit losses considers information about past events and current conditions. Forward looking macro-economic factors are incorporated into the risk parameters, such as unemployment rates, inflation, and interest rates. Significant judgments are made in order to incorporate forward-looking information into the estimation of allowances 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 an allowance for doubtful accounts. The Company evaluates the net realizable value of accounts receivable as of the date of the consolidated balance sheets. Specifically, the Company considers historical realization data, including current and historical cash collections, accounts receivable aging trends, other operating trends, and relevant business conditions. Because of continuing changes in the health care industry and third-party reimbursement, it is possible that the estimates could change, which could have a material impact on the operations and cash flows. If circumstances related to certain customers change or actual results differ from expectations, our 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. |
Valuation of inventories | c) Valuation of inventories Inventory is recorded at the lower of cost or market. Inventory is expensed through cost of inventory sold when shipped to customers or transferred to property and equipment when rented to customers. The Company estimates that a certain portion of inventory purchased may be excess, obsolete, or non-saleable. The Company maintains a provision for obsolescence for these items. Valuation of the inventory was assessed at year-end, and all inventory items which more than two years are old and not supported by recent sales were provided for 40% in accordance with Company’s policy. |
Convertible debentures | d) Convertible debentures In accordance with the substance of the contractual arrangement, convertible debentures are compound financial instruments that are accounted for separately by their components: a financial liability and an equity instrument. The identification of convertible debenture components is based on interpretations of the substance of the contractual arrangement and therefore requires judgment from management. The separation of the components affects the initial recognition of the convertible debenture at issuance and the subsequent recognition of interest on the liability component. The determination of the fair value of the liability is also based on a number of assumptions, including contractual future cash flows, discount factors, and the presence of any derivative financial instruments. |
Property and equipment | e) Property and equipment Property and equipment is 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 5 years Right of use real estate leases Life of lease (1-6 years) Depreciation of rental equipment commences once it has been deployed 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. |
Intangible assets | f) 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 purchased 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. Finite 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 Years Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) when the asset is derecognized. 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 and warrants | g) Share based payments and warrants The amounts used to estimate fair values of stock options and warrants issued are based on estimates of future volatility of the Company’s share price, expected lives of the options and warrants, 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 | h) Income taxes Significant judgment is required in determining the provision for future 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 | i) 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 will extend the lease at the end of the lease contract or exercise an early termination option. As it is not reasonably certain that the extension or early termination options will be exercised, the Company determined that the term of its leases are the lesser of original lease term or the life of the leased asset. 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 loss and comprehensive loss. Critical Accounting Judgements The following are the critical judgments, apart from those involving estimations, that 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. |
Functional currency | a) 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. |
Business combinations | b) Business combinations In accordance with IFRS 3 – Business Combinations |
Recognition and initial measurement | c) Recognition and initial measurement The Company recognizes financial assets when it becomes party to the contractual provisions of the instrument. Financial assets are measured initially at their fair value plus, in the case of financial assets not subsequently measured at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Transaction costs attributable to the acquisition of financial assets subsequently measured at fair value through profit or loss are expensed in the consolidated statement of loss and comprehensive loss when incurred. |
Goodwill impairment | d) 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. The Company has ten CGUs with goodwill and reviews the value in use versus the carrying value both in total and for each of the individual assets. The recoverable amount of the CGU 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. |
Segment reporting | e) Segment reporting International Financial Reporting Standards 8 |
Identification of cash-generating unit "CGU" | f) Identification of cash-generating unit “CGU” 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 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. |
Loss per share | g) Loss per share Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average number of shares outstanding is increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The average number of shares is calculated by assuming that outstanding conversions were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. For the years ended September 30, 2021 and 2020, potentially dilutive common shares issuable upon the exercise of conversion option related to convertible debentures, warrants and options were not included in the computation of loss per share because their effect was anti-dilutive. |
Foreign currency transactions | h) 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 $ 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. |
Discontinued operations | Discontinued operations An operation is qualified as discontinued when it represents a separate major line of business and the Company has sold the asset. Discontinued operations are presented on a single line of the statement of loss and comprehensive loss for the periods reported, comprising the earnings after tax of discontinued operations until divestiture and the gain or loss after tax on sale or fair value measurement, less costs to sell the assets and liabilities making up the discontinued operations are presented on one separate line of the statement of consolidated cash flows for the periods presented. |
IFRS 16, Leases | IFRS 16, Leases Effective October 1, 2019, the Company adopted IFRS 16. IFRS 16 eliminates the distinction between operating and finance leases from the perspective of the lessee. All contracts that meet the definition of a lease will be recorded in the statement of financial position with a “right of use” asset and a corresponding liability at the present value of the future lease payments using the lessee’s incremental borrowing rate of 8%. The Company elected to adopt IFRS 16 using the modified retrospective approach. Under this approach, the Company will not restate its comparative figures, but will recognize the cumulative effect of adopting IFRS 16 as an adjustment to opening statement of financial position, with the recognition of $2,603,000 of right of use assets and finance lease The Company elected to apply the practical expedient to exclude recognition of right of use assets and lease liabilities for real estate, computer equipment, and office furniture leases under 12 months in duration or for which the lease term ends within 12 months of initial application for leases, and for low-value assets. The Company also elected to apply IFRS 16 only to the contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 Leases were not reassessed for whether a lease exists. |
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. The warrant derivative financial liability has been valued using level 3 inputs from the fair value hierarchy. The convertible debentures have been valued using Level 1 inputs. Financial instrument risk exposure The Company’s activities expose it to a variety of financial risks: market risk (including credit risk, liquidity risk and interest rate risk), credit risk, and liquidity risk. These risks arise from the normal course of operations and all transactions are undertaken to support the Company’s ability to continue as a going concern. Risk management is carried out by management under policies promulgated by the Board of Directors. The Company’s overall risk management program seeks to minimize potential adverse effects on the Company’s financial performance. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Financial instruments that potentially subject the Company to credit risk are primarily cash and accounts receivable. Each subsidiary places its cash with one major financial institution. At times, the cash in the financial institution is temporarily more than the amount insured by the Federal Deposit Insurance Corporation. Substantially all accounts receivable is due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Receivables generally are collected within industry norms for third-party payors. The Company continuously monitors collections from its clients and maintains an allowance for bad debts based upon any specific payor collection issues that are identified and historical experience. The expected loss rates are based on the historical loss rates and are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables, such as the unemployment rate of the states in which it conducts business. Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, a failure to make contractual payments after multiple collection efforts, including third party collection agencies. As of September 30, 2021, the Company has approximately 9% of the Company’s receivables that are due from Medicare. As this is a federal health insurance program in the United States, there is nominal credit risk associated with these balances. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach in managing liquidity is to ensure, to the extent possible, that it will have sufficient liquidity to meet its liabilities when due by continuously monitoring actual and budgeted cash flows and monitoring financial market conditions for signs of weakness. As of September 30, 2021, the Company faces no material liquidity risk and can meet all its current financial obligations as they become due and payable. The Company has $32,737,000 of liabilities that are due within one year but has $57,233,000 of current assets to meet those obligations. Interest rate risk Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate risk is limited to potential decreases on the interest rate offered on cash and cash equivalents held with Chartered Canadian and registered US financial institutions. The Company considers this risk to be immaterial. The interest on the debenture and equipment loans is not subject to cash flow interest rate risk as these instruments bear interest at fixed rates. |
Basis of Presentation and sum_3
Basis of Presentation and summary of significant accounting policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Basis of Presentation and summary of significant accounting policies | |
Schedule of subsidiaries | 100 W. Commercial Street, LLC USD 100% Acadia Medical Supply, Inc. USD 100% Black Bear Medical, Inc. USD 100% Black Bear Medical Group, Inc. USD 100% Black Bear Medical NH, Inc. USD 100% Care Medical Atlanta, LLC USD 100% Care Medical of Athens, Inc. USD 100% Care Medical of Augusta, LLC USD 100% Care Medical of Gainesville, LLC USD 100% Care Medical Partners, LLC USD 100% Care Medical Savannah, LLC USD 100% Central Oxygen, Inc. USD 100% Coastal Med-Tech Corp. USD 100% Cooley Medical Equipment, Inc. USD 100% Health Technology Resources, L.L.C. USD 100% Legacy Oxygen and Home Care Equipment, LLC USD 100% Mayhugh Drugs, Inc. USD 100% Med Supply Center USD 100% Medical West Healthcare USD 100% Oxygen Plus, Inc. USD 100% Patient Aids, Inc. USD 100% Patient Home Monitoring, Inc - discontinued USD 100% PHM Logistics Corporation USD 100% PHM Services, Inc. USD 100% Resource Medical, Inc. USD 100% Resource Medical Group Charleston, LLC USD 100% Resource Medical Group, LLC USD 100% Riverside Medical, Inc. USD 100% Semo Drugs - Care Plus of Mo, Inc. USD 100% Sleepwell, LLC USD 100% Tuscan, Inc. USD 100% West Home Healthcare, Inc. USD 100% |
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 5 years Right of use real estate leases Life of lease (1-6 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 Years |
Acquisition of businesses and_2
Acquisition of businesses and purchase accounting (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Acquisition of businesses and purchase accounting | |
Schedule of reconciliation | As at As at Acquisition Professional Fees: September 30, 2021 September 30, 2020 Cooley — 41 Acadia — 22 Health Technology Resources — 26 Sleepwell 81 — Mayhugh 53 — Med Supply 25 — Care Plus 25 — Oxygen Plus 24 — Medical West 25 — Balance, September 30, 2021 $ 233 $ 89 |
Schedule of purchase price allocation | Year Ended September 30, 2021 Balance, September 30, 2020 (current $857 plus long-term $560) $ 1,417 Addition from acquisitions 2,335 Accretion of interest 38 Payments (1,274) Balance, September 30, 2021 (current $2,383 plus long-term $133) $ 2,516 |
Sleepwell, LLC | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 378 Accounts receivable 780 Inventory 769 Prepaid expenses and other current assets 2 Property and equipment 960 Right of use real estate ($390 net of unfavorable lease) 313 Goodwill 4,641 Intangible asset – Non-compete agreements 220 Intangible asset – Brand 520 Intangible asset – Customer relationships 4,670 Accounts payable (640) Accrued liabilities (166) Deferred revenue (100) Lease liabilities (390) Deferred tax liability (1,981) Net assets acquired $ 9,976 Cash paid at closing $ 6,623 Stock issued in January 2021 2,376 Cash to be paid after closing 320 Stock to be issued after closing, included in shares to be issued 657 Consideration paid or payable $ 9,976 |
Mayhugh Drugs, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 180 Accounts receivable, net of expected credit loss of $1,142 474 Inventory 487 Prepaid expenses and other current assets 7 Property and equipment 1,357 Right of use real estate 61 Goodwill 1,587 Intangible asset – Non-compete agreements 40 Intangible asset – Brand 290 Intangible asset – Customer relationships 2,500 Accounts payable (880) Accrued liabilities (14) Deferred revenue (84) Equipment loans (2,846) US Small Business Association (“SBA”) loan (119) Lease liabilities (134) Deferred tax liability (947) Net assets acquired $ 1,959 Cash paid at closing $ 1,047 Cash to be paid after closing, included in purchase price payable 912 Consideration paid or payable $ 1,959 |
Med Supply Center, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 48 Accounts receivable 180 Inventory 597 Property and equipment 263 Right of use real estate 88 Goodwill 766 Intangible asset – Non-compete agreements 140 Intangible asset – Brand 20 Intangible asset – Customer relationships 210 Accounts payable (190) Accrued liabilities (40) Deferred revenue (53) Deferred tax liability (304) Lease liabilities (124) Net assets acquired $ 1,601 Cash paid at closing $ 1,279 Cash to be paid after closing, included in purchase price payable 322 Consideration paid or payable $ 1,601 |
Semo Drug-Care Plus of Mo. Inc | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 47 Accounts receivable 292 Inventory 475 Property and equipment 373 Goodwill 482 Intangible asset – Non-compete agreements 60 Intangible asset – Brand 100 Intangible asset – Customer relationships 370 Accounts payable (94) Accrued liabilities (51) Deferred tax liability (377) Deferred revenue (51) Net assets acquired $ 1,626 Cash paid at closing $ 1,440 Cash to be paid after closing, included in purchase price payable 186 Consideration paid or payable $ 1,626 |
Oxygen Plus, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 114 Accounts receivable 60 Inventory 39 Property and equipment 88 Goodwill 327 Intangible asset – Non-compete agreements 10 Intangible asset – Brand 50 Intangible asset – Customer relationships 500 Accounts payable (98) Accrued liabilities (13) Deferred tax liability (180) Deferred revenue (12) Equipment loans (155) Net assets acquired $ 730 Cash paid at closing $ 574 Cash to be paid after closing, included in purchase price payable 156 Consideration paid or payable $ 730 |
Medical West Healthcare. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 234 Accounts receivable 195 Inventory 382 Prepaid expenses and other current assets 10 Property and equipment 1,121 Goodwill 758 Intangible asset – Non-compete agreements 20 Intangible asset – Brand 270 Intangible asset – Customer relationships 880 Deposits 2 Accounts payable (309) Accrued liabilities (107) Deferred tax liability (11) Deferred revenue (16) Equipment loans (1,063) Net assets acquired $ 2,366 Cash paid at closing $ 1,927 Cash to be paid after closing, included in purchase price payable 439 Consideration paid or payable $ 2,366 |
Cooley Medical Equipment, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 80 Accounts receivable 605 Inventory 769 Prepaid expenses and other current assets 42 Property and equipment 1,842 Right of use assets 1,080 Intangible asset – Brand 80 Intangible asset – Non-compete agreements 20 Intangible asset – Customer relationships 330 Goodwill 422 Accounts payable and accrued liabilities (815) Deferred revenue (204) Equipment loans (509) Lease liabilities (1,010) Net assets acquired $ 2,732 Cash paid at closing $ 2,333 Cash to be paid after closing, included in purchase price payable 399 Consideration paid or payable $ 2,732 |
Acadia Medical Supply, Inc. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 59 Accounts receivable 143 Inventory 246 Property and equipment 387 Right of use assets 243 Other assets 8 Intangible asset – Brand 130 Intangible asset – Non-compete agreements 30 Intangible asset – Customer relationships 460 Goodwill 375 Accounts payable and accrued liabilities (278) Deferred revenue (44) Equipment loans (136) Lease liabilities (147) Net assets acquired $ 1,476 Cash paid at closing $ 1,004 Cash to be paid after closing, indcluded in accrued liabilities 228 Cash to be paid after closing, included in other long-term liabilities 244 Consideration paid or payable $ 1,476 |
Health Technology Resources, L.L.C. | |
Acquisition of businesses and purchase accounting | |
Schedule of fair value of the acquired assets and liabilities | Cash $ 140 Accounts receivable 400 Inventory 77 Property and equipment 216 Prepaid assets 15 Intangible asset – Brand 330 Intangible asset – Non-compete agreements 70 Intangible asset – Customer relationships 2,610 Goodwill 1,678 Accounts payable and accrued liabilities (107) Deferred revenue (82) Net assets acquired $ 5,347 Cash paid at closing $ 4,819 Cash to be paid after closing, indcluded in accrued liabilities 207 Cash to be paid after closing, included in other long-term liabilities 321 Consideration paid or payable $ 5,347 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable | |
Schedule of accounts receivable | As at As at September 30, 2021 September 30, 2020 Gross receivable $ 15,413 $ 14,125 Reserve for expected credit losses (3,475) (5,036) $ 11,938 $ 9,089 Allowance for Gross expected As at September 30, 2021 Receivables credit losses Net Receivables 0 – 90 days $ 11,279 $ (1,418) $ 9,861 91 – 180 days 2,027 (731) 1,296 Over 180 days 2,107 (1,326) 781 Total $ 15,413 $ (3,475) $ 11,938 |
Schedule of movement in the reserve for expected credit losses | Year ended Year ended September 30, September 30, Reserve for expected credit losses 2021 2020 Opening Balance $ 5,036 $ 2,305 Bad debt expense 7,957 6,441 Amounts written off (9,518) (3,710) Ending Balance $ 3,475 $ 5,036 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Inventory | |
Schedule of inventory | As at September 30, As at September 30, 2021 2020 Serialized $ 2,369 $ 2,132 Non-serialized 6,922 4,366 Reserve for shrink and slow-moving (38) (83) Total Inventory $ 9,253 $ 6,415 |
Property, equipment, and righ_2
Property, equipment, and right of use assets (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, equipment, and right of use assets | |
Schedule of property, equipment, and right of use assets | Office Right of use Right of use Rental Computer furniture and Leasehold assets – assets – Real Cost equipment equipment fixtures improvements Vehicles estate Total Balance September 30, 2019 $ 26,717 $ 504 $ 433 $ 1,169 $ 2,588 $ — $ 31,411 Additions – adoption of IFRS 16 — — — — — 2,603 2,603 Transfers from inventory 7,676 — — — — — 7,676 Additions — 5 — 83 795 1,300 2,183 Acquisitions 2,332 — 1 184 159 1,092 3,768 Disposals (14,157) (338) (101) (72) (670) (5) (15,343) Balance September 30, 2020 $ 22,568 $ 171 $ 333 $ 1,364 $ 2,872 $ 4,990 $ 32,298 Transfers from inventory 14,988 — — — — — 14,988 Additions — 17 2 88 1,385 2,560 4,052 Acquisitions 2,740 — 3 54 302 1,526 4,625 Disposals (9,150) (33) (11) (8) (384) (1,326) (10,912) Balance September 30, 2021 $ 31,146 $ 155 $ 327 $ 1,498 $ 4,175 $ 7,750 $ 45,051 Office Right of use Right of use Rental Computer furniture and Leasehold assets – assets – Real Accumulated depreciation equipment equipment fixtures improvements Vehicles estate Total Balance September 30, 2019 $ 14,769 $ 371 $ 260 $ 257 $ 1,031 $ — $ 16,688 Depreciation 11,429 74 71 124 664 1,498 13,860 Disposals (13,887) (339) (102) (72) (513) (4) (14,917) Balance September 30, 2020 $ 12,311 $ 106 $ 229 $ 309 $ 1,182 $ 1,494 $ 15,631 Depreciation 13,213 31 61 131 789 1,987 16,212 Disposals (9,105) (33) (11) (9) (336) (804) (10,298) Balance September 30, 2021 $ 16,419 $ 104 $ 279 $ 431 $ 1,635 $ 2,677 $ 21,545 Office Right of use Right of use Rental Computer furniture and Leasehold assets – assets – Real Net Book Value equipment equipment fixtures improvements Vehicles estate Total Balance September 30, 2019 $ 11,948 $ 133 $ 173 $ 912 $ 1,557 $ — $ 14,723 Balance September 30, 2020 $ 10,257 $ 65 $ 104 $ 1,055 $ 1,690 $ 3,496 $ 16,667 Balance September 30, 2021 $ 14,727 $ 51 $ 48 $ 1,067 $ 2,540 $ 5,073 $ 23,506 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Schedule of goodwill and intangible assets | Sub-total Non- intangibles compete Customer Customer with finite Cost Goodwill agreements Brand contracts relationships lives Total Balance September 30, 2019 $ 1,420 $ 517 $ 1,341 $ 3,851 $ 8,460 $ 14,169 $ 15,589 Acquisitions 2,475 120 540 — 3,399 4,059 6,534 Disposals — — — — (93) (93) (93) Balance September 30, 2020 $ 3,895 $ 637 $ 1,881 $ 3,851 $ 11,766 $ 18,135 $ 22,030 Acquisitions 8,561 370 1,370 — 9,129 10,869 19,430 Disposals — — — — (205) (205) (205) Balance September 30, 2021 $ 12,456 $ 1,007 $ 3,251 $ 3,851 $ 20,690 $ 28,799 $ 41,255 Sub-total Non- intangibles compete Customer Customer with finite Accumulation amortization Goodwill agreements Brand contracts relationships lives Total Balance September 30, 2019 $ — $ 480 $ 888 $ 3,728 $ 6,875 $ 11,971 $ 11,971 Amortization — 42 101 117 418 678 678 Disposals — — — — (93) (93) (93) Balance September 30, 2020 $ — $ 522 $ 989 $ 3,845 $ 7,200 $ 12,556 $ 12,556 Amortization — 85 211 6 1,272 1,574 1,574 Disposals — — — — (205) (205) (205) Balance September 30, 2021 $ — $ 607 $ 1,200 $ 3,851 $ 8,267 $ 13,925 $ 13,925 Sub-total Non- intangibles compete Customer Customer with finite Net carrying amount Goodwill agreements Brand contracts relationships lives Total Balance September 30, 2019 $ 1,420 $ 37 $ 453 $ 123 $ 1,585 $ 2,198 $ 3,618 Balance September 30, 2020 $ 3,895 $ 115 $ 892 $ 6 $ 4,566 $ 5,579 $ 9,474 Balance September 30, 2021 $ 12,456 $ 400 $ 2,051 $ — $ 12,423 $ 14,874 $ 27,330 |
Schedule of goodwill, Acquisition through business combination | Balance September 30, 2020 $ 3,895 Acquisition through business combination: Sleepwell 4,641 Mayhugh 1,587 Med Supply 766 Care Plus 482 Oxygen Plus 327 Medical West 758 Balance September 30, 2021 $ 12,456 |
Government Grant (Tables)
Government Grant (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Government Grant | |
Schedule of changes in government grant | Current Long Term Total Balance September 30, 2020 $ 2,599 $ 2,286 $ 4,885 Change in current and long-term portions 2,286 (2,286) — Balance September 30, 2021 $ 4,885 $ — $ 4,885 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Deferred Revenue | |
Schedule of Deferred Revenue | For the year ended For the year ended September 30, 2021 September 30, 2020 Beginning balance $ 1,804 $ 1,438 Acquisitions 316 330 Net addition 332 36 Ending balance $ 2,452 $ 1,804 |
Derivative warrant liability (T
Derivative warrant liability (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Derivative warrant liability. | |
Schedule of change in fair value of warrants | As at September 30, 2020 Share price C$ 1.31 Risk-free interest rate 0.23 % Expected volatility 60.8 % Expected life of warrant 0.75 years Expected dividend yield 0 % |
Schedule of warrant activity | Amount Balance September 30, 2019 $ — Issued 1,627 Change in fair value 198 Change in foreign exchange rate 30 Balance September 30, 2020 1,855 Exercised at a weighted average Black-Scholes fair value of $0.31 (4,140) Change in fair value 2,112 Change in foreign exchange rate 173 Balance September 30, 2021 $ — |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Long-term Debt | |
Schedule of compensation options activity | Number Weighted (000s) average exercise price Balance, September 30, 2020 130 C$ 5.20 Exercised (130) 5.20 Balance, September 30, 2021 — C$ — |
Schedule of lease liabilities | Real Vehicles estate Total Balance, September 30, 2020 $ 1,627 $ 3,640 $ 5,267 Additions during the period: Acquisitions 109 1,603 1,712 Operations 1,385 2,560 3,945 Interest 163 388 551 Lease Terminations — (612) (612) Repayments (870) (2,228) (3,098) Balance, September 30, 2021 $ 2,414 $ 5,351 $ 7,765 |
Schedule of future payments of lease liabilities | As at As at September 30, 2021 September 30, 2020 Less than 1 year $ 3,491 $ 2,394 Between 1 and 5 years 5,367 3,497 More than five years 38 70 Gross lease payments 8,896 5,961 Less: finance charges (1,131) (694) Net lease liabilities $ 7,765 $ 5,267 |
Convertible unsecured debentures | |
Long-term Debt | |
Schedule of borrowings | Year Ended Year Ended September 30, 2021 September 30, 2020 Beginning Balance $ 12,930 $ 10,547 Conversion to common shares (5,359) — Change in fair value 3,591 2,437 Change in foreign exchange rate 622 (54) Ending Balance $ 11,784 $ 12,930 |
Equipment loans | |
Long-term Debt | |
Schedule of borrowings | Year Ended Year Ended September 30, 2021 September 30, 2020 Beginning Balance $ 4,750 $ 7,306 Additions: Acquisitions 3,001 646 Operations 10,049 7,080 Interest expense 376 489 Repayments (10,792) (10,771) Ending Balance 7,384 4,750 Current portion, less than 1 year 6,992 4,311 Long-term portion, due between 1 and 5 years $ 392 $ 439 |
SBA loan | |
Long-term Debt | |
Schedule of borrowings | Year Ended September 30, 2021 Beginning Balance $ — Additions: Acquisitions 119 Interest expense 5 Repayments (3) Ending Balance $ 121 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Stockholder's Equity | |
Schedule of warrants activity | Number Weighted (000s) average exercise price Balance, September 30, 2019 — C$ — Issued 3,460 6.40 Balance, September 30, 2020 3,460 C$ 6.40 Exercised (3,390) 6.40 Expired (70) 6.40 Balance, September 30, 2021 — C$ — |
Summary of options activity | Number Weighted (000s) average exercise price Balance, September 30, 2020 130 C$ 5.20 Exercised (130) 5.20 Balance, September 30, 2021 — C$ — |
Schedule of fair value of the stock options | Year Ended Year Ended September 30, September 30, 2021 2020 Share price at grant date C$8.48 – C$9.76 C$0.96 Risk-free interest rate 0.92 – 1.63 % 1.63 % Expected volatility 48.96 – 55.08 % 83.20 % Expected life of option 4.75 – 10 years 4 years Expected dividend yield Nil Nil |
Summary of restricted stock units | Weighted Number of units (000’s) average exercise price Balance, September 30, 2020 — C$ — Granted 954 8.48 Balance, September 30, 2021 954 C$ 8.48 |
Schedule of stock-based compensation expense | Year Ended Year Ended September 30, September 30, 2021 2020 Stock-based compensation expense $ 4,952 $ 171 |
Compensation options to underwriters | |
Stockholder's Equity | |
Summary of options activity | Number Weighted (000s) average exercise price Balance, September 30, 2019 — C$ — Issued 368 4.60 Exercised (15) 4.60 Balance, September 30, 2020 353 C$ 4.60 Exercised (238) 4.60 Balance, September 30, 2021 115 C$ 4.60 |
Stock options | |
Stockholder's Equity | |
Summary of options activity | Weighted Number of options (000’s) average exercise price Balance, September 30, 2019 2,848 C$ 1.96 Granted 25 4.40 Exercised (131) 2.32 Expired (110) 4.40 Forfeited (5) 1.52 Balance, September 30, 2020 2,627 C$ 1.99 Granted 1,396 8.40 Exercised (117) 2.20 Expired (65) 3.69 Forfeited (55) 8.39 Balance, September 30, 2021 3,786 C$ 4.15 |
Operating expenses (Tables)
Operating expenses (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Operating expenses | |
Schedule of operating expenses | Year Ended Year Ended September 30, September 30, 2021 2020 Payroll and employee benefits $ 29,549 $ 22,701 Facilities 2,101 2,069 Bad debt expense 7,957 6,441 Billing 3,887 1,890 Professional fees 2,566 826 Marketing costs 1,005 448 Outbound freight 1,378 898 All other 4,319 3,353 Total Operating expenses $ 52,762 $ 38,626 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 | The 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 of 27.7% and 26.0% for the years ended September 30, 2021 and 2020 respectively in the US to the Company’s net income (loss) before income tax expense (recovery) as follows: Year Ended Year Ended September 30, September 30, 2021 2020 Loss from continuing operations before income taxes $ (9,329) $ (3,575) Expected income tax recovery (Statutory income tax rate of 27.7% and 26.0%, respectively) (2,586) (930) Difference in foreign tax rates 86 (39) Tax rate changes and other adjustments (614) (729) Stock-based compensation 2,964 800 State taxes - US 645 128 Prior period adjustments — (207) FX adjustments — (182) Share issuance cost booked through equity — (843) Deferred tax assets not recognized (recognized) 150 2,130 Tax benefit from losses previously unrecognized (3,800) — Current tax provision $ (3,155) $ 128 |
Summary of components of deferred tax | The following table summarizes the components of deferred tax: Year Ended Year Ended September 30, September 30, 2021 2020 Net operating losses - US $ 6,312 $ 3,170 Lease liabilities — 735 Deferred Tax Liabilities Property, plant and equipment - US (6,015) (3,889) Prepaid assets - US — (16) Obsolescense reserve - US (10) — Cash to accrual adjustment temporary - US (287) — Net deferred taxes $ — $ — |
Schedule of Deferred tax assets and liabilities offset related to income taxes | 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 September 30, 2021 Balance at beginning of year $ — Recognized in profit/loss (3,800) Recognized in goodwill 3,800 Balance at end of year $ — |
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 | 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. Deferred tax assets have not been recognized in respect of the following deductible temporary differences: Year Ended Year Ended September 30, September 30, 2021 2020 Intangible asset - Canada $ 200 $ 205 Intangible asset - United States 984 11,247 Allowance for bad debts - United States 3,851 17,777 Net capital losses carried forward - Canada 1,042 995 Non-capital losses - United States 2,345 — Share issuance costs - Canada 1,855 2,431 Non-capital losses - Canada 26,911 23,783 Other temporary differences 6,448 3,301 $ 43,636 $ 59,739 |
Schedule of Company's Canadian non-capital income tax losses expire | The Company’s Canadian non-capital income tax losses expire as follows: 2027 $ 722 2028 75 2029 41 2030 192 2031 293 2032 334 2033 1,730 2034 9,334 2035 901 2036 2,412 2037 1,150 2038 1,533 2039 3,517 2040 2,664 2041 2,013 $ 26,911 |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Loss per share | |
Schedule of earnings and share data used in the basic and diluted loss per share computation | Year Ended Year Ended September 30, September 30, 2021 2020 Net income (loss) from continuing operations $ (6,174) $ (3,703) Net income (loss) from discontinued operations — (869) Basic weighted average number of shares 30,438 22,721 Diluted weighted average number of shares 30,438 22,721 Basic – continuing operations $ (0.20) $ (0.16) Diluted – continuing operations $ (0.20) $ (0.16) Basic – discontinuing operations $ — $ (0.04) Diluted – discontinuing operations $ — $ (0.04) Total - Basic $ (0.20) $ (0.20) Total - Diluted $ (0.20) $ (0.20) |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Related party transactions | |
Schedule of compensation to key management personnel | Year Ended Year Ended September 30, September 30, 2021 2020 Salaries and Benefits paid during the year $ 968 $ 785 Stock-based compensation 1,036 — Total $ 2,004 $ 785 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Discontinued operations | |
Schedule of loss from discontinued operations | Year Ended Year Ended September 30, September 30, 2021 2020 Operating expenses $ — $ (869) Net (loss) income from discontinued operations $ — $ (869) |
Restatement (Tables)
Restatement (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Restatement | |
Schedule of condensed consolidated interim financial statements | Consolidated financial statements as at September 30, 2020 Previously As Restated Reported in C$ in US$ Current assets $ 60,402 $ 45,283 Long-term assets 35,733 26,782 Total assets 96,135 72,065 Current liabilities 32,526 24,385 Long-term liabilities 25,938 19,445 Total liabilities 58,464 43,830 Shareholders’ equity 37,671 28,235 Total liabilities and shareholders’ equity 96,135 72,065 Consolidated financial statements as at October 1, 2019 Previously As Restated Reported in C$ in US$ Current assets $ 30,783 $ 23,247 Long-term assets 24,382 18,412 Total assets 55,165 41,659 Current liabilities 21,081 15,919 Long-term liabilities 16,839 12,717 Total liabilities 37,920 28,636 Shareholder’s equity 17,245 13,023 Total liabilities and shareholders’ equity 55,165 41,659 |
Schedule of condensed consolidated interim statement of loss | Consolidated statement of loss for the year ended September 30, 2020 Previously As Restated Reported in C$ in US$ Total revenue $ 97,755 $ 72,639 Operating income (loss) from continuing operations 885 658 Income (loss) before taxes from continuing operations (5,425) (3,575) Net income (loss) from continuing operations (5,597) (3,703) Net income (loss) (6,755) (4,572) |
Schedule of condensed consolidated interim statement of cash flows | Consolidated statement of cash flows for the year ended September 30, 202 0 Previously As Restated Reported in C$ in US$ Loss from continuing operations $ (5,597) $ (3,703) Loss from discontinuing operations (1,158) (869) Net cash flows provided by operating activities 17,631 14,034 Net cash flows used in investing activities (10,570) (7,853) Net cash flow used in financing activities 18,676 13,721 Net increase in cash 25,737 19,902 |
Nature of operations (Details)
Nature of operations (Details) | May 13, 2021 | Sep. 30, 2020$ / $ | Oct. 01, 2019$ / $ |
Nature of operations | |||
Reverse stock split | 0.25 | ||
Exchange rates | 1.3339 | 1.3242 | |
Exchange rate | 1.3458 |
Basis of Presentation and sum_4
Basis of Presentation and summary of significant accounting policies - Principles of consolidation (Details) | 12 Months Ended |
Sep. 30, 2021 | |
100 W. Commercial Street, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Acadia Medical Supply, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Black Bear Medical, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Black Bear Medical Group, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Black Bear Medical NH, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Care Medical Atlanta, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Care Medical of Athens, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Care Medical of Augusta, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Care Medical of Gainesville, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Care Medical Partners, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Care Medical Savannah, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Central Oxygen, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Coastal Med-Tech Corp. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Cooley Medical Equipment, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Health Technology Resources, L.L.C. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Legacy Oxygen and Home Care Equipment, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Mayhugh Drugs, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Med Supply Center | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Medical West Healthcare | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Oxygen Plus, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Patient Aids, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Patient Home Monitoring, Inc - discontinued | |
Principles of consolidation | |
Ownership percentages | 100.00% |
PHM Logistics Corporation | |
Principles of consolidation | |
Ownership percentages | 100.00% |
PHM Services, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Resource Medical, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Resource Medical Group Charleston, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Resource Medical Group, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Riverside Medical, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Semo Drugs - Care Plus of Mo, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Sleepwell, LLC | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Tuscan, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
West Home Healthcare, Inc. | |
Principles of consolidation | |
Ownership percentages | 100.00% |
Basis of Presentation and sum_5
Basis of Presentation and summary of significant accounting policies - Revenue recognition (Details) | Sep. 30, 2021USD ($) |
Basis of Presentation and summary of significant accounting policies | |
Contract liabilities sale of medical equipment and supplies | $ 0 |
Basis of Presentation and sum_6
Basis of Presentation and summary of significant accounting policies - Valuation of inventories (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Basis of Presentation and summary of significant accounting policies | |
Period of obsolescence | 2 years |
Provision for obsolescence of inventory | 40.00% |
Basis of Presentation and sum_7
Basis of Presentation and summary of significant accounting policies - Property and equipment (Details) | 12 Months Ended |
Sep. 30, 2021 | |
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 | |
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 | 6 years |
Basis of Presentation and sum_8
Basis of Presentation and summary of significant accounting policies - Intangible assets (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Non-compete agreements | |
Intangible assets | |
Useful economic life | 5 years |
Brand | |
Intangible assets | |
Useful economic life | 10 years |
Customer contracts | |
Intangible assets | |
Useful economic life | 2 years |
Customer relationships | |
Intangible assets | |
Useful economic life | 10 years |
Basis of Presentation and sum_9
Basis of Presentation and summary of significant accounting policies - Goodwill impairment (Details) | 12 Months Ended |
Sep. 30, 2021item | |
Basis of Presentation and summary of significant accounting policies | |
Number of cash generating units | 10 |
Projected cash flows period | 5 years |
Basis of Presentation and su_10
Basis of Presentation and summary of significant accounting policies - Segment reporting and Foreign currency transactions (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Basis of Presentation and summary of significant accounting policies | ||
Number of reportable segments | segment | 1 | |
Change in foreign exchange rate | $ | $ (173) | $ 454 |
Basis of Presentation and su_11
Basis of Presentation and summary of significant accounting policies - IFRS 16, Leases (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 |
IFRS 16, Leases | |||
Finance lease obligations | $ 7,765,000 | $ 5,267,000 | |
Changes in accounting policy required by IFRSs 16, cumulative effect at date of initial application | |||
IFRS 16, Leases | |||
Incremental borrowing rate | 8.00% | ||
Right of use assets | $ 2,603,000 | ||
Finance lease obligations | $ 2,603,000 |
Basis of Presentation and su_12
Basis of Presentation and summary of significant accounting policies - Recognition and initial measurement (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 | |
Recognition and initial measurement | |||
Liabilities that are due within one year | $ 32,737,000 | $ 24,385,000 | $ 15,919,000 |
Current assets | 57,233,000 | $ 45,283,000 | $ 23,247,000 |
Liquidity risk | |||
Recognition and initial measurement | |||
Liabilities that are due within one year | 32,737,000 | ||
Current assets | $ 57,233,000 | ||
Medicare | Credit risk | |||
Recognition and initial measurement | |||
Receivables are due from Medicare, Percentage | 9.00% |
Acquisition of businesses and_3
Acquisition of businesses and purchase accounting - Sleepwell, LLC - Narratives (Details) - Sleepwell, LLC | Oct. 23, 2020USD ($) | Mar. 31, 2021USD ($)$ / shares | Jan. 31, 2021USD ($)$ / shares | Sep. 30, 2021USD ($) |
Acquisition of businesses and purchase accounting | ||||
Purchase price | $ 9,976,000 | |||
Cash consideration | $ 6,623,000 | $ 320,000 | ||
Consideration in shares (Value) | $ 657,000 | $ 2,376,000 | ||
Consideration in shares (Shares) | 246,000 | 629,000 | ||
Issue price per share | $ / shares | $ 2.67 | $ 3.78 | ||
Holdback consideration | $ 320,000 | |||
Discount rate | 15.00% | 3.46% | 15.00% | 25.00% |
Professional fees in conjunction with the acquisition | $ 81,000 | |||
Revenue of combined entity as if combination occurred at beginning of period | $ 11,100,000 | |||
Profit (loss) of combined entity as if combination occurred at beginning of period | 2,800,000 | |||
Revenue of acquiree since acquisition date | 10,400,000 | |||
Profit (loss) of acquiree since acquisition date | $ 2,700,000 |
Acquisition of businesses and_4
Acquisition of businesses and purchase accounting - Sleepwell, LLC - Asset and Liabilities (Details) - Sleepwell, LLC - USD ($) | Sep. 30, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Oct. 23, 2020 |
Acquisition of businesses and purchase accounting | ||||
Cash | $ 378,000 | |||
Accounts receivable | 780,000 | |||
Inventory | 769,000 | |||
Prepaid expenses and other current assets | 2,000 | |||
Property and equipment | 960,000 | |||
Right of use real estate ($390 net of unfavorable lease) | 313,000 | |||
Goodwill | 4,641,000 | |||
Accounts payable | (640,000) | |||
Accrued liabilities | (166,000) | |||
Deferred revenue | (100,000) | |||
Lease liabilities | (390,000) | |||
Deferred tax liability | (1,981,000) | |||
Net assets acquired | 9,976,000 | |||
Cash transferred | $ 320,000 | 6,623,000 | ||
Equity interests of acquirer | $ 657,000 | $ 2,376,000 | ||
Total consideration transferred, acquisition-date fair value | 9,976,000 | |||
Goodwill deductible for tax purposes | 0 | |||
Non-compete agreements | ||||
Acquisition of businesses and purchase accounting | ||||
Intangible asset | 220,000 | |||
Brand | ||||
Acquisition of businesses and purchase accounting | ||||
Intangible asset | 520,000 | |||
Customer relationships | ||||
Acquisition of businesses and purchase accounting | ||||
Intangible asset | $ 4,670,000 |
Acquisition of businesses and_5
Acquisition of businesses and purchase accounting - Mayhugh Drugs, Inc. - Narratives (Details) - Mayhugh Drugs, Inc. - USD ($) | Feb. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Acquisition of businesses and purchase accounting | |||
Purchase price | $ 1,959,000 | ||
Cash consideration | 1,047,000 | $ 912,000 | $ 912,000 |
Holdback consideration | $ 662,000 | ||
Discount rate | 2.39% | ||
Earnout value | $ 250,000 | ||
Professional fees in conjunction with the acquisition | 53,000 | ||
Revenue of combined entity as if combination occurred at beginning of period | 6,300,000 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | 700,000 | ||
Revenue of acquiree since acquisition date | $ 4,300,000 | ||
Profit (loss) of acquiree since acquisition date | $ 700,000 | ||
Maximum | |||
Acquisition of businesses and purchase accounting | |||
Earnout value | $ 750,000 |
Acquisition of businesses and_6
Acquisition of businesses and purchase accounting - Mayhugh Drugs, Inc. - Asset and Liabilities (Details) - Mayhugh Drugs, Inc. - USD ($) | Feb. 01, 2021 | Sep. 30, 2021 |
Acquisition of businesses and purchase accounting | ||
Cash | $ 180,000 | |
Accounts receivable | 474,000 | |
Inventory | 487,000 | |
Prepaid expenses and other current assets | 7,000 | |
Property and equipment | 1,357,000 | |
Right of use real estate ($390 net of unfavorable lease) | 61,000 | |
Goodwill | 1,587,000 | |
Accounts payable | (880,000) | |
Accrued liabilities | (14,000) | |
Deferred revenue | (84,000) | |
Equipment loans | (2,846,000) | |
U.S. Small Business Association ("SBA") loan | (119,000) | |
Lease liabilities | (134,000) | |
Deferred tax liability | (947,000) | |
Net assets acquired | 1,959,000 | |
Cash transferred | 1,047,000 | $ 912,000 |
Total consideration transferred, acquisition-date fair value | 1,959,000 | |
Goodwill deductible for tax purposes | 0 | |
Expected credit loss on accounts receivable | 1,142,000 | |
Non-compete agreements | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 40,000 | |
Brand | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 290,000 | |
Customer relationships | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | $ 2,500,000 |
Acquisition of businesses and_7
Acquisition of businesses and purchase accounting - Med Supply Center, Inc. - Narratives (Details) - Med Supply Center, Inc. - USD ($) | Jun. 21, 2021 | Sep. 30, 2021 |
Acquisition of businesses and purchase accounting | ||
Purchase price | $ 1,601,000 | |
Cash consideration | 1,279,000 | $ 322,000 |
Consideration to be paid | $ 10,000 | |
Discount rate | 2.39% | |
Holdback consideration | $ 312,000 | |
Professional fees in conjunction with the acquisition | $ 25,000 | |
Revenue of combined entity as if combination occurred at beginning of period | 2,400,000 | |
Profit (loss) of combined entity as if combination occurred at beginning of period | 60,000 | |
Revenue of acquiree since acquisition date | 900,000 | |
Profit (loss) of acquiree since acquisition date | $ 40,000 |
Acquisition of businesses and_8
Acquisition of businesses and purchase accounting - Med Supply Center, Inc. - Asset and Liabilities acquired (Details) - Med Supply Center, Inc. - USD ($) | Sep. 30, 2021 | Jun. 21, 2021 |
Acquisition of businesses and purchase accounting | ||
Cash | $ 48,000 | |
Accounts receivable | 180,000 | |
Inventory | 597,000 | |
Property and equipment | 263,000 | |
Right of use real estate | 88,000 | |
Goodwill | 766,000 | |
Accounts payable | (190,000) | |
Accrued liabilities | (40,000) | |
Deferred revenue | (53,000) | |
Deferred tax liability | (304,000) | |
Lease liabilities | (124,000) | |
Net assets acquired | 1,601,000 | |
Cash transferred | $ 322,000 | 1,279,000 |
Total consideration transferred, acquisition-date fair value | 1,601,000 | |
Goodwill deductible for tax purposes | 0 | |
Non-compete agreements | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 140,000 | |
Brand | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 20,000 | |
Customer relationships | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | $ 210,000 |
Acquisition of businesses and_9
Acquisition of businesses and purchase accounting - Semo Drug - Care Plus of Mo. Inc - Narratives (Details) - Semo Drug-Care Plus of Mo. Inc - USD ($) | Jun. 23, 2021 | Sep. 30, 2021 |
Acquisition of businesses and purchase accounting | ||
Purchase price | $ 1,626,000 | |
Cash consideration | 1,440,000 | $ 186,000 |
Consideration to be paid | 10,000 | |
Holdback consideration | $ 176,000 | |
Discount rate | 2.39% | |
Professional fees in conjunction with the acquisition | $ 25,000 | |
Revenue of combined entity as if combination occurred at beginning of period | 2,200,000 | |
Profit (loss) of combined entity as if combination occurred at beginning of period | 300,000 | |
Revenue of acquiree since acquisition date | 700,000 | |
Profit (loss) of acquiree since acquisition date | $ 40,000 |
Acquisition of businesses an_10
Acquisition of businesses and purchase accounting - Semo Drug-Care Plus of Mo. Inc - Asset and Liabilities acquired (Details) - Semo Drug-Care Plus of Mo. Inc - USD ($) | Sep. 30, 2021 | Jun. 23, 2021 |
Acquisition of businesses and purchase accounting | ||
Cash | $ 47,000 | |
Accounts receivable | 292,000 | |
Inventory | 475,000 | |
Property and equipment | 373,000 | |
Goodwill | 482,000 | |
Accounts payable | (94,000) | |
Accrued liabilities | (51,000) | |
Deferred tax liability | (377,000) | |
Deferred revenue | (51,000) | |
Net assets acquired | 1,626,000 | |
Cash transferred | $ 186,000 | 1,440,000 |
Total consideration transferred, acquisition-date fair value | 1,626,000 | |
Goodwill deductible for tax purposes | 0 | |
Non-compete agreements | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 60,000 | |
Brand | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 100,000 | |
Customer relationships | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | $ 370,000 |
Acquisition of businesses an_11
Acquisition of businesses and purchase accounting - Oxygen Plus, Inc. - Narratives (Details) - Oxygen Plus, Inc. - USD ($) | Jun. 29, 2021 | Sep. 30, 2021 |
Acquisition of businesses and purchase accounting | ||
Purchase price | $ 730,000 | |
Cash consideration | $ 574,000 | $ 156,000 |
Discount rate | 2.39% | |
Holdback consideration | $ 156,000 | |
Professional fees in conjunction with the acquisition | $ 24,000 | |
Pro forma revenue | 1,100,000 | |
Pro forma net income(loss) | 40,000 | |
Pro forma revenue recognized | 300,000 | |
Pro forma net income(loss) recognized | $ (90,000) |
Acquisition of businesses an_12
Acquisition of businesses and purchase accounting - Oxygen Plus, Inc. - Asset and Liabilities acquired (Details) - Oxygen Plus, Inc. - USD ($) | Sep. 30, 2021 | Jun. 29, 2021 |
Acquisition of businesses and purchase accounting | ||
Cash | $ 114,000 | |
Accounts receivable | 60,000 | |
Inventory | 39,000 | |
Property and equipment | 88,000 | |
Goodwill | 327,000 | |
Accounts payable | (98,000) | |
Accrued liabilities | (13,000) | |
Deferred tax liability | (180,000) | |
Deferred revenue | (12,000) | |
Equipment loans | (155,000) | |
Net assets acquired | 730,000 | |
Cash transferred | $ 156,000 | 574,000 |
Total consideration transferred, acquisition-date fair value | 730,000 | |
Goodwill deductible for tax purposes | 0 | |
Non-compete agreements | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 10,000 | |
Brand | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 50,000 | |
Customer relationships | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | $ 500,000 |
Acquisition of businesses an_13
Acquisition of businesses and purchase accounting - Medical West Healthcare. - Narratives (Details) - Medical West Healthcare. - USD ($) | Aug. 20, 2021 | Sep. 30, 2021 |
Disclosure of detailed information about business combination [line items] | ||
Purchase price | $ 2,366,000 | |
Cash transferred | $ 1,927,000 | $ 439,000 |
Discount rate | 2.39% | |
Holdback consideration | $ 439,000 | |
Professional fees in conjunction with the acquisition | $ 25,000 | |
Pro forma revenue | 5,700,000 | |
Pro forma net income(loss) | 400,000 | |
Pro forma revenue recognized | 600,000 | |
Pro forma net income(loss) recognized | $ 40,000 |
Acquisition of businesses an_14
Acquisition of businesses and purchase accounting - Medical West Healthcare. - Asset and Liabilities acquired (Details) - Medical West Healthcare. - USD ($) | Sep. 30, 2021 | Aug. 20, 2021 |
Acquisition of businesses and purchase accounting | ||
Cash | $ 234,000 | |
Accounts receivable | 195,000 | |
Inventory | 382,000 | |
Prepaid expenses and other current assets | 10,000 | |
Property and equipment | 1,121,000 | |
Goodwill | 758,000 | |
Deposits | 2,000 | |
Accounts payable | (309,000) | |
Accrued liabilities | (107,000) | |
Deferred tax liability | (11,000) | |
Deferred revenue | (16,000) | |
Equipment loans | (1,063,000) | |
Net assets acquired | 2,366,000 | |
Cash transferred | $ 439,000 | 1,927,000 |
Total consideration transferred, acquisition-date fair value | 2,366,000 | |
Goodwill deductible for tax purposes | 0 | |
Non-compete agreements | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 20,000 | |
Brand | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | 270,000 | |
Customer relationships | ||
Acquisition of businesses and purchase accounting | ||
Intangible asset | $ 880,000 |
Acquisition of businesses an_15
Acquisition of businesses and purchase accounting - Cooley Medical Equipment, Inc. - Narratives (Details) - Cooley Medical Equipment, Inc. - USD ($) | Oct. 01, 2019 | Sep. 30, 2021 |
Disclosure of detailed information about business combination [line items] | ||
Purchase price | $ 2,732,000 | |
Cash transferred | $ 2,333,000 | $ 399,000 |
Discount rate | 3.86% | |
Consideration to be paid | $ 399,000 | |
Consideration paid to US department of justice | 1,824,000 | |
Legal expenses | $ 41,000 | |
Purchase price paid | $ 123,000 |
Acquisition of businesses an_16
Acquisition of businesses and purchase accounting - Cooley Medical Equipment, Inc. - Asset and Liabilities acquired (Details) - Cooley Medical Equipment, Inc. - USD ($) | Sep. 30, 2021 | Oct. 01, 2019 |
Disclosure of detailed information about business combination [line items] | ||
Cash | $ 80,000 | |
Accounts receivable | 605,000 | |
Inventory | 769,000 | |
Prepaid expenses and other current assets | 42,000 | |
Property and equipment | 1,842,000 | |
Right of use assets | 1,080,000 | |
Goodwill | 422,000 | |
Accounts payable and accrued liabilities | (815,000) | |
Deferred revenue | (204,000) | |
Equipment loans | (509,000) | |
Lease liabilities | (1,010,000) | |
Net assets acquired | 2,732,000 | |
Cash transferred | $ 399,000 | 2,333,000 |
Total consideration transferred, acquisition-date fair value | 2,732,000 | |
Goodwill deductible for tax purposes | 0 | |
Brand | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible asset | 80,000 | |
Non-compete agreements | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible asset | 20,000 | |
Customer relationships | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible asset | $ 330,000 |
Acquisition of businesses an_17
Acquisition of businesses and purchase accounting - Acadia Medical Supply, Inc. - Narratives (Details) - Acadia Medical Supply, Inc. - USD ($) | Dec. 01, 2019 | Sep. 30, 2021 |
Disclosure of detailed information about business combination [line items] | ||
Purchase price | $ 1,476,000 | |
Cash transferred | $ 1,004,000 | |
Discount rate | 3.86% | |
Consideration to be paid | $ 472,000 | |
Legal expenses | 22,000 | |
Pro forma revenue | 3,300,000 | |
Pro forma net income(loss) | $ 400,000 | |
Pro forma revenue recognized | $ 2,800,000 | |
Pro forma net income(loss) recognized | $ 300,000 |
Acquisition of businesses an_18
Acquisition of businesses and purchase accounting - Acadia Medical Supply, Inc. - Asset and Liabilities acquired (Details) - Acadia Medical Supply, Inc. | Dec. 01, 2019USD ($) |
Disclosure of detailed information about business combination [line items] | |
Cash | $ 59,000 |
Accounts receivable | 143,000 |
Inventory | 246,000 |
Property and equipment | 387,000 |
Right of use assets | 243,000 |
Other assets | 8,000 |
Goodwill | 375,000 |
Accounts payable and accrued liabilities | (278,000) |
Deferred revenue | (44,000) |
Equipment loans | (136,000) |
Lease liabilities | (147,000) |
Net assets acquired | 1,476,000 |
Cash transferred | 1,004,000 |
Total consideration transferred, acquisition-date fair value | 1,476,000 |
Goodwill deductible for tax purposes | 0 |
Accrued liabilities | |
Disclosure of detailed information about business combination [line items] | |
Cash transferred | 228,000 |
Other long-term liabilities | |
Disclosure of detailed information about business combination [line items] | |
Cash transferred | 244,000 |
Brand | |
Disclosure of detailed information about business combination [line items] | |
Intangible asset | 130,000 |
Non-compete agreements | |
Disclosure of detailed information about business combination [line items] | |
Intangible asset | 30,000 |
Customer relationships | |
Disclosure of detailed information about business combination [line items] | |
Intangible asset | $ 460,000 |
Acquisition of businesses an_19
Acquisition of businesses and purchase accounting - Health Technology Resources, L.L.C - Narratives (Details) - Health Technology Resources, L.L.C. - USD ($) | Aug. 17, 2020 | Sep. 30, 2020 | Sep. 30, 2021 |
Disclosure of detailed information about business combination [line items] | |||
Purchase price | $ 5,347,000 | ||
Cash transferred | $ 4,819,000 | ||
Discount rate | 3.86% | ||
Consideration to be paid | $ 528,000 | ||
Holdback consideration | 184,000 | ||
Payroll protection funds to be paid on forgiveness | 207,000 | ||
Earnout value | 137,000 | ||
Revalued earnout | $ 65,000 | ||
Reduction to operating expenses | (72,000) | ||
Legal expenses | $ 26,000 | ||
Pro forma revenue | 4,100,000 | ||
Pro forma net income(loss) | 1,500,000 | ||
Pro forma revenue recognized | 450,000 | ||
Pro forma net income(loss) recognized | $ 110,000 | ||
Maximum | |||
Disclosure of detailed information about business combination [line items] | |||
Earnout value | $ 500,000 |
Acquisition of businesses an_20
Acquisition of businesses and purchase accounting - Health Technology Resources, L.L.C. - Asset and Liabilities acquired (Details) - Health Technology Resources, L.L.C. | Aug. 17, 2020USD ($) |
Disclosure of detailed information about business combination [line items] | |
Cash | $ 140,000 |
Accounts receivable | 400,000 |
Inventory | 77,000 |
Prepaid assets | 15,000 |
Property and equipment | 216,000 |
Goodwill | 1,678,000 |
Accounts payable and accrued liabilities | (107,000) |
Deferred revenue | (82,000) |
Net assets acquired | 5,347,000 |
Cash transferred | 4,819,000 |
Total consideration transferred, acquisition-date fair value | 5,347,000 |
Accrued liabilities | |
Disclosure of detailed information about business combination [line items] | |
Cash transferred | 207,000 |
Other long-term liabilities | |
Disclosure of detailed information about business combination [line items] | |
Cash transferred | 321,000 |
Non-compete agreements | |
Disclosure of detailed information about business combination [line items] | |
Intangible asset | 70,000 |
Brand | |
Disclosure of detailed information about business combination [line items] | |
Intangible asset | 330,000 |
Customer relationships | |
Disclosure of detailed information about business combination [line items] | |
Intangible asset | $ 2,610,000 |
Acquisition of businesses an_21
Acquisition of businesses and purchase accounting - Acquisition Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | $ 233 | $ 89 |
Cooley Medical Equipment, Inc. | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | 41 | |
Acadia Medical Supply, Inc. | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | 22 | |
Health Technology Resources, L.L.C. | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | $ 26 | |
Sleepwell, LLC | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | 81 | |
Mayhugh Drugs, Inc. | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | 53 | |
Med Supply Center, Inc. | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | 25 | |
Semo Drug-Care Plus of Mo. Inc | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | 25 | |
Oxygen Plus, Inc. | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | 24 | |
Medical West Healthcare. | ||
Acquisition of businesses and purchase accounting | ||
Acquisition Professional Fees | $ 25 |
Acquisition of businesses an_22
Acquisition of businesses and purchase accounting - Purchase Price Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Acquisition of businesses and purchase accounting | ||
Balance, September 30, 2020 (current $857 plus long-term $560) | $ 1,417 | |
Addition from acquisitions | 2,335 | |
Accretion of interest | 38 | |
Payments | (1,274) | |
Balance, September 30, 2021 (current $2,383 plus long-term $133) | 2,516 | |
Contingent consideration, Current | 2,383 | $ 857 |
Contingent consideration, Non-Current | $ 133 | $ 560 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 |
Accounts Receivable | |||
Net receivables | $ 11,938 | $ 9,089 | $ 9,357 |
0 - 90 days | |||
Accounts Receivable | |||
Net receivables | 9,861 | ||
91 - 180 days | |||
Accounts Receivable | |||
Net receivables | 1,296 | ||
Over 180 days | |||
Accounts Receivable | |||
Net receivables | 781 | ||
Gross receivable | |||
Accounts Receivable | |||
Net receivables | 15,413 | 14,125 | |
Gross receivable | 0 - 90 days | |||
Accounts Receivable | |||
Net receivables | 11,279 | ||
Gross receivable | 91 - 180 days | |||
Accounts Receivable | |||
Net receivables | 2,027 | ||
Gross receivable | Over 180 days | |||
Accounts Receivable | |||
Net receivables | 2,107 | ||
Reserve for expected credit losses | |||
Accounts Receivable | |||
Net receivables | 3,475 | $ 5,036 | |
Reserve for expected credit losses | 0 - 90 days | |||
Accounts Receivable | |||
Net receivables | 1,418 | ||
Reserve for expected credit losses | 91 - 180 days | |||
Accounts Receivable | |||
Net receivables | 731 | ||
Reserve for expected credit losses | Over 180 days | |||
Accounts Receivable | |||
Net receivables | $ 1,326 |
Accounts Receivable - Movement
Accounts Receivable - Movement in reserve for expected credit losses (Details) - Trade Receivables - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Opening Balance | $ 5,036 | $ 2,305 |
Bad debt expense | 7,957 | 6,441 |
Amounts written off | (9,518) | (3,710) |
Ending Balance | $ 3,475 | $ 5,036 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 |
Inventory | |||
Serialized | $ 2,369 | $ 2,132 | |
Non-serialized | 6,922 | 4,366 | |
Reserve for shrink and slow-moving | (38) | (83) | |
Total Inventory | $ 9,253 | $ 6,415 | $ 3,578 |
Property, equipment, and righ_3
Property, equipment, and right of use assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property and equipment | ||
Property, plant and equipment at beginning of period | $ 16,667 | $ 14,723 |
Property, plant and equipment at end of period | 23,506 | 16,667 |
Payment made in cash to acquire rental equipment | 5,046 | 91 |
Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 32,298 | 31,411 |
Transfers from inventory | 14,988 | 7,676 |
Additions | 4,052 | 2,183 |
Acquisitions | 4,625 | 3,768 |
Disposals | (10,912) | (15,343) |
Property, plant and equipment at end of period | 45,051 | 32,298 |
Gross receivable | Changes in accounting policy required by IFRSs 16, cumulative effect at date of initial application | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 2,603 | |
Property, plant and equipment at end of period | 2,603 | |
Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (15,631) | (16,688) |
Depreciation | 16,212 | 13,860 |
Disposals | 10,298 | 14,917 |
Property, plant and equipment at end of period | (21,545) | (15,631) |
Rental equipment | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 10,257 | 11,948 |
Property, plant and equipment at end of period | 14,727 | 10,257 |
Rental equipment | Equipment loans | ||
Property and equipment | ||
Transfers from inventory | 14,988 | |
Equipment loans obtained to acquire rental equipment | 10,049 | 7,080 |
Payment made in cash to acquire rental equipment | 4,939 | |
Rental equipment | Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 22,568 | 26,717 |
Transfers from inventory | 14,988 | 7,676 |
Acquisitions | 2,740 | 2,332 |
Disposals | (9,150) | (14,157) |
Property, plant and equipment at end of period | 31,146 | 22,568 |
Rental equipment | Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (12,311) | (14,769) |
Depreciation | 13,213 | 11,429 |
Disposals | 9,105 | 13,887 |
Property, plant and equipment at end of period | (16,419) | (12,311) |
Computer equipment | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 65 | 133 |
Property, plant and equipment at end of period | 51 | 65 |
Computer equipment | Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 171 | 504 |
Additions | 17 | 5 |
Disposals | (33) | (338) |
Property, plant and equipment at end of period | 155 | 171 |
Computer equipment | Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (106) | (371) |
Depreciation | 31 | 74 |
Disposals | 33 | 339 |
Property, plant and equipment at end of period | (104) | (106) |
Office furniture and fixtures | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 104 | 173 |
Property, plant and equipment at end of period | 48 | 104 |
Office furniture and fixtures | Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 333 | 433 |
Additions | 2 | |
Acquisitions | 3 | 1 |
Disposals | (11) | (101) |
Property, plant and equipment at end of period | 327 | 333 |
Office furniture and fixtures | Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (229) | (260) |
Depreciation | 61 | 71 |
Disposals | 11 | 102 |
Property, plant and equipment at end of period | (279) | (229) |
Leasehold improvements | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 1,055 | 912 |
Property, plant and equipment at end of period | 1,067 | 1,055 |
Leasehold improvements | Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 1,364 | 1,169 |
Additions | 88 | 83 |
Acquisitions | 54 | 184 |
Disposals | (8) | (72) |
Property, plant and equipment at end of period | 1,498 | 1,364 |
Leasehold improvements | Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (309) | (257) |
Depreciation | 131 | 124 |
Disposals | 9 | 72 |
Property, plant and equipment at end of period | (431) | (309) |
Right of use assets, Vehicles | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 1,690 | 1,557 |
Property, plant and equipment at end of period | 2,540 | 1,690 |
Right of use assets, Vehicles | Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 2,872 | 2,588 |
Additions | 1,385 | 795 |
Acquisitions | 302 | 159 |
Disposals | (384) | (670) |
Property, plant and equipment at end of period | 4,175 | 2,872 |
Right of use assets, Vehicles | Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (1,182) | (1,031) |
Depreciation | 789 | 664 |
Disposals | 336 | 513 |
Property, plant and equipment at end of period | (1,635) | (1,182) |
Right of use assets, Real estate | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 3,496 | |
Property, plant and equipment at end of period | 5,073 | 3,496 |
Right of use assets, Real estate | Gross receivable | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 4,990 | |
Additions | 2,560 | 1,300 |
Acquisitions | 1,526 | 1,092 |
Disposals | (1,326) | (5) |
Property, plant and equipment at end of period | 7,750 | 4,990 |
Right of use assets, Real estate | Gross receivable | Changes in accounting policy required by IFRSs 16, cumulative effect at date of initial application | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | 2,603 | |
Property, plant and equipment at end of period | 2,603 | |
Right of use assets, Real estate | Accumulated depreciation/amortization | ||
Property and equipment | ||
Property, plant and equipment at beginning of period | (1,494) | |
Depreciation | 1,987 | 1,498 |
Disposals | 804 | 4 |
Property, plant and equipment at end of period | $ (2,677) | $ (1,494) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | $ 9,474 | $ 3,618 |
Goodwill and intangible assets, ending balance | 27,330 | 9,474 |
Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 22,030 | 15,589 |
Acquisitions | 19,430 | 6,534 |
Disposals | (205) | (93) |
Goodwill and intangible assets, ending balance | 41,255 | 22,030 |
Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (12,556) | (11,971) |
Amortization | (1,574) | (678) |
Disposals | 205 | 93 |
Goodwill and intangible assets, ending balance | (13,925) | (12,556) |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 3,895 | 1,420 |
Goodwill and intangible assets, ending balance | 12,456 | 3,895 |
Goodwill | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 3,895 | 1,420 |
Acquisitions | 8,561 | 2,475 |
Goodwill and intangible assets, ending balance | 12,456 | 3,895 |
Sub-total intangibles with finite lives | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 5,579 | 2,198 |
Goodwill and intangible assets, ending balance | 14,874 | 5,579 |
Sub-total intangibles with finite lives | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 18,135 | 14,169 |
Acquisitions | 10,869 | 4,059 |
Disposals | (205) | (93) |
Goodwill and intangible assets, ending balance | 28,799 | 18,135 |
Sub-total intangibles with finite lives | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (12,556) | (11,971) |
Amortization | (1,574) | (678) |
Disposals | 205 | 93 |
Goodwill and intangible assets, ending balance | (13,925) | (12,556) |
Non-compete agreements | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 115 | 37 |
Goodwill and intangible assets, ending balance | 400 | 115 |
Non-compete agreements | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 637 | 517 |
Acquisitions | 370 | 120 |
Goodwill and intangible assets, ending balance | 1,007 | 637 |
Non-compete agreements | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (522) | (480) |
Amortization | (85) | (42) |
Goodwill and intangible assets, ending balance | (607) | (522) |
Brand | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 892 | 453 |
Goodwill and intangible assets, ending balance | 2,051 | 892 |
Brand | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 1,881 | 1,341 |
Acquisitions | 1,370 | 540 |
Goodwill and intangible assets, ending balance | 3,251 | 1,881 |
Brand | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (989) | (888) |
Amortization | (211) | (101) |
Goodwill and intangible assets, ending balance | (1,200) | (989) |
Customer contracts | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 6 | 123 |
Goodwill and intangible assets, ending balance | 6 | |
Customer contracts | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 3,851 | 3,851 |
Goodwill and intangible assets, ending balance | 3,851 | 3,851 |
Customer contracts | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (3,845) | (3,728) |
Amortization | (6) | (117) |
Goodwill and intangible assets, ending balance | (3,851) | (3,845) |
Customer relationships | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 4,566 | 1,585 |
Goodwill and intangible assets, ending balance | 12,423 | 4,566 |
Customer relationships | Gross receivable | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | 11,766 | 8,460 |
Acquisitions | 9,129 | 3,399 |
Disposals | (205) | (93) |
Goodwill and intangible assets, ending balance | 20,690 | 11,766 |
Customer relationships | Accumulated depreciation/amortization | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill and intangible assets, beginning balance | (7,200) | (6,875) |
Amortization | (1,272) | (418) |
Disposals | 205 | 93 |
Goodwill and intangible assets, ending balance | $ (8,267) | $ (7,200) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquisition Through Business Combination: (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Acquisition through business combination | |
Goodwill at beginning of period | $ 3,895 |
Goodwill at end of period | 12,456 |
Sleepwell, LLC | |
Acquisition through business combination | |
Goodwill, acquisitions through business combinations | 4,641 |
Mayhugh Drugs, Inc. | |
Acquisition through business combination | |
Goodwill, acquisitions through business combinations | 1,587 |
Med Supply Center, Inc. | |
Acquisition through business combination | |
Goodwill, acquisitions through business combinations | 766 |
Semo Drug-Care Plus of Mo. Inc | |
Acquisition through business combination | |
Goodwill, acquisitions through business combinations | 482 |
Oxygen Plus, Inc. | |
Acquisition through business combination | |
Goodwill, acquisitions through business combinations | 327 |
Medical West Healthcare. | |
Acquisition through business combination | |
Goodwill, acquisitions through business combinations | $ 758 |
Government Grant - Payroll Prot
Government Grant - Payroll Protection Plan (Details) | Apr. 16, 2020USD ($)installment | Sep. 30, 2020item | Sep. 30, 2021USD ($) |
Government Grants | |||
Number of provisions | item | 2 | ||
Payroll Protection Plan | |||
Government Grants | |||
Principal amount | $ 4,254,000 | ||
Ratio of security provided to obtain loan | 2.5 | ||
Interest rate | 1.00% | ||
Number of equal monthly installments | installment | 9 | ||
Amount of equal monthly installments | $ 472,000 | ||
Amount of reduction in the liability | $ 0 |
Government Grant - Relief Fund
Government Grant - Relief Fund (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | |
Government Grants | ||
Amount of public health and social services emergency fund | $ 6,008,000 | |
Public health and Social Services Emergency Fund | ||
Government Grants | ||
Amount of public health and social services emergency fund | 1,797,000 | |
Amount of expenses related to PPP | 0 | |
Public health and Social Services Emergency Fund | Other expense (income) | ||
Government Grants | ||
Amount of reduction in the liability | $ 1,166,000 | $ 0 |
Government Grant (Details)
Government Grant (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Government Grant | |
Balance at beginning | $ 2,599 |
Change in current portions | 2,286 |
Balance at ending | 4,885 |
Balance at beginning | 2,286 |
Change in long-term portions | (2,286) |
Balance at beginning | 4,885 |
Changes in current and long-term portions | 0 |
Balance at ending | $ 4,885 |
Deferred Revenue (Details)
Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Deferred Revenue | ||
Ending balance | $ 2,452 | $ 1,804 |
Acquisitions | 316 | 330 |
Net addition | 332 | 36 |
Beginning balance | $ 1,804 | $ 1,438 |
Derivative warrant liability (D
Derivative warrant liability (Details) | Jun. 29, 2021shares | Jun. 29, 2020$ / sharesshares | Sep. 30, 2020$ / sharesshares |
Derivative warrant liability. | |||
Number of units issued | 27,678,826 | ||
Number of common share per unit | 1 | ||
Number of warrants per unit | 0.5 | ||
Number of warrants | 13,839,413 | ||
Number of common share exercisable by each warrant | 1 | ||
Term of warrants | 12 months | ||
Exercise price of warrants | $ / shares | $ 6.40 | ||
Number of warrants exercised | 13,559,300 | ||
Number of common shares equivalent to warrants exercised | 3,389,825 | ||
Number of warrants expired | 280,113 | ||
Number of common shares equivalent to warrants expired | 70,028 | ||
Fair value of warrants | $ / shares | $ 0.12 |
Derivative warrant liability -
Derivative warrant liability - Black-Scholes pricing model (Details) - Derivative warrant liability - Black-Scholes pricing model | Sep. 30, 2021$ / shares |
Share price | |
Derivative warrant liability | |
Derivative warrant liability | 1.31 |
Risk-free interest rate | |
Derivative warrant liability | |
Derivative warrant liability | 0.23 |
Expected volatility | |
Derivative warrant liability | |
Derivative warrant liability | 60.8 |
Expected life of warrant | |
Derivative warrant liability | |
Derivative warrant liability | 0.75 |
Expected dividend yield | |
Derivative warrant liability | |
Derivative warrant liability | 0 |
Derivative warrant liability _2
Derivative warrant liability - Warrant activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative warrant liability. | ||
Balance at beginning of period | $ 1,855 | |
Issued | $ 1,627 | |
Exercised at a weighted average Black-Scholes fair value of $0.31 | (4,140) | |
Change in fair value | 2,112 | 198 |
Change in foreign exchange rate | $ 173 | 30 |
Balance at end of period | $ 1,855 | |
Warrant liability weighted average exercise price | $ 0.31 |
Long-term Debt - Debentures (De
Long-term Debt - Debentures (Details) - Convertible unsecured debentures | Mar. 07, 2019USD ($) | Mar. 07, 2019CAD ($)$ / shares | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Sep. 30, 2021USD ($)$ / item | Sep. 30, 2021USD ($)$ / item | Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | Sep. 30, 2020$ / item | Sep. 30, 2020$ / item | Sep. 30, 2021CAD ($) |
Long-term Debt | |||||||||||
Principal amount | $ 15,000,000 | $ 8,601,000 | $ 8,601,000 | $ 8,601,000 | $ 10,959,000 | ||||||
Interest rate | 8.00% | ||||||||||
Principal amount denomination for conversion to common stock | $ 807 | $ 1,000 | |||||||||
Conversion ratio | 0.19231 | 0.19231 | |||||||||
Amount of debt converted | $ | $ 4,037,000 | $ 4,000 | |||||||||
Fair value of debentures | 5,359,000 | $ 5,359,000 | $ 5,359,000 | $ 6,766,000 | |||||||
Mandatory redemption period | 3 years | 3 years | |||||||||
Conversion price of mandated conversion | $ / shares | $ 5.20 | ||||||||||
Stock price trigger | $ / shares | $ 6.48 | ||||||||||
Threshold consecutive trading days | 20 days | 20 days | |||||||||
Trading price per unit | 137 | 109 | 115 | 86 | |||||||
Gains (losses) on change in the fair value | $ | $ 3,591,000 | $ 2,437,000 |
Long-term Debt - Movement in De
Long-term Debt - Movement in Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Long-term Debt | ||
Change in foreign exchange rate | $ (173) | $ 454 |
Convertible unsecured debentures | ||
Long-term Debt | ||
Beginning Balance | 12,930 | 10,547 |
Conversion to common shares | (5,359) | |
Change in fair value | 3,591 | 2,437 |
Change in foreign exchange rate | 622 | (54) |
Ending Balance | $ 11,784 | $ 12,930 |
Long-term Debt - Compensation o
Long-term Debt - Compensation options (Details) | 12 Months Ended | |||
Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020$ / shares | Sep. 30, 2020$ / shares | |
Long-term Debt | ||||
Balance (in shares) | 130,000 | 130,000 | ||
Exercised (in shares) | (130,000) | (130,000) | ||
Balance (in shares) | 130,000 | 130,000 | ||
Balance (in dollars per share) | $ 5.20 | |||
Exercised (in dollars per share) | $ 5.20 | |||
Balance (in dollars per share) | $ 5.20 | |||
Compensation options to underwriters | ||||
Long-term Debt | ||||
Issued (in shares) | 129,808 | 129,808 | 368,000 | 368,000 |
Exercise price | $ 5.20 | |||
Contractual term | 2 years | 2 years | ||
Fair value of options, per share | $ 1.02 | |||
Fair value of options | $ | $ 133,000 | $ 133,000 | ||
Balance (in shares) | 353,000 | 353,000 | ||
Exercised (in shares) | (238,000) | (238,000) | (15,000) | (15,000) |
Balance (in shares) | 115,000 | 115,000 | 353,000 | 353,000 |
Balance (in dollars per share) | $ 4.60 | |||
Exercised (in dollars per share) | 4.60 | $ 4.60 | ||
Balance (in dollars per share) | $ 4.60 | $ 4.60 |
Long-term Debt - Equipment Loan
Long-term Debt - Equipment Loans (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($)installment | Sep. 30, 2020USD ($) | Oct. 01, 2019USD ($) | |
Additions: | |||
Repayments | $ (13,893) | $ (12,970) | |
Long-term portion, due between 1 and 5 years | 392 | 439 | $ 1,130 |
Equipment loans | |||
Long-term Debt | |||
Equipment pledged as security | 6,939 | ||
Beginning Balance | 4,750 | 7,306 | |
Additions: | |||
Acquisitions | 3,001 | 646 | |
Operations | 10,049 | 7,080 | |
Interest expense | 376 | 489 | |
Repayments | (10,792) | (10,771) | |
Ending Balance | 4,750 | ||
Current portion, less than 1 year | 6,992 | 4,311 | |
Long-term portion, due between 1 and 5 years | $ 392 | $ 439 | |
Equipment loans | Repayment in twelve months | |||
Long-term Debt | |||
Interest rate | 0.00% | ||
Number of equal monthly installments | installment | 12 | ||
Incremental borrowing rate | 6.00% | ||
Equipment loans | Repayment from twelve to forty eight months | Minimum | |||
Long-term Debt | |||
Interest rate | 5.60% | ||
Term of debt | 12 months | ||
Equipment loans | Repayment from twelve to forty eight months | Maximum | |||
Long-term Debt | |||
Interest rate | 8.00% | ||
Term of debt | 48 months |
Long-term Debt - Leases Liabili
Long-term Debt - Leases Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Lease liabilities | ||
Balance, September 30, 2020 | $ 5,267 | |
Additions during the period: | ||
Acquisitions | 1,712 | |
Operations | 3,945 | |
Interest | 551 | $ 461 |
Lease Terminations | (612) | |
Repayments | (3,098) | |
Balance, September 30, 2021 | 7,765 | 5,267 |
Gross lease liabilities | 8,896 | 5,961 |
Less: finance charges | (1,131) | (694) |
Net lease liabilities | 7,765 | 5,267 |
Equipment loans | ||
Lease liabilities | ||
Balance, September 30, 2020 | 4,750 | |
Additions during the period: | ||
Balance, September 30, 2021 | 7,384 | 4,750 |
Net lease liabilities | 7,384 | 4,750 |
Less than 1 year | ||
Additions during the period: | ||
Gross lease liabilities | 3,491 | 2,394 |
Between 1 and 5 years | ||
Additions during the period: | ||
Gross lease liabilities | 5,367 | 3,497 |
More than five years | ||
Additions during the period: | ||
Gross lease liabilities | 38 | 70 |
Vehicle lease | ||
Lease liabilities | ||
Balance, September 30, 2020 | 1,627 | |
Additions during the period: | ||
Acquisitions | 109 | |
Operations | 1,385 | |
Interest | 163 | |
Repayments | (870) | |
Balance, September 30, 2021 | 2,414 | 1,627 |
Net lease liabilities | $ 2,414 | 1,627 |
Vehicle lease | Minimum | ||
Lease liabilities | ||
Incremental borrowing rate | 1.70% | |
Vehicle lease | Maximum | ||
Lease liabilities | ||
Incremental borrowing rate | 10.40% | |
Real estate lease | ||
Lease liabilities | ||
Incremental borrowing rate | 8.00% | |
Balance, September 30, 2020 | $ 3,640 | |
Additions during the period: | ||
Acquisitions | 1,603 | |
Operations | 2,560 | |
Interest | 388 | |
Lease Terminations | (612) | |
Repayments | (2,228) | |
Balance, September 30, 2021 | 5,351 | 3,640 |
Net lease liabilities | $ 5,351 | $ 3,640 |
Long-term Debt - SBA loan (Deta
Long-term Debt - SBA loan (Details) | Feb. 01, 2021USD ($)installment | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Additions: | |||
Repayments | $ (13,893,000) | $ (12,970,000) | |
SBA loan | |||
Long-term Debt | |||
Principal amount | $ 150,000 | ||
Interest rate | 3.75% | ||
Incremental borrowing rate | 6.00% | ||
Fair value of debt | $ 122,000 | ||
Number of equal monthly installments | installment | 360 | ||
Monthly payments | $ 731 | ||
Additions: | |||
Acquisitions | 119,000 | ||
Interest expense | 5,000 | ||
Repayments | (3,000) | ||
Ending Balance | $ 121,000 |
Long-term Debt - Revolving Cred
Long-term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Long-term Debt | |||
Maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | |
Interest rate basis | LIBOR | ||
Interest rate floor | 0.50% | ||
Unused fee percentage | 0.30% | ||
Outstanding borrowings | $ 0 | $ 0 | 0 |
Interest expense | $ 38,000 | ||
Term of debt | 4 years | ||
Amortisation of deferred financing costs | $ 140,000 | $ 5,000 | |
Minimum | |||
Long-term Debt | |||
Adjustment to interest rate basis | 2.00% | 2.00% | |
Maximum | |||
Long-term Debt | |||
Adjustment to interest rate basis | 2.50% | 2.50% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | May 13, 2021 | Jun. 30, 2020item$ / sharesshares | Jun. 29, 2020USD ($)$ / shares$ / itemshares | Jun. 29, 2020CAD ($)$ / itemshares | Dec. 31, 2018item | Sep. 30, 2021USD ($)shares | Sep. 30, 2021CAD ($)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2020$ / shares | Jun. 29, 2020$ / shares |
Stockholder's Equity | ||||||||||
Share capital | $ | $ 57,408,000 | |||||||||
Number of classes of common stock outstanding | item | 1 | |||||||||
Reverse stock split | 0.25 | |||||||||
Proceeds from issuance of common shares | $ | $ 19,189,000 | |||||||||
Number of shares issued for each warrant | 1 | |||||||||
Term of warrants | 12 months | 12 months | ||||||||
Exercise price of warrants | $ / shares | $ 6.40 | |||||||||
Number of warrants exercised | 13,559,300 | |||||||||
Number of shares issued on exercise of warrants | 27,678,826 | |||||||||
Proceeds from exercise of warrants | $ | $ 17,474,000 | $ 1,641,000 | ||||||||
Private Placement | ||||||||||
Stockholder's Equity | ||||||||||
Pre-consolidation units issued | 27,678,826 | 27,678,826 | ||||||||
Pre-consolidation shares | 27,678,826 | 27,678,826 | ||||||||
Post consolidation shares | 6,919,706 | 6,919,706 | ||||||||
Warrants issued | 27,678,826 | 27,678,826 | ||||||||
Pre-consolidation price | $ / item | 1.15 | 1.15 | ||||||||
Proceeds from issuance of common shares | $ 23,462,000 | $ 31,831,000 | ||||||||
Number of pre-consolidation common share in each unit | 1 | 1 | ||||||||
Number of warrants in each unit | 0.5 | 0.5 | ||||||||
Number of common share warrants | 13,839,413 | 13,839,413 | ||||||||
Fair value per warrant | $ / shares | $ 0.12 | |||||||||
Fair value of warrants | $ | $ 1,628,000 | |||||||||
Number of shares issued for each warrant | 1 | |||||||||
Number of warrants exercised | item | 4 | |||||||||
Term of warrants | 12 months | |||||||||
Exercise price of warrants | $ / shares | $ 6.40 | $ 6.40 | ||||||||
Number of warrants exercised | 13,559,300 | 13,559,300 | ||||||||
Common shares exercised | 3,389,825 | 3,389,825 | ||||||||
Proceeds from exercise of warrants | $ 17,473,000 | $ 21,695,000 |
Shareholders' Equity - Warrants
Shareholders' Equity - Warrants activity (Details) - $ / shares | Jun. 29, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Warrant activity | |||
Expired (in shares) | 280,113 | ||
Private Placement | |||
Warrant activity | |||
Beginning balance (in shares) | 3,460,000 | ||
Issued (in shares) | 3,460,000 | ||
Exercised | (3,389,825) | ||
Expired (in shares) | (70,000) | ||
Ending balance (in shares) | 3,460,000 | ||
Beginning balance (in dollars per share) | $ 6.40 | ||
Issued (in dollars per share) | $ 6.40 | ||
Exercised (in dollars per share) | 6.40 | ||
Expired (in dollars per share) | 6.40 | ||
Ending balance (in dollars per share) | $ 6.40 | ||
Weighted average share price | $ 7.86 |
Shareholders' Equity - Issuance
Shareholders' Equity - Issuance Costs (Details) | 12 Months Ended | |||
Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2020$ / shares | |
Stockholder's Equity | ||||
Issuance costs | $ 2,645,000 | |||
Transaction costs on issuance of financial liabilities | $ 210,000 | |||
Compensation options to underwriters | ||||
Stockholder's Equity | ||||
Exercise price | $ / shares | $ 5.20 | |||
Issued (in shares) | 129,808 | 129,808 | 368,000 | |
Contractual term | 2 years | 2 years | ||
Fair value of options, per share | $ / shares | $ 1.02 | |||
Fair value of options | $ 133,000 | $ 133,000 | ||
Private Placement | Compensation options to underwriters | ||||
Stockholder's Equity | ||||
Issuance costs | $ 2,855,000 | |||
Reduction to equity | $ 2,645,000 | |||
Exercise price | $ / shares | $ 4.60 | $ 4.60 | ||
Issued (in shares) | 367,826 | 367,826 | 367,826 | |
Contractual term | 2 years | 2 years | ||
Fair value of options, per share | $ / shares | $ 1.24 | |||
Fair value of options | $ 456,000 | $ 456,000 |
Shareholders' Equity - Compensa
Shareholders' Equity - Compensation options activity (Details) | 12 Months Ended | |||
Sep. 30, 2021$ / shares | Sep. 30, 2021$ / shares | Sep. 30, 2020$ / shares | Sep. 30, 2020$ / shares | |
Stockholder's Equity | ||||
Balance (in shares) | 130,000 | 130,000 | ||
Exercised (in shares) | (130,000) | (130,000) | ||
Balance (in shares) | 130,000 | 130,000 | ||
Balance (in dollars per share) | $ 5.20 | |||
Exercised (in dollars per share) | $ 5.20 | |||
Balance (in dollars per share) | $ 5.20 | |||
Compensation options to underwriters | ||||
Stockholder's Equity | ||||
Balance (in shares) | 353,000 | 353,000 | ||
Issued (in shares) | 129,808 | 129,808 | 368,000 | 368,000 |
Exercised (in shares) | (238,000) | (238,000) | (15,000) | (15,000) |
Balance (in shares) | 115,000 | 115,000 | 353,000 | 353,000 |
Balance (in dollars per share) | $ 4.60 | |||
Issued (in dollars per share) | $ 4.60 | |||
Exercised (in dollars per share) | 4.60 | 4.60 | ||
Balance (in dollars per share) | 4.60 | 4.60 | ||
Weighted average share price | $ 8.27 | $ 5.36 |
Shareholders' Equity - Shares i
Shareholders' Equity - Shares issued on acquisition (Details) | 1 Months Ended | ||||
Aug. 31, 2022USD ($)$ / shares | Jan. 31, 2021USD ($)$ / shares | Sep. 30, 2021 | Mar. 31, 2021USD ($) | Oct. 23, 2020 | |
Sleepwell, LLC | |||||
Stockholder's Equity | |||||
Consideration in shares (Value) | $ | $ 2,376,000 | $ 657,000 | |||
Consideration in shares (Shares) | 629,000 | 246,000 | |||
Issue price per share | $ / shares | $ 3.78 | ||||
Discount rate | 15.00% | 25.00% | 3.46% | 15.00% | |
Futures contract | |||||
Stockholder's Equity | |||||
Consideration in shares (Value) | $ | $ 657,000 | ||||
Consideration in shares (Shares) | 246,000 | ||||
Issue price per share | $ / shares | $ 2.67 | ||||
Discount rate | 25.00% |
Shareholders' Equity - Stock op
Shareholders' Equity - Stock option activity (Details) Unit_Standard_pure_QLEsnXdsx0O4sYL_Ayq7XA in Thousands, EquityInstruments in Thousands | 12 Months Ended | |||
Sep. 30, 2021EquityInstrumentsitem$ / shares | Sep. 30, 2021EquityInstrumentsitem$ / shares | Sep. 30, 2020EquityInstruments$ / sharesshares | Sep. 30, 2020EquityInstruments$ / sharesshares | |
Stockholder's Equity | ||||
Balance (in shares) | 130 | 130 | ||
Exercised (in shares) | (130) | (130) | ||
Balance (in shares) | 130 | 130 | ||
Balance (in dollars per share) | $ 5.20 | |||
Exercised (in dollars per share) | $ 5.20 | |||
Balance (in dollars per share) | $ 5.20 | |||
Stock options | ||||
Stockholder's Equity | ||||
Vesting period | 4 years | 4 years | ||
Number of quarters in vesting period | item | 12 | 12 | ||
Balance (in shares) | EquityInstruments | 2,627 | 2,627 | 2,848 | 2,848 |
Granted (in shares) | EquityInstruments | 1,396 | 1,396 | 25 | 25 |
Exercised (in shares) | EquityInstruments | (117) | (117) | (131) | (131) |
Expired (in shares) | EquityInstruments | (65) | (65) | (110) | (110) |
Forfeited (in shares) | EquityInstruments | (55) | (55) | (5) | (5) |
Balance (in shares) | EquityInstruments | 3,786 | 3,786 | 2,627 | 2,627 |
Balance (in dollars per share) | $ 1.99 | $ 1.96 | ||
Granted (in dollars per share) | 8.40 | 4.40 | ||
Exercised (in dollars per share) | 2.20 | 2.32 | ||
Expired (in dollars per share) | 3.69 | 4.40 | ||
Forfeited (in dollars per share) | 8.39 | 1.52 | ||
Balance (in dollars per share) | 4.15 | $ 1.99 | ||
Vested (in shares) | shares | 2,554,196 | 2,554,196 | ||
Vested (in dollars per share) | $ 2.10 | |||
Weighted average share price | $ 8.11 | $ 4.20 | ||
Stock options | Maximum | ||||
Stockholder's Equity | ||||
Contractual term | 10 years | 10 years |
Shareholders' Equity - Fair val
Shareholders' Equity - Fair value of options (Details) - Stock options $ / shares in Units, $ in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021$ / shares | Sep. 30, 2021USD ($) | Sep. 30, 2020CAD ($)$ / shares | |
Stockholder's Equity | |||
Share price at grant date | $ 0.96 | ||
Risk-free interest rate | 1.63% | ||
Expected volatility | 83.20% | ||
Expected life of option | 4 | ||
Expected dividend yield | $ 0 | $ 0 | |
Minimum | |||
Stockholder's Equity | |||
Share price at grant date | $ 8.48 | ||
Risk-free interest rate | 0.92% | ||
Expected volatility | 48.96% | ||
Expected life of option | 4.75 | ||
Maximum | |||
Stockholder's Equity | |||
Share price at grant date | $ 9.76 | ||
Risk-free interest rate | 1.63% | ||
Expected volatility | 55.08% | ||
Expected life of option | 10 |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted stock units (Details) EquityInstruments in Thousands | May 20, 2021USD ($)shares | Sep. 30, 2021USD ($)EquityInstruments | Sep. 30, 2021CAD ($)EquityInstruments | Sep. 30, 2020USD ($) |
Stockholder's Equity | ||||
Stock-based compensation expense | $ 4,952,000 | $ 171,000 | ||
Restricted stock units | ||||
Stockholder's Equity | ||||
Granted (in shares) | 953,750 | 954 | 954 | |
Number of common shares for each unit | shares | 1 | |||
Vesting period | 2 years | |||
Vesting Percentage | 12.50% | |||
Vesting frequency within vesting period | 3 months | |||
Stock-based compensation expense | $ 7,586,000 |
Shareholders' Equity - Restri_2
Shareholders' Equity - Restricted stock units activity (Details) - Restricted stock units EquityInstruments in Thousands | May 20, 2021USD ($) | Sep. 30, 2021EquityInstruments$ / shares |
Stockholder's Equity | ||
Granted (in shares) | 953,750 | 954 |
Balance, September 30, 2021 (in shares) | EquityInstruments | 954 | |
Granted (in dollars per share) | $ 8.48 | |
Balance, September 30, 2021 (in dollars per share) | $ 8.48 |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Shareholders' Equity | ||
Stock-based compensation expense | $ 4,952 | $ 171 |
Commitments and contingencies (
Commitments and contingencies (Details) | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and contingencies | |
Litigation expenses settled, included in operating expenses. | $ 150,000 |
Less than 1 year | |
Commitments and contingencies | |
Future payments pursuant to the leases | $ 28,000 |
Operating expenses (Details)
Operating expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating expenses | ||
Payroll and employee benefits | $ 29,549 | $ 22,701 |
Facilities | 2,101 | 2,069 |
Bad debt expense | 7,957 | 6,441 |
Billing | 3,887 | 1,890 |
Professional fees | 2,566 | 826 |
Marketing costs | 1,005 | 448 |
Outbound freight | 1,378 | 898 |
All other | 4,319 | 3,353 |
Total Operating expenses | $ 52,762 | $ 38,626 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes | ||
Federal and state statutory income tax rate | 27.70% | 26.00% |
Reconciliation | ||
Loss from continuing operations before income taxes | $ (9,329) | $ (3,575) |
Expected income tax recovery (Statutory income tax rate FY21 28% and FY20 26%, respectively) | (2,586) | (930) |
Difference in foreign tax rates | 86 | (39) |
Tax rate changes and other adjustments | (614) | (729) |
Stock-based compensation | 2,964 | 800 |
State taxes - US | 645 | 128 |
Prior period adjustments | (207) | |
FX adjustments | (182) | |
Share issuance cost booked through equity | (843) | |
Deferred tax assets not recognized (recognized) | 150 | 2,130 |
Tax benefit from losses previously unrecognized | (3,800) | |
Current tax provision | $ (3,155) | $ 128 |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred taxes | $ 0 | |
Net operating losses - US | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 6,312 | $ 3,170 |
Lease Liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 735 | |
Property, plant and equipment - US | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (6,015) | (3,889) |
Prepaid assets - US | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | $ (16) | |
Obsolescense reserve - US | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (10) | |
Cash to accrual adjustment temporary - US | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | $ (287) |
Income Taxes - Deferred tax a_2
Income Taxes - Deferred tax assets and liabilities offset (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Income Taxes | |
Recognized in profit/loss | $ (3,800) |
Recognized in goodwill | 3,800 |
Balance at end of year | $ 0 |
Income Taxes - Unrecognized def
Income Taxes - Unrecognized deferred tax assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | $ 43,636 | $ 59,739 |
Intangible asset | UNITED STATES | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 984 | 11,247 |
Intangible asset | CANADA | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 200 | 205 |
Allowance for bad debts | UNITED STATES | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 3,851 | 17,777 |
Non-capital losses | UNITED STATES | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 2,345 | |
Non-capital losses | CANADA | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 26,911 | 23,783 |
Share issuance costs | CANADA | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 1,855 | 2,431 |
Net capital losses carried forward | CANADA | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | 1,042 | 995 |
Other temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized tax benefits | $ 6,448 | $ 3,301 |
Income Taxes - non-capital inco
Income Taxes - non-capital income tax losses (Details) | Sep. 30, 2021USD ($) |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | $ 26,911,000 |
Operating loss carryforwards, not subject to expiration | 5,015,000 |
2027 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 722,000 |
2028 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 75,000 |
2029 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 41,000 |
2030 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 192,000 |
2031 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 293,000 |
2032 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 334,000 |
2033 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 1,730,000 |
2034 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 9,334,000 |
2035 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 901,000 |
2036 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 2,412,000 |
2037 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 1,150,000 |
2038 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 1,533,000 |
2039 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 3,517,000 |
2040 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 2,664,000 |
2041 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | 2,013,000 |
2039 Cumulative Tax Periods | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Operating loss carryforwards, subject to expiration | $ 20,428,000 |
Loss per share - Basic and dilu
Loss per share - Basic and diluted loss per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Loss per share | ||
Net income (loss) from continuing operations | $ (6,174) | $ (3,703) |
Net income (loss) from discontinued operations | $ (869) | |
Basic weighted average number of shares | 30,438 | 22,721 |
Diluted weighted average number of shares | 30,438 | 22,721 |
Basic - continuing operations | $ (0.20) | $ (0.16) |
Diluted - continuing operations | (0.20) | (0.16) |
Basic - discontinuing operations | (0.04) | |
Diluted - discontinuing operations | (0.04) | |
Total - Basic | (0.20) | (0.20) |
Total - Diluted | $ (0.20) | $ (0.20) |
Related party transactions - Na
Related party transactions - Narrative (Details) | 12 Months Ended | |
Sep. 30, 2021USD ($)ft²lease | Sep. 30, 2020USD ($) | |
Chief Executive Officer | ||
Related party transactions | ||
Number of leases | lease | 6 | |
Lease area | ft² | 74,520 | |
Lease payments | $ 52,000 | |
Director | ||
Related party transactions | ||
Fees for directors | 203,000 | $ 170,000 |
Stock-based compensation for Directors | $ 1,036,000 |
Related party transactions - Co
Related party transactions - Compensation to key management personnel (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Related party transactions | ||
Salaries and Benefits paid during the year | $ 968,000 | $ 785,000 |
Stock-based compensation | 1,036,000 | |
Total | 2,004,000 | 785,000 |
Bonuses | $ 485,000 | $ 785,000 |
Discontinued operations (Detail
Discontinued operations (Details) | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Discontinued operations | |
Operating expenses | $ (869,000) |
Net (loss) income from discontinued operations | (869,000) |
Patient Home Monitoring, Inc. | |
Discontinued operations | |
Accrued defense and settlement costs | $ 869,000 |
Subsequent event (Details)
Subsequent event (Details) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2021 | Jan. 01, 2022 | Nov. 09, 2021 | Nov. 01, 2021 | Oct. 01, 2021 | |
Thrift Home Care Inc | |||||
Subsequent event | |||||
Pro forma revenue recognized | $ 2,900,000 | ||||
Pro forma net income(loss) recognized | 400,000 | ||||
Heckman Healthcare Services & Supplies, Inc | |||||
Subsequent event | |||||
Pro forma revenue recognized | 2,600,000 | ||||
Pro forma net income(loss) recognized | 60,000 | ||||
Southeastern Biomedical Services, LLC | |||||
Subsequent event | |||||
Pro forma revenue recognized | 1,600,000 | ||||
Pro forma net income(loss) recognized | 250,000 | ||||
At Home Health Equipment, LLC | |||||
Subsequent event | |||||
Pro forma revenue recognized | 12,800,000 | ||||
Pro forma net income(loss) recognized | $ 90,000 | ||||
Major business combination | Thrift Home Care Inc | |||||
Subsequent event | |||||
Consideration transferred | $ 2,174,000 | ||||
Cash consideration | 1,804,000 | ||||
Holdback consideration | $ 195,000 | ||||
Major business combination | Heckman Healthcare Services & Supplies, Inc | |||||
Subsequent event | |||||
Consideration transferred | $ 2,289,000 | ||||
Cash consideration | 1,949,000 | ||||
Holdback consideration | $ 340,000 | ||||
Major business combination | Southeastern Biomedical Services, LLC | |||||
Subsequent event | |||||
Consideration transferred | $ 298,000 | ||||
Cash consideration | 198,000 | ||||
Holdback consideration | $ 100,000 | ||||
Major business combination | At Home Health Equipment, LLC | |||||
Subsequent event | |||||
Consideration transferred | $ 13,117,000 | ||||
Cash consideration | 11,797,000 | ||||
Holdback consideration | $ 1,220,000 |
Restatement - Consolidated fina
Restatement - Consolidated financial statements (Details) $ in Thousands, $ in Thousands | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)$ / $ | Sep. 30, 2020CAD ($)$ / $ | Oct. 01, 2019USD ($)$ / $ | Oct. 01, 2019CAD ($)$ / $ | Sep. 30, 2019USD ($) |
Restatement | ||||||
Closing exchange rate | $ / $ | 1.3339 | 1.3339 | 1.3242 | 1.3242 | ||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
Current assets | $ 57,233 | $ 45,283 | $ 23,247 | |||
Long-term assets | 51,340 | 26,782 | 18,412 | |||
Total assets | 108,573 | 72,065 | 41,659 | |||
Current liabilities | 32,737 | 24,385 | 15,919 | |||
Long-term liabilities | 19,445 | 12,717 | ||||
Total liabilities | 49,951 | 43,830 | 28,636 | |||
Shareholders' equity | 58,622 | 28,235 | 13,023 | $ 13,023 | ||
Total liabilities and shareholders' equity | $ 108,573 | $ 72,065 | $ 41,659 | |||
Previously Reported | ||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
Current assets | $ 60,402 | $ 30,783 | ||||
Long-term assets | 35,733 | 24,382 | ||||
Total assets | 96,135 | 55,165 | ||||
Current liabilities | 32,526 | 21,081 | ||||
Long-term liabilities | 25,938 | 16,839 | ||||
Total liabilities | 58,464 | 37,920 | ||||
Shareholders' equity | 37,671 | 17,245 | ||||
Total liabilities and shareholders' equity | $ 96,135 | $ 55,165 |
Restatement - Consolidated stat
Restatement - Consolidated statement of loss (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)$ / $ | Sep. 30, 2020CAD ($)$ / $ | |
Restatement | |||
Exchange rate | $ / $ | 1.3458 | 1.3458 | |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | |||
Total revenue | $ 102,351 | $ 72,639 | |
Operating income (loss) from continuing operations | (1,460) | 658 | |
Income (loss) before taxes from continuing operations | (9,329) | (3,575) | |
Net income (loss) from continuing operations | (6,174) | (3,703) | |
Net income (loss) | $ (6,174) | $ (4,572) | |
Previously Reported | |||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | |||
Total revenue | $ 97,755 | ||
Operating income (loss) from continuing operations | 885 | ||
Income (loss) before taxes from continuing operations | (5,425) | ||
Net income (loss) from continuing operations | (5,597) | ||
Net income (loss) | $ (6,755) |
Restatement - Consolidated st_2
Restatement - Consolidated statement of cash flows (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Loss from continuing operations | $ (6,174) | $ (3,703) | |
Loss from discontinued operations | (869) | ||
Net cash flows provided by operating activities | 18,692 | 14,034 | |
Net cash flows used in investing activities | (17,838) | (7,853) | |
Net cash flow used in financing activities | 3,910 | 13,721 | |
Net increase in cash | $ 4,764 | $ 19,902 | |
Previously Reported | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Loss from continuing operations | $ (5,597) | ||
Loss from discontinued operations | (1,158) | ||
Net cash flows provided by operating activities | 17,631 | ||
Net cash flows used in investing activities | (10,570) | ||
Net cash flow used in financing activities | 18,676 | ||
Net increase in cash | $ 25,737 |