$VQSSF

VIQ Solutions Inc.

CIK:0001777765|SEC Filings

Consolidated Statements of Loss and Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Profit or loss [abstract]
Revenue (note 16)	$ 45,843,929	$ 31,046,812	$ 31,749,693
Cost of sales	23,918,226	16,123,853	15,599,437
Gross profit	21,925,703	14,922,959	16,150,256
Expenses (note 17)
Selling and administrative expenses	24,526,303	19,119,713	11,034,902
Research and development expenses	734,115	1,092,108	1,074,178
Stock-based compensation (note 12)	2,779,312	8,495,189	725,316
Gain on revaluation of options (note 11)	(1,511,399)	(1,028,055)
Gain on revaluation of RSUs (note 11)	(550,260)	(242,595)
Gain on revaluation of the derivative warrant liability (note 10)	(4,255,017)	(1,368,180)
Foreign exchange loss (gain) (note 22)	(452,068)	22,130	(132,306)
Depreciation (notes 7, 19)	579,249	257,099	445,995
Amortization (note 8)	5,508,954	4,384,502	4,813,248
Interest expense (note 9)	1,052,618	1,331,100	4,934,517
Accretion and other financing costs (note 9)	1,231,194	967,106	1,216,949
Loss (gain) on contingent consideration (note 4)	80,071	(332,569)	(946,503)
Loss on revaluation of conversion feature liability (note 9)			1,308,440
Loss on repayment of long-term debt (note 9)			1,497,804
Loss on extinguishment of debt (note 9)	747,865
Impairment of goodwill and intangible assets			2,258,369
Impairment of property and equipment (note 7)	15,246
Restructuring costs	323,075	432,702
Business acquisition costs	433,372	539,734	19,058
Other income	(1,291)	(12,003)	(10,373)
Total expenses	31,241,339	33,657,981	28,239,594
Current income tax (recovery) expense (note 21)	(105,256)	(875)	106,986
Deferred income tax (recovery) expense (note 21)	(504,365)	944,602	(1,051,018)
Income tax (recovery) expense (note 21)	(609,621)	943,727	(944,032)
Net loss for the year	(8,706,015)	(19,678,749)	(11,145,306)
Exchange gain (loss) on translating foreign operations	(1,288,880)	153,432	56,152
Comprehensive loss for the year	$ (9,994,895)	$ (19,525,317)	$ (11,089,154)
Net loss per share (note 13)
Basic	$ (0.28)	$ (0.74)	$ (0.62)
Diluted	$ (0.28)	$ (0.74)	$ (0.62)
Weighted average number of common shares outstanding - basic (note 13)	31,648,001	26,448,594	18,080,533
Weighted average number of common shares outstanding - diluted (note 13)	31,648,001	26,448,594	18,080,533

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash provided by (used in) Operating activities
Net loss for the year	$ (8,706,015)	$ (19,678,749)	$ (11,145,306)
Items not affecting cash:
Depreciation (notes 7, 19)	579,249	257,099	445,995
Amortization (note 8)	5,508,954	4,384,502	4,813,249
Stock-based compensation (notes 11, 12)	2,779,312	8,495,189	725,316
Loss on revaluation of conversion feature liability (note 9)			1,308,440
Loss on repayment of long-term debt (note 9)			1,497,804
Accretion and other financing costs (note 9)	1,231,194	967,106	1,216,949
Interest expense (note 9)	1,052,617	1,331,100	4,934,517
Taxes	(609,621)	943,727	(944,032)
(Loss) gain on contingent consideration (note 4)	80,071	(332,569)	(946,503)
Gain on revaluation of options, RSUs, and derivative warrant liability (note 10,11)	(6,316,676)	(2,638,830)
Impairment of goodwill and intangible assets			2,258,369
Impairment of property and equipment (note 7)	15,246
Payment of taxes (note 21)		(113,853)
Loss on extinguishment of debt (note 9)	747,865
Other income	(1,291)	(12,003)	(10,373)
Foreign exchange (gain) loss (note 22)	(452,068)	22,130	(132,306)
Unrealized foreign exchange (gain) loss	360,190	139,250	174,251
Changes in non-cash operating working capital (note 14)	1,395,097	(2,002,506)	(773,287)
Cash provided by (used in) operating activities	(2,335,876)	(8,238,407)	3,423,083
Investing activities
Purchase of property and equipment (note 7)	(1,202,489)	(79,204)	(202,297)
Business acquisitions (note 4)	(298,927)	(9,135,131)	(4,411,500)
Earn out payment (note 4)	(539,380)	(2,600,536)	(377,312)
Development costs related to internally generated intangible assets (note 8)	(1,828,983)	(2,364,733)	(1,642,783)
Change in restricted cash	(234,286)	(261,110)	(5,299)
Cash used in investing activities	(4,104,065)	(14,440,714)	(6,639,191)
Financing activities
Issuance of share capital, net of issuance costs (notes 10, 11)	4,053,476	16,715,000	13,747,345
Issuance cost reimbursement		1,673
Proceeds from debt, net of issuance costs (note 9)			4,827,175
Proceeds from exercise of stock options (note 11)		246,160	10,568
Proceeds from exercise of warrants (note 11)		2,092,276	1,859,963
Payment of amendment fees on debt (note 9)	(239,880)
Repayment of debt (note 9)	(4,761,890)	(1,070,275)	(838,031)
Repayment of lease obligations (note 20)	(270,795)	(150,924)	(338,276)
Payment of interest on debt (note 9)	(1,040,596)	(1,277,202)	(1,052,576)
Payment of interest on lease obligations (note 20)	(114,131)	(34,712)	(53,549)
Cash provided by (used in) financing activities	(2,373,816)	16,521,996	18,162,619
Net increase (decrease) in cash for the year	(8,813,757)	(6,157,125)	14,946,511
Cash, beginning of year	10,583,534	16,835,671	1,707,654
Effect of exchange rate changes on cash	(112,206)	(95,012)	181,506
Cash, end of year	$ 1,657,571	$ 10,583,534	$ 16,835,671

Consolidated Statements of Financial Position - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash	$ 1,657,571	$ 10,583,534
Trade and other receivables, net of allowance for doubtful accounts (notes 5, 6)	5,305,728	5,594,368
Income tax recoverable (note 21)	104,670
Inventories	37,807	49,557
Prepaid expenses and deposits	2,050,661	2,054,793
Total current assets	9,156,437	18,282,252
Non-current assets
Restricted cash	463,743	303,945
Property and equipment (note 7)	1,432,133	460,974
Right-of-use assets, net (note 19)	1,058,600	1,134,493
Intangible assets, net (notes 4, 8)	10,731,917	14,928,984
Goodwill (note 4, 8)	12,047,048	12,440,557
Deferred tax assets (note 21)	655,004	464,800
Total assets	35,544,882	48,016,005
Current liabilities
Trade and other payables and accrued liabilities	5,937,880	5,679,628
Income tax payable (note 21)	45,212	97,784
Share based payment liability (note 11)	31,487	551,201
Derivative warrant liability (note 10)	290,712	1,862,876
Current portion of long-term debt (note 9)	8,634,258	1,109,713
Current portion of lease obligations (note 20)	487,673	287,901
Contract liabilities	1,745,415	1,003,187
Total current liabilities	17,172,637	10,592,290
Non-current liabilities
Deferred tax liability (note 21)	868,643	1,224,640
Long-term debt (note 9)	19,812	11,999,108
Long-term contingent consideration (note 4)		166,603
Long-term lease obligations (note 20)	718,575	900,868
Other long-term liabilities	1,121,805	1,042,938
Total liabilities	19,901,472	25,926,447
Shareholders' Equity
Capital stock (note 11)	74,690,527	72,191,764
Contributed surplus	5,892,192	4,842,208
Accumulated other comprehensive income (loss)	(1,214,354)	74,526
Deficit	(63,724,955)	(55,018,940)
Total shareholders' equity	15,643,410	22,089,558
Total liabilities and shareholders' equity	$ 35,544,882	$ 48,016,005