# EDGAR Filing Document

**Accession Number:** 0001540013
**File Stem:** 0001104659-25-120879
**Filing Date:** 2025-12
**Character Count:** 609889
**Document Hash:** ca763d7d3915e22c84199bca67d16b85
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-120879.hdr.sgml**: 20251215

**ACCESSION NUMBER**: 0001104659-25-120879

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 104

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251215

**DATE AS OF CHANGE**: 20251215

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Quipt Home Medical Corp.
- **CENTRAL INDEX KEY:** 0001540013
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40413
- **FILM NUMBER:** 251570050

**BUSINESS ADDRESS:**
- **STREET 1:** 1019 TOWN DRIVE
- **CITY:** WILDER
- **STATE:** KY
- **ZIP:** 41076
- **BUSINESS PHONE:** 859-878-2220

**MAIL ADDRESS:**
- **STREET 1:** 1019 TOWN DRIVE
- **CITY:** WILDER
- **STATE:** KY
- **ZIP:** 41076

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Protech Home Medical Corp.
- **DATE OF NAME CHANGE:** 20200714

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Patient Home Monitoring Corp.
- **DATE OF NAME CHANGE:** 20120119

?xml version='1.0' encoding='ASCII'? QUIPT HOME MEDICAL CORP._September 30, 2025

[**Table of Contents**](#TOC)

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-K**

(Mark one)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended September 30, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. ‎001-40413

**QUIPT HOME MEDICAL CORP.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| British Columbia, Canada | N/A |
| (State or other jurisdiction of | (IRS Employer |
| incorporation or organization) | Identification No.) |

---

1019 Town Drive

Wilder, Kentucky 41076

‎(Address of principal executive offices, including zip code)‎

Telephone (859) 878-2220

‎(Registrant's telephone number, including area code)‎

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Shares, without Par Value | QIPT | The Nasdaq Capital Market |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☑

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer &nbsp;&nbsp;&nbsp;&nbsp; ☐ Accelerated filer &nbsp;&nbsp;&nbsp;&nbsp; ☑ Emerging growth company ☑ <br> Non-accelerated filer ☐ Smaller reporting company ☑

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☐ No ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The aggregate market value of the voting and non-voting ‎common shares held by non-affiliates of the registrant computed as of March 31, 2025 (the last business day of the registrant's most recently completed second fiscal quarter) based on the closing price of the registrant's common shares on the Nasdaq Capital Market was $90,853,438.‎

There were ‎44,027,472 common ‎ shares of the registrant outstanding as of December 12, 2025.

Documents Incorporated by Reference

Portions of the Proxy Statement for the 2026 Annual Meeting of Shareholders, which will be filed within one hundred and twenty days of the fiscal year ended September 30, 2025 (2026 Proxy Statement), are incorporated by reference into Part III of this report to the extent described herein.

------

[**Table of Contents**](#TOC)

#### FORM 10-K **TABLE OF CONTENTS**

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Page** |
| [**PART I**](#PARTI_315283) | [Item 1.](#Item1Business_41465) | [Business](#Item1Business_41465) | 6 |
|  | [Item 1A.](#Item1ARiskFactors_356014) | [Risk Factors](#Item1ARiskFactors_356014) | 9 |
|  | [Item 1B.](#Item1BUnresolvedStaffComments_314708) | [Unresolved Staff Comments](#Item1BUnresolvedStaffComments_314708) | 33 |
|  | [Item 1C.](#Item1CCybersecurity_270286) | [Cybersecurity](#Item1CCybersecurity_270286) | 33 |
|  | [Item 2.](#Item2Properties_560369) | [Properties](#Item2Properties_560369) | 35 |
|  | [Item 3.](#Item3LegalProceedings_134485) | [Legal Proceedings](#Item3LegalProceedings_134485) | 35 |
|  | [Item 4.](#Item4MineSafetyDisclosure_210308) | [Mine Safety Disclosure](#Item4MineSafetyDisclosure_210308) | 35 |
| [**PART II**](#PARTII_783170) | [Item 5.](#Item5MarketforRegistrantsCommonEquityRel) | [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](#Item5MarketforRegistrantsCommonEquityRel) | 36 |
|  | [Item 6.](#Item6Reserved_959338) | [\[Reserved\]](#Item6Reserved_959338) | 36 |
|  | [Item 7.](#Item7ManagementsDiscussionandAnalysisofF) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#Item7ManagementsDiscussionandAnalysisofF) | 36 |
|  | [Item 7A.](#Item7AQuantitativeandQualitativeDisclosu) | [Quantitative and Qualitative Disclosures about Market Risk](#Item7AQuantitativeandQualitativeDisclosu) | 52 |
|  | [Item 8.](#Item8FinancialStatementsandSupplementary) | [Financial Statements and Supplementary Data](#Item8FinancialStatementsandSupplementary) | 54 |
|  | [Item 9.](#Item9ChangesinandDisagreementswithAccoun) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#Item9ChangesinandDisagreementswithAccoun) | 84 |
|  | [Item 9A.](#Item9AControlsandProcedures_373516) | [Controls and Procedures](#Item9AControlsandProcedures_373516) | 84 |
|  | [Item 9B.](#Item9BOtherInformation_688864) | [Other Information](#Item9BOtherInformation_688864) | 85 |
|  | [Item 9C.](#Item9CDisclosureRegardingForeignJurisdic) | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#Item9CDisclosureRegardingForeignJurisdic) | 85 |
| [**PART III**](#PARTIII_205941) | [Item 10.](#Item10DirectorsExecutiveOfficersandCorpo) | [Directors, Executive Officers and Corporate Governance](#Item10DirectorsExecutiveOfficersandCorpo) | 86 |
|  | [Item 11.](#Item11ExecutiveCompensation_538295) | [Executive Compensation](#Item11ExecutiveCompensation_538295) | 86 |
|  | [Item 12.](#Item12SecurityOwnershipofCertainBenefici) | [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](#Item12SecurityOwnershipofCertainBenefici) | 86 |
|  | [Item 13.](#Item13CertainRelationshipsandRelatedTran) | [Certain Relationships and Related Transactions and Director Independence](#Item13CertainRelationshipsandRelatedTran) | 86 |
|  | [Item 14.](#Item14PrincipalAccountantFeesandServices) | [Principal Accountant Fees and Services](#Item14PrincipalAccountantFeesandServices) | 86 |
| [**PART IV**](#PARTIV_159255) | [Item 15.](#Item15ExhibitsandFinancialStatementSched) | [Exhibits and Financial Statement Schedules](#Item15ExhibitsandFinancialStatementSched) | 87 |
|  | [Item 16.](#Item16Form10KSummary_263944) | [Form 10-K Summary](#Item16Form10KSummary_263944) | 89 |
|  |  | [Signatures](#SIGNATURES_195533) | 90 |

---

[**Table of Contents**](#TOC)

#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K, including Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") in Part II, Item 7, contains certain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking ‎statements" within the meaning of applicable US securities legislation, including the US Private Securities ‎Litigation Reform Act of 1995 (collectively, "forward-looking statements")‎. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are ‎based upon the current beliefs, expectations, and assumptions regarding the future of the business, ‎ plans and strategies, and other future conditions of the Company. Forward-looking ‎statements can be identified by words ‎such as "expect", "likely", "may", "will", "would", "could", "should", "continue", "contemplate", "intend", or ‎‎"anticipate", "believe", "envision", "estimate", "expect", "plan", "predict", "project", "target", "potential", ‎‎"proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or ‎statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Forward-looking ‎statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other ‎statements that are not statements of fact. Such forward-looking statements are made as of the date of this Annual Report on Form 10-K.‎

Forward-looking statements include, but are not limited to, statements with respect to:‎ operating results; ‎profitability; financial condition and resources; ‎ anticipated needs for working capital; ‎ liquidity; ‎capital resources; ‎capital expenditures;‎ milestones; ‎licensing milestones; ‎potential acquisitions; information with respect to future growth and growth strategies; ‎ anticipated trends in the industry in which the Company operates; ‎the Company's future financing plans; ‎timelines; ‎ currency fluctuations; ‎government regulation; unanticipated expenses; ‎commercial disputes or claims; ‎limitations on insurance coverage; availability and expectations regarding cash flow to fund capital requirements;‎ the product offerings of the Company;‎ the competitive conditions of the industry;‎ the competitive and business strategies of the Company;‎ applicable laws, regulations, and any amendments thereof;‎ statements relating to the business and future activities of, and developments related to, the Company, ‎including such things as future business strategy, competitive strengths, goals, expansion and growth ‎of the Company's business, operations and plans; and ‎other events or conditions that may occur in the future.‎

Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of the ‎Company's management made in light of its experience and its perception of trends, current conditions and ‎expected developments, as well as other factors that management believes to be relevant and reasonable in the ‎circumstances at the date that such statements are made, but which may prove to be incorrect. The Company ‎believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. The ‎material factors and assumptions used to develop the forward-looking statements include, ‎without limitation:‎ the ‎Company successfully identifying, ‎‎‎negotiating and ‎completing additional acquisitions; operating and other ‎financial metrics maintaining their ‎‎current trajectories, the Company not being impacted by any further material external ‎and unique events; the ‎Company not being subject to a material change to it cost ‎structure‎; the Company's ability to successfully execute its growth strategies and business plan;‎ the ability to successfully identify strategic acquisitions;‎ the Company's ability to realize anticipated benefits, synergies or generate revenue, profits or value from ‎its recent acquisitions into existing operations;‎ management's perceptions of historical trends, current conditions and expected future developments;‎ the ability of the Company to take market share from competitors; ‎the Company's ability to attract and retain skilled staff;‎ market conditions and competition;‎ the products, services and technology offered by the Company's competitors;‎ the Company's ability to generate cash flow from operations; the Company's ability to keep pace with changing regulatory requirements;‎ the ongoing ability to conduct business in the regulatory environments in which the Company operates and ‎may operate in the future;‎ the Company's ability to maintain strong business relationships with its suppliers, service provides and ‎other third parties; the Company's ability to fulfill prescriptions for services and products; ‎the anticipated growth of the market of home equipment and monitoring market; the anticipated increase in demand for various medical products and equipment;‎ demand and interest in the Company's products and services; ‎the ability to deploy up front capital to purchase monitoring and treatment equipment; ‎anticipated and unanticipated costs; ‎the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses;‎ the general economic, financial market, regulatory and political conditions in which the Company operates ‎and the absence of material adverse changes in the Company's industry, regulatory environment or ‎the global economy; and other considerations that management believes to be appropriate in the circumstances.‎

Forward-looking statements speak only as at the date they are made and are based on information currently ‎available and on the then current expectations. A number of factors could cause actual events, performance, or results to differ materially

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from what is projected in the forward-looking statements. Readers are cautioned that forward-‎looking statements are not based on historical facts but instead are based on ‎reasonable assumptions and estimates ‎of management of the Company at the time they were provided ‎or made and involve known and unknown risks, ‎uncertainties and other factors which may cause the ‎actual results, performance or achievements of the Company, ‎as applicable, to be materially different ‎from any future results, performance or achievements expressed or implied ‎by such forward-looking ‎statements, including, but not limited to, known and unknown risks, uncertainties, ‎assumptions and other factors, including those listed under "Risk Factors" in Part I, Item 1A, which include: credit risks, market risks ‎‎(including those related to equity, commodity, foreign exchange and interest rate markets), liquidity risks, ‎operational risks (including those related to technology and infrastructure), and risks relating to reputation, ‎insurance, strategy, regulatory matters, legal matters, environmental matters and capital adequacy. Examples of ‎such risk factors include: significant capital requirements and operating risks; ‎changes in law; the ability to implement business strategies, growth strategies and pursue business opportunities; the ‎state of the capital markets; the availability of funds and resources to pursue operations; decline of reimbursement ‎rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key ‎suppliers; granting of permits and licenses in a highly regulated business; competition; difficulty integrating newly ‎acquired businesses; low profit market segments; disruptions in or attacks (including cyber-attacks) on information ‎technology, internet, network access or other voice or data communications systems or services; the evolution of ‎various types of fraud or other criminal behavior; the failure of third parties to comply with their obligations; the ‎impact of new and changes to, or application of, current laws and regulations legal proceedings and litigation, including as it relates to the CID (defined below) ‎received from the DOJ (defined below)‎; ‎increased competition; changes in foreign currency rates; the imposition of trade restrictions such as tariffs and retaliatory counter measures; the ‎availability of funds ‎‎and resources to pursue operations; the Company's status as an emerging growth company and a smaller reporting company; risks relating to the ‎deterioration of global economic conditions; increased funding costs and market volatility due to market illiquidity ‎and competition for funding; critical accounting estimates and changes to accounting standards, policies, and ‎methods used by the Company; risks associated with proxy contests and other actions of activist shareholders; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events, ‎as well as other general economic, market and business conditions, among others, ‎as well as those risk factors ‎described under the heading "Risk Factors" in Part I, Item 1A of this Annual Report on Form 10-K, and as described from time to time in documents filed by ‎the Company with US and Canadian securities regulatory authorities. Although the Company has attempted to identify ‎important factors that could cause actual actions, events or results to differ materially from those described in ‎forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, ‎estimated or intended. The Company provides no assurance that forward-looking statements will prove to be ‎accurate, as actual results and future events could differ materially from those anticipated in such statements.‎

Readers are cautioned that the above list of cautionary statements and risk factors is not exhaustive. A number of factors could ‎cause actual events, performance or results to differ materially from what is projected in forward-looking ‎statements. The purpose of forward-looking statements is to provide the reader with a description of management's ‎expectations, and such forward-looking statements may not be appropriate for any other purpose. You should not ‎place undue reliance on forward-looking statements. Although the Company believes that the expectations ‎reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will ‎prove to have been correct. Forward-looking statements are provided and made as of the date hereof, and the Company does not undertake any obligation to revise or update any forward-looking ‎statements, except as required by applicable law. ‎The forward-looking statements are expressly qualified in their entirety by this cautionary statement.

#### SUMMARY OF RISK FACTORS
The below summary of risk factors provides an overview of many of the risks we are exposed to in the normal course of our business activities. As a result, the below summary risks do not contain all of the information that may be important to you, and you should read the summary risks together with the more detailed discussion of risks set forth following this section under the heading "Risk Factors," as well as elsewhere in this Annual Report on Form 10-K. Additional risks, beyond those summarized below or discussed elsewhere in this Annual Report on Form 10-K, may apply to our activities or operations as currently conducted or as we may conduct them in the future or in the markets in which we operate or may in the future operate. Consistent with the foregoing, we are exposed to a variety of risks, including risks associated with the following:

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Risks Related to Our Business and Industry

● Reliance on relatively few suppliers for the majority of Quipt's patient service equipment and supplies could adversely affect Quipt's ability to operate.

● Supply chain disruptions and economy-wide labor shortages in the U.S. have negatively impacted, and may continue to negatively impact, Quipt's businesses.

● Quipt has been negatively impacted by inflation and rising interest rates.

● Quipt's business depends on its information systems, including software licensed from or hosted by third parties, and any failure or significant disruption or effective cyber-attack on any of these systems, security breaches or improper disclosure of or loss of data could materially affect our business, results of operations and financial condition.

● Quipt's financial performance is affected by continuing efforts by private third-party payors to control their costs, and if Quipt agrees to lower its reimbursement rates due to pricing pressures from such private third-party payors, Quipt's financial condition and results of operations would likely deteriorate.

● Quipt's payor contracts are subject to renegotiation or termination, which could result in a decrease in Quipt's revenue or profits.

● Changes made by payors to the way they cover products supplied by Quipt could have an adverse impact on Quipt's revenue and operations.

● Changes in governmental or private payor supply replenishment schedules could adversely affect Quipt.

● If Quipt fails to manage the complex and lengthy reimbursement process, its revenue, financial condition and results of operations could suffer.

● Quipt may be adversely affected by consolidation among health insurers and other industry participants.

● Quipt may be adversely affected if it is unable to maintain current levels of collectability and by the deterioration of the financial condition of Quipt's payors and disputes with third parties could have a significant negative impact on Quipt's financial condition and results of operations.

● If Quipt is unable to maintain or develop relationships with patient referral sources, its growth and profitability could be adversely affected.

● Quipt experiences competition from numerous other sleep therapy equipment, home respiratory, and mobility equipment providers, and this competition could adversely affect its revenues and its business.

● Changes in medical equipment technology and development of new treatments may cause Quipt's current equipment or services to become obsolete.

● Quipt's operations involve the transport of compressed and liquid oxygen, which carries an inherent risk of rupture or other accidents with the potential to cause substantial loss and have involved the operation of medical gas facilities that are subject to federal and state regulations, which requires significant compliance oversight and expenses.

● Quipt currently outsources, and from time to time in the future may outsource, a portion of its internal business functions to third-party providers, which has significant risks, and Quipt's failure to manage these risks successfully could materially adversely affect its business, results of operations, and financial condition.

● Quipt's ability to successfully operate its business is largely dependent upon the efforts of key personnel of Quipt, including senior management, the loss of any of whom could negatively impact Quipt's operations and financial results.

● Quipt's strategic growth plan, which has historically involved the acquisition of other companies, may not succeed.

● Political and economic conditions, including significant global or regional developments such as economic and political events, including the implementation of tariffs, natural disasters, and public health crises that are out of Quipt's control, could adversely affect its revenue, financial condition, and results of operations.

● Quipt's current insurance program is expensive to maintain and may expose it to unexpected costs and negatively affect its business, financial condition and results of operations, particularly if it incurs losses not covered by its insurance or if claims or losses differ from its estimates.

● Potential conflicts of interest may arise.

● Quipt conducts all of its operations through foreign subsidiaries in the US.

● Quipt's revenue is generated from operations in the US. In addition, Quipt holds cash in Canadian dollars, which is exposed to foreign exchange risk and may negatively affect Quipt's results of operations.

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Risks Related to Regulation

● Quipt's revenue could be impacted by federal and state changes to reimbursement and other Medicaid and Medicare policies.

● Quipt is subject to US federal and state healthcare fraud and abuse and false claims laws and regulations, under which prosecutions have increased in recent years and Quipt may become subject to such litigation, and if Quipt is unable to comply or has not fully complied with such laws, it could face substantial penalties.

● Failure by Quipt to successfully design, modify and implement technology-based and other process changes to maximize productivity and ensure compliance could ultimately have a significant negative impact on Quipt's financial condition, reputation and results of operations.

● If t he Centers for Medicare & Medicaid Services ("CMS") requires prior authorization or implements changes in documentation necessary for Quipt's products, Quipt's revenue, financial condition and results of operations could be negatively impacted.

● Reimbursement claims are subject to audits by various governmental and private payor entities from time to time and such audits may negatively affect Quipt's revenue, financial condition and results of operations.

● Significant reimbursement reductions and/or exclusion from markets or product lines could adversely affect Quipt.

● Failure by Quipt to maintain required licenses, permits and accreditation could impact its operations.

● Legislative action or changes could adversely affect Quipt's business, results of operations and financial condition.

● Healthcare reform legislation could have a material impact on Quipt's business, results of operations and financial condition.

● Actual or perceived failures to comply with applicable data protection, privacy and security, and consumer protection laws, regulations, standards and other requirements could adversely affect Quipt's business, results of operations and financial condition.

● Quipt may be adversely affected by global climate change or by legal, regulatory or market responses to such change.

Risks Related to Our Financial Condition

● If Quipt were required to write down all or part of its goodwill, its net earnings and net worth could be materially adversely affected.

● Quipt may not be able to generate sufficient cash flow to cover required payments or comply with financial and operating covenants under its long-term debt and long-term operating leases.

● Quipt may need additional capital to fund its operating subsidiaries and finance its growth, and Quipt may not be able to obtain it on acceptable terms, or at all, which may limit its ability to grow.

● We will continue to incur significant increased expenses and administrative burdens as a result of being a public company, which could have a material adverse effect on Quipt's business, financial condition and results of operations.

Risks Related to Our Securities

● We are subject to risks associated with proxy contests and other actions of activist shareholders.

● We may not be able to effectively maintain controls and procedures required by Section 404 of the Sarbanes-Oxley Act that are applicable to us.

● We are an "emerging growth company" and a "smaller reporting company," and the reduced disclosure requirements applicable to emerging growth companies or smaller reporting companies may make our Common Shares less attractive to investors.

● Once we are no longer an "emerging growth company," a "smaller reporting company" or otherwise no longer qualify for applicable exemptions, we will be subject to additional laws and regulations affecting public companies that will increase our costs and the demands on management and could harm our operating results and cash flows.

● Fluctuations in the price of Quipt's securities could contribute to the loss of all or part of your investment.

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● Because Quipt has no current plans to pay cash dividends on its Common Shares for the foreseeable future, you may not receive any return on investment unless you sell your Common Shares for a price greater than that which you paid for them.

● The expiry and non-renewal of Quipt's normal course issuer bid program may have an impact that is not fully reflected in the current share valuation. Provisions in our constating documents and under British Columbia law could make an acquisition of us, which may be beneficial to our shareholders, more difficult and may prevent attempts by our shareholders to replace or remove our current management.

● Forward-looking statements may prove to be inaccurate, which could have a material adverse effect on Quipt's business, financial condition and results of operations.

#### PART I

#### Item 1. Business.

#### Company Overview
Quipt Home Medical Corp. and its subsidiaries ("Quipt" or the "Company"), is a provider of durable medical equipment ("DME") / home medical equipment ("HME") in the United States ("US"). The Company specializes in delivering effective in-home treatments for managing various chronic conditions, with a primary focus on respiratory diseases. The Company's comprehensive solutions support patients dealing with heart and pulmonary diseases, sleep apnea, reduced mobility, and other chronic health challenges. Currently, the Company serves patients across 27 states in the US.

On December 14, 2025, the Company entered into an Arrangement Agreement (the "Arrangement Agreement") to be acquired by 1567208 B.C. Ltd. and REM Aggregator, LLC (collectively, "Purchaser"), entities affiliated with Kingswood Capital Management, LP ("Kingswood"). Under the terms of the Arrangement Agreement, Purchaser will acquire all of the issued and outstanding common shares of the Company (the "Shares") pursuant to a Plan of Arrangement (the Arrangement) under the *Business Corporations Act* (British Columbia) (the BCBCA) for US$3.65 per Share.

At the effective time of the Arrangement (the "Effective Time"), each Share, other than any Shares exchanged by shareholders who may properly exercise dissent rights under the BCBCA, will be deemed to be transferred to Purchaser in consideration for the right to receive a cash payment from the Purchaser in the amount equal to US$3.65, without interest.

The transaction is expected to close during the first half of 2026, subject to customary closing conditions, including receipt of shareholder, regulatory, and court approvals. Upon completion of the transaction, the Company will become a privately-held company.

If the Arrangement is consummated, the Shares will be de-listed from The Nasdaq Capital Market and the Toronto Stock Exchange and de-registered under the Securities Exchange Act of 1934, as amended, and the Company will cease to be a Canadian "reporting issuer", as soon as practicable following the Effective Time.

Pursuant to the terms of an equity commitment letter entered into by and between Purchaser and Kingswood and delivered to the Company at the signing of the Arrangement Agreement (the "ECL"), Purchaser has obtained equity commitments from Kingswood for the transactions contemplated by the Arrangement Agreement, the aggregate proceeds of which Purchaser will use to fund the consideration payable at closing and thereafter, all fees, costs, expenses and other amounts payable by Purchaser in connection with the transactions contemplated by the transactions contemplated by the Arrangement Agreement (the Commitment). The ECL includes a guarantee from Kingswood to the Company, on the terms and conditions set forth in the ECL.

Each option exercisable to acquire one or more Shares from the Company (a Company Option), outstanding immediately prior to the Effective Time (whether vested or unvested) will be deemed to be unconditionally vested and exercisable and will, without any further action by or on behalf of a holder of the Company Option, be deemed to be surrendered and transferred by such holder to the Company in consideration for the right to receive a cash payment from the Company in an amount equal to the excess, if any, of US$3.65 over the exercise price of such option, less any amounts the Company

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is required to withhold for taxes, without interest. Any option for which the exercise price is equal to or greater than US$3.65 will be cancelled for no consideration.

Each of the Company's restricted share units (a Company RSU) outstanding immediately prior to the Effective Time (whether vested or unvested) will, without any further action by or on behalf of the holder of any such Company RSU, be deemed to be transferred by such holder to the Company in consideration for the right to receive a cash payment from the Company in the amount equal to US$3.65, less any amounts the Company is required to withhold for taxes, without interest.

The Arrangement Agreement also provides customary restrictions on the Company's ability to solicit alternative acquisition proposals from third parties and engage in discussions or negotiations with third parties regarding such proposals. Notwithstanding these restrictions, the Company may under certain circumstances provide information to and participate in discussions or negotiations with third parties with respect to an unsolicited acquisition proposal that constitutes or could reasonably be expected to constitute or lead to a Superior Proposal (as defined in the Arrangement Agreement).

Quipt's primary business objective is to create shareholder value by becoming one of the largest providers of in-home respiratory solutions in the US. Quipt aims to achieve this through a dual strategy of driving organic growth in its core business and expanding its geographical footprint via strategic acquisitions of DME/HME providers. Quipt's growth plan focuses on aggregating patients in existing or complementary markets, both through acquisitions and by capturing market share from competitors. Through leveraging compliance technology, the company enhances patient compliance with ongoing training and follow-up, while streamlining the delivery and setup of equipment and devices to improve speed and ease for patients. Quipt expects to continue to be a solution to the rising healthcare costs in the US by offering more cost-effective home-based solutions while increasing the quality of life for patients dealing with respiratory diseases.

Quipt is an acquisitive company that follows a disciplined capital allocation strategy. The Company's mergers and acquisitions ("M&A") strategy is based on acquiring additional DME/HME providers that are synergistic to Quipt economies of scale. The Company generally seeks to acquire cash generating companies which lead to increased cash flows that are then re-invested to make additional new cash generating acquisitions. Quipt generally operates under a shared services model which results in obtaining cost efficiencies, technology improvements and synergies across the acquisitions and the various business units where possible. The Company is focused on the implementation of technology solutions for its acquired subsidiaries.

#### Corporate Information
Quipt was incorporated under the Business Corporations Act (Alberta) on March 5, 1997. Pursuant to a reverse take-over transaction completed on June 1, 2010 by way of a three-cornered amalgamation, the Company acquired all of the issued and outstanding shares in the capital of PHM DME Healthcare Inc. and changed its name to Patient Home Monitoring Corp. On December 30, 2013, pursuant to a Certificate of Continuance, the Company changed its jurisdiction of governance by continuing from Alberta into British Columbia. On December 21, 2017, pursuant to an arrangement under the provisions of Division 5 of Part 9 of the Business Corporations Act (British Columbia) (the "BCBCA") involving the Company, Viemed Healthcare, Inc. and the securityholders of the Company, the Company completed a spin-out of Viemed Healthcare, Inc. and its operating businesses. In addition, on December 21, 2017, the Company completed an amalgamation, by way of vertical shortform amalgamation under the BCBCA, with its wholly owned subsidiary and the amalgamating company continuing as Patient Home Monitoring Corp. On May 4, 2018, the Company changed its name to Protech Home Medical Corp. On May 13, 2021, the Company changed its name from Protech Home Medical Corp. to Quipt Home Medical Corp. The Company's head office is located at 1019 Town Drive, Wilder, Kentucky 41076, and its registered office is located at Suite 2700, 1133 Melville Street, Vancouver, British Columbia V6E 4E5. The Company's common shares ("Common Shares") are listed for trading on the Nasdaq Capital Market ("Nasdaq") and the Toronto Stock Exchange ("TSX"), both under the symbol "QIPT".‎ Our website address is located at quipthomemedical.com and our investor ‎relations website is located at quipthomemedical.com/investors. We file electronically with the U.S. Securities and ‎Exchange Commission (the "SEC") our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports ‎on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities and Exchange ‎Act of 1934, as amended (the "Exchange Act"). We make available on our website, free of charge, copies of

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these reports and other information as soon as ‎reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The reports are also ‎available at www.sec.gov.‎

***Recent Transactions***

On July 1, 2025, through QHM Holdings Inc., we acquired 100% of Mediserve Medical Equipment of Kingsport, Inc. ("Mediserve"). Mediserve is a Tennessee-based company with operations in two states in the same industry as the Company. The purchase price was $2,616,000, comprised of $2,466,000 in cash at closing to the sellers, plus $150,000, the present value of a $160,000 holdback. The cash at closing was paid from cash on hand.

Effective September 1, 2025, through QHM Holdings Inc., we acquired a 60% membership interest in IRB Medical Equipment, LLC, doing business as Hart Medical Equipment ("Hart"), a Michigan limited liability company in the same industry as us. The transaction was completed pursuant to an Equity Purchase Agreement dated August 11, 2025 (the "Hart Purchase Agreement") among Quipt, Hart, and Hart HoldCo, LLC (the "Hart Seller"). We acquired our 60% interest through the payment of $17,372,000 in cash to the Hart Seller and the repayment of $3,261,000 of Hart indebtedness at closing. The purchase was funded with borrowings under our senior credit facility (the "Facility").

Prior to closing, 100% of the equity interests in Hart were contributed to the Hart Seller by its previous owners. Pursuant to the Hart Purchase Agreement, we purchased 60% of the membership interests of Hart directly from the Hart Seller, and the Hart Seller retained the remaining 40% membership interests. In connection with the transaction, the parties entered into an administrative support services agreement, and Hart's operating agreement was amended and restated pursuant to the Sixth Amended and Restated Operating Agreement to provide for the operation of Hart as a joint venture between us and the Hart Seller.

#### Specialized Skills and Knowledge
The Company requires some of its employees to have specific skills, knowledge, and background to perform some key tasks and functions, such as patient care and patient set-up, among others. For example, the Company employs a team of respiratory therapists to provide services. Each respiratory therapist is required to be state licensed, either as a Registered Respiratory Therapist and/or a Certified Respiratory Therapist. Additionally, the Company's clinical team manages patients that use its services ranging from nebulizers to invasive ventilation.

The Company also employs a team of Assistive Technology Professionals ("ATP") who provide customized mobility and bath safety equipment for patients. Its ATPs are certified through NRRTS (National Registry of Rehabilitation Technology Suppliers) and RESNA (Rehabilitation Engineering and Assistive Technology Society of North America). Part of the ATP team has gone further in their education to receive certifications that allow them to specialize in areas within complex rehabilitation.

As the company is a US healthcare provider, it also requires employees in its revenue cycle management team to have specialized knowledge regarding processing claims and reimbursement for the Company's products.

#### Competitive Conditions
The Company has physical operations in 27 states. The Company participates in a highly competitive market, which may become more competitive as new DME providers enter or existing DME providers merge with others. Certain competitors have vertically integrated manufacturing and services sectors of the market. Several large, national companies have operations and products and services offerings, as well as an acquisitive strategy similar to the Company, such as Lincare, Apria, Rotech, and Adapt Healthcare. Apart from the large national DME providers, the Company also faces competition from regional and local family-owned DME providers. While the Company is one of the top ten providers of DME/HME products and related services in the US, its current competitors may gain market share, and any new entrants, with greater financial and technical resources, may provide additional competition. Accordingly, there can be no assurance that the Company will be able to grow its operations organically to meet the competitive environment.

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#### New Products
The Company continually explores and considers additional products and services that would complement the products and services already offered by its subsidiaries that would serve the current patient population and/or help the Company to expand and enter into new segments and serve new patients in its existing service areas.

#### Significant Customers
For the years ended September 30, 2025 and 2024, the Company had no customers that accounted for 10% or more of its consolidated revenue. The Company earns revenues by seeking reimbursement from government agencies (such as Medicare and Medicaid) and private health insurance companies. With the Medicare program of the US government being the primary entity making payments for a significant portion of revenue, if the Medicare program were to slow payments of the Company receivables for any reason, the Company would be adversely impacted.

#### Changes to Payor Contracts
CMS's health insurance policies for Medicare in the US may affect the amount of revenue the Company receives. Apart from Medicare reimbursement, the majority of the Company's revenues are derived from the fee-for-service pricing guidelines set by numerous payors like private health insurance companies and other governmental agencies like Medicaid that the Company contracts with. These pricing guidelines are subject to change at the discretion of these payor contracts.

#### Employees
As of September 30, 2025, the Company had a total of approximately 1,600 employees. In addition, the Company has staff augmentation arrangements with global partners.

#### Foreign Operations
As at the date hereof, the Company conducts all of its operations through its subsidiaries, which operate exclusively in the US.

**Item 1A. Risk Factors**

*We operate in a rapidly changing environment that involves a number of risks. The following discussion highlights some of these risks and others are discussed elsewhere in this report. These and other risks could materially adversely affect our business, revenue, financial condition and results of operations. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. See also "Cautionary Note Regarding Forward-Looking Statements" in this Annual Report on Form 10-K*.***

**Risks Related to Our Business and Industry**

***Reliance on relatively few suppliers for the majority of Quipt's patient service equipment and supplies could adversely affect Quipt's ability to operate.***

Quipt currently relies on a relatively small number of suppliers to provide it with the majority of its patient service equipment and supplies. Significant price increases, or disruptions in the ability to obtain such equipment and supplies from existing suppliers, may force Quipt to use alternative suppliers. Additionally, any new tariffs, taxes, or other costs imposed on manufacturers of certain medical equipment could be passed on to customers, such as Quipt. Such manufacturers may be forced to make other changes to their products or manufacturing processes that are unacceptable to Quipt, resulting in a need to change suppliers. Any change in suppliers Quipt uses could cause delays in the delivery of such products and possible losses in revenue, which could adversely affect Quipt's results of operations. In addition, alternative suppliers may not be available or may not provide their products and services at similar or favorable prices. The emerging nature of the market presents risks that suppliers may not be able to provide equipment to satisfy ‎demand. Demand may outstrip supply, leading to equipment shortages. ‎If Quipt cannot obtain the patient service equipment and

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supplies it currently uses, or alternatives at similar or favorable prices, Quipt's ability to provide such products may be severely impacted, which could have an adverse effect on its business, financial condition, results of operations, cash flow, capital resources and liquidity. Conversely, incorrect demand forecasting could lead to excess inventory. The industry is subject to a high level of ‎regulatory scrutiny, and government or manufacturer recalls could adversely affect Quipt's ability to provide ‎services and achieve revenue targets.‎

Inadequate supply could impair Quipt's ability to attract new business and could create upward pricing pressure ‎on equipment and supplies, adversely affecting margins for Quipt. Equipment manufacturers may pursue a strategy of vertical integration and should Quipt ever need to order equipment from those ‎manufacturers, such equipment may not be available on favorable terms.‎

***Supply chain disruptions and economy-wide labor shortages in the U.S. could negatively impact Quipt's businesses.***

Supply chain disruptions, such as materials and equipment shortages, shipping, logistics and other delays, might make it more difficult and costly for Quipt to obtain products or services from third parties. If these types of disruptions occur, they could have a material adverse effect on Quipt's business, financial condition, results of operations and cash flows. Labor shortages may lead to a significant increase in competition throughout the industry to attract and retain talent and lead to increased labor costs.

Quipt's failure to recruit and retain qualified employees, or to control its labor costs, could have a material adverse effect on its business, financial position, results of operations, and cash flows.

While Quipt seeks to mitigate any cost increases, labor impacts and supply chain delays and shortages, these efforts may not be successful and Quipt could experience adverse impacts due to such factors. Quipt cannot predict the extent of these factors or other future increases in operating costs. To the extent such costs continue to increase, Quipt may be prevented, in whole or in part, from passing such cost increases through to its existing and prospective customers, or Quipt's customers may seek other competitive sources due to supply chain delays, which could have a material adverse impact on Quipt's business, financial position, results of operations and cash flows.

***Quipt has been negatively impacted by inflation and rising interest rates.***

Increases in inflation have had, and may continue to have, an adverse effect on Quipt. Current and future inflationary effects may be driven by, among other things, general inflationary cost increases, supply chain disruptions and governmental stimulus or fiscal policies. The cost to manufacture and distribute the equipment and products that Quipt provides to patients is influenced by the cost of materials, labor, and transportation, including fuel costs. Quipt continues to experience inflationary pressure and higher costs as a result of the increasing cost of materials, labor and transportation. The increase in the cost of equipment and products is due in part to a shortage in the availability of certain products, the higher cost of shipping, and general inflationary cost increases. Additionally, it is not certain that Quipt will be able to pass increased costs onto customers to offset inflationary pressures. Continuing increases in inflation could impact the overall demand for Quipt's products and services, its costs for labor, equipment and products, and the margins it is able to realize on its products, all of which could have an adverse impact on Quipt's business, financial position, results of operations and cash flows. In addition, future volatility of general price inflation and the impact of inflation on costs and availability of materials, costs for shipping and warehousing, workforce wage pressure, and other operational overhead could adversely affect Quipt's financial results. Although there have been recent increases in inflation, Quipt cannot predict whether these trends will continue.

Inflationary increases may result in higher interest rates, which in turn may result in higher interest expense related to variable rate indebtedness. Future increases in inflation may result in higher interest rates which could increase interest expense related to Quipt's variable rate indebtedness and any borrowings it may undertake to refinance existing fixed rate indebtedness. Higher interest rates also impact the discount rate used in the valuation of intangible assets, including goodwill, and the impact on the discount rate could result in additional impairment charges for such assets. In addition, there can be no assurance that we will be able to refinance the Facility, which has $87,583,000 outstanding as of September 30, 2025, upon maturity, or that any such refinancing would be on terms as favorable as the terms of the

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Facility. If we are unable to refinance the term loan at maturity or are only able to do so at higher interest rates, our interest expense would increase, and the amount of our cash flow and our financial condition could be adversely affected.

***Quipt's business depends on its information systems, including software licensed from or hosted by third parties, and any failure or significant disruption or effective cyber-attack on any of these systems, security breaches or improper disclosure of or loss of data could materially affect our business, results of operations and financial condition.***

Quipt's business depends on the proper functioning and availability of its computer systems and networks. Quipt relies on an external service provider to provide continual maintenance, upgrading and enhancement of various information systems used by Quipt for its operational needs. Quipt licenses third-party software that supports intake, personnel scheduling and other human resources functions, office clinical and centralized billing and receivables management in an integrated database, enabling Quipt to standardize the care delivered across its network of locations and monitor its performance and consumer outcomes. Quipt also uses various third-party software providers for its order processing and inventory management platform. To the extent that its third-party providers fail to support, maintain and upgrade such software or systems, or if Quipt loses its licenses with third-party providers, the efficiency of Quipt's operations could be disrupted or reduced.

The risk of a security breach or disruption, particularly through cyber-attacks or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. In addition, the prevalent use of mobile devices that access confidential information increases the risk of data security breaches, which could lead to the loss of confidential information or other intellectual property. Quipt or its third-party vendors may experience cybersecurity and other breach incidents, including such incidents that remain undetected for an extended period. A cybersecurity attack or other incident that bypasses Quipt's or its third-party vendors' information systems security could cause a security breach that may lead to a material disruption to Quipt's information systems infrastructure or business and/or involve a significant loss of business or patient health or other protected data or information. If a cybersecurity attack or another unauthorized attempt to access Quipt's or its third-party vendors' systems or facilities were to be successful, it could result in the theft, destruction, loss, misappropriation or release of confidential information or intellectual property, and could cause operational or business delays that may materially impact Quipt's ability to provide various healthcare services.

Even when a security breach is detected, the full extent of the breach may not be determined immediately. If Quipt experiences a reduction in the performance, reliability, or availability of its information systems, its operations and ability to process transactions and produce timely and accurate reports could be materially adversely affected. If Quipt experiences difficulties with the transition and integration of information systems or is unable to implement, maintain, or expand its systems properly, Quipt could suffer from, among other things, operational disruptions, delays, cessation of service, regulatory problems, increases in administrative expenses and other harm to its business and competitive position. For example, in February 2024, Quipt learned that one of its third-party software providers who interfaces with UnitedHealth Group's Change Healthcare ("Change Healthcare") information technology systems in connection with Quipt's claims processing activity had a cybersecurity threat actor gain access to some of the Change Healthcare information technology systems. UnitedHealth Group isolated the impacted systems upon learning of this threat and Change Healthcare suspended its claims processing activity with Quipt's third-party software provider. Although claims processing has resumed, this incident could have a continuing adverse effect on Quipt's business and results of operations.

There can be no assurance that Quipt's and its third-party software providers' safety and security measures and disaster recovery plans will prevent damage, interruption, breach of their information systems and operations or data loss. Because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may be difficult to detect, Quipt and its third-party software providers' may be unable to anticipate these techniques or implement adequate preventive measures. In addition, hardware, software or applications Quipt develops or procures from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise the security of its information systems. Unauthorized parties may attempt to gain access to Quipt's systems or facilities, or those of third parties with whom Quipt does business, including its confidential managed file transfer software providers, through fraud or other forms of deceiving its employees or contractors. Costs and potential problems and interruptions associated with any such unauthorized access or the implementation of new or upgraded systems and

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technology or with maintenance or adequate support of existing systems and technology, including systems and technology intended to protect against unauthorized access, also could disrupt or reduce the efficiency of Quipt's operations.

Any successful cybersecurity attack or other unauthorized access to Quipt's, Quipt's third-party vendors', or any of its or their acquisition targets' systems, facilities or patient health information also could result in negative publicity, which could damage Quipt's reputation or brand with its patients, referral sources, payors or other third parties and could subject Quipt to substantial penalties under HIPAA and other federal and state data protection laws, in addition to costs and potential damages associated with private litigation related to those affected. Failure to maintain the security and functionality of Quipt's information systems and related software or to contract with third parties, or a failure to defend a cybersecurity attack or other attempt to gain unauthorized access to Quipt's, Quipt's third-party vendors', or any of its or their acquisition targets' systems, facilities or patient health information, could expose Quipt to a number of adverse consequences, the vast majority of which are not insurable, including, but not limited to, disruptions in Quipt's operations, regulatory and other civil and criminal penalties, fines, investigations and enforcement actions (including, but not limited to, those arising from the SEC, Canadian securities regulatory authorities, FTC, the Office of Inspector General or state attorneys general), private litigation with those affected by the data breach, loss of customers, disputes with payors and increased operating expense, all or any of which could adversely impact Quipt's financial condition and results of operations.

***Quipt's financial performance is affected by continuing efforts by private third-party payors to control their costs, and if Quipt agrees to lower its reimbursement rates due to pricing pressures from such private third-party payors, Quipt's financial condition and results of operations would likely deteriorate.***

Quipt derived approximately 25% and 27% of its net revenue for the years ended September 30, 2025 and 2024, respectively, by seeking reimbursement from Medicare. If the Medicare program were to slow payments of Quipt receivables for any reason, Quipt would be ‎adversely impacted. In addition, Medicare, private health insurance companies,‎ and third-party private payors ‎continually seek to control the cost of providing healthcare services through direct contracts with healthcare providers, increased oversight and greater enrollment of patients in managed care programs and preferred provider organizations. These private payors are increasingly demanding discounted fee structures, including setting reimbursement rates based on Medicare fee schedules or requiring healthcare providers or suppliers to assume a greater degree of financial risk related to patient care. Reimbursement rates under private payor programs may not remain at current levels and may not be sufficient to cover the costs of caring for patients enrolled in such programs, and Quipt may experience a deterioration in pricing flexibility, changes in payor mix and growth in operating expenses in excess of increases in payments by private third-party payors. Quipt may be compelled to lower its prices due to increased pricing pressures, which could adversely impact Quipt's financial condition and results of operations. A reduction in reimbursement may be unrelated to any concurrent decline in the cost of operations, thereby resulting in ‎reduced profitability. Quipt's costs of operations could increase, but the cost increases may not be passed on to ‎customers because reimbursement rates are set without regard to the cost of service.‎

***Quipt's payor contracts are subject to renegotiation or termination, which could result in a decrease in Quipt's revenue or profits.***

The majority of Quipt's payor contracts are subject to unilateral termination by either party on between 30 and 90 days' prior written notice. Such contracts are routinely amended (sometimes by unilateral action by payors regarding payment policy), renegotiated, subjected to a bidding process with Quipt's competitors, or terminated altogether. Sometimes in the renegotiation process, certain lines of business may not be renewed, or a payor may enlarge its provider network or otherwise change the way it conducts its business in a way that adversely impacts Quipt's revenue. In other cases, a payor may reduce its provider network in exchange for lower payment rates. Quipt's revenue from a payor may also be adversely affected if the payor alters its utilization management expectations and/or administrative procedures for payments and audits, changes its order of preference among the providers to which it refers business or imposes a third-party administrator, network manager or other intermediary. Payors may also decide to refer business to their own provider subsidiaries, such as specialty pharmaceuticals and/or home medical equipment networks owned by such payors or by third-party management companies. Any of these activities could materially reduce Quipt's revenue from these payors.

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***Changes made by payors to the way they cover products supplied by Quipt could have an adverse impact on Quipt's revenue and operations.***

Payors that provide coverage for products supplied by Quipt can make changes to their plans and benefit designs that can have an adverse impact on Quipt's revenue and operations. The impact of changing the benefit can include changes to the types of providers that can provide products, increased competition, changes to covered amounts, and changes to patient deductibles.

***Changes in governmental or private payor supply replenishment schedules could adversely affect Quipt.***

A significant amount of our revenue comes from the sale of various products, such as masks and tubing and rental of medical equipment, such as CPAPs, oxygen concentrators, and ventilators. Medicare, Medicaid and private payors limit the number of times per year that patients may purchase such supplies or the number of months that equipment can be rented. To the extent that any governmental or private payor revises their guidelines to reduce the number of times such supplies can be purchased or the number of months that equipment can be rented, such reductions could adversely impact Quipt's revenue, financial condition and results of operations.

***If Quipt fails to manage the complex and lengthy reimbursement process, its revenue, financial condition and results of operations could suffer.***

Because Quipt depends upon reimbursement from Medicare, Medicaid and third-party payors for a significant majority of its revenues, Quipt's revenue, financial condition and results of operations may be affected by the reimbursement process, which in the healthcare industry is complex and can involve lengthy delays between the time that services are rendered and the time that the reimbursement amounts are settled. Depending on the payor, Quipt may be required to obtain certain payor-specific documentation from physicians and other healthcare providers before submitting claims for reimbursement. Certain payors have filing deadlines and will not pay claims submitted after such deadlines. Quipt cannot ensure that it will be able to effectively manage the reimbursement process and collect payments for its equipment and services promptly.

***Quipt may be adversely affected by consolidation among health insurers and other industry participants.***

In recent years, there has been a continuing trend of health insurers merging or increasing efforts to consolidate with other non-governmental payors. Insurers are also increasingly pursuing alignment initiatives with healthcare providers. Consolidation within the health insurance industry may result in insurers having increased negotiating leverage and competitive advantages, such as greater access to performance and pricing data. Quipt's ability to negotiate prices and favorable terms with health insurers in certain markets could be affected negatively as a result of this consolidation. In addition, the shift toward value-based payment models could be accelerated if larger insurers, including those engaging in consolidation activities, find these models to be financially beneficial. There can be no assurance that Quipt will be able to negotiate favorable terms with payors and otherwise respond effectively to the impact of increased consolidation in the payor industry or vertical integration efforts.

***Quipt may be adversely affected if it is unable to maintain current levels of collectability and by the deterioration of the financial condition of Quipt's payors and disputes with third parties could have a significant negative impact on Quipt's financial condition and results of operations.***

The collection of accounts receivable requires constant focus and involvement by management and ongoing enhancements to information systems and billing center operating procedures. There can be no assurance that Quipt will be able to improve upon or maintain its current levels of collectability and days sales outstanding in future periods. Further, some of Quipt's payors and/or patients may experience financial difficulties, or may otherwise not pay accounts receivable when due, resulting in increased write-offs. If Quipt is unable to properly bill and collect its accounts receivable, its financial condition and results of operations will be adversely affected. In addition, from time to time, Quipt is involved in disputes with various parties, including its payors and their intermediaries regarding their performance of various contractual or regulatory obligations. These disputes sometimes lead to legal and other proceedings and cause Quipt to incur costs or experience delays in collections, increases in its accounts receivable or loss of revenue. In addition, in the

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event such disputes are not resolved in Quipt's favor or cause Quipt to terminate its relationships with such parties, there may be an adverse impact on its financial condition and results of operations.

***If Quipt is unable to maintain or develop relationships with patient referral sources, its growth and profitability could be adversely affected.***

Quipt's growth and profitability depend in large part on referrals from acute care hospitals, sleep laboratories, pulmonologist and endocrinologist offices, skilled nursing facilities, hospice operators and other patient referral sources in the communities served by Quipt, its ability to establish and maintain close working relationships with such patient referral sources and its ability to increase awareness and acceptance of the benefits of inpatient rehabilitation, home health, and hospice care by its referral sources and their patients. By law, referral sources cannot be contractually obligated to refer patients to any specific provider. In addition, Quipt's relationships with referral sources are subject to federal and state healthcare laws such as the federal Anti-Kickback Statute and the Stark Law to the extent these services provide a financial benefit to or relieve a financial burden for a potential referral source or are subsequently found not to be for fair market value. However, there can be no assurance that other market participants will not attempt to steer patients to competing post-acute providers or otherwise limit Quipt's access to potential referrals. The establishment of joint ventures or networks between referral sources, such as acute care hospitals, and other post-acute providers may hinder patient referrals to Quipt. Quipt's loss of, or failure to maintain, existing relationships or its failure to develop new relationships with referral sources could adversely affect its ability to grow its business and operate profitably.

***Quipt experiences competition from numerous other sleep therapy equipment***, ***home respiratory, and mobility equipment providers, and this competition could adversely affect its revenues and its business.***

The sleep therapy equipment, home respiratory, and mobility equipment markets are highly competitive and include a large number of providers, some of which are national providers, but most of which are either regional or local providers, including hospital systems, physician specialists and sleep labs. The primary competitive factors are quality considerations such as responsiveness, access to payor contracts, the technical ability of the professional staff and the ability to provide comprehensive services. These markets are very fragmented. Some of Quipt's competitors may now or in the future have greater financial resources or more effective sales and marketing activities. The rest of the homecare market in the US consists of regional providers and product-specific providers, as well as numerous local organizations. Hospitals and health systems are routinely looking to provide coverage and better control of post-acute healthcare services, including homecare services of the types Quipt provides. These trends may continue as new payment models evolve, including bundled payment models, shared savings programs, value-based purchasing and other payment systems.

New entrants to the sleep therapy equipment, home respiratory/home medical equipment and mobility equipment markets could have a material adverse effect on Quipt's business, results of operations and financial condition. A number of manufacturers of home respiratory equipment currently provide equipment directly to patients on a limited basis. Such manufacturers have the ability to provide their equipment at prices below those charged by Quipt, and there can be no assurance that such direct-to-patient sales efforts will not increase in the future or that such manufacturers will not seek reimbursement contracts directly with Quipt's third-party payors, who could seek to provide equipment directly to patients from the manufacturer. In addition, pharmacy benefit managers could enter the home medical equipment market and compete with Quipt. Large technology companies, such as Amazon.com, Inc. and Alphabet Inc., have disrupted other supply businesses and have entered the healthcare market. In the event such companies enter the home medical equipment market, Quipt may experience a loss of referrals or revenue.

***Changes in medical equipment technology and development of new treatments may cause Quipt's current equipment or services to become obsolete.***

Quipt evaluates changes in home medical equipment technology and treatments on an ongoing basis for purposes of determining the feasibility of replacing or supplementing items currently included in the patient service equipment inventory and services that Quipt offers patients. Quipt's selection of medical equipment and services is formulated on the basis of a variety of factors, including overall quality, functional reliability, availability of supply, payor reimbursement policies, product features, labor costs associated with the technology, acquisition, repair and ownership costs and overall patient and referral source demand, as well as patient therapeutic and lifestyle benefits. Manufacturers continue to invest

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in research and development to introduce new products to the marketplace. It is possible that major changes in available technology, payor benefit or coverage policies related to those changes, or the preferences of patients and referral sources may cause Quipt's current product offerings to become less competitive or obsolete, and it will be necessary to adapt to those changes. Unanticipated changes could cause Quipt to incur increased capital expenditures and accelerated equipment write-offs, and could force Quipt to alter its sales, operations and marketing strategies.

In addition, the development and commercialization of new drugs to address obesity may limit the prospects for Quipt's current equipment or services. A number of new glucagon-like peptide (GLP-1) receptor agonist drugs, including Mounjaro, Wegovy, and Ozempic, have entered the market. The long-term effect of these drugs on Quipt's business is uncertain. However, these drugs may have a significant impact on obesity rates over time, which may result in reduced demand for our current equipment or services, and we may not be able to adapt to those changes to stay competitive.

***Quipt's operations involve the transport of compressed and liquid oxygen, which carries an inherent risk of rupture or other accidents with the potential to cause substantial loss, and have involved the operation of medical gas facilities that are subject to federal and state regulations, which requires significant compliance oversight and expenses.***

Quipt's operations are subject to the many hazards inherent in the transportation of medical gas products and compressed and liquid oxygen, including ruptures, leaks and fires. These risks could result in substantial losses due to personal injury or loss of life, severe damage to and destruction of property and equipment and pollution or other environmental damage and may result in curtailment or suspension of Quipt's related operations. If a significant accident or event occurs, it could adversely affect Quipt's business, financial position and results of operations. Additionally, corrective action plans, fines or other sanctions may be levied by government regulators who oversee transportation of hazardous materials such as compressed or liquid oxygen.

Quipt provides a significant number of patients with oxygen-based therapy, and from time to time, Quipt has operated medical gas facilities in several states subject to federal and state regulatory requirements. Quipt's medical gas facilities and operations are subject to extensive regulation by the Food and Drug Administration ("FDA") and other federal and state authorities. The FDA regulates medical gases, including medical oxygen, pursuant to its authority under the federal Food, Drug and Cosmetic Act. Among other requirements, the FDA's current Good Manufacturing Practice ("cGMP") regulations impose certain quality control, documentation and record keeping requirements on the receipt, processing and distribution of medical gas. Further, in each such state, its medical gas facilities would be subject to regulation under state health and safety laws, which vary from state to state. The FDA and state authorities conduct periodic, unannounced inspections at medical gas facilities to assess compliance with the cGMP and other regulations, and Quipt expends significant time, money and resources in an effort to achieve substantial compliance with the cGMP regulations and other federal and state law requirements at each of its medical gas facilities. Quipt also complies with the FDA's requirement for medical gas providers to register their sites with the agency. There can be no assurance, however, that these efforts will be successful and that Quipt's medical gas facilities will maintain compliance with federal and state law regulations. Failure by Quipt to maintain regulatory compliance at its medical gas facilities could result in enforcement action, including warning letters, fines, product recalls or seizures, temporary or permanent injunctions, or suspensions in operations at one or more locations, and civil or criminal penalties which could materially harm its business, financial condition, results of operations, cash flow, capital resources and liquidity.

***Quipt currently outsources, and from time to time in the future may outsource, a portion of its internal business functions to third-party providers, which has significant risks, and Quipt's failure to manage these risks successfully could materially adversely affect its business, results of operations, and financial condition.***

Quipt currently outsources, and from time to time in the future may outsource, portions of its internal business functions, including billing and administrative functions relating to revenue cycle management and accounts payable, to third-party providers in India and the Philippines, and utilizes third-party managed file transfer software providers to transfer its sensitive and protected customer data. These third-party providers may not comply on a timely basis with all of Quipt's requirements or may not provide Quipt with an acceptable level of service or may not protect properly Quipt's and its customers' confidential or protected data. This could result in significant disruptions in Quipt's operations and significantly increase costs to undertake Quipt's operations, either of which could damage Quipt's relationships with its customers. In addition, Quipt's outsourced functions may be negatively impacted by any number of factors, including:

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political unrest; public health crises; social unrest; cyber-attacks; terrorism; war; vandalism; currency fluctuations; changes to the laws of India, the Philippines, the US or any other jurisdictions in which Quipt does business or outsources operations; or increases in the cost of labor and supplies in India and the Philippines or any other jurisdiction in which Quipt outsources any portion of its internal or other business functions. Quipt's outsourced operations may also be affected by trade restrictions, such as tariffs or other trade controls. As a result of its outsourcing activities, it may also be more difficult for Quipt to recruit and retain qualified employees for its business needs at any time. Quipt's failure to successfully outsource certain of its business functions could materially adversely affect its business, results of operations, and financial condition.

***Quipt's ability to successfully operate its business is largely dependent upon the efforts of key personnel of Quipt, including senior management, the loss of any of whom could negatively impact Quipt's operations and financial results.***

Quipt is highly dependent on the performance and continued efforts of its senior management team. Quipt's future success is dependent on its ability to continue to attract and retain qualified executive officers and senior management. Any inability to manage Quipt's operations effectively could adversely impact its financial condition and results of operations.

Quipt's ability to successfully operate its business is also dependent upon the efforts of certain other key personnel of Quipt. It is possible that Quipt will lose some key personnel, the loss of which could negatively impact its operations and profitability.

***Quipt's strategic growth plan, which has historically involved the acquisition of other companies, may not succeed.***

Quipt's strategic plan calls for growth in its business over the next several years through an increase in its density in select markets where it is established as well as the expansion of its geographic footprint into new markets. This growth would place (and has placed) significant demands on Quipt's management team, systems, internal controls and financial and professional resources. As a result, Quipt could be required to incur (and has incurred) expenses for hiring additional qualified personnel, retaining professionals to assist in developing the appropriate control systems and expanding Quipt's information technology infrastructure. If Quipt is unable to effectively manage growth, its financial results could be adversely impacted.

Quipt's strategic plan has historically involved acquisitions of home medical equipment providers, and such acquisitions remain an element of Quipt's strategy. Quipt may face increased competition for attractive acquisition candidates, which may limit the number of acquisition opportunities available to Quipt or lead to the payment of higher prices for its acquisitions. Without successful acquisitions, Quipt's future growth rate could decline. In addition, Quipt cannot guarantee that any future acquisitions, if consummated, will result in further growth.

Quipt's strategic plan contemplates successful integration of acquired home medical equipment providers with Quipt's existing business, including reduction in operating expenses with respect to the acquired companies. Integrating an acquisition could be expensive and time-consuming and could disrupt Quipt's ongoing business, negatively affect cash flow and distract management and other key personnel from day-to-day operations. Quipt may not be able to successfully combine the operations of recently acquired companies with its operations, and, even if such integration is accomplished, Quipt may never realize the potential benefits of such an acquisition.

The integration of acquisitions requires significant attention from management, may impose substantial demands on Quipt's operations or other projects and may impose challenges on us including, but not limited to, consistencies in business standards, procedures, policies and business cultures. There can be no assurance that any future acquisitions, if consummated, will result in further growth.

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Specific integration risks relating to the acquisition of other companies by Quipt may include:

● difficulties related to combining previously separate businesses into a single unit, including patient transitions, product and service offerings, distribution and operational capabilities and business cultures;

● availability of financing to the extent needed to fund acquisitions;

● customer loss and other general business disruption;

● managing the integration process while completing other independent acquisitions or dispositions;

● diversion of management's attention from day-to-day operations;

● assumption of liabilities of an acquired business, including unforeseen or contingent liabilities or liabilities in excess of the amounts estimated;

● failure to realize anticipated benefits and synergies, such as cost savings and revenue enhancements;

● potentially substantial costs and expenses associated with acquisitions and dispositions;

● failure to retain and motivate key employees;

● difficulties in establishing and applying Quipt's internal control over financial reporting and disclosure controls and procedures to an acquired business;

● obtaining necessary regulatory licenses and payor-specific approvals, which may impact the timing of when Quipt is to bill and collect for services rendered;

● Quipt's ability to transition patients in a timely manner may impact Quipt's ability to collect amounts for services rendered;

● Quipt's estimates for revenue accruals during the integration of acquisitions may require adjustments in future periods as the transition of patient information is finalized; and

● delays in obtaining new government and commercial insurance payor identification numbers for acquired branches, resulting in a slowdown and/or loss of associated revenue.

***Political and economic conditions, including significant global or regional developments such as economic and political events, including the implementation of tariffs, natural disasters, and public health crises that are out of Quipt's control, could adversely affect its revenue, financial condition, and results of operations.***

Quipt's business can be affected by a number of factors that are beyond its control, such as general geopolitical, economic, and business conditions, including slower economic growth, disruptions in financial markets, economic downturns in the form of either contained or widespread recessionary conditions, inflation, elevated unemployment levels, sluggish or uneven economic recovery, government actions impacting trade agreements, including the imposition of trade restrictions such as tariffs and retaliatory counter measures, government deficit reduction, tax legislation increasing the federal corporate income tax rates, natural and other disasters, public health crises affecting the operations of Quipt or its customers or suppliers, staffing shortages, product shortages, and disruptions in delivery systems.

We source our products from vendors who may manufacture or import our products from various countries. In February 2025, the US government announced tariffs on product imports from certain countries, including higher tariff levels on those imported from Canada, Mexico, and China. These actions have resulted, and are expected to further result, in retaliatory measures on US goods by those countries and others. If maintained, these recently announced tariffs, and the potential escalation of trade disputes could pose a risk to our business that could affect our revenue and cost of sourcing materials. The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business are uncertain and are expected to be impacted by various factors, such as negotiations between the US and affected countries, the responses of other countries or regions, exemptions or exclusions that already exist or may be granted, availability and cost of alternative sources of our products, and our ability to offset the effects of any tariffs that might be imposed. Specific legislative and regulatory proposals may be introduced to change international trade law, regulations, or interpretations thereof (possibly with retroactive effect) of various jurisdictions or limit trade relief benefits that, if enacted, could materially increase the cost of our goods, increase our effective tax rate, or have a material adverse impact on our financial condition and results of operation. We cannot predict whether our own or industry initiatives to maintain, extend, or create tariff relief for our products will be successful. We also cannot predict the effect, if any, of the imposition of new or increased tariffs by one country and retaliatory responses by other countries who are trade partners. It is possible that these changes could adversely affect our business beyond the resilience of our current supply chain. Further, actions we take to adapt to new tariffs or trade restrictions may increase our costs or risks or may cause us to modify our operations,

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which could be time-consuming and expensive; impact pricing of our products, which could impact our sales, profitability, and our reputation; or cause us to forgo new business opportunities.

We continue to monitor the worsening macroeconomic conditions. Turmoil in the financial markets, including in the capital and credit markets, and any uncertainty over its breadth, depth, and duration may put pressure on the global economy and could have a negative effect on Quipt's business. The shortage of liquidity and credit combined with substantial losses in worldwide equity markets could cause an economic recession in the US or worldwide. If global financial markets experience extreme disruption, governments may take unprecedented actions intended to address extreme market conditions that may include severely restricted credit and declines in real estate values. If conditions in the global economy, US economy, or other key vertical or geographic markets are weak or uncertain, Quipt could experience material adverse impacts on its revenue, financial condition, and results of operations.

***Quipt's current insurance program is expensive to maintain and may expose it to unexpected costs and negatively affect its business, financial condition and results of operations, particularly if it incurs losses not covered by its insurance or if claims or losses differ from its estimates.***

There is an inherent risk of liability in the provision of healthcare services. As a participant in the healthcare industry, Quipt may periodically be subject to lawsuits, some of which may involve large claims and significant costs to defend, such as mass tort or other class actions. Although Quipt's insurance coverage reflects deductibles, self-insured retentions, limits of liability and similar provisions that it believes are reasonable based on its operations, the coverage under its insurance programs may not be adequate to protect it in all circumstances. Quipt's insurance policies contain exclusions and conditions that could have a materially adverse impact on Quipt's ability to receive indemnification thereunder, as well as customary sub-limits for particular types of losses. Additionally, insurance companies that currently insure companies in Quipt's industry may cease to do so, may change the coverage provided or may substantially increase premiums in the future. The incurrence of losses and liabilities that exceed Quipt's available coverage, therefore, could have a material adverse effect on its business, financial condition and results of operations.

Quipt also maintains Directors and Officers (D&O) Liability insurance coverage to protect all of its directors and executive officers. As premiums for insurance covering directors' and officers' liability are rising, Quipt may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. There can be no assurance that this D&O coverage will be sufficient to cover the costs of the events that may lead to its invocation, in which case, there could be an adverse impact on Quipt's financial condition, should such an unforeseen event occur. As a result, it may be more difficult for us to attract and retain qualified people to serve on Quipt's board of directors, its board committees, or as executive officers.

***Potential conflicts of interest may arise.***

There are potential conflicts of interest to which some of Quipt's directors and officers may be subject ‎in connection with its operations, and situations may arise where the directors and officers may be ‎in direct competition with Quipt. Conflicts of interest, if any, which arise may be subject to and be governed ‎by procedures prescribed by the *Business Corporations Act* (British Columbia), which require a director or officer of a corporation who is a party to or is a ‎director or an officer of or has a material interest in any person who is a party to a material contract or proposed ‎material contract with Quipt to disclose his interest and to refrain from voting on any matter in respect of ‎such contract unless otherwise permitted under the *Business Corporations Act* (British Columbia). Any decision made by any of such directors and ‎officers involving Quipt should be made in accordance with their duties and obligations to deal fairly and in ‎good faith with a view to the best interests of Quipt and its shareholders.‎

***Quipt conducts all of its operations through foreign subsidiaries in the US.***

Quipt conducts all its operations through its US subsidiaries. Therefore, to the extent of these ‎holdings, Quipt (directly and indirectly) is dependent on the cash flows of these subsidiaries to meet its ‎obligations. The ability of such subsidiaries to make payments to their parent companies may be constrained by the ‎following factors: the level of taxation, particularly corporate profits and withholding taxes, in the jurisdiction in which ‎each subsidiary operates; and the introduction of exchange controls or repatriation restrictions or the availability of ‎hard currency to be repatriated.‎

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***Quipt's revenue is generated from operations in the US and is exposed to foreign exchange risk, which may negatively affect Quipt's results of operations.***

All of Quipt's revenue is generated from operations in the US. Quipt is subject to a number of risks ‎associated with its operations that may increase liability and costs and require significant management attention. These ‎risks include:‎

● compliance with US laws that apply to Quipt's US operations, including lawful access, privacy ‎laws and anti-corruption laws;‎

● instability in economic or political conditions, including inflation, recession and political uncertainty;‎

● potential adverse tax consequences; and

● litigation in US courts.‎

In addition, Quipt is exposed to foreign exchange risk. At times, including at September 30, 2025, Quipt holds significant cash in Canadian dollars ("C$"). Quipt monitors foreign currency exposures and ‎from time to time could authorize the use of derivative financial instruments such as forward foreign exchange ‎contracts to economically hedge a portion of foreign currency fluctuations.‎

Based on the exposure of Canadian cash at September 30, 2025, depreciation or appreciation of the Canadian dollar ‎against the US dollar ("$") could result in a significant effect on net income or loss. Quipt has not employed any ‎foreign currency hedging programs.

**Risks Related to Regulation** 

***Quipt's revenue could be impacted by federal and state changes to reimbursement and other Medicaid and Medicare policies.***

Quipt derived approximately 31% and 32% of its net revenue for the years ended September 30, 2025 and 2024, respectively, from Medicare and various state-based Medicaid programs. These programs are subject to statutory and regulatory changes affecting overall spending, base rates or basis of payment, retroactive rate adjustments, annual caps that limit the amount that can be paid (including deductible and coinsurance amounts) home medical supplies for Medicare beneficiaries, administrative or executive orders and government funding restrictions, all of which may materially adversely affect the rates and frequency at which these programs reimburse Quipt. Healthcare providers, suppliers, and payors are facing increasing pressure to reduce healthcare costs, and recent budget proposals and legislation at both the federal and state levels have called for cuts in Medicare and Medicaid reimbursement rates. Enactment and implementation of measures to reduce or delay reimbursement or overall Medicare or Medicaid spending could result in substantial reductions in Quipt's revenue and profitability. Payors may disallow Quipt's requests for reimbursement based on determinations that certain costs are not reimbursable or reasonable because either adequate or additional documentation was not provided or because certain items or services were not covered or considered medically necessary. Revenue from third-party payors can be retroactively adjusted after a new examination during the claims settlement process or as a result of post-payment audits. Quipt may also be subject to pre-payment review of certain service lines or products and equipment as a result of negative audit findings or other third-party payor determinations, which can result in significant delays in claims processing and could materially impact its revenue.

As a result of the Public Health Emergency Declaration, National Emergency Declaration, and pursuant to the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), among other things, the Centers for Medicare & Medicaid Services ("CMS") issued regulatory guidance indicating enforcement discretion and flexibility regarding the provisions of items and services by the Medicare Durable Medical Equipment, Prosthetics, Orthotics, & Supplies ("DMEPOS") suppliers like Quipt. These provisions were announced through blanket waivers under Section 1135 of the Social Security Act, two Interim Final Rules with Requests for Comment on April 6, 2020 and May 8, 2020, respectively, and through numerous forms of subregulatory guidance. These provisions included modifications of various requirements under CMS regulations and Medicare and Medicaid program rules that aim to expand the capacity of healthcare providers and suppliers to deliver healthcare services while minimizing the risk of viral exposure. CMS's changes included the exercise of enforcement discretion with respect to the clinical conditions and face-to-face encounter requirements required under certain national and local coverage determinations applicable to certain items and supplies

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Quipt offers. However, many of these flexibilities have now ended or were modified following the end of the COVID-19 public health emergency and subsequent regulatory changes.

The CARES Act also provided for a temporary suspension of reduced rates for items and services provided by Quipt. Previously, CMS applied a blended payment rate for DME furnished in rural or noncontiguous non-competitive bidding areas. Pursuant to provisions of the CARES Act, through the end of the public health emergency, that blended rate was based on 50% of the adjusted fee schedule amount (adjusted based on competitively bid prices) and 50% of the unadjusted DMEPOS fee schedule amount. On December 28, 2021, CMS extended the temporary 50/50 blended rate for rural and noncontiguous non-competitive bidding areas after the public health emergency. This 50/50 blended rate was continued in the 2023 DMEPOS Fee Schedule through December 31, 2023. After which rates reverted to a 75/25 blend which then terminated on January 1, 2024, leading to a downward shift in reimbursement.

In December 2025, CMS finalized a proposal regarding the DMEPOS Competitive Bidding Program (CBP); this will impact how Medicare payment is made for DMEPOS CBP product categories in this next CBP round. These product categories include products in Quipt's portfolio including, but not limited to, continuous glucose monitoring systems, which Quipt added to its offerings in 2023. Notably, however, CPAP devices and supplies, a core product of Quipt, will be removed from CBP. While Quipt will be able to cease CBP obligations for CPAP devices and supplies, it will need to remain a contract supplier to furnish items subject to the DMEPOS CBP, such as CGMs. CMS will announce specific dates for registration and bidding in late spring/early summer 2026, with payment rates in effect no later than January 1, 2028.

While Quipt cannot predict what Medicare payment rates or coverage determinations will be in effect in future years, changes to payment rates or benefit coverages may materially impact its financial condition and results of operations.

The CARES Act temporarily suspended the 2% payment adjustment applied to all Medicare fee-for-service claims under The Budget Control Act of 2011. The 2% BDCA sequestration was reinstated as of July 1, 2022. The payment adjustment has, and may continue to, adversely affect Quipt. Additionally, sequestration may have a continued revenue impact on Quipt's individual contracts with Medicare Advantage Organizations depending on individual contracts.

The Statutory Pay-As-You-Go Act of 2010 (PAYGO) required that automatic payment cuts of 4% be put into place if a statutory action is projected to create a net increase in the deficit over either five or 10 years. The enactment of the American Rescue Plan Act in 2021 would have triggered PAYGO sequestration in 2021. In the Protecting Medicare & American Farmers from Sequester Cuts Act, Congress delayed the PAYGO sequestration until January 1, 2023. The Consolidated Appropriations Act, 2023 (Public Law No: 117-328) further prevented implementation of the PAYGO Medicare 4% sequester through the end of 2024. The Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (Public Law 119-37) further prevented implementation of the PAYGO Medicare sequester through January 2026; however, the separate 2% sequestration cut mandated by the BCA was not deferred and will take effect in January 2026 and continue through 2032. Cuts in Medicare reimbursement will likely have a negative impact on Quipt's financial condition and results of operations.

***Quipt is subject to US federal and state healthcare fraud and abuse and false claims laws and regulations, under which prosecutions have increased in recent years and Quipt may become subject to such litigation, and if Quipt is unable to comply or has not fully complied with such laws, it could face substantial penalties****.*

Quipt's operations are subject to various state and federal fraud and abuse laws, including, without limitation, the federal Anti-Kickback Statute, the federal Stark Law and the federal False Claims Act. These laws may impact, among other things, Quipt's sales, marketing and education programs.

The federal Anti-Kickback Statute prohibits persons from knowingly and willfully soliciting, offering, receiving or providing remuneration, directly or indirectly, in exchange for or to induce either the referral of an individual, or the furnishing or arranging for a good or service, for which payment may be made under a federal healthcare program such as the Medicare and Medicaid programs. Several courts have interpreted the statute's intent requirement to mean that if any one purpose of an arrangement involving remuneration is to induce referrals of federal healthcare covered business, the statute has been violated. In addition, a person or entity does not need to have actual knowledge of the statute or specific

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intent to violate it in order to have committed a violation. The Anti-Kickback Statute is broad and, despite a series of narrow safe harbors, prohibits many arrangements and practices that are lawful in businesses outside of the healthcare industry. Penalties for violations of the federal Anti-Kickback Statute include criminal penalties and civil sanctions such as fines, imprisonment and possible exclusion from Medicare, Medicaid and other federal healthcare programs. Many states have also adopted laws similar to the federal Anti-Kickback Statute, some of which apply to the referral of patients for healthcare items or services reimbursed by any source, not only the Medicare and Medicaid programs.

The federal Ethics in Patient Referrals Act of 1989, commonly known as the "Stark Law," prohibits, subject to certain exceptions, physician referrals of Medicare and, as applicable under state law, Medicaid patients to an entity providing certain "designated health services" if the physician or an immediate family member has any financial relationship with the entity. The Stark Law also prohibits the entity receiving the referral from billing any good or service furnished pursuant to an unlawful referral. Various states have corollary laws to the Stark Law, including laws that require physicians to disclose any financial interest they may have with a healthcare provider to their patients when referring patients to that provider. Both the scope and exceptions for such laws vary from state to state. The federal False Claims Act prohibits persons from knowingly filing, or causing to be filed, a false claim to, or the knowing use of false statements to obtain payment from the federal government. The False Claims Act defines "knowingly" to include actual knowledge, acting in deliberate ignorance of the truth or falsity of information, or acting in deliberate disregard of the truth or falsity of information. False Claims Act liability includes liability for reverse false claims for avoiding or decreasing an obligation to pay or transmit money to the government. This includes False Claims Act liability for failing to report and return overpayments within 60 days of the date on which the overpayment is "identified." Penalties under the False Claims Act can include exclusion from the Medicare program. In addition, the government may assert that a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the False Claims Act. Suits filed under the False Claims Act, known as qui tam actions, can be brought by any individual on behalf of the government and such individuals, commonly known as "whistleblowers," may share in any amounts paid by the entity to the government in fines or settlement. The frequency of filing qui tam actions has increased significantly in recent years, causing greater numbers of medical device, pharmaceutical and healthcare companies to have to defend a False Claims Act action. When an entity is determined to have violated the federal False Claims Act, it may be required to pay up to three times the actual damages sustained by the government, plus civil penalties for each separate false claim. Various states have also enacted laws modeled after the federal False Claims Act.

Quipt is currently the subject of an ongoing investigation by the US Department of Justice (the "DOJ") concerning whether the Company may have caused the submission of false claims to government healthcare programs for CPAP equipment. In April 2024, Quipt received a subpoena from the SEC to provide certain documents related to the Company and the DOJ investigation, the civil investigative demand ("CID") and financial reporting and disclosure matters ("SEC Subpoena"). Further to the SEC Subpoena, the SEC concluded its investigation in November 2024 and, based on the information it had as at such time, the SEC advised that it did not intend to recommend an enforcement action by it against the Company. No assurance can be given as to the timing or outcome of the DOJ's investigation or that no action may ultimately result from the SEC's investigation.

HIPAA, and its implementing regulations, also created additional federal criminal statutes that prohibit knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program or obtain, by means of false or fraudulent pretenses, representations, or promises, any of the money or property owned by, or under the custody or control of, any healthcare benefit program, regardless of the payor (e.g., public or private) and knowingly and willfully falsifying, concealing or covering up by any trick or device a material fact or making any materially false statements in connection with the delivery of, or payment for, healthcare benefits, items or services relating to healthcare matters. Similar to the federal Anti-Kickback Statute, a person or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have committed a violation.

From time to time, Quipt has been and is involved in various governmental audits, investigations and reviews related to its operations. Reviews and investigations can lead to government actions, resulting in the assessment of damages, civil or criminal fines or penalties, or other sanctions, including restrictions or changes in the way Quipt conducts business, loss of licensure or exclusion from participation in Medicare, Medicaid or other government programs. Additionally, as a result of these investigations, healthcare providers and entities may face litigation or have to agree to settlements that can include monetary penalties and onerous compliance and reporting requirements as part of a consent

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decree or corporate integrity agreement. If Quipt fails to comply with applicable laws, regulations and rules, its financial condition and results of operations could be adversely affected. Furthermore, becoming subject to these governmental investigations, audits and reviews may result in substantial costs and divert management's attention from the business as Quipt cooperates with the government authorities, regardless of whether the particular investigation, audit or review leads to the identification of underlying issues.

Quipt is unable to predict whether it could be subject to actions under any of these laws, or the impact of such actions. If Quipt is found to be in violation of any of the laws described above or other applicable state and federal fraud and abuse laws, Quipt may be subject to penalties, including civil and criminal penalties, damages, fines, exclusion from Medicare, Medicaid and other government healthcare reimbursement programs and the curtailment or restructuring of its operations.

***Failure by Quipt to successfully design, modify and implement technology-based and other process changes to maximize productivity and ensure compliance could ultimately have a significant negative impact on Quipt's financial condition, reputation and results of operations.***

Failure to achieve the cost savings or enhanced quality control expected from the successful design and implementation of such initiatives may adversely impact Quipt's financial condition and results of operations. Additionally, Medicare and Medicaid often change their documentation requirements with respect to claims submissions. The standards and rules for healthcare transactions, code sets and unique identifiers also continue to evolve, such as ICD 10 and HIPAA 5010 and other data security requirements. Moreover, government programs and/or commercial insurance payors may have difficulties administering new standards and rules for healthcare transactions and this may adversely affect timelines of payment or payment error rates. The DMEPOS Competitive Bidding Program also imposes new reporting requirements on contracted providers. Failure by Quipt to successfully design and implement system or process modifications could have a significant impact on its operations and financial condition. From time to time, Quipt's outsourced contractors for certain information systems functions may make operational, leadership or other changes that could impact Quipt's plans and cost-savings goals. The implementation of many of the new standards and rules will require Quipt to make substantial investments. Further, the implementation of these system or process changes could have a disruptive effect on related transaction processing and operations. If Quipt's implementation efforts related to systems development are unsuccessful, Quipt may need to write off amounts that it has capitalized related to systems development projects. Additionally, if systems development implementations do not occur, Quipt may need to incur additional costs to support its existing systems.

***If CMS requires prior authorization or implements changes in documentation necessary for Quipt's products, Quipt's revenue, financial condition and results of operations could be negatively impacted.***

CMS has established and maintains a Master List of Items Frequently Subject to Unnecessary Utilization of certain DMEPOS items identified as being subject to unnecessary utilization. This list identifies items that CMS has determined could potentially be subject to prior authorization as a condition of Medicare payment. Since 2012, CMS has also maintained a list of categories of DMEPOS items that require face-to-face encounters with practitioners and written orders before the DMEPOS supplier may furnish the items to beneficiaries. In a final rule issued in 2019, CMS combined and harmonized the two lists to create a single unified list (the "Master List"). CMS also reduced the financial threshold for inclusion on the Master List. With certain exceptions for reductions in Payment Threshold (defined as an average purchase fee of $1,000 or greater, adjusted annually for inflation, or an average monthly rental fee of $100 or greater, adjusted annually for inflation), items remain on the Master List for ten years from the date the item was added to the Master List. The presence of an item on the Master List does not automatically mean that prior authorization is required. Under the 2019 final rule, CMS selects items from the Master List for inclusion on the "Required Prior Authorization List." The expanded Master List would increase the number of DMEPOS items potentially eligible to be selected for prior authorization, face-to-face encounter and written order prior to delivery requirements as a condition of payment. In August 2022, CMS suspended the prior authorization requirement for specified orthosis items on the Required Prior Authorization List under certain circumstances when reported with certain modifiers, effective April 13, 2022. On January 17, 2023, CMS published the annual F2F/WOPD Required List update in a federal register announcement, which added 10 orthosis codes that go into effect on April 17, 2023. To ensure practitioner involvement, these items will require an in person face-to-face encounter or telehealth encounter and also require a written order prior to delivery (WOPD). If CMS adds additional

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products to the Master List, expands the list of items subject to prior authorization, or expands face-to-face encounter requirements or provisions requiring a written order prior to delivery, these changes may adversely impact Quipt's revenue, financial condition and results from operations.

***Reimbursement claims are subject to audits by various governmental and private payor entities from time to time and such audits may negatively affect Quipt's revenue, financial condition and results of operations.***

Quipt receives a substantial portion of its revenues from the Medicare program. Medicare reimbursement claims made by healthcare providers, including HME providers, are subject to audit from time to time by governmental payors and their agents, such as MACs that, among other things, process and pay Medicare claims, auditors contracted by CMS, and insurance carriers, as well as the Office of Inspector General of the Department of Health and Human Services (the "OIG-HHS"), CMS and state Medicaid programs. These include specific requirements imposed by the Durable Medical Equipment Medicare Administrative Contractor ("DME MAC") Supplier Manuals, Medicare DMEPOS enrollment requirements and Medicare DMEPOS Supplier Standards. To ensure compliance with Medicare, Medicaid and other regulations, government agencies or their contractors, including MACs, Recovery Audit Contractors ("RACs"), Unified Program Integrity Contractors ("UPICs") and Zone Program Integrity Contractors ("ZPICs"), often conduct audits and request customer records and other documents to support Quipt's claims submitted for payment of services rendered and compliance with government program claim submission requirements. Some contractors are paid a percentage of the overpayments recovered. Negative audit findings or allegations of fraud or abuse may subject Quipt or its individual subsidiaries to liability, such as overpayment liability, refunds or recoupments of previously paid claims, payment suspension, or the revocation of billing or payment privileges in governmental healthcare programs. If CMS or a state Medicaid agency determines that certain actions of the Company or an affiliated subsidiary present an undue risk of fraud, waste, or abuse, they may suspend the billing or payment privileges of the entity, deny the entity's enrollment or revalidation for Medicare or Medicaid participation, and potentially deny the re-enrollments of other commonly owned entities. Such actions, if imposed on the Company or its subsidiaries, could materially adversely impact the Company's revenue, financial condition and results of operations.

Moreover, provisions of the Patient Protection and Affordable Care Act ("ACA") implemented by CMS require that overpayments be reported and returned within 60 days of the date on which the overpayment is "identified." Any overpayment retained after this deadline may be considered an "obligation" for purposes of the False Claims Act, liability for which can result in the imposition of substantial fines and penalties. CMS currently requires a six-year "lookback period," for reporting and returning overpayments.

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Quipt cannot currently predict the adverse impact, if any, that these audits, determinations, methodologies and interpretations might have on its financial condition and results of operations.

***Significant reimbursement reductions and/or exclusion from markets or product lines could adversely affect Quipt.***

In March 2019, CMS announced that it would consolidate all rounds and areas of the DMEPOS Competitive Bidding Program into a single round of competition effective January 1, 2021 named "Round 2021", to consolidate prior CBAs. Round 2021 contracts became effective on January 1, 2021 and extend through December 31, 2023. CMS included 16 product categories in the Round 2021. On April 10, 2020, CMS announced that due to the COVID-19 pandemic, it removed the non-invasive ventilators product category from the Round 2021 DMEPOS Competitive Bidding Program.

On October 27, 2020, CMS announced that it would not award competitive bid contracts in 13 of the 15 remaining product categories due to a failure to achieve expected savings, and that Round 2021 contract awards would only be made for off-the-shelf (OTS) knee and back braces. On May 25, 2023, CMS announced a temporary gap period for the CBP starting January 1, 2024, following the expiration of all Round 2021 contracts for OTS knee and back braces on December 31, 2023. The gap period commenced as anticipated and CMS has yet to announce when the temporary gap period for the CBP would end, but indicated that it would start bidding for the next CBP round after it completes the formal notice and comment rulemaking process and implements necessary changes to the CBP to establish sustainable process, save money for Medicare patients and taxpayers, help limit fraud, waste, and abuse, and ensure patient access to quality items and services. During the temporary gap period, any Medicare-enrolled DMEPOS supplier may furnish DMEPOS items and services to patients, with payment in former CBAs based on 100% of the single payment amount for that CBA (increased by the projected percentage change in Consumer Price Index for All Urban Consumers), and payment in non-CBAs based on fully adjusted rates per the applicable methodology under 42 C.F.R. § 414.210(g).

The competitive bidding process (which is expected to be re-bid every three years) has historically put pressure on the amount Quipt is reimbursed in the markets in which it exists, as well as in areas that are not subject to the DMEPOS Competitive Bidding Program. The rates required to win future competitive bids could continue to depress reimbursement rates. Quipt will continue to monitor developments regarding the DMEPOS Competitive Bidding Program. While Quipt cannot predict the outcome of the DMEPOS Competitive Bidding Program on its business in the future nor the Medicare payment rates that will be in effect in future years for the items subjected to competitive bidding, the program may materially adversely affect its financial condition and results of operations.

***Failure by Quipt to maintain required licenses, permits and accreditation could impact its operations.***

Quipt is required to maintain a significant number of state and/or federal licenses and permits for its operations and facilities. The ability of Quipt and its subsidiaries to obtain, sustain or renew any such licenses and permits on acceptable ‎terms is subject to changes in regulations and policies and to the discretion of the applicable authorities or other ‎governmental agencies. There is no guarantee that the Quipt will meet these conditions.‎‎ Moreover, certain employees are required to maintain licenses in the states in which they practice. Quipt manages the facility licensing function centrally. In addition, individual clinical employees are responsible for obtaining, maintaining and renewing their professional licenses, and Quipt has processes in place designed to notify branch or pharmacy managers of renewal dates for the clinical employees under their supervision. State and federal licensing requirements are complex and often open to subjective interpretation by various regulatory agencies. Accurate licensure is also a critical threshold issue for the Medicare enrollment and the Medicare competitive bidding program. From time to time, Quipt may also become subject to new or different licensing requirements due to legislative or regulatory requirements developments or changes in its business, and such developments may cause Quipt to make further changes in its business, the results of which may be material. Although Quipt believes it has appropriate systems in place to monitor licensure, violations of licensing requirements may occur and failure by Quipt to acquire or maintain appropriate licensure for its operations, facilities and clinicians could result in interruptions in its operations, refunds to state and/or federal payors, sanctions or fines or the inability to serve Medicare beneficiaries in competitive bidding markets which could adversely impact Quipt's financial condition and results of operations.

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Accreditation is required by most of Quipt's managed care payors and is a mandatory requirement for all Medicare DMEPOS providers. If Quipt or any of its branches lose accreditation, or if any of its new branches are unable to become accredited, such failure to maintain accreditation or become accredited could adversely impact Quipt's financial condition and results of operations.

***Legislative action or changes could adversely affect Quipt's business, results of operations and financial condition.***

There could be legislative action that could adversely affect Quipt's business model, including, without ‎limitation: a decision by the US government to become the exclusive provider of health care services at some ‎time in the future; changes in US federal or state laws, rules, and regulations, including those governing the ‎corporate practice of medicine, and fee splitting; and changes in the US Anti-Kickback Statute and Stark Law ‎and/or similar state laws, rules, and regulations. Conversely, budgetary problems in the US could lead to ‎reduced funding, substantial modification, or elimination of Medicare programs, which would end reimbursement for ‎many patients. There can be no assurance that new rules and regulations will not be enacted or that existing rules and ‎regulations will not be applied in a manner which could limit or curtail Quipt's business. Amendments to ‎current laws and regulations could have a substantial adverse impact on Quipt and could adversely affect its financial condition and results of operations.‎

***Healthcare reform legislation could have a material impact on Quipt's business, results of operations and financial condition.***

Healthcare reform laws significantly affect the US healthcare services industry. In recent years, many legislative ‎proposals have been introduced or proposed in Congress and in some state legislatures that would affect major changes ‎in the healthcare system, either nationally or at the state level. At the federal level, Congress has continued to propose or ‎consider healthcare budgets that substantially reduce payments under the Medicare and Medicaid programs. The ‎ultimate content, timing or effect of any healthcare reform legislation and the impact of potential legislation on us is ‎uncertain and difficult, if not impossible, to predict. That impact may be material to Quipt's business, financial ‎condition, or results of operations.‎

***Actual or perceived failures to comply with applicable data protection, privacy and security, and consumer protection laws, regulations, standards and other requirements could adversely affect Quipt's business, results of operations and financial condition.***

Numerous federal and state laws and regulations addressing patient privacy and consumer privacy, including HIPAA and the HITECH Act, govern the collection, dissemination, security, use and confidentiality of patient-identifiable health information or personal information. Such laws and regulations relating to privacy, data protection, marketing and advertising, and consumer protection are evolving and subject to potentially differing interpretations. These requirements may be interpreted and applied in a manner that varies from one jurisdiction to another and/or may conflict with other laws or regulations. As a result, Quipt's practices may not have complied or may not comply in the future with all such laws, regulations, requirements and obligations. Any failure, or perceived failure, by Quipt or any of its third-party partners or service providers to comply with privacy policies or federal or state privacy or consumer protection-related laws, regulations, industry self-regulatory principles, industry standards or codes of conduct, regulatory guidance, orders to which they may be subject, or other legal obligations relating to privacy or consumer protection, could adversely affect Quipt's reputation, brand and business, and may result in claims, proceedings or actions against Quipt by governmental entities, consumers, users, suppliers or others. These proceedings may result in financial liabilities or may require Quipt to change its operations, including ceasing the use or sharing of certain data sets.

HIPAA and the HITECH Act, and their implementing regulations, require Quipt to comply with standards for the use and disclosure of health information within Quipt and with third parties. HIPAA and the HITECH Act also include standards for common healthcare electronic transactions and code sets, such as claims information, plan eligibility, payment information, and privacy and security of individually identifiable health information.

HIPAA requires healthcare providers, including Quipt, in addition to health plans and clearinghouses, to develop and maintain policies and procedures with respect to protected health information that is used or disclosed. The HITECH

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Act included notification requirement for breaches of patient-identifiable health information, restricts certain disclosures and sales of patient-identifiable health information and provides a tiered system for civil monetary penalties for HIPAA violations. HIPAA also provides for criminal penalties.

In addition, various federal and state legislative and regulatory bodies, or self-regulatory organizations, may expand current laws or regulations, enact new laws or regulations or issue revised rules or guidance regarding privacy, data protection and consumer protection. For instance, the CCPA became effective on January 1, 2020. The CCPA gives California residents expanded rights to access and delete their personal information, opt out of certain personal information sharing and receive detailed information about how their personal information is used by requiring covered companies to provide new disclosures to California consumers (as that term is broadly defined) and provide such consumers new ways to opt-out of certain sales of personal information. The CCPA provides for civil penalties for violations, as well as a private right of action for data breaches that is expected to increase data breach litigation. Although there are limited exemptions for protected health information and the CCPA's implementation standards and enforcement practices are likely to remain uncertain for the foreseeable future, the CCPA may increase Quipt's compliance costs and potential liability. Many similar privacy laws have been proposed at the federal level and in other states.

Additionally, the FTC and many state attorneys general are interpreting existing federal and state consumer protection laws to impose evolving standards for the online collection, use, dissemination and security of health-related and other personal information. Courts may also adopt the standards for fair information practices promulgated by the FTC, which concern consumer notice, choice, security and access. Consumer protection laws require Quipt to publish statements that describe how it handles personal information and choices individuals may have about the way Quipt handles their personal information. If such information that Quipt publishes is considered untrue, it may be subject to government claims of unfair or deceptive trade practices, which could lead to significant liabilities and consequences. Furthermore, according to the FTC, violating consumers' privacy rights or failing to take appropriate steps to keep consumers' personal information secure may constitute unfair acts or practices in or affecting commerce in violation of Section 5 of the FTC Act.

Under the Federal CAN-SPAM Act, the TCPA and the Telemarketing Sales Rule and Medicare regulations, Quipt is limited in the ways in which it can market and service its products and services by use of email, text or telephone marketing. The actual or perceived improper sending of text messages may subject us to potential risks, including liabilities or claims relating to consumer protection laws. Numerous class-action suits under federal and state laws have been filed in recent years against companies who conduct SMS texting programs, with many resulting in multi-million-dollar settlements to the plaintiffs. Any future such litigation against us could be costly and time-consuming to defend. For example, the TCPA, a federal statute that protects consumers from unwanted telephone calls, faxes and text messages, restricts telemarketing and the use of automated SMS text messages without proper consent. On April 1, 2021, in Facebook, Inc. v. Duguid, 141 S. Ct. 1163 (2021), the U.S. Supreme Court adopted a narrow definition of the type of automated dialers that are subject to the TCPA, thereby removing some automated text messages from the scope of the TCPA consent requirements. As a result, there may be an increase in litigation under state laws and new legislation at the federal and state level in an effort to ensure that consent is required for calls and text messages that are now outside the scope of the TCPA. For example, in May 2021, the Florida legislature passed a bill that expands restrictions for telephonic sales calls, including text messages, made using automated selection and dialing systems and creates a private right of action for violations of the law. Additionally, state regulators may determine that telephone calls to patients of Quipt are subject to state telemarketing regulations. If Quipt does not comply with existing or new laws and regulations related to telephone contacts or patient health information, it could be subject to criminal or civil sanctions. New health information standards, whether implemented pursuant to HIPAA, the HITECH Act, congressional action or otherwise, could have a significant effect on the manner in which Quipt handles healthcare-related data and communicates with payors, and the cost of complying with these standards could be significant. The scope and interpretation of the laws that are or may be applicable to the delivery of consumer phone calls, emails and text messages are continuously evolving and developing. If Quipt does not comply with these laws or regulations or if it becomes liable under these laws or regulations, it could face direct liability, could be required to change some portions of its business model, could face negative publicity and its business, financial condition and results of operations could be adversely affected. Even an unsuccessful challenge of Quipt's phone, email or SMS text practices by its consumers, regulatory authorities or other third parties could result in negative publicity and could require a costly response from and defense by Quipt.

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***Quipt may be adversely affected by global climate change or by legal, regulatory or market responses to such change.***

The long-term effects of climate change are difficult to predict and may be widespread. The impacts may include physical risks (such as rising sea levels or frequency and severity of extreme weather conditions), social and human effects (such as population dislocations or harm to health and well-being), compliance costs and transition risks (such as regulatory or technology changes) and other adverse effects. The effects could impair, for example, the availability and cost of certain products, commodities and energy (including utilities), which in turn may impact Quipt's ability to procure goods or services required for the operation of its business at the quantities and levels it requires. Quipt may bear losses incurred as a result of, for example, physical damage to or destruction of its facilities (such as patient service offices and warehouses), loss or spoilage of inventory, and business interruption due to weather events that may be attributable to climate change.

Governments in the U.S., Canada and abroad are considering new or expanded laws to address climate change. Such laws may include limitations on GHG emissions, mandates that companies implement processes to monitor and disclose climate-related matters, additional taxes or offset charges on specified energy sources, and other requirements.

**Risks Related to Our Financial Condition** 

***If Quipt were required to write down all or part of its goodwill, its net earnings and net worth could be materially adversely affected.***

Quipt had approximately $61,560,000 of goodwill recorded on its Consolidated Balance Sheets at September 30, 2025. Goodwill represents the excess of cost over the fair market value of net assets acquired in business combinations. If Quipt's market capitalization drops significantly below the amount of net equity recorded on its balance sheet, it might indicate a decline in its fair value and would require Quipt to further evaluate whether its goodwill has been impaired. If, as part of Quipt's annual review of goodwill, or if any triggering events are identified on an interim basis indicating a possible impairment of goodwill, Quipt is required to write down all or a significant part of its goodwill, its net earnings and net worth would be materially adversely affected, which could affect Quipt's flexibility to obtain additional financing. In addition, if Quipt's assumptions used in preparing its valuations for purposes of impairment testing differ materially from actual future results, Quipt may record impairment charges in the future, and its financial results may be materially adversely affected. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, such as estimates of a reporting unit's fair value, including the revenue growth rates, discount rate, and control premium used to estimate the reporting unit's fair value, and judgment about impairment triggering events.

***Quipt may not be able to generate sufficient cash flow to cover required payments or comply with financial and operating covenants under its long-term debt and long-term operating leases.***

Failure to generate sufficient cash flow to cover required payments or comply with financial and operating covenants under Quipt's long-term debt and long-term operating leases could result in defaults under such agreements and cross-defaults under other debt or operating lease arrangements, which could harm its operating subsidiaries. Quipt may not generate sufficient cash flow from operations to cover required interest, principal and lease payments. In addition, Quipt's current indebtedness contains restrictive covenants and requires Quipt to maintain or satisfy specified coverage tests. These restrictions may interfere with Quipt's ability to obtain additional advances under its existing Facility or to obtain new financing or to engage in other business activities, which may inhibit Quipt's ability to grow its business and increase revenue. In addition, failure by Quipt to comply with these restrictive covenants could result in an event of default which, if not cured or waived, could result in the acceleration of its debt.

***Quipt may need additional capital to fund its operating subsidiaries and finance its growth, and Quipt may not be able to obtain it on acceptable terms, or at all, which may limit its ability to grow.***

Quipt's ability to maintain and enhance its operating subsidiaries and equipment to meet regulatory standards, operate efficiently and remain competitive in its markets requires Quipt to commit substantial resources to continued investment in its affiliated facilities and equipment. Additionally, the continued expansion of its business through the

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acquisition of existing facilities, expansion of existing facilities and construction of new facilities may require additional capital, particularly if Quipt were to accelerate its acquisition and expansion plans. Financing may not be available or may be available only on terms that are not favorable. In addition, some of Quipt's outstanding indebtedness restricts, among other things, its ability to incur additional debt. If Quipt is unable to raise additional funds or obtain additional funds on acceptable terms, it may have to delay or abandon some or all of its growth strategies. Further, if additional funds are raised through the issuance of additional equity securities, the percentage ownership of Quipt's shareholders would be diluted. Any newly issued equity securities may have rights, preferences or privileges senior to those of the Common Shares.

***We will continue to incur significantly increased expenses and administrative burdens as a result of being a public company, which could have a material adverse effect on Quipt's business, financial condition and results of operations.***

As a public company, Quipt is subject to the reporting requirements and other obligations of the Exchange Act, the Sarbanes-Oxley Act, including the requirements of Section 404, the *Securities Act* (British Columbia), applicable national and multilateral instruments, as well as rules and regulations subsequently implemented by the SEC, Canadian securities regulatory authorities, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations promulgated and to be promulgated thereunder, the Public Company Accounting Oversight Board and the securities exchanges. The SEC, Canadian securities regulatory authorities, and other regulators continue to adopt new rules and regulations and make additional changes to existing regulations that require Quipt's compliance. Regulatory reform may lead to substantial new disclosure obligations, which may lead to additional compliance costs and impact, in ways Quipt cannot currently anticipate, the manner in which Quipt operates its business. Compliance with such requirements may cause Quipt to continue to incur additional accounting, legal and other expenses and may make certain activities more time-consuming. Quipt also incurs costs associated with corporate governance requirements, including requirements under securities laws, as well as rules and regulations implemented by the SEC, Canadian securities regulatory authorities, TSX and Nasdaq. Such rules and regulations increase Quipt's legal and financial compliance costs and Quipt continues to devote significant time to comply with these requirements. Quipt is currently evaluating and monitoring developments with respect to these rules and regulations and cannot predict or estimate the amount of additional costs it may incur or the timing of such costs.

Quipt has and will continue to incur costs to maintain internal control over financial reporting. It may also be more expensive to obtain director and officer liability insurance. Risks associated with Quipt's status as a public company may make it more difficult to attract and retain qualified persons to serve on the board of directors or as executive officers. Furthermore, certain of the key personnel of Quipt may be unfamiliar with the requirements of operating a company regulated by the SEC and Canadian securities regulatory authorities, which could cause Quipt to have to expend time and resources helping them become familiar with such requirements. These increased costs will require Quipt to divert a significant amount of money that could otherwise be used to expand the business and achieve strategic objectives. Advocacy efforts by shareholders and third parties may also prompt additional changes in governance and reporting requirements, which could further increase costs.

**Risks Related to Our Securities**

***We are subject to risks associated with proxy contests and other actions of activist shareholders.***

Publicly traded companies have increasingly become subject to campaigns by activist investors advocating corporate actions such as governance changes, financial restructurings, increased borrowings, special dividends, share repurchases or even sales of assets or entire companies to third parties or the activists themselves. Quipt previously experienced activist activity, including a hostile attempt to replace members of the Board, received letters and issued press releases with respect to strategic transactions, and a contested director nomination notice under the U.S. universal proxy rules. Although Quipt entered into cooperation and standstill arrangements with certain shareholders, including the Cooperation Agreement entered March 3, 2025 with an entity affiliated with Kanen Wealth Management, LLC and David L. Kanen and the Non-Disclosure and Standstill Agreement entered February 1, 2025 with Forager Fund, L.P. ("Forager Fund") and Forager Capital Management, LLC ("Forager Capital", and together with Forager Fund, "Forager"), those agreements are limited in scope and duration and do not prevent other shareholders, or the same shareholders after expiry, from initiating or

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supporting future activist campaigns or proxy contests. In addition, certain shareholders who entered into support or cooperation arrangements in connection with the 2025 annual meeting of shareholders have obligations that will expire or cease to be effective by Quipt's next annual general meeting, which may increase the risk of renewed activism, board change proposals, or attempts to obtain control of the Board through the meeting or otherwise.

Ongoing or future activism, proxy contests or related public campaigns could adversely affect Quipt's business, financial condition and results of operations in several ways. Responding to such campaigns is costly and time-consuming, diverts the attention of the Board, management and employees, and can disrupt execution of Quipt's strategic and operational plans. Public campaigns and the associated uncertainty may result in the loss of potential business opportunities and may make it more difficult to attract and retain qualified personnel, business partners, customers and others important to Quipt's success, any of which could negatively affect Quipt's business and results of operations and financial condition. Moreover, actions by activist shareholders may be exploited by Quipt's competitors, cause concern to current or potential customers and make it more difficult to attract and retain qualified personnel. If activist nominees or representatives are elected or appointed to the Board with a short-term or conflicting agenda, Quipt's ability to execute on its long-term strategy could be adversely affected. Activism and related market speculation can also lead to significant share price volatility and reduced trading liquidity.

Quipt may receive unsolicited acquisition proposals or other public or private communications urging it to pursue strategic alternatives, including an extraordinary transaction. While we regularly evaluate opportunities to enhance shareholder value, we have determined to date that the unsolicited approaches we have received have not been in the best interests of the Company and its shareholders. There can be no assurance that Quipt will continue to receive, or that Quipt will accept, any future proposals, that any process initiated in response would result in a transaction, or that, if undertaken, any transaction would be consummated on attractive terms or at all. The initiation, conduct or termination of any strategic review or sale process could be disruptive, could result in the loss of key employees or customers, could harm our negotiating leverage with counterparties, and could lead to increased costs, litigation risk, regulatory review and significant volatility in our share price. If a potential transaction is explored but not completed, Quipt's share price could decline to the extent it reflects market expectations of a transaction premium, and its relationships and operations could be adversely affected.

There is also risk that attempts to influence or obtain control of the Board through the annual meeting process, including under the U.S. universal proxy rules, could recur. The cooperation and standstill arrangements Quipt have in place do not preclude other shareholders from initiating or supporting proxy contests and may not prevent parties to those agreements from taking actions after the expiry of applicable periods. Quipt also cannot predict whether Quipt will be able to reach additional agreements with activists or other shareholders on acceptable terms in the future, or whether such agreements, if reached, will result in the outcomes anticipated when entered.

The occurrence, continuation or escalation of any of the foregoing activities is inherently unpredictable. Quipt cannot predict the timing, outcome or ultimate impact of any current or future activism, proxy contest, or strategic review, or the extent to which any such matters will distract the Board and management from its business or otherwise affect Quipt's performance.

***We may not be able to effectively maintain controls and procedures required by Section 404 of the Sarbanes-Oxley Act that are applicable to us.***

As a public company, Quipt is required to comply with the SEC's rules implementing Sections 302 and 404 of the Sarbanes-Oxley Act, which require management to certify financial and other information in Quipt's quarterly and annual reports and provide an annual management report on the effectiveness of internal control over financial reporting, as well as Canadian securities laws and regulations. To comply with the requirements of being a public company, we may continue to undertake various actions, such as implementing additional internal controls and procedures and hiring additional accounting or internal audit staff. These rules and regulations also increase our legal and financial compliance costs and make some activities more time-consuming and costly.

If we are not able to maintain internal controls and procedures in accordance with the requirements of applicable securities laws, rules, and regulations, including, without limitation, Section 404 in a timely manner or with adequate

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compliance, we may not be able to conclude that our internal control over financial reporting is effective, which may subject us to adverse regulatory consequences and could harm investor confidence and the market price of our Common Shares. The existence of material weaknesses in internal control over financial reporting could adversely affect our reputation or investor perceptions of us.

***We are an "emerging growth company" and a "smaller reporting company," and the reduced disclosure requirements applicable to emerging growth companies or smaller reporting companies may make our Common Shares less attractive to investors.***

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. We may remain an emerging growth company for up to five years, or until such earlier time as we have more than $1.235 billion in annual revenue, the market value of our stock held by non-affiliates is more than $700 million or we issue more than $1 billion of non-convertible debt over a three-year period. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, being permitted to present only two years of audited financial statements and a correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure, reduced disclosure obligations regarding executive compensation and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We cannot predict whether investors will find our Common Shares less attractive if we rely on these exemptions. If some investors find our Common Shares less attractive as a result, there may be a less active trading market for our Common Shares, and our stock price may be more volatile.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. An emerging growth company can therefore delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

We are also a "smaller reporting company," as such term is defined in Rule 12b-2 of the Exchange Act, meaning that the market value of our Common Shares held by non-affiliates is less than $250 million. We may continue to be a smaller reporting company if either (i) the market value of our Common Shares held by non-affiliates is less than $250 million or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our Common Shares held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

***Once we are no longer an "emerging growth company," a "smaller reporting company" or otherwise no longer qualify for applicable exemptions, we will be subject to additional laws and regulations affecting public companies that will increase our costs and the demands on management and could harm our operating results and cash flows.***

We are subject to the reporting requirements of the Exchange Act, which requires, among other things, that we file with the SEC, annual, quarterly and current reports with respect to our business and financial condition as well as other disclosure and corporate governance requirements. However, as an emerging growth company, we may take advantage of exemptions from various requirements such as an exemption from the requirement to have our independent auditors attest to our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act, as well as an exemption from the "say on pay" voting requirements pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act. We will no longer qualify as an emerging growth company after September 30, 2026 (or upon such earlier time as we no longer meet the other applicable requirements). After we no longer qualify as an emerging growth company, we may still qualify as a "smaller reporting company," as such term is defined in Rule 12b-2 of the Exchange Act, which may allow us to take

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advantage of many of the same exemptions from disclosure requirements, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act and reduced disclosure obligations regarding executive compensation in this prospectus and in our periodic reports and proxy statements. Once we are no longer an emerging growth company or a smaller reporting company or otherwise no longer qualify for these exemptions, we will be required to comply with these additional legal and regulatory requirements applicable to public companies and will incur significant legal, accounting and other expenses to do so. If we are not able to comply with the requirements in a timely manner or at all, our financial condition or the market price of our common stock may be harmed.

***Fluctuations in the price of Quipt's securities could contribute to the loss of all or part of your investment.***

Our Common Shares are currently listed and posted for trading on the TSX and Nasdaq. ‎The trading price of our Common Shares could be volatile and subject to wide fluctuations in response to various factors, some of which are beyond our control. Any of the factors listed below could have a material adverse effect on your investment in our Common Shares and our Common Shares may trade at prices significantly below the price you paid for them. In such circumstances, the trading price of our Common Shares may not recover and may experience a further decline.

Factors affecting the trading price of our Common Shares may include:

● actual or anticipated fluctuations in our quarterly financial results or the quarterly financial results of companies perceived to be similar to us;

● changes in the market's expectations about our operating results;

● our operating results failing to meet the expectation of securities analysts, investors or our guidance in a particular period;

● changes in financial estimates and recommendations by securities analysts concerning Quipt or the home medical equipment industry in general;

● operating and stock price performance of other companies that investors deem comparable to us;

● our ability to market new and enhanced products on a timely basis;

● changes in laws and regulations affecting our business;

● our ability to meet compliance requirements;

● commencement of, or involvement in, litigation involving us;

● inability to quickly remediate material weaknesses or the continued identification of material weaknesses in internal control over financial reporting;

● changes in our capital structure, such as future issuances of securities or the incurrence of additional debt;

● the volume of shares of our Common Shares available for public sale;

● any major change in our board of directors or management;

● sales of substantial amounts of Common Shares by our directors, executive officers or significant shareholders or the perception that such sales could occur; and

● general economic and political conditions such as tariffs, recessions, interest rates, fuel prices, international currency fluctuations and acts of war or terrorism, including the war in Ukraine and the ongoing conflict in the Middle East.

Broad market and industry factors may materially harm the market price of our securities irrespective of our operating performance. Securities of small-cap ‎and ‎healthcare ‎companies have experienced substantial volatility in the past, often based on ‎factors unrelated to ‎the ‎financial ‎performance or prospects of the companies involved. ‎In addition, the stock market in general, including each of Nasdaq and the TSX, have experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of the particular companies affected. Accordingly, the market price of our ‎‎Common Shares at any given point in time may not ‎‎‎accurately ‎reflect the long-term value of the Company. The trading prices and valuations of these stocks, and of our Common Shares, may not be predictable. A loss of investor confidence in the market for retail stocks or the stocks of other companies which investors perceive to be similar to us could depress our stock price regardless of our business, prospects, financial condition or results of operations. A decline in the market price of our Common Shares also could adversely affect our ability to issue additional securities and our ability to obtain additional financing in the future. Moreover, securities class-action litigation often has been brought ‎‎against companies ‎following periods of volatility in the market ‎price of their securities. The Company may in the

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‎‎future be the target of ‎similar litigation. Securities litigation could ‎result in substantial costs and damages and divert ‎‎management's attention ‎and resources‎.‎

***Because Quipt has no current plans to pay cash dividends on its Common Shares for the foreseeable future, you may not receive any return on investment unless you sell your Common Shares for a price greater than that which you paid for them.***

We have never declared or paid any dividends on our Common Shares. ‎We intend, for the ‎foreseeable future, ‎to retain future earnings, if any, for future operations, expansion and debt repayment and have no current plans to pay any cash dividends for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors and will depend on, among other things, our results of operations, financial condition, cash requirements, contractual restrictions and other factors that our board of directors may deem relevant. In addition, our ability to pay dividends may be limited by covenants of any existing and future outstanding indebtedness we or our subsidiaries incur. As a result, you may not receive any return on an investment in our Common Shares unless you sell our Common Shares for a price greater than that which you paid for them.

***Quipt****'****s normal course issuer bid program expired, which may have potential impacts on share valuation, liquidity and capital allocation.***

Quipt's normal course issuer bid on the TSX, authorized on April 23, 2024, expired on April 30, 2025 and was not renewed. The prior authorization permitted Quipt, subject to TSX limits and applicable securities laws, to purchase for cancellation up to approximately 10% of its public float; an aggregate of 62,800 Common Shares were repurchased under that authorization.

If Quipt were to consider future repurchases, any new program would be subject to Board approval, applicable TSX rules and Canadian and U.S. securities laws, Quipt's cash needs and liquidity, contractual and financing covenants, blackout periods and other restrictions, and may be modified, suspended or discontinued at any time. There can be no assurance that Quipt will implement or effect repurchases in the future, that any repurchases would occur at prices or times that are favorable, or that any repurchases would have the expected impact on Quipt's share price or per-share metrics. If Quipt were to allocate cash to repurchases in the future and economic or industry conditions deteriorate, Quipt could have reduced flexibility to fund operations, capital expenditures, strategic initiatives or opportunistic transactions. Conversely, if Quipt refrains from repurchases in favor of other uses of capital, the market may react adversely. Any of the foregoing could negatively affect Quipt's business, financial condition and results of operations.

***Provisions in our constating documents and under British Columbia law could make an acquisition of us, which may be beneficial to our shareholders, more difficult and may prevent attempts by our shareholders to replace or remove our current management.***

Provisions in our constating documents may discourage, delay or prevent a merger, acquisition or other change in control of us that shareholders may consider favorable, including transactions in which shareholders might otherwise receive a premium for our shares. These provisions could also limit the price that investors might be willing to pay in the future for shares of our Common Shares, thereby depressing the market price of our Common Shares. Moreover, Quipt is authorized to issue an unlimited number of Common Shares, an unlimited number of first preferred ‎shares without par value, and an unlimited number of second preferred shares without par value.

In addition, because our board of directors is responsible for appointing the members of our management team, these provisions may frustrate or prevent any attempts by our shareholders to replace or remove our current management by making it more difficult for shareholders to replace members of our board of directors. Among other things, these provisions:

● allow the authorized number of our directors to be changed only by resolution of our board of directors;

● limit the manner in which shareholders can remove directors from the board;

● establish advance notice requirements for shareholder proposals that can be acted on at shareholder meetings and nominations to our board of directors;

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● require that shareholder actions must be effected at a duly called shareholder meeting unless the requisite written consent for such actions is obtained in accordance with the *Business Corporations Act* (British Columbia);

● ‎authorize our board of directors to issue shares without shareholder approval, which could be used to institute a "poison pill" that would work to dilute the stock ownership of a potential hostile acquirer, effectively preventing acquisitions that have not been approved by our board of directors; and

● require the approval of the holders of at least two-thirds of the votes that all our shareholders would be entitled to cast to amend or repeal certain provisions of our constating documents.

***Forward-looking statements may prove to be inaccurate, which could have a material adverse effect on Quipt's business, financial condition and results of operations.***

Readers are cautioned not to place undue reliance on forward-looking statements. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, of both a general and ‎specific nature, that could cause actual results to differ materially from those suggested by the forward-looking ‎statements or contribute to the possibility that predictions, forecasts or projections will prove to be materially ‎inaccurate. Additional information on the risks, assumptions and uncertainties are found in this Annual Report on Form 10-K and in ‎certain of the documents incorporated by reference herein under the heading "*Caution Regarding ‎Forward-Looking Statements*".‎

#### Item 1B. Unresolved Staff Comments.
None.

#### Item 1C. Cybersecurity.

#### Risk Management and Strategy
The Company has adopted policies and implemented certain controls and procedures that allow its management to assess, identify and manage material risks from cybersecurity threats and for the Board of Directors (the "Board"), through its Audit Committee, to actively oversee the strategic direction, objectives, and effectiveness of the Company's cybersecurity risk management framework. The Cybersecurity Program is developed and reviewed by the Company's executive leadership alongside the Company's Audit Committee and carried out and overseen by the senior person in charge of IT at the Company, currently our Chief Compliance Officer ("CCO").

The Company's processes are integrated into its overall enterprise risk management program and compliments the Company's enterprise-wide risk assessment architecture, as implemented by the Company's management and as overseen by the Company's Board through its Audit Committee.

The Company seeks to address cybersecurity risks through a cross-functional approach that is focused on preserving the confidentiality, security, and availability of the information that the Company collects and stores by identifying, preventing, and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.

To identify and assess material risks from cybersecurity threats, we engage in regular network and endpoint monitoring, vulnerability assessments, penetration testing, and tabletop exercises. We continuously monitor threats and unauthorized access to our information security network.

We have developed incident response plans by using the information gained through testing and monitoring to manage any identified vulnerabilities and further improve our cybersecurity preparedness and response infrastructure. Such plans set forth the actions to be taken in responding to and recovering from cybersecurity incidents, which include triage, assessing the severity of incidents, escalation protocols, containment of incidents, investigation of incidents, and remediation. We also regularly perform phishing tests of our employees and provide annual privacy and security training for all employees. Our security training incorporates awareness of cyber threats (including but not limited to malware, ransomware, and social engineering attacks), password hygiene and incident reporting processes.

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We review our cybersecurity risk framework and related policies annually with our senior management to help identify areas for continued focus and improvement. We also engage third parties to review and assess our processes annually.

The Company has also implemented processes to identify, monitor and address material risks from cybersecurity threats associated with our use of third-party service providers, including those in our supply chain or who have access to our systems, data or facilities that house such systems or data. discussing issues to be addressed and recommending securities measures to be improved where possible. Additionally, we generally require those third parties that could introduce significant cybersecurity risk to us to manage their cybersecurity risks in specified ways, and to agree to be subject to cybersecurity audits, which we conduct as appropriate.

Although in the last three fiscal years we have not experienced any material cybersecurity incidents and the expenses we have incurred from cybersecurity incidents, including financial losses, penalties, and settlements, were immaterial, we may experience such incidents in the future and the scope and impact of any such future incidents cannot be predicted. We have described whether and how risks from identified cybersecurity threats, including as a result of any previous cybersecurity incidents, may materially affect or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition in the risk factors titled "*Quipt's business depends on its information systems, including software licensed from or hosted by third parties, and ‎any failure or significant disruption or effective cyber-attack on any of these systems, security breaches or improper ‎disclosure of or loss of data could materially affect our business, results of operations and financial condition.*‎" and "*Quipt currently outsources, and from time to time in the future may outsource, a portion of its internal business ‎functions to third-party providers, which has significant risks, and Quipt's failure to manage these risks successfully ‎could materially adversely affect its business, results of operations, and financial condition*." in Item 1A. "Risk Factors" of this Annual Report on Form 10-K.

#### Governance
*Role of the Board of Directors and the Audit Committee*

As part of the Board's role in overseeing the Company's enterprise risk management program, which includes our cybersecurity risk management framework, the Board is responsible for exercising oversight of management's identification and management of, and planning for, material cybersecurity risks that may reasonably be expected to impact the Company. While the full Board has overall responsibility for risk oversight, the Board has delegated oversight responsibility related to risks from cybersecurity threats to the Audit Committee. The Audit Committee is responsible for overseeing the strategic direction, objectives, and effectiveness of the Company's cybersecurity risk management framework, taking into account the Company's risk exposures and progress of its risk management processes. The Audit Committee is informed of the Company's cybersecurity risk management and receives an overview of its cybersecurity program from management at least quarterly. Material cybersecurity risks are also discussed during separate Board meetings as part of the Board's risk oversight generally.

*Role of Management*

Our CCO is responsible for management's oversight of cybersecurity governance, decision-making, risk management, awareness, and compliance across the Company. Our CCO works to employ a cybersecurity program designed to protect the Company's information systems from cybersecurity threats and to respond to incidents in accordance with the Company's incident response plan and other policies and procedures.

In the event of a material cybersecurity incident or investigation, management will, in compliance with escalation protocols in place, promptly report to the Audit Committee and the Board, as appropriate, in accordance with the Company's incident response plan, and other policies and determine the timing of action, and necessary response.

Our CCO has over 20 years of experience in various roles in information technology and information security. He holds a degree in Legal Studies and holds several relevant certifications, including Certified HIPAA Professional ("CHP").

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#### Item 2. Properties.
The Company's total space is approximately 750,000 square feet, and consists of warehouse, retail, and administrative offices. The Company leases all but one of its over 175 facilities. The following is a summary of the Company's largest facilities by location:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Location** | <br>**Owned / Leased** | **Square**<br>**Footage** | <br>**Primary Usage** |
| Wilder, KY | Leased  | 25000 | Corporate headquarters, warehouse, administrative |
| Mesa, AZ | Leased  | 24300 | Warehouse, administrative |
| Flint, MI | Leased  | 21500 | Warehouse |
| Southfield, MI | Leased  | 21400 | Warehouse, administrative |
| Indianapolis, IN | Leased  | 19100 | Warehouse, administrative |
| Indianapolis, IN | Leased  | 15000 | Warehouse, retail |
| Essexville. MI | Leased  | 13100 | Warehouse, retail, administrative |
| Paducah, KY | Leased  | 11500 | Warehouse, retail |
| Cheboygan. MI | Leased  | 10800 | Warehouse |
| Lexington. KY | Leased  | 10700 | Warehouse, retail |
| Grand Blanc, MI | Leased  | 10700 | Administrative |
| Waterville, ME | Leased  | 10400 | Warehouse, retail |
| Lincoln, NE | Leased  | 10000 | Warehouse, retail |

---

Management believes that the Company's sites are adequate to support the business and that the properties and equipment have been well maintained.

#### Item 3. Legal Proceedings.
From time to time, the Company is involved in various legal proceedings and investigations arising in the ordinary course of business, including those relating to proxy contests and other actions of activist shareholders, employment matters, relationships with clients and contractors, intellectual property disputes and other business matters. The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and if one or more legal matters were resolved against the Company in a reporting period for amounts above management's expectations, the Company's financial condition and operating results for that period could be materially adversely affected.

The Company has received a civil investigative demand ("CID") from the Department of Justice ("DOJ") through the US Attorney's Office for the Northern District of Georgia pursuant to the False Claims Act regarding an investigation concerning whether the Company may have caused the submission of false claims to government healthcare programs for CPAP equipment. The Company is cooperating with the investigation. No assurance can be given as to the timing or outcome of the DOJ's investigation.

In April 2024, the Company received a subpoena from the SEC to provide certain documents related to the Company and the DOJ investigation, CID, and financial reporting and disclosure matters. The SEC concluded its investigation in November 2024 and, based on the information it had at such time, the SEC advised that it did not intend to recommend an enforcement action by it against the Company.

#### Item 4. Mine Safety Disclosure.
Not applicable.

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#### PART II

#### Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.

#### Market Information and Holders
The Company's Common Shares are listed for trading on the TSX and on Nasdaq, both ‎under the symbol "QIPT".‎ As of December 11, 2025, there were 83 holders of record of the Company's Common Shares. The actual number of shareholders is greater than this number of holders of record, and includes shareholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include shareholders whose shares may be held in trust by other entities.

#### Dividend Policy
The Company has never declared or paid any dividends on its Common Shares. The Company intends, for the ‎foreseeable future, to retain its future earnings, if any, to finance the Company's business activities. The payment of future dividends, ‎if any, will be reviewed periodically by the Board and will depend upon, among other things, ‎conditions then existing including earnings, financial conditions, cash on hand, financial requirements to fund business ‎activities, development and growth, and other factors that the Board may consider appropriate in the ‎circumstances.‎ Dividends paid by the Company would be subject to tax and, potentially, withholdings.

Dividends paid or credited or deemed to be paid or credited by the Company to a non-resident of Canada will ‎generally be subject to Canadian withholding tax at the rate of 25%, subject to any applicable reduction in the rate ‎of such withholding under an income tax treaty between Canada and the country where the holder is resident. ‎Under the Canada-United States Tax Convention (1980), as amended, the withholding tax rate in respect of a dividend paid to a U.S. resident shareholder that beneficially ‎owns such dividends is generally reduced to 15%, unless the U.S. resident shareholder is a corporation ‎which owns at least 10% of the voting shares of the Company at that time, in which case the withholding tax rate ‎is reduced to 5%.‎ U.S. resident shareholders may be entitled to claim a foreign tax credit for any Canadian tax withheld, depending on the circumstances.

#### Unregistered Sale of Equity Securities
None.

#### Securities Authorized for Issuance under Equity Compensation Plans
Such information is incorporated by reference to the information set forth in Part III, Item 12 of this Annual Report on Form 10-K.

#### Purchase of Equity Securities
Neither we nor any affiliated purchaser repurchased any of our equity securities during the quarter ended September 30, 2025.

#### Item 6. [Rese rved]

#### Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with, and is qualified in its entirety by, the audited consolidated financial statements and the accompanying notes. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those described in Part I, Item 1A. "Risk Factors" and elsewhere in this Annual Report on Form 10-K.

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The audited consolidated financial statements as of and for the years ended September 30, 2025 and 2024 (the "consolidated financial statements") of the Company were prepared in accordance with accounting principles generally accepted in the US ("GAAP").

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.

**Overview**

#### Quipt business objective
The growth in the number of elderly patients in the US healthcare market is creating pressure to provide more efficient delivery systems. Healthcare providers, such as hospitals, physicians, and pharmacies, are seeking partners that can offer a range of products and services that improve outcomes, reduce hospital readmissions, and help control costs. Quipt fills this need by delivering a growing number of specialized products and services to achieve these goals. Quipt seeks to provide an ever-expanding line of products and services over larger geographic regions within the US using several growth strategies. With over 175 offices, Quipt employs approximately 1,600 employees in the US.

**Recent transactions**

On July 1, 2025, we completed the acquisition of Mediserve, a Tennessee-based full-service durable medical equipment provider. On September 1, 2025, we completed the acquisition of a 60% ownership interest in Hart, a Michigan-based provider of durable medical equipment, point-of-service products, and related services.

#### Future outlook
Our priority continues to be the generation of operating profit, positive cash flow, and growth in Adjusted EBITDA, a non-GAAP financial measure which is defined below, in fiscal year 2026 and beyond. As we continue to expand in our existing markets, we plan to leverage our business platforms to enter new markets and expand our product offerings. Our continued business integration and rationalization, and our prior acquisitions, have given us a focus and path toward revenue growth and profitability. We will continue to improve operational efficiencies and call center management as they are key execution points to maintaining our Adjusted EBITDA while growing revenues by cross selling products to existing and acquired patients.

#### Selected Annual Information ($ amounts in thousands, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of or for the**<br>**three months ended**<br>**September**<br>**30, 2025** | **As of or for the**<br>**three months ended**<br>**September**<br>**30, 2024** | **As of or for the**<br>**year ended**<br>**September**<br>**30, 2025** | **As of or for the**<br>**year ended**<br>**September**<br>**30, 2024** |
| Number of patients served | 200000 | 153000 | 346000 | 314000 |
| Number of equipment set-ups or deliveries | 282000 | 212000 | 917000 | 854000 |
| Respiratory resupply set-ups or deliveries | 133000 | 120000 | 486000 | 480000 |
| Adjusted EBITDA | $14924 | $13444 | $55947 | $57746 |
| Total revenues | $68313 | $61332 | $245359 | $245915 |
| Net income (loss) per share - Basic | $(0.08) | $(0.07) | $(0.24) | $(0.16) |
| Net income (loss) per share - Diluted | $(0.08) | $(0.07) | $(0.24) | $(0.16) |
| Total assets |  |  | $283289 | $247248 |
| Total long-term liabilities |  |  | $96484 | $79207 |
| Shareholders' equity |  |  | $112097 | $107191 |

---

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#### Operating Results
The fiscal year ended September 30, 2025 presented us with a range of challenges that we absorbed in the period, which negatively impacted our financial performance and prevented us from achieving our target annualized organic growth.

The Medicare 75/25 blended rate ("Medicare 75/25"), which had been providing rate relief for certain geographies, was discontinued as of January 1, 2024‎. Medicare 75/25 was introduced in 2020. This rate adjustment, named after its 75%/25% allocation model, aimed to protect access to medical equipment products and services in non-rural, non-competitive bid areas by temporarily increasing Medicare reimbursement rates for providers serving those areas. This legislative action was designed to ensure that medical equipment suppliers could continue providing essential products and services. This blended rate was implemented to counter the decline in reimbursement rates experienced in the years prior to 2020. The discontinuance is still under legislative review, and Medicare 75/25 could return, but the cessation on January 1, 2024 had a negative impact ‎on our revenue and operating results in the fiscal year ended September 30, 2025.

Beginning during the fiscal year ended September 30, 2024 and continuing into the fiscal year end September 30, 2025, we also experienced the withdrawal of Medicare Advantage members due to a capitated agreement moving to other providers in the industry. Further, in November 2024, a disposable supply contract which the Company was a party to was not renewed.

The Company uses Change Healthcare, a subsidiary of UnitedHealth Group, to submit patient claims to certain non-Medicare payors for payment. UnitedHealth Group announced that on February 21, 2024, Change Healthcare's information technology systems were impacted by a cybersecurity incident ‎ (the "Change Healthcare Incident")‎. This incident significantly impacted the healthcare industry and hindered the ability to process and bill claims during the three months ended March 31, 2024 and June 30, 2024, creating a reduction in our cash flow, including collections of claims not directly impacted by the‎ Change Healthcare Incident that were slowed by the diversion of normal collection efforts to address the Change Healthcare Incident. The ultimate resolution of the Change Healthcare Incident also had a negative impact on our revenue and operating results during the fiscal year ended September 30, 2025.

The cumulative impact of these events on total revenue is estimated to be approximately $1,500,000 and $8,500,000 for the three and twelve months ended September 30, 2025, respectively.

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**Comparison of Results of Operations for the Years and Three Months Ended September 30, 2025 and 2024**

The following table summarizes our results of operations for the years and three months ended September 30, 2025 and 2024 (amounts in thousands, except per share amounts):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three**<br>**months ended**<br>**September 30,**<br>**30, 2025** | **For the three**<br>**months ended**<br>**September 30,**<br>**30, 2024** | **For the**<br>**year ended**<br>**September 30,**<br>**30, 2025** | **For the**<br>**year ended**<br>**September 30,**<br>**30, 2024** |
| Total revenues | $68313 | $61332 | $245359 | $245915 |
| Cost of inventory sold | 20406 | 17664 | 68182 | 68925 |
| Operating expenses | 34125 | 31446 | 125457 | 122542 |
| Right-of-use operating lease amortization and interest | 1681 | 1362 | 6434 | 5974 |
| Depreciation | 10369 | 10016 | 39429 | 38490 |
| Amortization of intangible assets | 1505 | 1521 | 6053 | 6091 |
| Stock-based compensation | 1409 | 330 | 4035 | 2484 |
| Acquisition-related costs | 596 | 7 | 817 | 401 |
| Gain on disposals of property and equipment | (329) | (55) | (1225) | (107) |
| Interest expense, net | 1634 | 1524 | 6277 | 6381 |
| (Gain) loss on foreign currency transactions | 136 | (188) | 367 | (43) |
| Share of loss in equity method investment | 79 | 67 | 324 | 309 |
| Change in fair value of derivative liability - interest rate swap | (10) | 952 | (452) | 1122 |
| Provision (benefit) for income taxes | 141 | (374) | 241 | 109 |
| Net income attributable to noncontrolling interest | 121 |  | 121 |  |
| Net loss | $(3550) | $(2940) | $(10701) | $(6763) |
| Loss per share |  |  |  |  |
| &nbsp;&nbsp;Basic | $(0.08) | $(0.07) | $(0.24) | $(0.16) |
| &nbsp;&nbsp;Diluted | $(0.08) | $(0.07) | $(0.24) | $(0.16) |

---

#### Revenue
For the year ended September 30, 2025, revenue totaled $245,359,000, a decrease of $556,000, or 0.2%, from the year ended September 30, 2024. This decrease is primarily due to a reduction of approximately $8,500,000 from the challenges discussed in Operating Results above, and was mostly offset by $7,300,000 contributed by the acquisitions during the year ended September 30, 2025.

For the three months ended September 30, 2025, revenue totaled $68,313,000, an increase of $6,981,000, or 11.4%, from the three months ended September 30, 2024. This increase is primarily due to $7,300,000 contributed by the acquisitions during the three months ended September 30, 2025, which was partially offset by the challenges discussed in the Operating Results above.

#### Inventory sold
For the year ended September 30, 2025, inventory sold totaled $68,182,000, a 1.1% decrease as compared to $68,925,000 for the year ended September 30, 2024. The decrease was due to the decrease in revenue.

For the three months ended September 30, 2025, inventory sold totaled $20,406,000, a 15.5% increase from $17,664,000 for the three months ended September 30, 2024. The increase in dollars was due to the growth in revenues. As a percentage of revenue, inventory sold increased to 29.9% for the three months ended September 30, 2025 as compared to 28.8% for the three months ended September 30, 2024, due to the acquisitions' inventory sold being higher as a percentage of revenue. Additionally, estimated vendor rebates were lower due to the lack of growth in purchases required to achieve the same tier that was achieved for the year ended September 30, 2024.

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#### Operating expenses
For the year ended September 30, 2025, operating expenses were $125,457,000, an increase of $2,915,000 from $122,542,000 for the year ended September 30, 2024. The acquisitions during the year ended September 30, 2025 contributed approximately $3,500,000 to the increase in operating expenses. This was offset by decreases in the remaining portion of the Company from reduced headcount and incentive compensation, and controls on discretionary spending such as marketing and travel.

For the three months ended September 30, 2025, operating expenses were $34,125,000, an increase of $2,679,000 from $31,446,000 for the three months ended September 30, 2024. The acquisitions during the three months ended September 30, 2025, contributed approximately $3,500,000 to the increase in operations. This was offset by decreases in the remaining portion of the Company from reduced headcount and incentive compensation, and controls on discretionary spending such as marketing and travel.

**Right-of-use operating lease amortization and interest**

Right-of-use operating lease amortization and interest increased by $460,000 to $6,434,000 for the year ended September 30, 2025 from $5,974,000 for the year ended September 30, 2024. The increase was due to new locations and, to a lesser extent, the impact of the acquisitions during the year ended September 30, 2025.

Right-of-use operating lease amortization and interest increased by $319,000 to $1,681,000 for the three months ended September 30, 2025 from $1,362,000 for the three months ended September 30, 2024. The increase was due to new locations and, to a lesser extent, the impact of the acquisitions during the three months ended September 30, 2025.

#### Depreciation expense
Depreciation expense increased by $939,000 to $39,429,000 for the year ended September 30, 2025 from $38,490,000 for the year ended September 30, 2024. This increase was primarily due to approximately $800,000 from the acquisitions during the year ended September 30, 2025.

Depreciation expense increased by $353,000 to $10,369,000 for the three months ended September 30, 2025 from $10,016,000 for the year ended September 30, 2024. The increase was primarily due to approximately $800,000 from the acquisitions during the three months ended September 30, 2025 offset by decreases in rental equipment depreciation due to the timing of additions.

#### Stock-based compensation
Stock-based compensation increased by $1,551,000 to approximately $4,035,000 for the year ended September 30, 2025 from $2,484,000 for the year ended September 30, 2024 due to grants of restricted stock units and stock options during the year ended September 30, 2025.

Stock-based compensation increased by $1,079,000 to approximately $1,409,000 for the three months ended September 30, 2025 from $330,000 for the three months ended September 30, 2024 due to grants of restricted stock units and stock options during the year ended September 30, 2025.

**Acquisition-related costs**

Acquisition related costs increased by $416,000 to $817,000 for the year ended September 30, 2025 from $401,000 for the year ended September 30, 2024. This increase is due to acquisitions during the year ended September 30, 2025.

Acquisition related costs increased by $589,000 to $596,000 for the three months ended September 30, 2025 from $7,000 for the three months ended September 30, 2024, due to acquisitions during the year ended September 30 2025.

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#### Gain on disposals of property and equipment
Gain on disposals of property and equipment increased to $1,225,000 for the year ended September 30, 2025 from $107,000 for the year ended September 30, 2024, as a result of proceeds received from the return of recalled ventilators to the manufacturer.

Gain on disposals of property and equipment increased to $329,000 for the three months ended September 30, 2025 from $55,000 for the three months ended September 30, 2024, as a result of proceeds received from the return of recalled ventilators to the manufacturer.

#### Interest expense, net of interest income
Interest expense, net of interest income, decreased by $104,000 to $6,277,000 for the year ended September 30, 2025 from $6,381,000 for the year ended September 30, 2024 as a result of lower average balances and lower interest rates on the Facility and equipment loans

Interest expense, net of interest income, increased $110,000 to $1,634,000 in the three months ended September 30, 2025 from $1,524,000 for the three months ended September 30, 2024, primarily due to the one month of interest on the borrowing under the Facility used to fund the acquisition of Hart.

#### Share of loss in equity method investment
Share of loss in equity method investment was a loss of $79,000 and $324,000 for the three months and year ended September 30, 2025, respectively. Share of loss in equity method investment was a loss of $67,000 and $309,000 for the three months and year ended September 30, 2024. This represents the Company's pro rata percentage of the net loss of DMEScripts, LLC, which was acquired in the year ended September 30, 2023.

#### Provision (benefit) for income taxes
The provision for income taxes of $241,000 for the year ended September 30, 2025 increased from $109,000 for the year ended September 30, 2024.

The provision for income taxes was $141,000 for the three months ended September 30, 2025, as compared to a benefit for income taxes of $374,000 for the three months ended September 30, 2024. The benefit in the three months ended September 30, 2024 primarily relates to the filing of the tax returns for the year ended September 30, 2023 being more favorable than originally estimated.

**Net income attributed to noncontrolling interest**

The net income attributable to noncontrolling interest was $121,000 for both the three months and year ended September 30, 2025. This is related to the Company acquiring a 60% ownership interest in Hart during the three months ended September 30, 2025.

#### Non-GAAP measures
Throughout this MD&A, references are made to a measure which is believed to be meaningful in the assessment of the Company's performance. This metric is a non-standard measure under GAAP and may not be identical to similar measures reported by other companies. Readers are cautioned that the disclosure of these items is meant to add to, and not replace, the discussion of financial results as determined in accordance with GAAP. The primary purpose of this non-GAAP measure is to provide supplemental information that may prove useful to investors who wish to consider the impact of certain non-cash or unusual items on the Company's operating performance. Management uses both GAAP and non-GAAP measures when planning, monitoring, and evaluating the Company's performance.

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#### Adjusted EBITDA
This MD&A refers to "Adjusted EBITDA," which is a non-GAAP ‎financial measure that does not have standardized meaning prescribed by GAAP. The ‎Company's ‎presentation of this financial measure may not be comparable to similarly titled measures used by ‎other ‎companies. This financial measure is intended to provide additional information to investors concerning ‎the ‎Company's performance.‎

Adjusted EBITDA is defined as net income (loss), adjusted for net interest expense, depreciation, amortization, right-of-use operating lease amortization and interest, provision (benefit) for income taxes, certain professional fees, stock-based compensation, acquisition-related costs, gain on disposals of property and equipment, gain (loss) on foreign currency transactions, change in fair value of derivative liability – interest rate swap, and share of loss in equity method investment. Adjusted EBITDA is a non-GAAP measure that the Company uses as an indicator of financial health and excludes ‎several items which may be useful in the consideration of the financial condition of the Company.

Set forth below are descriptions of the material financial items that have been excluded from net income (loss) to calculate Adjusted EBITDA and the material limitations associated with using this non-GAAP financial measure.

● The amount of interest expense we incur or interest income we generate, including right-of-use interest expense, may be useful for investors to consider and may result in current cash inflows or outflows. However, we do not consider the amount of net interest expense to be a representative component of the day-to-day operating performance of our business.

● Depreciation and amortization expense, including right-of-use amortization, may be useful for investors to consider because they generally represent the wear and tear on our property and equipment used in our operations and amortization of intangibles valued in acquisitions. However, we do not believe these charges necessarily reflect the current and ongoing cash charges related to our business.

● Provision (benefit) for income taxes may be useful for investors to consider because it generally represents the taxes which may be payable for the period and may reduce the amount of funds otherwise available for use. However, we do not consider the amount of income tax expense to be a representative component of the day-to-day operating performance of our business.

● We do not consider certain professional fees, including those related to the CID, the loss of foreign private issuer status, and proxy contests and other actions of activist shareholders, to be representative components of the day-to-day operating performance of our business.

● Stock-based compensation expense may be useful for investors to consider because it is a component of compensation received by the Company's directors, officers, employees, and consultants. However, stock-based compensation is being added back because it is non-cash and because the decisions which gave rise to these expenses were not made to increase revenue in a particular period, but rather were made for the Company's long-term benefit over multiple periods.

● Acquisition-related costs may be useful for the investors to consider because they are professional fees directly related to pursuing and completing various acquisitions. While the costs are expected to be recurring if the Company continues to make acquisitions, they are generally incurred prior to the inclusion of such acquisitions in the consolidated revenues of the Company.

● The change in fair value of derivative liability – interest rate swaps and the share of loss in equity method investment are added back because it is non-cash in the period of change in the fair value.

● The gain on disposals of property and equipment is excluded because they are a recapture of previously depreciated property and equipment.

● The loss (gain) on foreign currency transactions is excluded because they are not a representative component of our day-to-day operations.

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The following table is a reconciliation of net loss to Adjusted EBITDA for the indicated periods‎ (amounts in thousands of $):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three**<br>**months ended**<br>**September**<br>**30, 2025** | **For the three**<br>**months ended**<br>**September**<br>**30, 2024** | **For the**<br>**year ended**<br>**September**<br>**30, 2025** | **For the**<br>**year ended**<br>**September**<br>**30, 2024** |
| Net loss | $(3550) | $(2940) | $(10701) | $(6763) |
| Add back: |  |  |  |  |
| Depreciation and amortization | 11874 | 11537 | 45482 | 44581 |
| Interest expense, net | 1634 | 1524 | 6277 | 6381 |
| Right-of-use operating lease amortization and interest | 1681 | 1362 | 6434 | 5974 |
| Provision (benefit) for income taxes | 141 | (374) | 241 | 109 |
| Professional fees | 1263 | 1092 | 4348 | 3298 |
| Stock-based compensation | 1409 | 330 | 4035 | 2484 |
| Acquisition-related costs | 596 | 137 | 817 | 401 |
| Change in fair value of derivative liability - interest rate swap | (10) | 952 | (452) | 1122 |
| Gain on disposals of property and equipment | (329) | (55) | (1225) | (107) |
| Gain (loss) on foreign currency transactions | 136 | (188) | 367 | (43) |
| Share of loss in equity method investment | 79 | 67 | 324 | 309 |
| Adjusted EBITDA | $14924 | $13444 | $55947 | $57746 |

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#### Use of Proceeds
The following table provides information about the Company's recent debt and equity financings and the actual use of proceeds from those financings compared to the intended use of proceeds from the offerings.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date of Financing** | **Type of Financing** | **Gross Proceeds** | **Initial Intended Use of Net Proceeds** | **Actual Use of Net Proceeds to Date** | **Explanation of Variance and Impact on Business Objectives** |
| September 2, 2025 | $110.0 million facility consisting of delayed-draw term loan availability of $85.0 million, a term loan of $5.0 million, and $20.0 million revolving credit availability. | $20.65 million, consisting of a $17.4 million draw on the delayed-draw term loan, and a $3.25 million draw on the revolving credit. | The proceeds were expected to be used for acquisitions, working capital, and general corporate requirements. | The proceeds drawn to date were fully used to acquire Hart. | Proceeds have been used as intended. |

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#### Financial Position
The following table is the Company's summarized financial position as of September 30, 2025 and 2024 (in thousands):

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| | | |
|:---|:---|:---|
|  | **As of**<br>**September 30, 2025** | **As of**<br>**September 30, 2024** |
| Cash | $12916 | $16174 |
| Accounts receivable, inventory and prepaid assets | 65433 | 56880 |
| Property and equipment | 46056 | 37385 |
| Right of use assets, net | 18393 | 16475 |
| Goodwill and intangible assets, net | 139120 | 118686 |
| Other assets | 1371 | 1648 |
| Total assets | $283289 | $247248 |
| Accounts payable and other current liabilities | $74708 | $60850 |
| Long-term liabilities | 96484 | 79207 |
| Total liabilities | 171192 | 140057 |
| Shareholders' equity | 112097 | 107191 |
| Total liabilities and shareholders' equity | $283289 | $247248 |

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#### Liquidity and Capital Resources
The Company's primary source of liquidity is cash on hand and its line of credit availability. As of September 30, 2025, the Company had cash on hand of $12,916,000 and revolving credit availability under the Facility of $9,050,000. The Company's approach in managing liquidity is to ensure, to the extent possible, that it will have enough liquidity to meet its liabilities when due. The Company will do so by continuously monitoring actual and expected cash flows and monitoring financial market conditions for signs of weakness. The Company faces minimal liquidity risk in its current financial obligations as they become due and payable.

**Cash Flows**

The following is a summary of the Company's cash flows for the following periods (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three**<br>**months ended**<br>**September 30,**<br>**2025** | **For the three**<br>**months ended**<br>**September 30,**<br>**2024** | **For the**<br>**year ended**<br>**September 30,**<br>**2025** | **For the**<br>**year ended**<br>**September 30,**<br>**2024** |
| Net cash flow provided by operating activities | $9778 | $6739 | $37692 | $35381 |
| Net cash flow used in investing activities | (23334) | (3363) | (32945) | (10313) |
| Net cash flow provided by (used in) financing activities | 15239 | (1794) | (7758) | (26147) |
| Effect of exchange rate changes on cash held in foreign currencies | (17) | 189 | (247) | 44 |
| Net increase (decrease) in cash | $1666 | $1771 | $(3258) | $(1035) |

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***Operating Activities***

Net cash flow provided by operating activities was $37,692,000 for the year ended September 30, 2025, an increase of $2,311,000 from $35,381,000 for the year ended September 30, 2024. For the year ended September 30, 2025, the change in working capital improved $6,572,000 to a use of cash of ($1,082,000) for the year ended September 30, 2025 as compared to a use of cash of ($7,654,000) for the year ended September 30, 2024, due primarily to the negative impact of the Change Healthcare Incident during the year ended September 30, 2024. This was partially offset by an increase in the net loss by $3,938,000 and the variance in the gain on disposals of property and equipment of $1,118,000.

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***Investing Activities***

Net cash flow used in investing activities was $32,945,000 for the year ended September 30, 2025, an increase of $22,632,000 from $10,313,000 for the year ended September 30, 2024, primarily due to the two acquisitions made during the year ended September 30, 2025 of $21,684,000.

***Financing Activities***

Net cash flow used in financing activities was $7,758,000 for the year ended September 30, 2025, a decrease of $18,389,000 from $26,147,000 for the year ended September 30, 2024. This was primarily due to the $17,400,000 borrowing on the delayed-draw term loan portion of the Facility to fund the acquisition of Hart in September 2025.

#### Capital management
The Company considers its capital to be shareholders' equity, excluding noncontrolling interest, which totaled $100,498,000 as of September 30, 2025, and the Facility with a principal amount of $87,583,000 as of September 30, 2025.

The Company raises capital, as necessary, to meet its needs such as funding its working capital requirements and take advantage of perceived opportunities and, therefore, does not have a numeric target for its capital structure. Funds are primarily raised through credit facilities and other long-term debt arrangements, and the issuance of common shares. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the size of the Company, is reasonable.

The Company had the following equity instruments outstanding as of September 30, 2025 and September 30, 2024 (in thousands):

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| | | |
|:---|:---|:---|
|  | **As of**<br>**September 30, 2025** | **As of**<br>**September 30, 2024** |
| Common shares | 43,444 | 43,090 |
| Options | 3,778 | 3,402 |
| Restricted stock units | 2,583 | 519 |

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#### Financing
Historically and currently, the Company has financed its operations from cash flow from operations, borrowings on the Facility, equipment loans, leases, and through the issuance of equity.

#### Senior Credit Facility
The Company has a $110,000,000 senior credit facility with a group of US banks that matures in September 2027. The Facility consists of a delayed-draw term loan facility of $85,000,000, of which $83,600,000 has been drawn; a term loan of $5,000,000, which was drawn at closing; and a $20,000,000 revolving credit facility. The Facility is secured by substantially all assets of the Company and is subject to certain financial covenants, with which the Company was in compliance as of September 30, 2025.

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A summary of the outstanding balances related to the Facility as of September 30, 2025 is as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **As of**<br>**September 30, 2025** | **As of**<br>**September 30, 2024** |
| Delayed-draw term loan | $72383 | $58400 |
| Term loan | 4250 | 4500 |
| Revolving credit facility | 10950 | 6323 |
| Total principal | 87583 | 69223 |
| Deferred financing costs | (948) | (1430) |
| Net carrying value | $86635 | $67793 |
| Current portion | $4155 | $3248 |
| Long-term portion | 82480 | 64545 |
| Net carrying value | $86635 | $67793 |

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The delayed-draw term loan and the term loan are bearing interest at a weighted average 6.7% as of September 30, 2025. The rate is based on a secured overnight financing rate ("SOFR"), with a floor of 0.5%, plus a spread of 2.1% to 2.85% (2.4% as of September 30, 2025) based on the Company's leverage ratio and will reprice within three months. The revolving credit facility is bearing interest at 7.0% as of September 30, 2025 and will reprice within three months. The Facility also has fees for unused availability of 0.75% for the delayed-draw term loan and 0.25% for the revolving credit facility. The fair value of the Facility was determined considering market conditions, credit worthiness and the current terms of debt, which is considered Level 2 on the fair value hierarchy. Due to the near-term repricing of the interest rates, the fair value of the Facility approximates the principal value as of September 30, 2025 and 2024.

To manage the risks of the cash flows related to interest expense, the Company entered into several interest rate swaps on $54,000,000 of the principal amount of the Facility. The swaps carry a fixed SOFR of 3.4% to 4.4%, resulting in a weighted combined rate of 6.6%.

The swaps are settled quarterly and mature on September 30, 2026 and at the Facility's maturity. Any difference between the Facility's SOFR rate and the swap's rate is recorded as interest expense. For the year ended September 30, 2025 and 2024, a reduction of $228,000 and $311,000 to interest expense was recorded in the consolidated statements of income (loss), respectively.

As of September 30, 2025, the fair value of the interest rate swap liability, which was determined using Level 2 inputs of market conditions on future expected interest rates, credit worthiness, and the current terms of debt, was $670,000, as compared to $1,122,000 as of September 30, 2024 and is recorded in derivative liability – interest rate swap in the condensed consolidated statements of financial position. The Company has recorded the changes in fair value of derivative liability – interest rate swaps on the consolidated statements of income (loss).

Interest expense on the Facility, including the impact of the interest rate swap agreements, was $5,095,000 and $5,346,000 for the years ended September 30, 2025 and 2024, respectively.

The Company has incurred financing costs to obtain and maintain the Facility, which is reflected as a reduction of the outstanding balance and will be amortized as interest expense using the effective interest method over the life of the Facility. During the years ended September 30, 2025 and 2024, $563,000 and $513,000 of amortization of deferred financing costs was recorded, respectively.

#### Equipment Loans
The Company is offered financing arrangements from the Company's suppliers and the supplier's designated financial institution, in which payments for certain invoices or products can be financed and paid over an extended period. The financial institution pays the supplier when the original invoice becomes due, and the Company pays the third-party financial institution over a period of time. In most cases, the supplier accepts a discounted amount from the financial institution and the Company repays the financial institution the face amount of the invoice with no stated interest, in twelve

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equal monthly installments. The Company uses its incremental borrowing rate of 6.6% to 8.0% to impute interest on these arrangements. The discount of the carrying amount from the face value of the loans is $252,000 as of September 30, 2025. The Company has also assumed equipment loans in conjunction with several of its acquisitions.

The balance of the loans as of September 30, 2025 is $12,215,000, with substantially all of the balance due within the next year.

#### Lease Liabilities
The Company enters into leases for real estate and vehicles. Real estate leases are operating leases and are valued at the net present value of the future lease payments at the incremental borrowing rate. Vehicle leases are finance leases and recorded at the rate implicit in the lease – a weighted average of 8.7% as of September 30, 2025 – based on the current value and the estimated residual value of the vehicle, if any. Future payments on these liabilities are as follows (in thousands):

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| | |
|:---|:---|
| Less than 1 year | $8079 |
| Between 1 and 5 years | 13792 |
| More than 5 years | 778 |
| Total | 22649 |
| Less: finance charges | (2707) |
| Lease liabilities | 19942 |
| Current portion of lease liabilities | 6898 |
| Long-term portion of lease liabilities | $13044 |

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#### Quarterly operating results
Results of operations for the healthcare services market in which the Company operates show little seasonality from quarter to quarter. The increase in revenues from the past year is primarily due to the Company's acquisitions during the year ended September 30, 2025.

The following table provides selected historical information and other data, which should be read in conjunction with the consolidated financial statements of the Company (amounts in thousands except per share amounts).

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of or for the**<br>**three months ended**<br>**September 30, 2025** | **As of or for the**<br>**three months ended**<br>**June 30, 2025** | **As of or for the**<br>**three months ended**<br>**March 31, 2025** | **As of or for the**<br>**three months ended**<br>**December 31, 2024** |
| Revenue | $68313 | $58289 | $57376 | $61381 |
| Net income (loss) | (3550) | (3025) | (3042) | (1084) |
| Net income (loss) per share - basic | (0.08) | (0.07) | (0.07) | (0.03) |
| Net income (loss) per share - diluted | (0.08) | (0.07) | (0.07) | (0.03) |
| Total assets | $283289 | $236092 | $244645 | $242816 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of or for the**<br>**three months ended**<br>**September 30, 2024** | **As of or for the**<br>**three months ended**<br>**June 30, 2024** | **As of or for the**<br>**three months ended**<br>**March 31, 2024** | **As of or for the**<br>**three months ended**<br>**December 31, 2023** |
| Revenue | $61332 | $60759 | $61249 | $62575 |
| Net income (loss) | (2940) | (1596) | (739) | (1488) |
| Net income (loss) per share - basic | (0.07) | (0.04) | (0.02) | (0.04) |
| Net income (loss) per share - diluted | (0.07) | (0.04) | (0.02) | (0.04) |
| Total assets | $247248 | $249784 | $248614 | $243893 |

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#### Related party transactions
The Company (through indirect wholly owned subsidiaries) has six leases for office, warehouse, and retail space with a rental company affiliated with the Company's Chief Executive Officer, the majority of which were entered into in 2015,

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prior to such subsidiaries being acquired by the Company and prior to the Chief Executive Officer joining the Company, and five of which were renewed effective October 1, 2022. The leases have a combined area of 74,520 square feet. Lease payments under these leases were approximately $65,000 and $63,000 per month for the twelve months ended September 30, 2025 and 2024, respectively, with increases on October 1 of each year equal to the greater of (i) the Consumer Price Index for All Urban Consumers (CPI-U), and (ii) 3%. One lease expires in June 2026 and the remaining five leases expire on September 30, 2029.

#### Off balance sheet arrangements
The Company has no material undisclosed off balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on its results of operations or financial condition, revenues or expenses results of operations, liquidity, capital expenditures or capital resources.

#### Critical accounting estimates
Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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. Actual results could differ from those estimates.

Estimates where management has made subjective judgments and where there is significant risk of material adjustments to assets and liabilities in future accounting periods included in the list below.

**Accounts receivable**

The Company estimates that a certain portion of receivables from customers may not be collected and maintains a reserve for expected pricing concessions and insurance denials. The Company evaluates the net realizable value of accounts receivable as of the date of the consolidated balance sheets, considering current and historical cash collections, the age of the accounts receivable, and relevant business conditions. Significant judgments are made in order to incorporate forward-looking information into the estimation of reserves and may result in changes to revenue and accounts receivable period to period which may significantly affect the Company's results of operations.

#### Intangible assets
The Company has recorded various intangible assets consisting primarily of non-compete agreements, trademarks, customer contracts and customer relationships in connection with various business acquisitions. Non-compete agreements are recognized at the estimated fair value associated with the non-compete agreements entered by the sellers of acquired companies. Trademarks are recognized at the estimated fair value associated with the trade name of the acquired company. Customer contracts are recognized at the estimated fair value of the present value of expected future customer billings based on the statistical life of a customer. Customer relationships are recognized based on the estimated fair value given to the long-term associations with referral sources such as doctors, medical centers, etc.

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.

The Company periodically evaluates the recoverability of long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the assets are evaluated in relation to the operating performance and future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected

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discounted cash flows is less than book value. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and discount rates, reflecting varying degrees of perceived risk. The Company did not have any long-lived asset impairments in the years ended September 30, 2025 or 2024.

#### Goodwill impairment
The Company tests goodwill for impairment on an annual basis on July 1, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. The Company determines the fair value of our reporting unit using the income approach and market approach to valuation, as well as other generally accepted valuation methodologies. The income approach utilizes a discounted cash flow analysis using management's assumptions. The market approach compares the reporting unit to similar companies with the assumption that companies operating in the same industry will share similar characteristics and that company values will correlate to those characteristics. If the carrying amount of the reporting unit exceeds the reporting unit's fair value, an impairment loss is recognized equal to the difference between the carrying amount and the estimated fair value of the reporting unit. The Company concluded that there was no impairment of goodwill during the years ended September 30, 2025 or 2024.

The approach uses cash flow projections based upon a financial forecast approved by management, covering a five-year period. Cash flows for the years thereafter are extrapolated using the estimated terminal growth rate. The risk premiums expected by market participants related to uncertainties about the industry and assumptions relating to future cash flows may differ or change quickly, depending on economic conditions and other events.

**Foreign currency transactions**

Transactions in foreign currencies are initially recorded 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 and exchange differences from monetary items are recognized in profit or loss. Non-monetary items that are not carried at fair value are translated using the exchange rates at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The assets and liabilities of foreign operations are translated into US dollars at the rate of exchange prevailing at the reporting date and their statements of operations are translated at the average monthly rates of exchange.

**Revenue recognition**

Revenues are billed to, and collections are received from customers. Because of continuing changes in the health care industry and third-party reimbursement, the consideration receivable from these insurance companies is variable as these billings can be challenged by the payor. Therefore, the amount billed by the Company is reduced to an estimate of the amount that the Company believes will be ultimately allowed by the insurance contract, including co-pays and deductibles. This estimate involves significant judgment including an analysis of past collections and historical modification rates. Management regularly reviews the actual claims approved by the insurance companies, adjusting estimated revenue as necessary.

The Company does not offer warranties to customers in excess of the manufacturer's warranty. Any taxes due upon sale of the products or services are not recognized as revenue. The Company does not have any partially or unfilled performance obligations related to contracts with customers and as such, the Company has no contract liabilities during the years ended September 30, 2025 and 2024.

***Rental of medical equipment***

Revenue that is generated from equipment that the Company rents to patients is primarily recognized over the noncancelable rental period, typically one month, and commences on delivery of the equipment to the patients. Revenues are recorded at amounts estimated to be received under reimbursement arrangements with third-party payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients. Rental revenue, less estimated adjustments, is recognized as earned on a straight-line basis over the noncancellable lease term.

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***Sales of medical equipment and supplies***

The Company sells equipment, consumable supplies, and replacement parts to customers and recognizes revenue on delivery, as at that point all performance obligations have been met.

***Shipping and handling***

The Company provides shipping and handling at no charge in sending product to customers. The Company does not consider this a separate performance obligation since these shipping and handling activities occur before the customer obtains control of the goods. The shipping and handling are considered activities to fulfill the entity's promise to transfer the goods and are expensed within operating expenses.

#### Share-based payments
The Company grants stock options and restricted stock units to employees, members of the Board of Directors, and consultants. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense on a straight-line basis over the vesting period. Fair value is measured using the Black-Scholes Model. In estimating fair value, management is required to make certain assumptions and estimates, such as the expected life of units, volatility of the Company's future share price, risk-free interest rates, and future dividend yields, at the initial grant date. Changes in assumptions used to estimate fair value could result in materially different results. The Company has elected to recognize the effect of forfeitures in compensation cost when they occur. Previously recognized compensation cost for an award is reversed in the period that the award is forfeited. Further, the Company has elected to use the contractual term as the expected term. Compensation expense is recognized on a straight-line basis, by amortizing the grant date fair value over the vesting period for each separately vesting portion of the award.

**Loss per share**

The Company presents basic and diluted loss per share data for its ordinary shares. Basic loss per share is calculated by dividing the net loss by the weighted average number of Common Shares outstanding during the period. Contingently issuable shares (including shares held in escrow) are not considered outstanding common shares and consequently are not included in the loss per share calculations. The Company's potentially dilutive common share equivalents are stock options and restricted stock units. The years ended September 30, 2025 and 2024 were periods of net losses, therefore, the potentially dilutive common share equivalents are excluded in the determination of dilutive net loss per share because their effect is antidilutive. In order to determine diluted loss per share, it is assumed that any proceeds from the exercise of dilutive instruments would be used to repurchase common shares at the average market price during the period.

**Leases**

Leases are classified as operating or finance leases based on the terms of the lease agreement and certain characteristics of the identified assets.

The Company's operating leases are for real estate and range from 2 to 11 years. The Company's finance leases are for vehicles and range from 2 to 7 years.

The Company's leases include fixed payments, as well as in some cases, scheduled base rent increases over the term of the lease. Certain leases require variable payments of common area maintenance, operating expenses, and real estate taxes applicable to the property. Variable payments are excluded from the measurements of lease liabilities and are expensed as incurred. Any tenant improvement allowances received from the lessor are recorded as a reduction to rent expense over the term of the lease. Some of the Company's vehicle lease agreements contain residual value guarantees.

The Company determines if an arrangement is a lease at the inception of the contract. Lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term for those arrangements where there is an identified asset, and the contract conveys the right to control its use. The right-of-use asset is measured at the

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initial amount of the lease liability. Right-of-use assets are included in property and equipment in the Company's consolidated balance sheets.

Operating lease expense is recognized on a straight-line basis over the term of the lease. Finance lease cost includes a.) depreciation, which is recognized on a straight-line basis over the expected life of the right-of-use asset and included in depreciation in the Company's consolidated statements of income (loss), and b.) interest expense, which is recognized following an effective interest rate method and is included in interest expense in the Company's consolidated statements of income (loss).

The Company's real estate operating leases do not provide an implicit rate that can be easily determined. Therefore, the Company applies its incremental borrowing rate to the lease based on the information available at the commencement date. This estimate impacts the carrying amount of the lease liabilities and the interest expense recorded on the consolidated statement of income (loss). Vehicle finance leases are recorded at the interest rate implicit in the lease based on the current value and the estimated residual value of the vehicle.

Certain leases include one or more options to renew or terminate the lease at the Company's discretion. When the Company recognizes a lease, it assesses the lease term based on the conditions of the lease and determines whether it is probable that it will choose to extend the lease at the end of the initial lease term. This estimate could affect future results if the Company extends the lease or exercises an early termination option.

The Company accounts for non-lease and lease components to which they relate as a single lease component. Additionally, the Company recognized lease payments under short-term leases with an initial term of twelve months or less, as well as low value assets, as an expense on a straight-line basis over the lease term without recognizing the lease liability and ROU asset.

**Income taxes**

Deferred taxes are determined based on the differences between the financial statements and the tax bases using rates as enacted in the laws. A valuation allowance is established if it is "more likely than not" that all or a portion of the deferred tax assets will not be realized.

Interest and penalties related to unrecognized tax benefits are recognized in the tax provision. Liabilities for uncertain tax positions are recognized when it is more likely than not that a tax position will not be sustained upon examination and settlement with various taxing authorities. Liabilities for uncertain tax positions are measured based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. There have not been any material interest or penalties during any of the years presented.

**Business combinations**

The Company accounts for business combinations using the acquisition method when control is obtained by the Company. The Company measures the consideration transferred, the assets acquired, and the liabilities assumed in a business combination at their acquisition-date fair values. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred, and the services are received. The excess of the consideration transferred to obtain control, over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed, is recognized as goodwill as of the acquisition date.

Contingent consideration for a business combination is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Contingent consideration that is classified as a liability is measured at subsequent reporting dates at fair value with the corresponding gain or loss being recognized in profit or loss.

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#### Contractual Commitments and Obligations
The following table summarizes the Company's contractual commitments and obligations as of September 30, 2025 (in thousands), which are primarily for debt, leasing of offices and other obligations. The leases have been entered into with terms between one and ten years, including optional extensions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Total** | **Less than**<br>**1 year** | **1-3**<br>**Years** | **3-5**<br>**Years** | **After 5**<br>**Years** |
| Debt | $99798 | $16532 | $83266 | $— | $— |
| Finance lease obligations | 17202 | 6548 | 6548 | 3328 | 778 |
| Operating leases | 3573 | 1531 | 2000 | 42 |  |
| Other obligations | 38431 | 38431 |  |  |  |
| Total contractual obligations | $159004 | $63042 | $91814 | $3370 | $778 |

---

#### Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
The Company is exposed to financial risks of varying degrees of significance which would affect its ability to achieve its strategic objectives for growth: market risk (including currency 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 approved 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. Substantially all of the Company's cash is maintained with three major financial institutions, one of which is the administrative agent for the Company's senior credit facility. At times, the cash in the financial institutions is in excess of the amount insured by the Federal Deposit Insurance Corporation. Substantially all accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, and directly from patients. Receivables generally are collected within industry norms. The Company continuously monitors collections from its clients and maintains a reserve for expected losses based upon historical experience and any specific payor collection issues that are identified.

As of September 30, 2025, the Company has 18% of its accounts receivable with Medicare. As this is a US government program, we believe there is very little credit risk associated with these balances. No customer represented more than 10% of outstanding accounts receivable.

#### Currency risk
Currency risk is the risk that the Company will be subject to foreign currency fluctuations in its cash balances denominated in foreign currencies. All of the Company's sales and inventory sold and almost all of the Company's operating expenses are in US dollars. Cash is maintained in both US dollars and Canadian dollars. Consequently, the Company is exposed to foreign exchange fluctuations. The Company will continue to maintain cash balances in both US and Canadian dollars, but management anticipates that it will not purchase any securities or financial instruments to speculate on currency fluctuations or engage in any currency hedging programs.

The Company's objective in managing its foreign currency risk is to monitor foreign exchange rates and minimize its net exposures to foreign currency cash flows by generally holding most of its cash in US dollars. However, at times, including at September 30, 2025, the Company does hold significant cash in Canadian dollars. During the twelve months ended September 30, 2025, the Company recognized a foreign currency loss of approximately $367,000 due to unfavorable movements in the exchange rates. The Company monitors foreign currency exposures and from time to time could

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authorize the use of derivative financial instruments such as forward foreign exchange contracts to economically hedge a portion of foreign currency fluctuations.

Based on the exposure of Canadian cash at September 30, 2025, depreciation or appreciation of the Canadian dollar against the US dollar could result in a significant effect on net income or loss. The Company has not employed any foreign currency hedging programs.

#### 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. The interest rate on the credit facility has a variable rate that can be fixed for a maximum of six months. The Company has entered into interest rate swap agreements whereby $54,000,000 of principal will receive a fixed rate during the year ended September 30, 2025. With $87,583,000 of borrowings on this facility at September 30, 2025, each 1% increase would result in an additional $335,830 of annual interest expense. The interest on the Company's other debt is either imputed or has a fixed rate and is not subject to cash flow interest rate risk.

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#### Item 8. Financial Statements and Supplementary Data.

#### **TABLE OF CONTENTS**
Report of the Independent Registered Public Accounting Firm (BDO USA, P.C., Cincinnati, Ohio, PCAOB #243)

---

| | |
|:---|:---|
| [Consolidated Statements of Financial Position](#CONSOLIDATEDSTATEMENTSOFFINANCIALPOSITIO) | 56 |
| [Consolidated Statements of Income (Loss)](#STATEMENTSOFINCOMELOSSANDCOMPREHENSIVEIN) | 57 |
| [Consolidated Statements of Changes in Shareholders' Equity](#STATEMENTSOFCHANGESINSHAREHOLDERSEQUITY_) | 58 |
| [Consolidated Statements of Cash Flows](#STATEMENTSOFCASHFLOWS_321180) | 59 |
| [Notes to the Consolidated Financial Statements](#a1Natureofoperations_985901) | 60 |

---

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**Report of Independent Registered Public Accounting Firm** 

Shareholders and Board of Directors

Quipt Home Medical Corp.

Wilder, KY

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated statements of financial position of Quipt Home Medical Corp. (the "Company") as of September 30, 2025 and 2024, the related consolidated statements of income (loss), changes in shareholders' equity, and cash flows for each of the two years in the period ended September 30, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at September 30, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended September 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ **BDO USA, P.C.**

We have served as the Company's auditor since 2022.

Cincinnati, Ohio

December 15, 2025

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**Quipt Home Medical Corp.**

#### CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands of US dollars, except per share amounts)

---

| | | |
|:---|:---|:---|
|  | **As of**<br>**September 30,** <br>**2025** | **As of**<br>**September 30,** <br>**2024** |
| &nbsp;&nbsp;**ASSETS** |  |  |
| &nbsp;&nbsp;**Current assets** |  |  |
| &nbsp;&nbsp;Cash | $12916 | $16174 |
| &nbsp;&nbsp;Accounts receivable, net | 34697 | 29116 |
| &nbsp;&nbsp;Inventory | 25640 | 20853 |
| &nbsp;&nbsp;Prepaid and other current assets | 5096 | 6911 |
| &nbsp;&nbsp;**Total current assets** | **78349** | **73054** |
| &nbsp;&nbsp;**Long-term assets** |  |  |
| &nbsp;&nbsp;Property and equipment, net | 46056 | 37385 |
| &nbsp;&nbsp;Right of use assets, net | 18393 | 16475 |
| &nbsp;&nbsp;Goodwill | 61560 | 50733 |
| &nbsp;&nbsp;Intangible assets, net | 77560 | 67953 |
| &nbsp;&nbsp;Equity method investment | 987 | 1311 |
| &nbsp;&nbsp;Other assets | 384 | 337 |
| &nbsp;&nbsp;**Total long-term assets** | **204940** | **174194** |
| &nbsp;&nbsp;**TOTAL ASSETS** | $**283289** | $**247248** |
| &nbsp;&nbsp;**LIABILITIES** |  |  |
| &nbsp;&nbsp;**Current liabilities** |  |  |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | $46698 | $35363 |
| &nbsp;&nbsp;Current portion of equipment loans | 12212 | 12804 |
| &nbsp;&nbsp;Current portion of lease liabilities | 6898 | 5867 |
| &nbsp;&nbsp;Current portion of senior credit facility | 4155 | 3248 |
| &nbsp;&nbsp;Deferred revenue | 4593 | 3568 |
| &nbsp;&nbsp;Purchase price payable | 152 |  |
| &nbsp;&nbsp;**Total current liabilities** | **74708** | **60850** |
| &nbsp;&nbsp;**Long-term liabilities** |  |  |
| &nbsp;&nbsp;Equipment loans | 3 | 55 |
| &nbsp;&nbsp;Lease liabilities | 13044 | 13283 |
| &nbsp;&nbsp;Derivative liability - interest rate swap | 670 | 1122 |
| &nbsp;&nbsp;Senior credit facility | 82480 | 64545 |
| &nbsp;&nbsp;Deferred income taxes | 287 | 202 |
| &nbsp;&nbsp;**TOTAL LIABILITIES** | **171192** | **140057** |
| &nbsp;&nbsp;**COMMITMENTS AND CONTINGENCIES (Note 11)** |  |  |
| &nbsp;&nbsp;**SHAREHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;Capital stock |  |  |
| &nbsp;&nbsp;Common shares, no par value, unlimited shares authorized; 43,443,972 and 43,091,273 issued and outstanding as of September 30, 2025 and 2024, respectively |  |  |
| &nbsp;&nbsp;Preferred Shares, no par value, unlimited shares authorized, none issued and outstanding as of September 30, 2025 and 2024 |  |  |
| &nbsp;&nbsp;Additional paid in-capital | 281667 | 277762 |
| &nbsp;&nbsp;Accumulated deficit | (181272) | (170571) |
| &nbsp;&nbsp;Noncontrolling interest | 11702 |  |
| &nbsp;&nbsp;**TOTAL SHAREHOLDERS' EQUITY** | **112097** | **107191** |
| &nbsp;&nbsp;**TOTAL LIABILITIES AND EQUITY** | $**283289** | $**247248** |

---

The accompanying notes are an integral part of these consolidated financial statements

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**Quipt Home Medical Corp.**

#### CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Expressed in thousands of US dollars, except per share amounts)

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** | **Year Ended** <br>**September 30,** <br>**2024** |
| **Revenue** |  |  |
| Rentals of medical equipment | $100108 | $94308 |
| Sales of medical equipment and supplies | 145251 | 151607 |
| **Total revenues** | 245359 | 245915 |
| Cost of inventory sold | 68182 | 68925 |
| Operating expenses | 125457 | 122542 |
| Right-of-use operating lease amortization and interest | 6434 | 5974 |
| Depreciation | 39429 | 38490 |
| Amortization of intangible assets | 6053 | 6091 |
| Stock-based compensation | 4035 | 2484 |
| Acquisition-related costs | 817 | 401 |
| Gain on disposals of property and equipment | (1225) | (107) |
| **Operating income (loss)** | (3823) | 1115 |
| **Financing expenses** |  |  |
| Interest expense | 6744 | 7168 |
| Interest income | (467) | (787) |
| Loss (gain) on foreign currency transactions | 367 | (43) |
| Share of loss in equity method investment | 324 | 309 |
| Change in fair value of derivative liability - interest rate swap | (452) | 1122 |
| **Loss before income taxes** | (10339) | (6654) |
| Provision for income taxes | 241 | 109 |
| **Net loss before noncontrolling interest**  | $(10580) | $(6763) |
| Net income attributable to noncontrolling interest | 121 |  |
| **Net loss** | $(10701) | $(6763) |
| **Net income (loss) per share** |  |  |
| Basic loss per share | $(0.24) | $(0.16) |
| Diluted loss per share | $(0.24) | $(0.16) |
| **Weighted average number of common shares outstanding:** |  |  |
| Basic | 43291 | 42501 |
| Diluted | 43291 | 42501 |

---

The accompanying notes are an integral part of these consolidated financial statements

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**Quipt Home Medical Corp.**

#### CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'

#### EQUITY
(Expressed in thousands of US dollars, except per share amounts)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of**<br>**Shares** <br>**(000's)** | <br>**Additional Paid-**<br>**In Capital** | <br>**Accumulated** <br>**Deficit** | <br>**Noncontrolling**<br>**Interest** | **Total** <br>**shareholders'**<br> **equity** |
| Balance September 30, 2023 | 42102 | $274923 | $(163808) | $— | $111115 |
| Net loss |  |  | (6763) |  | (6763) |
| Settlement of restricted stock units | 469 | (213) |  |  | (213) |
| Stock options exercised | 520 | 568 |  |  | 568 |
| Stock-based compensation |  | 2484 |  |  | 2484 |
| Balance September 30, 2024 | 43091 | $277762 | $(170571) | $— | $107191 |
| Net income (loss) |  |  | (10701) | 121 | (10580) |
| Settlement of restricted stock units | 415 |  |  |  |  |
| Acquisition of Hart |  |  |  | 11581 | 11581 |
| Repurchase of shares | (62) | (130) |  |  | (130) |
| Stock-based compensation |  | 4035 |  |  | 4035 |
| Balance September 30, 2025 | 43444 | $281667 | $(181272) | $11702 | $112097 |

---

The accompanying notes are an integral part of these consolidated financial statements

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**Quipt Home Medical Corp.**

#### CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of US dollars, except per share amounts)

---

| | | |
|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** |
|  | **2025** | **2024** |
| **Operating activities** |  |  |
| Net loss | $(10701) | $(6763) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| Depreciation and amortization | 45482 | 44581 |
| Stock-based compensation | 4035 | 2484 |
| Gain on disposals of property and equipment | (1225) | (107) |
| Amortization of financing costs and accretion of purchase price payable | 563 | 551 |
| Loss (gain) on foreign currency transactions | 367 | (43) |
| Share of loss in equity method investment | 324 | 309 |
| Change in fair value of derivative liability - interest rate swap | (452) | 1122 |
| Deferred income taxes | 85 | 342 |
| Right-of-use operating lease amortization and interest | 6434 | 5974 |
| Payments of operating leases, including interest | (6138) | (5386) |
| Adjustments to purchase price payable |  | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in working capital, net of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;Net decrease (increase) in accounts receivable | 2575 | (3294) |
| &nbsp;&nbsp;&nbsp;Net increase in inventory | (2417) | (3420) |
| &nbsp;&nbsp;&nbsp;Net decrease (increase) in prepaid and other current assets | 2193 | (3124) |
| &nbsp;&nbsp;&nbsp;Net decrease in deferred revenue | (21) | (943) |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in accounts payables and accrued liabilities | (3412) | 3127 |
| **Net cash flow provided by operating activities** | 37692 | 35381 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (12354) | (10313) |
| &nbsp;&nbsp;&nbsp;Cash proceeds from sale of property and equipment | 1233 | 210 |
| &nbsp;&nbsp;&nbsp;Cash paid for acquisitions, net of cash acquired | (21824) | (210) |
| **Net cash flow used in investing activities** | (32945) | (10313) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Repayments of equipment loans | (24472) | (26792) |
| &nbsp;&nbsp;&nbsp;Repayments of finance leases | (1436) | (1579) |
| &nbsp;&nbsp;&nbsp;Borrowings on delayed-draw term loan | 17400 |  |
| &nbsp;&nbsp;&nbsp;Repayments of delayed-draw term loan and term loan | (3668) | (3450) |
| &nbsp;&nbsp;&nbsp;Gross borrowings on the revolving credit facility | 18250 | 17100 |
| &nbsp;&nbsp;&nbsp;Gross repayments on the revolving credit facility | (13623) | (10777) |
| &nbsp;&nbsp;&nbsp;Other, net | (79) | (60) |
| &nbsp;&nbsp;&nbsp;Repurchase of shares, net of issuance costs | (130) |  |
| &nbsp;&nbsp;&nbsp;Settlement of restricted stock units |  | (213) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options |  | 568 |
| &nbsp;&nbsp;&nbsp;Payments of purchase price payable |  | (944) |
| **Net cash flow (used in) provided by financing activities** | (7758) | (26147) |
| **Net increase (decrease) in cash** | (3011) | (1079) |
| Effect of exchange rate changes on cash held in foreign currencies | (247) | 44 |
| **Cash, beginning of year** | 16174 | 17209 |
| **Cash, end of year** | $12916 | $16174 |
| **Supplemental cash flow information** |  |  |
| Cash paid for interest | $(5914) | $(6826) |
| Cash paid (refunded) for income taxes | 425 | (1249) |
| Operating lease additions | 2074 | 4229 |
| Equipment loan additions | 23828 | 25304 |
| Finance lease additions | 842 | 1975 |
| Purchases of property and equipment in ending accounts payable | 2161 | 214 |

---

The accompanying notes are an integral part of these consolidated financial statements

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**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

**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, 1997. On December 30, 2013, pursuant to a Certificate of Continuance, the Company changed its jurisdiction of governance by continuing from Alberta into British Columbia. The Company's head office is located at 1019 Town Drive, Wilder, Kentucky 41076, and its registered office is located at Suite 2700, 1133 Melville Street, Vancouver, British Columbia V6E 4E5.

All significant operating decisions are based on analysis of the Company as a whole; accordingly, the Company operates in one business segment, which is the sale and rental of medical equipment and related devices.

The Company's common shares are traded on the Nasdaq Capital Market and the Toronto Stock Exchange, both under the symbol "QIPT".

**2.**Basis of Presentation and summary of significant accounting policies

#### Basis of accounting
These consolidated financial statements as of and for the years ended September 30, 2025 and 2024 (the "consolidated financial statements") of the Company were prepared in accordance with accounting principles generally accepted in the US ("GAAP").

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.

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 revenues and expenses incurred to generate those revenues is the US.

#### 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 subsidiaries. All intercompany transactions have been eliminated. The Company's consolidated entities have a functional currency of US dollars, and are listed in the table below. They are wholly owned, except for IRB Medical Equipment, LLC, dba Hart Medical Equipment ("Hart"), which is 60%-owned.

Prior to closing, 100% of the equity interests in Hart were contributed to the Hart HoldCo, LLC ("the Hart Seller") by its previous owners. Pursuant to the purchase agreement, the Company acquired 60% of the membership interests of Hart directly from the Hart Seller, and the Hart Seller retained the remaining 40% membership interests. In connection with the

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**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

transaction, the parties entered into an administrative support services agreement, and Hart's operating agreement was amended and restated pursuant to the Sixth Amended and Restated Operating Agreement to provide for the operation of Hart as a joint venture between the Company and the Hart Seller.

The Company has control of Hart and therefore its financial statements are included in the Company's consolidated financial statements, with the noncontrolling 40% interest reflected as a line item on the consolidated statements of financial position, income (loss) and changes in shareholders' equity.

---

| | |
|:---|:---|
| 100 W. Commercial Street, LLC | Med Supply Center, Inc. |
| Acadia Medical Supply, Inc. | Medical West Healthcare Center, LLC |
| Access Respiratory Home Care, L.L.C. | Mediserve Medical Equipment of Kingsport, Inc. |
| Alliance Home Care & Mobile Diagnostics, L.L.C. | Metro-Med, Inc. |
| At Home Health Equipment, LLC | Metro-Med, Inc. - Los Alamitos |
| Black Bear Medical, Inc. | Metro-Med, Inc. - Ventura |
| Black Bear Medical Group, Inc. | NorCal Respiratory, Inc. |
| Black Bear Medical NH, Inc. | Northwest Medical, LLC |
| Care Medical Atlanta, LLC | Oxygen Plus |
| Care Medical of Athens, Inc. | Patient-Aids, Inc. |
| Care Medical of Augusta, LLC | Patient Home Monitoring, Inc |
| Care Medical of Gainesville, LLC | QHM Holdings Inc. |
| Care Medical Partners, LLC | QHM Investments I, LLC |
| Care Medical Savannah, LLC | Quipt Home Medical Inc. |
| Central Oxygen, Inc. | Rejuvenight, LLC |
| Coastal Med-Tech Corp. | Resource Medical, Inc. |
| Cooley Medical Equipment, Incorporated | Resource Medical Group Charleston, LLC |
| Focus Respiratory, LLC | Resource Medical Group, LLC |
| Good Night Medical, LLC | Respicare, Inc. |
| Good Night Medical of Ohio, LLC | Riverside Medical, Inc. |
| Good Night Medical of Texas, Inc | RTA Homecare, LLC |
| Great Elm Healthcare, LLC | Semo Drugs - Care Plus of Mo, Inc. |
| Health Technology Resources, LLC | Sleep Health Diagnostics, LLC |
| Heartland Health Therapy, LLC | Sleepwell, LLC |
| Heckman Healthcare Service & Supplies Inc. | Southeastern Biomedical Services, LLC |
| Hometown Medical LLC | Southern Pharmaceutical Corporation |
| IRB Medical Equipment, LLC | Thrift Home Care, Inc. |
| Legacy Oxygen and Home Care Equipment, LLC | Tuscan, Inc. |
| Mayhugh Drugs, Inc. | United Respiratory Services, LLC |

---

#### Use of estimates
Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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. Actual results could differ from those estimates.

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**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

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, goodwill, and intangible assets), provision for expected credit losses, fair value measurements for assets and liabilities acquired in business acquisitions, and calculation of deferred taxes.

**Accounts receivable**

Due to the nature of our industry and the reimbursement environment in which the Company operates, certain estimates are required to record total net revenues and accounts receivable at their net realizable values, including estimating variable consideration. 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, contractual terms, and the uncertainty of reimbursement amounts for certain services may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of cash application, claim denial, or account review. Net realizable values are estimated based on a number of factors, including age of the receivables, changes in customer payment patterns, historical experience, industry trends, and current economic conditions. The balance of Accounts receivable, net was $34,697,000, $29,116,000, and $25,978,000 as of September 30 2025, 2024, and 2023, respectively.

As of September 30, 2025, the Company has 18% of its accounts receivable with Medicare. As this is a US government program, the Company believes there is very little credit risk associated with these balances. No customer represented more than 10% of outstanding accounts receivable.

**Inventory**

Inventory is stated at the lower of cost or net realizable value with cost determined using the first-in, first-out method. The Company's inventory consists of finished goods purchased from vendors; therefore, no labor or overhead is included in the inventory cost. Inventory is subsequently recorded within cost of inventory sold on the consolidated statements of operations at the time the inventory is sold. Inventory is transferred to property and equipment as rental equipment at the time of rental revenue recognition.

The Company reviews inventory for obsolete, redundant, and slow-moving goods, and any such inventories are written down to their estimated net realizable value.

**Property, equipment, and right-of-use assets**

Property and equipment are stated at cost less accumulated depreciation. Major renewals and improvements are capitalized in 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.

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**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

The estimated useful lives of the assets are as follows:

---

| | | |
|:---|:---|:---|
| **Description** | **Estimated Useful Life** | **Estimated Useful Life** |
| Rental equipment | 1 | 5 years |
| Vehicles | 1 | 5 years |
| Leasehold improvements | Life of lease 1 | 11 years |
| Office and technology equipment |  | 5 years |
| Buildings |  | 25 years |
| Right-of-use real estate | Life of lease 2 | 11 years |
| Right-of-use vehicles | Life of lease 2 | 7 years |

---

Depreciation of rental equipment commences once it has been delivered to a patient 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
The Company has recorded various intangible assets consisting of customer relationships, customer contracts, trade names and non-compete agreements, in connection with various business acquisitions. Customer relationships are recognized based on the estimated fair value given to the long-term associations with referral sources such as doctors, hospitals, and sleep centers. Customer contracts are recognized at the estimated fair value of the present value of expected future customer billings based on the statistical life of a customer. Trade names are recognized at the estimated fair value associated with the trade name of the acquired company. Non-compete agreements are recognized at the estimated fair value associated with the non-compete agreements entered into by the sellers of acquired companies. Definite life intangible assets are amortized on a straight-line basis over the estimated useful lives of the related assets as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Description** | **Estimated Useful Life** | **Estimated Useful Life** | **Estimated Useful Life** |
| Customer relationships | 10 | - | 20 years |
| Customer contracts |  |  | 2 years |
| Trade names |  |  | 10 years |
| Non-compete agreements |  |  | 5 years |

---

The Company reviews the estimates for useful lives on an annual basis, or more frequently if events during the year indicate that a change may be required, with consideration given to technological obsolescence and other relevant business factors. A change in management's estimates could impact depreciation/amortization expense and the carrying value of property and equipment and intangible assets.

The Company periodically evaluates the recoverability of long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the assets are evaluated in relation to the operating performance and future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected discounted cash flows is less than book value. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and discount rates, reflecting varying degrees of perceived risk, which are Level 3 unobservable inputs. The Company did not have any long-lived asset impairments in the years ended September 30, 2025 or 2024.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

#### Goodwill impairment
The Company tests goodwill for impairment on an annual basis on July 1, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. The Company determines the fair value of our reporting units using the income approach (a Level 3 fair value input) and market approach (a Level 2 fair value input) to valuation, as well as other generally accepted valuation methodologies. The income approach utilizes a discounted cash flow analysis using management's assumptions. The market approach compares the reporting unit to similar companies with the assumption that companies operating in the same industry will share similar characteristics and that company values will correlate to those characteristics. If the carrying amount of the reporting unit exceeds the reporting unit's fair value, an impairment loss is recognized equal to the difference between the carrying amount and the estimated fair value of the reporting unit. The Company concluded that there was no impairment of goodwill during the years ended September, 30, 2025 or 2024.

The income 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.

**Equity method investee**

The Company, through QHM Investments I, LLC, acquired an ownership interest in DMEScripts, LLC ("DMEScripts"). As of September 30, 2025, the Company has cumulatively invested $1,710,000 and has a 7.0% ownership interest in DMEScripts. DMEScripts is an independent e-prescribe company in the US that automates the medical equipment ordering process. This technology is dedicated to improving the patient, prescriber, and provider experience by eliminating inefficiencies and reducing paperwork. The investment in DMEScripts is accounted for using the equity method.

The Company applies the equity method of accounting for investments when it determines it has a significant influence, but not a controlling interest in the investee. Significant influence is determined by considering key factors such as ownership interest, representation on the board of directors, participation in policy making decisions, business relationship and material intra-entity transactions, among other factors.

The equity method investment is reported at cost and adjusted each period for the Company's share of the investee's income (loss). The Company records "share of loss in equity method investment" on the consolidated statements of income (loss) for its pro rata share ownership percentage of the investee's net loss.

**Foreign currency transactions**

Transactions in foreign currencies are initially recorded 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 and exchange differences from monetary items are recognized in profit or loss. Non-monetary items that are not carried at fair value are translated using the exchange rates at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The assets and liabilities of foreign operations are translated into US dollars at the rate of exchange prevailing at the reporting date and their statements of operations are translated at the average monthly rates of exchange.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

**Revenue recognition**

Revenues are billed to, and collections are received from customers. Because of continuing changes in the health care industry and third-party reimbursement, the consideration receivable from these insurance companies is variable as these billings can be challenged by the payor. Therefore, the amount billed by the Company is reduced to an estimate of the amount that the Company believes will be ultimately allowed by the insurance contract, including co-pays and deductibles. This estimate involves significant judgment including an analysis of past collections and historical modification rates. Management regularly reviews the actual claims approved by the insurance companies, adjusting estimated revenue as necessary.

The Company does not offer warranties to customers in excess of the manufacturer's warranty. Any taxes due upon sale of the products or services are not recognized as revenue. The Company records deferred revenue on the consolidated statement of financial position for the unelapsed portion of the rental month that exists as of the balance sheet date. All of the deferred revenue as of September 30, 2024 was recognized during the year ended September 30, 2025.

***Rental of medical equipment***

Revenue that is generated from equipment that the Company rents to patients is primarily recognized over the noncancelable rental period, typically one month, and commences on delivery of the equipment to the patients. Revenues are recorded at amounts estimated to be received under reimbursement arrangements with third-party payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients. Rental revenue, less estimated adjustments, is recognized as earned on a straight-line basis over the noncancellable lease term.

***Sales of medical equipment and supplies***

The Company sells equipment, consumable supplies, and replacement parts to customers and recognizes revenue on delivery, as at that point all performance obligations have been met.

***Shipping and handling***

The Company provides shipping and handling at no charge in sending product to customers. The Company does not consider this a separate performance obligation since these shipping and handling activities occur before the customer obtains control of the goods. The shipping and handling are considered activities to fulfill the entity's promise to transfer the goods and are expensed within operating expenses.

#### Stock-based compensation
The Company grants stock options and restricted stock units to employees, members of the Board of Directors, and consultants. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense on a straight-line basis over the vesting period. Fair value is measured using the Black-Scholes Model. In estimating fair value, management is required to make certain assumptions and estimates, such as the expected life of units, volatility of the Company's future share price, risk-free interest rates, and future dividend yields, at the initial grant date. Changes in assumptions used to estimate fair value could result in materially different results. The Company has elected to recognize the effect of forfeitures in compensation cost when they occur. Previously recognized compensation cost for an award is reversed in the period that the award is forfeited. Further, the Company has elected to use the contractual term as the expected term. Compensation expense is recognized on a straight-line basis, by amortizing the grant date fair value over the vesting period for each separately vesting portion of the award.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

#### 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 transactions 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.

There were no transfers between the levels of fair value hierarchy during the years ended September 30, 2025 or 2024.

The carrying amounts that have been reported in the accompanying consolidated balance sheets for cash approximate its fair value due to its highly liquid nature.

**Loss per share**

The Company presents basic and diluted loss per share data for its ordinary shares. Basic loss per share is calculated by dividing the net loss by the weighted average number of Common Shares outstanding during the period. Contingently issuable shares (including shares held in escrow) are not considered outstanding common shares and consequently are not included in the loss per share calculations. The Company's potentially dilutive common share equivalents are stock options and restricted stock units. The years ended September 30, 2025 and 2024 were periods of net losses, therefore, the potentially dilutive common share equivalents are excluded in the determination of dilutive net loss per share because their effect is antidilutive. In order to determine diluted loss per share, it is assumed that any proceeds from the exercise of dilutive instruments would be used to repurchase common shares at the average market price during the period.

**Leases**

Leases are classified as operating or finance leases based on the terms of the lease agreement and certain characteristics of the identified assets.

The Company's operating leases are for real estate and range from 2 to 11 years. The Company's finance leases are for vehicles and range from 2 to 7 years.

The Company's leases include fixed payments, as well as in some cases, scheduled base rent increases over the term of the lease. Certain leases require variable payments of common area maintenance, operating expenses, and real estate taxes applicable to the property. Variable payments are excluded from the measurements of lease liabilities and are expensed as incurred. Any tenant improvement allowances received from the lessor are recorded as a reduction to rent expense over the term of the lease. Some of the Company's vehicle lease agreements contain residual value guarantees.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

The Company determines if an arrangement is a lease at the inception of the contract. Lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term for those arrangements where there is an identified asset, and the contract conveys the right to control its use. The right-of-use asset is measured at the initial amount of the lease liability. Right-of-use assets are included in property and equipment in the Company's consolidated balance sheets.

Operating lease expense is recognized on a straight-line basis over the term of the lease. Finance lease cost includes a.) depreciation, which is recognized on a straight-line basis over the expected life of the right-of-use asset and included in depreciation in the Company's consolidated statements of income (loss), and b.) interest expense, which is recognized following an effective interest rate method and is included in interest expense in the Company's consolidated statements of income (loss).

The Company's real estate operating leases do not provide an implicit rate that can be easily determined. Therefore, the Company applies its incremental borrowing rate to the lease based on the information available at the commencement date. This estimate impacts the carrying amount of the lease liabilities and the interest expense recorded on the consolidated statement of income (loss). Vehicle finance leases are recorded at the interest rate implicit in the lease based on the current value and the estimated residual value of the vehicle.

Certain leases include one or more options to renew or terminate the lease at the Company's discretion. When the Company recognizes a lease, it assesses the lease term based on the conditions of the lease and determines whether it is probable that it will choose to extend the lease at the end of the initial lease term. This estimate could affect future results if the Company extends the lease or exercises an early termination option.

The Company accounts for non-lease and lease components to which they relate as a single lease component. Additionally, the Company recognized lease payments under short-term leases with an initial term of twelve months or less, as well as low value assets, as an expense on a straight-line basis over the lease term without recognizing the lease liability and ROU asset.

**Income taxes**

Deferred taxes are determined based on the differences between the financial statement amounts and the tax bases using rates as enacted in the laws. A valuation allowance is established if it is "more likely than not" that all or a portion of the deferred tax assets will not be realized.

Interest and penalties related to unrecognized tax benefits are recognized in the tax provision. Liabilities for uncertain tax positions are recognized when it is more likely than not that a tax position will not be sustained upon examination and settlement with various taxing authorities. Liabilities for uncertain tax positions are measured based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. There are not any material interest or penalties during any of the years presented.

**Business combinations**

The Company accounts for business combinations using the acquisition method when control is obtained by the Company. The Company measures the consideration transferred, the assets acquired, and the liabilities assumed in a business combination at their acquisition-date fair values. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred, and the services are received. The excess of the consideration transferred to obtain control, over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed, is recognized as goodwill as of the acquisition date.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

Contingent consideration for a business combination is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Contingent consideration that is classified as a liability is measured at subsequent reporting dates at fair value with the corresponding gain or loss being recognized in profit or loss.

**Noncontrolling interest**

The Company owns 60% of Hart and has determined that it has control of Hart. Therefore, its financial statements are included in the Company's consolidated financial statements, with the noncontrolling 40% noncontrolling interest reflected as a line item on the consolidated statements of financial position, income (loss) and changes in shareholders' equity.

**Financial instruments concentration of credit risk**

The Company maintains cash with various major financial institutions which generally exceeds federally insured limits. The Company performs periodic evaluations of the financial institutions in which its cash is invested.

**Derivatives financial instruments**

The Company is exposed to risks related to changes in interest rates. The financial risk management program is designed to manage the exposure arising from cash flow variability and uses derivative financial instruments to minimize this risk. The Company does not enter into derivative financial instruments for trading or speculative purposes.

The Company's derivative instruments consist of interest rate swap contracts. Derivative instruments are recorded in the consolidated balance sheets and the changes in the fair values of these interest rate swap contracts are recorded on the consolidated statements of income/(loss).

**Recently adopted accounting pronouncements**

Effective October 1, 2024, the Company adopted Accounting Standards Update ("ASU") 2023-07, Segment Reporting ("Topic 280"), which requires disclosure of incremental segment information, including significant segment expenses that are regularly provided to the chief operating decision maker and to disclose how reported measures of segment profit or loss are used in assessing segment performance and allocating resources. The new disclosures are included as Note 14.

**Recently issued accounting pronouncements**

The Company is an "emerging growth company" as defined by the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). The JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. In other words, an emerging growth company can selectively delay the adoption of all accounting standards until those standards would otherwise apply to private companies. The Company has elected to utilize this exemption and, as a result, the consolidated financial statements may not be comparable to the financial statements of issuers that are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies. To date, however, the Company has not delayed the adoption of any accounting standards except as noted below. Section 107 of the JOBS Act provides that the Company can elect to opt out of the extended transition period at any time, which election is irrevocable.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes ("Topic 740"): Improvements to Income Tax Disclosures, which is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid by jurisdiction. The ASU is effective for public business entities' annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In March 2024, the FASB issued ASU No. 2024-01, Compensation-Stock Compensation ("Topic 718"), which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of ASC 718. ASU 2024-01 is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements and related disclosures.

**3.**Acquisitions of and investment in businesses

#### Acquisition of Mediserve Medical Equipment of Kingsport, Inc
On July 1, 2025, the Company, through QHM Holdings Inc., acquired 100% of Mediserve Medical Equipment of Kingsport, Inc. ("Mediserve"). Mediserve is a Tennessee-based company with operations in two states in the same industry as the Company. The purchase price was $2,616,000, comprised of $2,466,000 in cash at closing to the sellers, plus $150,000, the present value of a $160,000 holdback. The cash at closing was paid from cash on hand. The Company has determined that the transaction is an acquisition of a business under ASC 805 Business Combinations, and it has been accounted for by applying the acquisition method. The Company expensed $173,000 of professional fees in conjunction with the acquisition for the fiscal year ended September 30, 2025.

The unaudited pro forma revenues and net income (loss) for Mediserve for the year ended September 30, 2025 as if the acquisition had occurred on October 1, 2024, was approximately $6,600,000 and ($100,000), respectively, of which approximately $1,600,000 and $0 were recognized during the year ended September 30, 2025.

The fair value of the acquired assets and liabilities is provisional as of September 30, 2025 pending final evaluations of assets and liabilities and is as follows:

---

| | |
|:---|:---|
| Accounts receivable | $850 |
| Inventory | 176 |
| Property, equipment, and right of use assets | 1903 |
| Goodwill | 187 |
| Accrued liabilities | (17) |
| Deferred revenue | (170) |
| Lease liabilities | (313) |
| **Net assets acquired** | $**2616** |
| Cash paid at closing | $2466 |
| Holdback payable | 150 |
| **Consideration paid or payable** | $**2616** |

---

The goodwill is attributable to expected synergies from the combining operations. All of the goodwill is deductible for income tax purposes.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

#### Acquisition of Controlling Interest of Hart
Effective September 1, 2025, the Company, through QHM Holdings Inc., acquired a 60% interest in Hart. Hart is a Michigan-based company with operations in two states in the same industry as the Company. The total value of Hart, net of cash, was $30,939,000, and the Company acquired its 60% ownership through the payment of $17,372,000 in cash to the sellers and a debt payoff of $3,261,000 at closing. The cash was obtained through borrowings on the senior credit facility ("the Facility") described in Note 9. The Company has determined that it has a controlling interest of Hart and accounted the transaction as an acquisition under ASC 805, with the noncontrolling interest shown as noncontrolling interest. The Company expensed $473,000 of professional fees in conjunction with the acquisition during the fiscal year ended September 30, 2025.

The unaudited pro forma revenues and net income (loss) for Hart for the year ended September 30, 2025, as if the acquisition had occurred on October 1, 2024, was approximately $65,000,000 and ($600,000), respectively, of which approximately $5,700,000 and $400,000 were recognized during the year ended September 30, 2025.

The fair value of the acquired assets and liabilities is provisional as of September 30, 2025 pending final evaluations of assets and liabilities and is as follows:

---

| | |
|:---|:---|
| Accounts receivable | $7307 |
| Inventory | 2194 |
| Prepaid and other current assets | 426 |
| Property, equipment, and right of use assets | 10376 |
| Goodwill | 10640 |
| Intangible asset - customer relationships (20 year amortization) | 11960 |
| Intangible asset - trade name (10 year amortization) | 3500 |
| Intangible asset - non-compete agreements (5 year amortization) | 200 |
| Accounts payable | (10467) |
| Accrued liabilities | (2104) |
| Deferred revenue | (876) |
| Lease liabilities | (2217) |
| **Net assets acquired** | $**30939** |
| Minority interest | (11581) |
| **Consideration for controlling interest** | $**19358** |
| Cash paid at closing | $20633 |
| Cash acquired | (1275) |
| **Consideration paid or payable** | $**19358** |

---

The goodwill is attributable to expected synergies from the combining operations. All of the goodwill is deductible for income tax purposes.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

#### Purchase price payable
The purchase price payable included on the consolidated statements of financial position relates to holdbacks of Mediserve and others from prior years, less payments and adjustments made. Below is the movement in purchase price payable for the years ended September 30, 2025 and 2024:

---

| | |
|:---|:---|
| Balance, September 30, 2023 | $1457 |
| Accretion of interest | 37 |
| Derecognition of purchase price payable | (550) |
| Payments | (944) |
| Balance, September 30, 2024 | $— |
| Acquisition of Mediserve | 150 |
| Accretion of interest | 2 |
| Payments |  |
| Balance, September 30, 2025 | $152 |

---

#### 4 . Prepaid and other current assets
Following is a summary of prepaid and other current assets as of September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **As at September 30,** <br>**2025** | **As of September 30,** <br>**2024** |
| Vendor rebates | $1989 | $2798 |
| Prepaid insurance | 1422 | 1904 |
| Prepaid income taxes | 701 | 1283 |
| Other | 984 | 926 |
| Total  | $5096 | $6911 |

---

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

**5.**Property, equipment, and right-of-use assets

Following is a summary of property, equipment, and right-of-use assets as of September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **As at September 30,** <br>**2025** | **As of September 30,** <br>**2024** |
| Rental equipment | $77843 | $64568 |
| Vehicles | 3785 | 3296 |
| Leasehold improvements | 2381 | 2403 |
| Office and technology equipment | 1736 | 1130 |
| Buildings | 790 | 930 |
| Land | 140 | 160 |
| Projects in process | 141 | 360 |
| Property and equipment, gross | 86816 | 72847 |
| Less: accumulated depreciation | (40760) | (35462) |
| Property and equipment, net | $46056 | $37385 |
| Right-of-use assets, real estate (Operating lease) | $27689 | $23510 |
| Right-of-use assets, vehicles (Financing lease) | 5279 | 5498 |
| Right-of-use assets, gross | 32968 | 29008 |
| Less: accumulated amortization | (14575) | (12533) |
| Right-of-use assets, net | $18393 | $16475 |

---

Rental equipment transferred from inventory during the fiscal years ended September 30, 2025 and 2024 was $37,058,000 and $33,566,000, respectively. For the years ended September 30, 2025 and 2024, the Company obtained equipment loans (Note 9) of $23,828,000 and $25,304,000, respectively. As of September 30, 2025 and 2024, amounts in ending accounts payable were $1,950,000 and $0, respectively. Remaining rental equipment transferred from inventory of $11,280,000 and $8,262,000 for the years ended September 30, 2025 and 2024, respectively, were paid in cash.

**6.**Goodwill and intangible assets

**Goodwill continuity**

Following is the activity in goodwill for the years ended September 30, 2025 and 2024:

---

| | |
|:---|:---|
| Balance, September 30, 2023 | $52825 |
| Adjustments related to final purchase price allocation for Southern acquisition | (2092) |
| Balance, September 30, 2024 | $50733 |
| Acquisition of Mediserve | 187 |
| Acquisition of Hart | 10640 |
| Balance, September 30, 2025 | $61560 |

---

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

**Intangible assets**

Following is a summary of intangible assets as of September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** <br>**2025** | **As of September 30,** <br>**2024** |
| Customer relationships | $91048 | $79088 |
| Trade names | 15081 | 11581 |
| Customer contracts | 3851 | 3851 |
| Non-compete agreements | 910 | 710 |
| Intangible assets, gross | 110890 | 95230 |
| Less: accumulated amortization | (33330) | (27277) |
| Intangible assets, net | $77560 | $67953 |

---

As of September 30, 2025, estimated annual amortization for intangible assets for each of the next five years and thereafter is approximately:

---

| | |
|:---|:---|
| **Year Ending September 30,** | **Estimated**<br>**Amortization** |
| 2026 | $6764 |
| 2027 | 6711 |
| 2028 | 6582 |
| 2029 | 6575 |
| 2030 | 6514 |
| Thereafter | 44414 |
| Intangible assets, net | $77560 |

---

**7.**Accounts payable and accrued liabilities

Following is a summary of accounts payable and accrued liabilities as of September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** <br>**2025** | **As of September 30,** <br>**2024** |
| Accounts payable | $38431 | $29310 |
| Accrued compensation | 5724 | 4576 |
| Other | 2543 | 1477 |
| Total | $46698 | $35363 |

---

**8.**Deferred revenue

Activity for deferred revenue for the years ended September 30, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the year ended** <br>**September 30, 2025** | **For the year ended** <br>**September 30, 2024** |
| Beginning balance | $3568 | $4511 |
| Acquisitions | 1046 |  |
| Operations | (21) | (943) |
| Ending balance | $4593 | $3568 |

---

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

**9.**Long-term debt and lease liabilities

#### Senior credit facility
The Company has a $110,000,000 Facility with a group of US banks that matures in September 2027. The Facility consists of a delayed-draw term loan facility of $85,000,000, of which $83,600,000 has been drawn (including $17,400,000 for the acquisition of Hart); a term loan of $5,000,000, which was drawn at closing; and a $20,000,000 revolving credit facility. The Facility is secured by substantially all assets of the Company and is subject to certain financial covenants, with which the Company was in compliance as of September 30, 2025.

A summary of the balances on the Facility as of September 30, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of**<br>**September 30, 2025** | **As of**<br>**September 30, 2024** |
| Delayed-draw term loan | $72383 | $58400 |
| Term loan | 4250 | 4500 |
| Revolving credit facility | 10950 | 6323 |
| Total principal | 87583 | 69223 |
| Deferred financing costs | (948) | (1430) |
| Net carrying value | $86635 | $67793 |
| Current portion | $4155 | $3248 |
| Long-term portion | 82480 | 64545 |
| Net carrying value | $86635 | $67793 |

---

As of September 30, 2025, scheduled future repayments of the Facility are as follows:

---

| | |
|:---|:---|
| **Year Ending September 30,** | **Amount** |
| 2026 | $4320 |
| 2027 | 83263 |
| Total  | $87583 |

---

The delayed-draw term loan and the term loan are bearing interest at a weighted average 6.7% as of September 30, 2025. The rate is based on a secured overnight financing rate ("SOFR"), with a floor of 0.5%, plus a spread of 2.1% to 2.85% (2.4% as of September 30, 2025) based on the Company's leverage ratio and will reprice within three months. The revolving credit facility is bearing interest at 7.0% as of September 30, 2025 and will reprice within three months. The Facility also has fees for unused availability of 0.75% for the delayed-draw term loan and 0.25% for the revolving credit facility. The fair value of the Facility was determined considering market conditions, credit worthiness and the current terms of debt, which is considered Level 2 on the fair value hierarchy. Due to the near-term repricing of the interest rates, the fair value of the Facility approximates the principal value as of September 30, 2025 and 2024.

To manage the risks of the cash flows related to interest expense, the Company entered into several interest rate swaps on $54,000,000 of the principal amount of the Facility. The swaps carry a fixed SOFR of 3.4% to 4.4%, resulting in a weighted combined rate of 6.6%.

The swaps are settled quarterly and mature on September 30, 2026 and at the Facility's maturity. Any difference between the Facility's SOFR rate and the swap's rate is recorded as interest expense. For the year ended September 30, 2025 and

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

2024, a reduction of $228,000 and $311,000 to interest expense was recorded in the consolidated statements of income (loss), respectively.

As of September 30, 2025, the fair value of the interest rate swap liability, which was determined using Level 2 inputs of market conditions on future expected interest rates, credit worthiness, and the current terms of debt, was $670,000 as compared to $1,122,000 as of September 30, 2024 and is recorded in derivative liability – interest rate swap in the condensed consolidated statements of financial position. The Company has recorded the changes in fair value of derivative liability – interest rate swaps on the consolidated statements of income (loss).

Interest expense on the Facility, including the impact of the interest rate swap agreements, was $5,095,000 and $5,346,000 for the years ended September 30, 2025 and 2024, respectively.

The Company has incurred financing costs to obtain and maintain the Facility, which is reflected as a reduction of the outstanding balance and will be amortized as interest expense using the effective interest method over the life of the Facility. During the years ended September 30, 2025 and 2024, $563,000 and $513,000 of amortization of deferred financing costs was recorded, respectively.

#### Equipment Loans
The Company is offered financing arrangements from the Company's suppliers and the supplier's designated financial institution, in which payments for certain invoices or products can be financed and paid over an extended period. The financial institution pays the supplier when the original invoice becomes due, and the Company pays the third-party financial institution over a period of time. In most cases, the supplier accepts a discounted amount from the financial institution and the Company repays the financial institution the face amount of the invoice with no stated interest, in twelve equal monthly installments. The Company uses its incremental borrowing rate of 6.6% to 8.0% to impute interest on these arrangements, which resulted in interest expense of $800,000 and $985,000 for the years ended September 30, 2025 and 2024, respectively. The discount of the carrying amount from the face value of the loans is $252,000 as of September 30, 2025. The Company has also assumed equipment loans in conjunction with several of its acquisitions.

There are no covenants with the loans and the carrying value of the equipment that is pledged as security against the loans is $22,153,000 and $22,871,000 as of September 30, 2025 and 2024, respectively.

Following is the activity in equipment loans for the years ended September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30, 2025** | **Year Ended** <br>**September 30, 2024** |
| Beginning Balance | $12859 | 14347 |
| Additions: |  |  |
| &nbsp;&nbsp;Operations | 23828 | 25304 |
| Repayments | (24472) | (26792) |
| Ending Balance | 12215 | 12859 |
| Current portion | 12212 | 12804 |
| Long-term portion | $3 | $55 |

---

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

#### Leases Liabilities
The Company enters into leases for real estate and vehicles. Real estate leases are operating leases and are valued at the net present value of the future lease payments at the incremental borrowing rate. Vehicle leases are finance leases and recorded at the rate implicit in the lease based on the current value and the estimated residual value of the vehicle, if any.

Below is the movement in lease liabilities for the years ended September 30, 2025 and 2024 respectively:

---

| | | | |
|:---|:---|:---|:---|
|  | **Operating** | **Finance**  | **Total** |
| Balance, September 30, 2023 | $16236 | $2914 | $19150 |
| Additions during the period: |  |  |  |
| &nbsp;&nbsp;Operations | 4229 | 1975 | 6204 |
| &nbsp;&nbsp;Lease terminations | (438) |  | (438) |
| Repayments | (4187) | (1579) | (5766) |
| Balance, September 30, 2024 | $15840 | $3310 | $19150 |
| Additions during the period: |  |  |  |
| &nbsp;&nbsp;Acquisitions | 2074 | 456 | 2530 |
| &nbsp;&nbsp;Operations | 3953 | 842 | 4795 |
| Lease terminations | (82) |  | (82) |
| Repayments | (5015) | (1436) | (6451) |
| Balance, September 30, 2025 | $16770 | $3172 | $19942 |

---

Future payments pursuant to lease liabilities are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Year Ending September 30,**  | **Operating** | **Finance** | **Total** |
| 2026 | $6548 | $1531 | $8079 |
| 2027 | 5028 | 1054 | 6082 |
| 2028 | 3395 | 723 | 4118 |
| 2029 | 2345 | 222 | 2567 |
| 2030 | 983 | 42 | 1025 |
| Thereafter | 778 |  | 778 |
| Gross lease payments | 19077 | 3572 | 22649 |
| Less amounts relating to interest | (2307) | (400) | (2707) |
| Lease liabilities | $16770 | $3172 | $19942 |

---

The components of finance lease expense are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Years ended September, 30** | **Years ended September, 30** |
|  | <br>**Classification** | **2025** | **2024** |
| Finance lease expense: |  |  |  |
| &nbsp;&nbsp;Amortization of lease assets | Depreciation | $1120 | $1262 |
| &nbsp;&nbsp;Interest on lease liabilities | Interest expense | 250 | 262 |
| Total finance lease cost |  | $1370 | $1524 |

---

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

Other information relating to leases is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of**<br>**September 30, 2025** | **As of**<br>**September 30, 2024** |
| Weighted average remaining lease term (years) |  |  |
| &nbsp;&nbsp;Operating leases | 3.8 | 4.1 |
| &nbsp;&nbsp;Finance leases | 2.7 | 2.8 |
| Weighted average discount rate |  |  |
| &nbsp;&nbsp;Operating leases | 7.2% | 7.4% |
| &nbsp;&nbsp;Finance leases | 8.7% | 8.5% |

---

**10.**Shareholders' Equity

#### 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 shares outstanding. Common shares are classified as equity, and costs related to the issuance of shares are recognized as a reduction of equity.

#### 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, 2025 vest quarterly over eight or twelve quarters.

A summary of stock options is provided below:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Weighted** | **Weighted** |
|  | <br>**Number of options (000's)** | **average exercise price** | **average exercise price** |
| Balance, September 30, 2023 | 3957 | C$ | 4.49 |
| Exercised | (520) |  | 1.50 |
| Expired | (31) |  | 7.35 |
| Forfeited | (4) |  | 8.48 |
| Balance, September 30, 2024 | 3402 | C$ | 4.91 |
| Issued | 425 |  | 3.40 |
| Expired | (49) |  | 6.98 |
| Balance, September 30, 2025 | 3778 | C$ | 4.70 |

---

At September 30, 2025, the Company had 3,351,583 vested stock options with a weighted average exercise price of C$4.76.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

The fair value of the stock options granted during the year ended September 30, 2025 was C$3.40. The Company used the Black-Scholes option pricing model calculated using the following assumptions:

---

| | |
|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** |
| Share price at grant date | C$3.40 |
| Risk-free interest rate | 4.25% |
| Expected volatility | 242.4% |
| Expected life of option | 10 years |
| Expected dividend yield | Nil |

---

#### Restricted stock units
The Company also grants restricted stock units to directors, officers, employees, and consultants. Each unit represents the right to ‎receive one common share, and vests over a period of one to two years from the grant date and are generally settled in the calendar year after vesting. The number of shares issued was less than the number of units settled due to the officers' election to receive a reduced number of shares to satisfy their tax withholding obligations. These tax withholdings resulted in cash outflows of $0 and $213,000 for the years ended September 30, 2025 and 2024, respectively.

The fair values of the restricted stock units on the date of grant are discounted to reflect the difference between the vesting dates and the expected issuance dates, to be expensed over the respective vesting periods with an increase to contributed surplus.

A summary of restricted stock units is provided below:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Weighted average** | **Weighted average** |
|  | **Number**<br>**of units (000's)** | **grant-date price** | **grant-date price** |
| Balance, September 30, 2023 | 1034 | C$ | 8.34 |
| Settled | (515) |  | 8.38 |
| Balance, September 30, 2024 | 519 | C$ | 8.30 |
| Granted | 2479 |  | 3.40 |
| Settled | (415) |  | 8.30 |
| Balance, September 30, 2025 | 2583 | C$ | 3.60 |

---

Unrecognized compensation expense related to nonvested shares of stock options and restricted stock was $3,026,000 at September 30, 2025 and will be recognized over the remaining weighted average vesting period of 0.6 years. For the years ended September 30, 2025 and 2024, the Company recorded stock-based compensation expense as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** | **Year Ended** <br>**September 30,** <br>**2024** |
| Restricted stock units | $3336 | $1639 |
| Stock options | 699 | 845 |
| Stock-based compensation expense | $4035 | $2484 |

---

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

**11.**Commitments and Contingencies

From time to time, the Company is involved in various legal proceedings and investigations arising in the ordinary course of business, including those relating to proxy contests and other actions of activist shareholders, employment matters, relationships with clients and contractors, intellectual property disputes and other business matters. The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and if one or more legal matters were resolved against the Company in a reporting period for amounts above management's expectations, the Company's financial condition and operating results for that period could be materially adversely affected.

The Company has received a civil investigative demand ("CID") from the Department of Justice ("DOJ") through the US Attorney's Office for the Northern District of Georgia pursuant to the False Claims Act regarding an investigation concerning whether the Company may have caused the submission of false claims to government healthcare programs for CPAP equipment. The Company is cooperating with the investigation. No assurance can be given as to the timing or outcome of the DOJ's investigation.

In April 2024, the Company received a subpoena from the SEC to provide certain documents related to the Company and the DOJ investigation, CID, and financial reporting and disclosure matters. The SEC concluded its investigation in November 2024 and, based on the information it had at such time, the SEC advised that it did not intend to recommend an enforcement action by it against the Company.

**12.**Operating expenses

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** | **Year Ended** <br>**September 30,** <br>**2024** |
| Payroll and employee benefits | $79326 | $78905 |
| Facilities | 5817 | 5623 |
| Billing | 12691 | 11030 |
| Professional fees | 7023 | 6288 |
| Outbound freight | 5618 | 5466 |
| Vehicle fuel and maintenance | 4736 | 4675 |
| Bank and credit card fees | 2287 | 2121 |
| Technology | 1972 | 1592 |
| Insurance | 1476 | 1549 |
| All other | 4511 | 5293 |
| Total operating expenses | $125457 | $122542 |

---

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

**13.**Income taxes

The Company's US and foreign income before taxes were as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** | **Year Ended** <br>**September 30,** <br>**2024** |
| US | $(6453) | $(1770) |
| Foreign | (4007) | (4884) |
|  | $(10460) | $(6654) |

---

The details of the Company's income tax provision (benefit) are set forth below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** | **Year Ended** <br>**September 30,** <br>**2024** |
| Current provision (benefit): |  |  |
| Federal | $— | $— |
| Foreign |  |  |
| State | 156 | (233) |
|  | 156 | (233) |
| Deferred provision (benefit): |  |  |
| Federal | 8 | 369 |
| Foreign |  |  |
| State | 77 | (27) |
|  | 85 | 342 |
| Provision for income taxes | $241 | $109 |

---

The reconciliation of the Company's income taxes calculated at the US federal statutory rate to its effective tax rate is set forth below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br>**September 30,**<br>**2025** | **Year Ended**<br>**September 30,**<br>**2024** |
| US federal statutory rate | 21.0% | 21.0% |
| State taxes, net of federal benefit | (1.9) | 3.2 |
| Statutory rate differential attributable to foreign operations | 2.3 | 1.6 |
| Executive compensation |  | (3.4) |
| Stock-based compensation | (10.1) | 3.2 |
| Change in valuation allowance | (8.5) | (24.1) |
| Other permanent differences | (5.1) | (3.1) |
| Effective income tax rate | (2.3)% | (1.6)% |

---

The Company prepared the income tax rate reconciliation using the income tax rate of US, determined using management's judgment that the primary economic environment in which it will derive its revenues and expenses incurred to generate those revenues is the US. The statutory rate differential attributable to foreign operations is derived from local country taxes levied on the Company's operations in Canada.

The change in valuation allowance relates to the Company's deferred tax assets that it generated or utilized during the current year as well as changes in the Company's assessment regarding its likelihood of using its deferred tax assets. The Company considered all the positive and negative evidence available to determine whether it is more likely than not that tax benefit from utilization of the deferred

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

tax assets will ultimately be realized. Based upon that evidence, the Company determined that only a portion of its deferred tax assets will be utilized in the future to offset taxable income generated by the reversal of its deferred tax liabilities.

**Deferred tax**

The Company's deferred tax assets (liabilities) are comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** | **Year Ended** <br>**September 30,** <br>**2024** |
| Deferred tax assets: |  |  |
| Net and capital operating loss carryforwards | $19474 | $16469 |
| Goodwill | 9984 | 11551 |
| Lease liabilities | 4494 | 4777 |
| Interest expense | 3707 | 2459 |
| Accrued and stock-based compensation | 2733 | 3146 |
| Accounts receivable | 1075 | 2074 |
| Share issuance costs | 349 | 540 |
| Other | 456 | 964 |
| Total deferred tax assets | 42272 | 41980 |
| Deferred tax assets valuation allowances | (19792) | (19089) |
| Deferred tax asset, net | $22480 | $22891 |
| Deferred tax liabilities: |  |  |
| Property, equipment, and right of use assets, net | $(9985) | $(9080) |
| Intangible assets, net | (12782) | (14013) |
| Total deferred tax liabilities | $(22767) | $(23093) |
| Net deferred tax assets (liabilities) | $(287) | $(202) |

---

The activity of the Company's valuation allowance is as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** <br>**September 30,** <br>**2025** | **Year Ended** <br>**September 30,** <br>**2024** |
| Balance at beginning of year | $(19089) | $(17667) |
| Increases | (703) | (1422) |
| Balance at end of year | $(19792) | $(19089) |

---

The US loss carryforwards of approximately $18,000,000 expire in 2029 through 2038 whereas the remaining US loss of approximately $28,000,000 can be carried forward indefinitely.

The Canadian non-capital loss carryforwards of approximately $28,000,000 have various expiry dates starting in 2027 through 2045. The net capital losses of approximately $1,000,000 can be carried forward indefinitely.

The Company does not have unrecognized tax benefits due to uncertain tax positions. Management has determined that it is more likely than not that all tax positions that the Company has recorded in its income tax provision and tax returns would be sustained upon examination by the taxing authorities. There are no audits currently in progress.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

14. Segment reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") for purposes of allocating resources and evaluating financial performance. We have determined our CODM is our Chief Executive Officer.

We have one operating and one reportable segment, representing our consolidated business that helps organizations design, automate, and optimize important business processes from start to finish. We generate revenue from customers primarily through the sale and rental of equipment, as discussed in Note 2 – Revenue recognition. Our reportable segment determination is based on our management and internal reporting structure, the nature of the product and services we offer, and the financial information evaluated regularly by our CODM.

The CODM uses operating income (loss) and net loss reported on the consolidated statements of income (loss) to assess performance for the segment and decide how to allocate resources. In addition, the CODM reviews the expense categories presented on the consolidated statements of income (loss) to manage the Company's operations. Operating income (loss) and net loss are used to evaluate profitability trends in the business, and the CODM considers budget-to-actual variances for both profit measures when making decisions about allocating capital and resources. Further, the measure of segment assets is total assets as reported on the consolidated statements of financial position.

**15.**Related party transactions

The Company (through indirect wholly-owned subsidiaries) has six leases for office, warehouse, and retail space with a rental company affiliated with the Company's Chief Executive Officer, the majority of which were entered into in 2015, prior to such subsidiaries being acquired by the Company and prior to the Chief Executive Officer joining the Company, and five of which were renewed effective October 1, 2022. The leases have a combined area of 74,520 square feet. Lease payments under these leases were approximately $65,000 and $63,000 per month for the twelve months ended September 30, 2025 and 2024, respectively, with increases on October 1 of each year equal to the greater of (i) the Consumer Price Index for All Urban Consumers (CPI-U), and (ii) 3%. One lease expires in June 2026 and the remaining five leases expire on September 30, 2029.

**16. Subsequent event**

On December 14, 2025, the Company entered into an Arrangement Agreement (the "Arrangement Agreement") to be acquired by 1567208 B.C. Ltd. and REM Aggregator, LLC (collectively, "Purchaser"), entities affiliated with Kingswood Capital Management, LP ("Kingswood"). Under the terms of the Arrangement Agreement, Purchaser will acquire all of the issued and outstanding common shares of the Company (the "Shares") pursuant to a Plan of Arrangement (the Arrangement) under the *Business Corporations Act* (British Columbia) (the BCBCA) for US$3.65 per Share.

At the effective time of the Arrangement (the "Effective Time"), each Share, other than any Shares exchanged by shareholders who may properly exercise dissent rights under the BCBCA, will be deemed to be transferred to Purchaser in consideration for the right to receive a cash payment from the Purchaser in the amount equal to US$3.65, without interest.

The transaction is expected to close during the first half of 2026, subject to customary closing conditions, including receipt of shareholder, regulatory, and court approvals. Upon completion of the transaction, the Company will become a privately-held company.

[**Table of Contents**](#TOC)

**Quipt Home Medical Corp.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 and 2024**

(Tabular dollar amounts expressed in thousands of US dollars, except per share amounts)

------

If the Arrangement is consummated, the Shares will be de-listed from The Nasdaq Capital Market and the Toronto Stock Exchange and de-registered under the Securities Exchange Act of 1934, as amended, and the Company will cease to be a Canadian "reporting issuer", as soon as practicable following the Effective Time.

Pursuant to the terms of an equity commitment letter entered into by and between Purchaser and Kingswood and delivered to the Company at the signing of the Arrangement Agreement (the "ECL"), Purchaser has obtained equity commitments from Kingswood for the transactions contemplated by the Arrangement Agreement, the aggregate proceeds of which Purchaser will use to fund the consideration payable at closing and thereafter, all fees, costs, expenses and other amounts payable by Purchaser in connection with the transactions contemplated by the transactions contemplated by the Arrangement Agreement (the Commitment). The ECL includes a guarantee from Kingswood to the Company, on the terms and conditions set forth in the ECL.

Each option exercisable to acquire one or more Shares from the Company (a Company Option), outstanding immediately prior to the Effective Time (whether vested or unvested) will be deemed to be unconditionally vested and exercisable and will, without any further action by or on behalf of a holder of the Company Option, be deemed to be surrendered and transferred by such holder to the Company in consideration for the right to receive a cash payment from the Company in an amount equal to the excess, if any, of US$3.65 over the exercise price of such option, less any amounts the Company is required to withhold for taxes, without interest. Any option for which the exercise price is equal to or greater than US$3.65 will be cancelled for no consideration.

Each of the Company's restricted share units (a Company RSU) outstanding immediately prior to the Effective Time (whether vested or unvested) will, without any further action by or on behalf of the holder of any such Company RSU, be deemed to be transferred by such holder to the Company in consideration for the right to receive a cash payment from the Company in the amount equal to US$3.65, less any amounts the Company is required to withhold for taxes, without interest.

The Arrangement Agreement also provides customary restrictions on the Company's ability to solicit alternative acquisition proposals from third parties and engage in discussions or negotiations with third parties regarding such proposals. Notwithstanding these restrictions, the Company may under certain circumstances provide information to and participate in discussions or negotiations with third parties with respect to an unsolicited acquisition proposal that constitutes or could reasonably be expected to constitute or lead to a Superior Proposal (as defined in the Arrangement Agreement).

[**Table of Contents**](#TOC)

#### Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.

#### Item 9A. Controls and Procedures.

#### Evaluation of disclosure controls and procedures.
Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) under the Exchange Act) are designed to provide reasonable assurance that (i) information required to be disclosed by the Company in reports that it files or submits to the Canadian securities regulatory authorities or the SEC, as applicable, is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and (ii) material information required to be disclosed in the Company's reports filed with the Canadian securities regulatory authorities or the SEC, as applicable, is accumulated and communicated to the Company's management, including its Chief Executive Officer ("CEO") and its Chief Financial Officer ("CFO"), as appropriate, to allow for timely decisions regarding required disclosure. It should be noted that, because of inherent limitations, our disclosure controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the disclosure controls and procedures are met.

As required by paragraph (b) of Rule 13a-15 under the Exchange Act, we carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

#### Management's report on internal control over financial reporting.
Management of the Company is responsible for establishing and maintaining adequate "ICFR" (as such term is defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*) and "internal control over financial reporting" (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) (together, "ICFR"). Our internal control over financial reporting is a process that is designed under the supervision of our Chief Executive Officer and Chief Financial Officer, and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Our internal control over financial reporting includes those policies and procedures that:

● Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

● Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures recorded by us are being made only in accordance with authorizations of our management and Board of Directors; and

● Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

We completed the acquisitions of Mediserve on July 1, 2025 and Hart effective September 1, 2025. We are continuing to integrate our internal controls and procedures with Mediserve and Hart. As permitted by the SEC staff guidance for newly acquired businesses, our report on our internal control over financial reporting for the year ended September 30, 2025, includes a scope exception for the acquired Mediserve and Hart businesses. Mediserve and Hart accounted for 18% of total assets as of September 30, 2025, and 3% of total revenues of the Company for the year ended September 30, 2025.

[**Table of Contents**](#TOC)

Management has conducted its evaluation of the effectiveness of internal control over financial reporting as of September 30, 2025, based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Management's assessment included an evaluation of the design of our internal control over financial reporting and testing the operational effectiveness of our internal control over financial reporting. Management reviewed the results of the assessment with the Audit Committee of the Board of Directors. Based on its assessment and review with the Audit Committee, management concluded that, as of September 30, 2025, the Company's internal control over financial reporting was effective.

***Changes in internal control over financial reporting.***

There were no changes in our internal control over financial reporting (as described in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

#### Item 9B. Other Information.
During the three months ended September 30, 2025, none of the Company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" as defined in Item 408 of Regulation S-K.

#### Insider Trading Arrangements and Policies
The Company has insider trading policies and procedures that govern the purchase, sale and other dispositions of its securities by directors, officers and employees, as well as by the Company itself. The Company believes these policies and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations and applicable listing standards.

#### Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
Not applicable.

[**Table of Contents**](#TOC)

#### PART III

#### Item 10. Directors, Executive Officers and Corporate Governance.
The information required by this item is incorporated by reference to the 2026 Proxy Statement filed pursuant to Regulation 14A, which will be filed no later than 120 days after September 30, 2025.

#### Item 11. Executive Compensation.
The information required by this item is incorporated by reference to the 2026 Proxy Statement filed pursuant to Regulation 14A, which will be filed no later than 120 days after September 30, 2025.

#### Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.
The information required by this item is incorporated by reference to the 2026 Proxy Statement filed pursuant to Regulation 14A, which will be filed no later than 120 days after September 30, 2025.

#### Item 13. Certain Relationships and Related Transactions and Director Independence.
The information required by this item is incorporated by reference to the 2026 Proxy Statement filed pursuant to Regulation 14A, which will be filed no later than 120 days after September 30, 2025.

#### Item 14. Principal Accountant Fees and Services.
The information required by this item is incorporated by reference to the 2026 Proxy Statement filed pursuant to Regulation 14A, which will be filed no later than 120 days after September 30, 2025.

[**Table of Contents**](#TOC)

#### PART IV

#### Item 15. Exhibits and Financial Statement Schedules.
1. Financial Statements:

The following Consolidated Financial Statements of Quipt Home Medical Corp. and subsidiaries, management's report and the report of the independent registered public accounting firm are incorporated by reference in Part II, Item 8 of this Form 10-K.

● Report of Independent Registered Public Accounting Firm

● Consolidated Statements of Financial Position

● Consolidated Statements of Income (Loss)

● Consolidated Statements of Shareholders' Equity

● Consolidated Statements of Cash Flows

● Notes to Consolidated Financial Statements

2. Financial Statement Schedules:

These schedules are omitted because of the absence of the conditions under which they are required or because the information is set forth in the Consolidated Financial Statements or Notes thereto.

[**Table of Contents**](#TOC)

Exhibits

---

| | |
|:---|:---|
| 2.1\* | [Equity Purchase Agreement, dated August 11, 2025, by and among QHM Holdings Inc., IRB Medical Equipment, LLC, dba Hart Medical Equipment, and Hart HoldCo, LLC](qipt-20250930xex2d1.htm) |
| 3.1<sup>#</sup> | [Notice of Articles (incorporated by reference to Exhibit 3.1 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex3d1.htm) |
| 3.2 | [Articles (incorporated by reference to Exhibit 3.2 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex3d2.htm) |
| 4 | [Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex4.htm) |
| 10.1 | [Amended and Restated Credit and Guaranty Agreement dated September 16, 2022 (incorporated by reference to Exhibit 99.1 to the Registrant's Report on Form 6-K filed on January 24, 2023)](https://www.sec.gov/Archives/edgar/data/1540013/000110465923006141/tm234112d1_ex99-1.htm) |
| 10.2 | [Membership Interest Purchase Agreement dated January 3, 2023 (incorporated by reference to Exhibit 99.4 to the Registrant's Report on Form 6-K filed on January 24, 2023)](https://www.sec.gov/Archives/edgar/data/1540013/000110465923006141/tm234112d1_ex99-4.htm) |
| 10.3\*<sup>†˄</sup> | [Employment Agreement with Gregory Crawford](qipt-20250930xex10d3.htm) |
| 10.4\*<sup>†˄</sup> | [Employment Agreement with Hardik Mehta](qipt-20250930xex10d4.htm) |
| 10.5<sup>†</sup> | [2019 Stock Option Plan, as amended and form of stock option agreement there under (incorporated by reference to Exhibit 99.1 to the Registrant's Registration Statement on Form S-8 filed on July 16, 2021)](https://www.sec.gov/Archives/edgar/data/1540013/000110465921092822/tm2121986d3_ex99-1.htm) |
| 10.6<sup>†</sup> | [2021 Equity Incentive Plan (incorporated by reference to Exhibit 99.99 to the Registrant's Registration Statement on Form 40-F filed on May 14, 2021)](https://www.sec.gov/Archives/edgar/data/1540013/000110465921066355/tm2029099d1_ex99-99.htm) |
| 10.6.1<sup>†</sup> | [Form of Stock Option Agreement under 2021 Equity Incentive Plan (incorporated by reference to Exhibit 99.3 to the Registrant's Registration Statement on Form S-8 filed on July 16, 2021)](https://www.sec.gov/Archives/edgar/data/1540013/000110465921092822/tm2121986d3_ex99-3.htm) |
| 10.6.2<sup>†</sup> | [Form of Restricted Stock Unit Agreement under 2021 Equity Incentive Plan (incorporated by reference to Exhibit 99.5 to the Registrant's Registration Statement on Form S-8 filed on July 16, 2021)](https://www.sec.gov/Archives/edgar/data/1540013/000110465921092822/tm2121986d3_ex99-5.htm) |
| 10.7<sup>†</sup> | [2024 Equity Inventive Plan (incorporated by reference to Exhibit 99.1 to the Registrant's Registration Statement on Form S-8 filed on April 12, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000110465924046760/tm2411569d1_ex99-1.htm) |
| 10.7.1<sup>†</sup> | [Form of Stock Option Agreement under 2024 Equity Incentive Plan (incorporated by reference to Exhibit 10.8.1 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex10d81.htm) |
| 10.7.2<sup>†</sup> | [Form of Restricted Stock Unit Agreement under 2024 Equity Incentive Plan (incorporated by reference to Exhibit 10.8.2 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex10d82.htm) |
| 10.8<sup>†</sup> | [Form of the Indemnity Agreement between the Registrant and each of its directors and executive officers (incorporated by reference to Exhibit 10.9 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex10d9.htm) |
| 10.9<sup>#</sup> | [Cooperation Agreement, dated March 3, 2025, by and between Quipt Home Medical Corp. and David L. Kanen, Philotimo Fund, LP and Kanen Wealth Management, LLC (incorporated by reference to Exhibit 99.1 to the Registrant's Current Report on Form 8-K filed on March 4, 2025)](https://www.sec.gov/Archives/edgar/data/1540013/000155837025002109/qipt-20250303xex10d1.htm) |
| 10.10\*<sup>†</sup> | [Retention Bonus Agreement with Thomas Roehrig](qipt-20250930xex10d10.htm) |
| 19 | [Insider Trading Policy (incorporated by reference to Exhibit 19 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex19.htm) |
| 21\* | [Subsidiaries of the Registrant](qipt-20250930xex21.htm) |
| 23\* | [Consent of BDO USA, P.C.](qipt-20250930xex23.htm) |
| 31.1\* | [Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](qipt-20250930xex31d1.htm) |
| 31.2\* | [Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](qipt-20250930xex31d2.htm) |
| 32<sup>\*\*</sup> | [Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](qipt-20250930xex32.htm) |

---

[**Table of Contents**](#TOC)

---

| | |
|:---|:---|
| 97 | [Policy for Recovery of Erroneously Awarded Incentive Compensation (incorporated by reference to Exhibit 97 to the Registrant's Annual Report on Form 10-K filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1540013/000155837024016299/qipt-20240930xex97.htm) |
| 101‎.INS\*‎ | Inline XBRL Instance Document  |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101. PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and incorporated by reference to Exhibit 101) |

---

&nbsp;&nbsp;&nbsp;&nbsp;† Represents a management contract or compensatory plan or arrangement.

\* Filed herewith.

\*\* This certification is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that Quipt Home Medical Corp. specifically incorporates it by reference.

# Certain information contained in this exhibit has been redacted pursuant to Item 601(a)(6) of Regulation S-K.

˄ Portions of this exhibit have been redacted pursuant to Item 601(b)(10) of Regulation S-K as the Registrant has determined that (i) the omitted information is not material, and (ii) the omitted material is of the type that the Registrant treats as private or confidential.

#### Item 16. Form 10-K Summary.
None.

[**Table of Contents**](#TOC)

#### SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized in the city of Wilder, State of Kentucky.

---

| | | |
|:---|:---|:---|
| QUIPT HOME MEDICAL CORP. |  |  |
|  | By  | /s/ Gregory Crawford |
|  |  | Gregory Crawford, Chief Executive Officer |
|  |  | December 15, 2025 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Gregory Crawford<br>(Gregory Crawford) | Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer) | December 15, 2025 |
| /s/ Hardik Mehta<br>(Hardik Mehta) | Chief Financial Officer (Principal Financial Officer) | December 15, 2025 |
| /s/ Thomas Roehrig<br>(Thomas Roehrig) | Chief Accounting Officer<br>(Principal Accounting Officer) | December 15, 2025 |
| /s/ Mark Greenberg<br>(Mark Greenberg) | Director | December 15, 2025 |
| /s/ Brian Wessel<br>(Brian Wessel) | Director | December 15, 2025 |
| /s/ Kevin Carter<br>(Dr. Kevin Carter) | Director | December 15, 2025 |

---

## Exhibit 2.1

***Exhibit 2.1***

**EQUITY PURCHASE AGREEMENT**

THIS EQUITY PURCHASE AGREEMENT (this "<u>Agreement</u>") is made as of August 11, 2025 ("<u>Effective Date</u>") by and among (i) QHM Holdings, Inc., a Delaware corporation ("<u>Buyer</u>"), (ii) IRB Medical Equipment, LLC, dba Hart Medical Equipment, a Michigan limited liability company ("<u>Company</u>"), and (iii) Hart HoldCo, LLC, a Michigan limited liability company ("<u>Seller</u>") (altogether the "<u>Parties</u>"). As used herein, the Seller and Company are collectively the "<u>Seller Parties</u>."

**Background**

The Company is a limited liability company organized under the laws of the State of Michigan and participating Medicare provider that provides durable medical equipment, points of service products and related services (collectively, the "<u>Business</u>").

Prior to the Closing, Henry Ford Health, McLaren Health Management Group and Northwest Ohio Medical Equipment, LLC (the "<u>Owners</u>") Owners contributed 100% of the equity interests of the Company to Seller in exchange for the equity interests of Seller (the "<u>Contribution</u>").

As of the Closing, the Seller owns beneficially and of record 100% of the issued and outstanding units of membership interests of the Company (collectively, the "<u>Units</u>").

**Agreement**

NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements set forth in this Agreement, and intending to be legally bound, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **PURCHASE AND SALE OF UNITS; PURCHASE PRICE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1<u>Purchase of the</u> <u>Units</u>. Subject to the terms and upon the conditions set forth in this Agreement, the Buyer agrees to purchase from the Seller, and the Seller agrees to sell to the Buyer, Units representing sixty percent (60.0%) of the outstanding Units (the "<u>Sale Units</u>"), for the Purchase Price set forth in <u>Section 1.2</u> hereto (the "<u>Transaction</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2<u>Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Purchase Price</u>. The "Purchase Price" to be paid by Buyer for the Sale Units shall be equal to sixty percent (60.0%) of the amount calculated as follows: (i) $35,000,000 (the "<u>Enterprise Value</u>"), *plus* (ii) cash on hand with the Company, which shall in no event be less than the Minimum Cash Amount, on the Closing Date, *minus* (iii) any Company Indebtedness (including finance leases), *minus* (iv) any accrued payroll as of the Closing Date, *minus* (v) any debt or liabilities owed by the Company or any subsidiaries of the Company to an Owner or its Affiliates, *minus* (vi) other payables not consisting of trade payables incurred in the ordinary course of business, and *plus or minus* (vii) the Working Capital Surplus (if any) or the Working Capital Deficit (if any), respectively (collectively, the sum of the items (i) through (vii), the "<u>Adjusted Enterprise Value</u>").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Payment of Purchase Price</u>. The Purchase Price shall be payable in cash by the Buyer on the Closing Date in accordance with the Estimated Closing Date Statement, which shall include payment in cash by wire transfer of: (i) the Transaction Expenses to the identified third parties and (ii) the remainder of the Purchase Price to the Seller. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3<u>Company Indebtedness</u>. For purposes of this Agreement, "<u>Company Indebtedness</u>" shall mean (a) outstanding amounts owed by the Company under the JP Morgan Chase line of credit, (b) finance leases, and (c) outstanding amounts owed by the Company to the State of Michigan pursuant to a settlement with Medicaid, each of which will be set forth in the Estimated Closing Date Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4<u>Cash</u>.The Buyer and Seller acknowledge and agree that it is intended that, upon the consummation of the Closing, the Seller shall keep no less than the Minimum Cash Amount (net of outstanding checks) remaining in the Company and any such amount remaining with the Company shall be included in the calculation of the Purchase Price in accordance with <u>Section 1.2(a)</u> above. The Company may distribute all cash (net of outstanding checks) over and above the Minimum Cash Amount, to Seller on or prior to the Closing Date, including, but not limited to, pursuant to satisfaction of any debt or liabilities owed by the Company or any subsidiaries of the Company to an Owner or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5<u>Closing Statement; Post-Closing Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Estimated Closing Date Statement</u>. The Seller shall cause the Company to deliver to Buyer not less than two (2) Business Days prior to the Closing Date a statement setting forth the Purchase Price, the Working Capital calculations, which shall be calculated in a manner consistent with the illustrative example attached hereto as **Exhibit C**, and directions for payments described in <u>Section 1.2(b)</u> as of the Closing Date (the "<u>Estimated Closing Date Statement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Final Closing Date Statement</u>. Buyer shall, within thirty (30) days following the Reconciliation Date, cause the Company to prepare and deliver to Seller a statement (the "<u>Final Closing Date Statement</u>"), setting forth its calculation of any necessary adjustments to the Estimated Closing Date Statement, which shall be calculated in a manner consistent with the illustrative example attached hereto as **Exhibit C**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Examination and Review</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Seller shall have thirty (30) days following receipt of the Final Closing Date Statement from Buyer (the "<u>Closing Review Period</u>"), to review the Final Closing Date Statement. During the Closing Review Period, the Seller and the Company's accountants shall have full access to the books and records of the Company, the personnel of, and work papers prepared by, Buyer and/or Buyer's Accountants to the extent that they relate to the Final Closing Date Statement and to such historical financial information (to the extent in Buyer's possession) relating to the Final Closing Date Statement as the Seller may reasonably request for the purpose of reviewing the Final Closing Date Statement and to prepare a Statement of Objections (as defined below), provided, that such access shall be in a manner that does not unreasonably interfere with the normal business operations of Buyer

------

or the Company. If the Seller fails to deliver the Statement of Objections before the expiration of the Closing Review Period, the Final Closing Date Statement shall be deemed to have been accepted by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)On or prior to the last day of the Closing Review Period, the Seller may object to the Final Closing Date Statement by delivering to Buyer a written statement setting forth the Seller's objections in reasonable detail, indicating each disputed item or amount and the basis for the disagreement therewith (the "<u>Statement of Objections</u>"). In such event, Buyer and Seller shall negotiate in good faith to resolve the objections within thirty (30) days after the delivery of the Statement of Objections and to agree to a Final Closing Date Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Payment of Post-Closing Adjustment</u>. The Parties shall make all necessary payments as described in the Final Closing Date Statement (as modified by the process described in <u>Section 1.5(c)</u>) within ten (10) days following agreement to the Final Closing Date Statement. In the case of payment by Seller, such payment shall not result in a reduction to the Retention Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6<u>Tax Treatment</u>. The Parties acknowledge and agree that, for U.S. federal (and, as applicable, state and local) income Tax purposes, (a) the Seller is intended to be the continuation of the tax partnership that was the Company prior to the Contribution, (b) the Company is intended to be treated as a disregarded entity following the Contribution, and (c) the acquisition of the Sale Units is intended to be treated in accordance with Revenue Ruling 99-5, situation 1, whereby the Seller is treated as having sold a sixty percent (60.0%) undivided interest in each asset of the Company (subject to its liabilities) to Buyer in exchange for the Purchase Price, and immediately thereafter, Buyer and Seller are deemed to have contributed their respective undivided interests in the assets of the Company (subject to its liabilities, if any) to a newly formed entity classified as a partnership for U.S. federal (and applicable state and local) income Tax purposes in exchange for an ownership interest in such partnership pursuant to a transaction intended to be governed by Section 721(a) of the Code. The parties agree to treat the transactions contemplated in this Agreement in the manner set forth in this ‎<u>Section 1.6</u> for all applicable Tax purposes, except as otherwise required by a "determination" as defined in Section 1313 of the Code (or a similar proceeding for purposes of corresponding provisions of state, local or foreign Law) or a good faith settlement with a Tax authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7<u>Allocation of Purchase Price</u>. Buyer and Seller agree to allocate the Purchase Price, any liabilities of the Company and all other relevant items required to be included under the Code among the assets of the Company in accordance with the methodology to be mutually agreed by the parties on or prior to the Closing Date or such other date mutually agreed by the Parties (the "<u>Purchase Price Allocation</u>"). No later than thirty (30) days following the finalization of the Final Closing Date Statement pursuant to <u>Section 1.5</u>, Buyer shall deliver Buyer's determination of the Purchase Price Allocation to Seller Parties. If, within the ensuing twenty-one (21) days, a Seller Party does not object in writing to such determination, then such determination shall become final and binding on the parties. If, within such twenty-one (21) days, a Seller Party objects in writing to such determination, such writing setting forth Seller's objections in reasonable detail, indicating each disputed item or amount and the basis for the disagreement therewith, then the parties shall, within the following thirty (30) days, attempt in good faith to resolve any such disputed items. In

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the event Seller Parties and Buyer do not agree regarding such disputed items, then the Parties shall jointly engage an accounting or similar firm that is mutually acceptable to both, to resolve such disputes (with the costs and expenses of such accounting or similar firm to be borne one-half by Seller Parties and one-half by Buyer) and modify the Purchase Price Allocation accordingly. The parties hereto agree to act (and cause their respective Affiliates to act) in accordance with such determination of the Purchase Price Allocation in the preparation, filing and audit of any Tax Return, and not to take (or permit any of their Affiliates to take) any Tax reporting position that is inconsistent with such Purchase Price Allocation, except as otherwise required by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8<u>Accounts Receivable</u>. For a period of nine (9) months after the Closing Date (the "<u>Initial Collection Period</u>"), the Company shall collect all accounts receivable owed to the Company prior to the Closing Date (the "<u>Closing Receivables</u>") in accordance with the Company's practices prior to the Closing regarding the collection of accounts receivable. During the Initial Collection Period, the parties shall meet informally on approximately a monthly basis to discuss the status of the Company's collection efforts of the Closing Receivables. Within fifteen (15) days after the end of the Initial Collection Period, the Company shall provide to Buyer and Seller a statement (the "<u>Closing Receivables Collection Statement</u>") setting forth the aggregate amount of Closing Receivables collected during the Initial Collection Period (the "<u>Collected Receivables</u>"). If the Collected Receivables is less than the "<u>Collection Threshold</u>" (which shall be defined as the product of the Closing Receivables multiplied by ninety-five percent (95.0%)), then such deficit shall be a "<u>Collection Shortfall</u>." Seller shall have a period of fifteen (15) days to object to the Closing Receivables Collection Statement by delivering a written notice to Company and Buyer. If the Company and Buyer do not receive such a notice from Seller and there is a Collection Shortfall, then the Closing Receivables Collection Statement shall be final and the Seller shall pay to the Company the Collection Shortfall within thirty (30) days. If the Company and Buyer receive a notice of objection from Seller, then Seller and Buyer shall negotiate in good faith to resolve any objection and, as necessary, resolve the dispute in accordance with <u>Section 10.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **CLOSING** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1<u>Closing Date</u>. Subject to the terms and conditions of this Agreement, the closing of the Transaction contemplated hereby (the "<u>Closing</u>") shall take place on the Closing Date. The Closing shall take place via the exchange of documents and signatures via overnight courier, facsimile or other electronic transmission, effective as of 12:01 am on the Closing Date. The date of the Closing is hereinafter referred to as the "<u>Closing Date</u>." The Closing Date shall be the second Business Day following the satisfaction (or waiver) of all of the conditions precedent set forth in <u>Article 6</u> and <u>Article 7</u> below (other than conditions which, by their nature, are to be satisfied on the Closing Date), or at such other time as the parties may agree in writing. All proceedings to be taken and all documents to be executed and delivered by all parties at the Closing will be deemed to have been taken and executed simultaneously and no proceedings will be deemed to have been taken nor documents executed or delivered until all have been taken, executed and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER** 

As an inducement to Buyer to enter into this Agreement and to consummate the transactions contemplated by this Agreement, the Seller represents, warrants and covenants to Buyer as hereafter set forth in this <u>Article 3</u>, and acknowledges that Buyer is relying upon such

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representations, warranties and covenants contained in this <u>Article 3</u> as being true and correct as of the Effective Date, provided, that any qualifications and exceptions to such representations, warranties or covenants shall be set forth on a corresponding disclosure schedule attached hereto (each, a "<u>Disclosure Schedule</u>"). The Disclosure Schedules shall be numbered to correspond to the various Sections of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<u>Organization and Organization Documents</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Michigan, and has the requisite power and authority to own or lease all of its assets, to own and operate the Business, and to carry on its business as now conducted or proposed to be conducted. The Company is qualified or licensed to do business in the jurisdictions in which it is required to be so qualified—such states being the States of Michigan and Ohio and such other places where Business is currently conducted. Except pursuant to this Transaction, the Company has no subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except as set forth on <u>Schedule 3.1(b)</u>, the Company has not changed its name, been the surviving entity of a merger or consolidation, or acquired all or substantially all of the assets of any Person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Company has made available to Buyer and its counsel the charter or other organizational documents of the Company, the current Operating Agreement of the Company and all amendments thereto to date, and copies of any actions taken at any meetings of the members and/or board of managers or by the written consent of the members and/or board of managers of the Company since June 30, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<u>Capitalization</u>. The Units are the only issued and outstanding equity interests of the Company and the Units have been duly authorized, are validly issued, fully paid and non-assessable, and are not subject to any capital calls or subscriptions. There are no outstanding subscriptions, options, rights, warrants, conversion rights, agreements or commitments of any kind obligating the Company to issue, acquire or transfer any interests of any kind in the Company including the Units. Except as set forth in <u>Schedule 3.2</u>, the Company has no outstanding or authorized profit unit equity appreciation, phantom equity, profit participation, or similar rights or plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3<u>Ownership of Units</u>. At Closing, the Seller shall own all of the Units beneficially and of record, free and clear of all liens, encumbrances, pledges, options, warrants, rights of first refusal, claims, charges and restrictions of any nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4<u>Authority of Seller</u>. Seller has full power and authority to enter into this Agreement and the other agreements, instruments and documents contemplated by this Agreement (the "<u>Related Documents</u>"), to consummate the transactions contemplated hereby, and to perform all obligations hereunder and thereunder. The execution, delivery and performance by Seller of this Agreement and the Related Documents has been duly and validly approved (and in the case of Company, by all necessary member approval). This Agreement and each Related Document to which Company or Seller is a party, upon its execution and delivery, constitutes the legal, valid and binding obligation of such party. The execution, delivery and performance of this Agreement

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and the Related Documents do not require the consent of or notice to any federal, state or local governmental authority except that notice must be provided to Medicare about change of ownership within thirty (30) days following the Closing Date or as set forth on <u>Schedule 3.4</u>. Neither the execution nor the delivery of this Agreement and the Related Documents nor the consummation of the Transaction will conflict with or result in any violation of or constitute a default under any term of the Company's articles of organization, its operating agreement as amended at the Closing, or any judgment, decree, order, or award applicable to the Company. <u>Schedule 3.4</u> also lists all material agreements by which the Company is bound pursuant to which the execution, delivery and performance of this Agreement and the Related Documents requires the consent of or notice to a third party, except for Payor Contracts. Neither the execution and delivery of this Agreement and the Related Documents nor the consummation of the transactions contemplated thereby will result in the creation of any lien, security interest, charge or encumbrance upon any of the assets of the Company except as a consequence to the Closing (the "<u>Assets</u>"), or result in the cancellation, modification, revocation or suspension of any material license, certificate, permit or authorization held by the Company, except as listed in <u>Schedule 3.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5<u>Title to Property</u>. Except as set forth in <u>Schedule 3.5</u> and any Permitted Liens, the Company has good and marketable title to all of its Assets, free and clear of all liens, claims, charges, encumbrances, leases, pledges, security interests, mortgages, defects in title, equities, covenants and other restrictions of any nature whatsoever. <u>Schedule 3.5</u> also identifies all guaranties by the Seller of any debt relating to the Assets. All of such guaranties are valid and subsisting. True and correct copies of such guaranties have been furnished by the Company to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6<u>Real Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company does not own any real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Schedule 3.6(b)</u> identifies and briefly describes the terms of all leases to which Company is a party covering any real property used by such Company. <u>Schedule 3.6(b)</u> also identifies all guaranties by the Seller or Owners of any such leases. All of such leases and guaranties are valid and subsisting. The consummation of the Transaction will not require the Company to obtain the consent or approval from any lessor, sub-lessor or sub-lessee who is a party to any of such leases, except as disclosed in <u>Schedule 3.6(b)</u>. True and correct copies of such leases and guaranties have been furnished by the Company to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7<u>Permits; Compliance with Laws and Litigation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Schedule 3.7(a)</u> sets forth a complete and accurate list of all material authorizations, approvals, consents, certificates, licenses, permits or franchises of or from any Government Entity (as hereinafter defined) or pursuant to any Law (as hereinafter defined) (collectively, the "<u>Permits</u>") that are used or held for use in, necessary for or otherwise relating to the Business. The Company holds all Permits necessary for the lawful conduct of the Business under and pursuant to all statutes, laws, ordinances, rules, orders, ordinances, or regulations (collectively, "<u>Laws</u>") of any federal, state, local or foreign governmental department, commission, board, bureau, agency or instrumentality, including any federal or state courts (collectively, "<u>Governmental Entity</u>"), except where such failure would not have a Material

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Adverse Effect. All Permits have been legally obtained and maintained and are valid and in full force and effect. The Company is duly licensed to conduct the Business as presently conducted in all states in which the Business is conducted and, is in compliance with all of the terms and conditions of such licenses, except for the failure of which would not have a Material Adverse Effect. There has been no material change in the facts or circumstances reported or assumed in the application for or granting of any Permits. No outstanding violations are or have been, recorded in respect of any of the Permits. No proceeding is pending and no notice has been received by the Company or Seller threatening, or to Seller's Knowledge otherwise threatened, to suspend, revoke, withdraw, modify or limit any Permit, and, to Seller's Knowledge, there is no fact, error or admission relevant to any Permit that would permit the suspension, revocation, withdrawal, modification, or limitation of, or result in the threatened suspension, revocation, withdrawal, modification of limitation of, or in the loss of any Permit, except as a consequence to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each employee of the Company who is required to be licensed to perform his/her health care duties for the Company holds a valid and unrestricted license to practice or perform those health care duties in the state(s) where he or she performs such duties for the Company, and has held such a valid and unrestricted license for the purposes identified in this <u>Section 3.7(b)</u> at all times while employed , except where such failure would not have a Material Adverse Effect. In cases where the Company receives services from a third party entity that provides independent contractors (individuals) to the Company who are required to be licensed to perform health care duties, a binding written agreement requiring the third party entity to ensure licensure is in place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Company and its Board of Managers and officers have operated the Company's Business in compliance with all Permits and Laws, including but not limited to, those Laws that apply to regulatory matters primarily relating to patient healthcare, healthcare providers and healthcare services (including, without limitation, the Social Security Act, as amended, Sections 1128, 1128A and 1128B, 42 U.S.C. Sections 1320a-7, 7(a) and 7(b), including Criminal Penalties Involving Medicare or Medicaid, commonly referred to as the "Federal Anti-Kickback Statute" and the Social Security Act, as amended, Section 1877, 42 U.S.C. Section 1395nn (Prohibition Against Certain Referrals), commonly referred to as the "Stark Statute," the statute commonly referred to as the "Federal False Claims Act," the Health Insurance Portability and Accountability Act of 1996 ("<u>HIPAA</u>"), Durable Medical Equipment, Prosthetics Orthotics, and Supplies ("<u>DMEPOS</u>") Supplier Standards and Quality Standards, state and local equivalents to such statutes and the rules and regulations issued pursuant thereto (collectively, as amended from time to time, "<u>Healthcare Laws</u>"), which are applicable to the Company, the Assets or the Company's Business, except where such failure would not have a Material Adverse Effect. Except as set forth on <u>Schedule 3.7(c)</u>, the Company has not received at its corporate address, and, to the Knowledge of Seller, there has been no written notice or other written communication from any Governmental Entity since October 31, 2013, regarding (i) any actual, alleged, possible, or potential violation of, or failure to comply with, any Healthcare Laws or any other applicable laws, rules, regulations, ordinances or administrative orders, or (ii) any actual, alleged, possible, or potential obligations on the part of any Company to undertake, or to bear all or any portion of the cost of, any remedial action of any nature. Except as set forth on <u>Schedule 3.7(c)</u>, for the past five (5) years, the Company has not been served with any subpoenas, notices of investigation, or otherwise been provided with notice of any investigation from any Governmental Entity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)All reports and schedules required to be filed by the Company with any Governmental Entity have been timely filed (except where such failure would not have a Material Adverse Effect) and all such claims, reports, schedules and/or returns are complete and accurate in all material respects. The Company has no liabilities to any payer with respect to claims submitted outside the ordinary course of business. The Company has maintained substantially all records required to be maintained by the Food and Drug Administration, Drug Enforcement Administration and State Board of Pharmacy and the Medicare and Medicaid programs and the laws of all other applicable federal, state and local Governmental Entities as required by applicable Healthcare Laws. To the Seller's Knowledge, there are no presently existing circumstances relating to the operations of the Company or otherwise that would result or would be reasonably likely to result in material violation of any such Healthcare Laws, except as relates to the Permits and the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)There are no lawsuits, claims, proceedings or investigations pending or, to Seller's Knowledge, threatened against, or affecting the Company, the Assets, the Business or the Seller, except as disclosed in <u>Schedule 3.7(e)</u>. Neither the Company nor to Seller's Knowledge, any of its employees, contractors or subcontractors have been convicted of, charged with or investigated for a Medicare, Medicaid or other Federal Health Care Program (as defined in 42 U.S.C. § 1320a-7b(f)) related offense, or convicted of, charged with or investigated for a violation of federal or state law relating to fraud, theft, embezzlement, breach of fiduciary duty or responsibility, financial misconduct, obstruction of an investigation or controlled substances. Neither the Company nor, to Seller's Knowledge, any of its employees, contractors or subcontractors have been excluded or suspended from participation in Medicare, Medicaid or any other Federal Health Care Program, or have been debarred, suspended or are otherwise ineligible to participate in federal programs. Neither the Company nor any of its employees, contractors or subcontractors have committed any offense which may reasonably serve as the basis for any such exclusion, suspension, debarment or other ineligibility. The Company has not arranged or contracted with any individual or entity that is suspended, excluded or debarred from participation in, or otherwise ineligible to participate in a Federal Health Care Program or other federal program. There are no lawsuits, claims, or proceedings pending in which Company is the plaintiff or claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)There are no lawsuits, claims, suits, proceedings or investigations pending or, to the Seller's Knowledge threatened, which involve the possibility of any judgment, order, award or other decision that might impair the ability of the Seller to perform its obligations under this Agreement, or might impair the quality of title to the Assets or the Units, or might adversely affect the normal operation of the Business, or might result in liability for damages or might otherwise adversely affect any Company's right, title or interest in the Assets or the Business or the Seller's right, title or interest in the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8<u>Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Attached, as <u>Schedule 3.8(a)</u>, are copies of the audited income statements, cash flow statements, and balance sheets of the Company for the years ended December 31, 2023 and December 31, 2024 and of the unaudited income statements, cash flow statements, and balance sheets of the Company for the interim period from January 1, 2025 through June 30, 2025 (collectively, the "<u>Financial Statements</u>"). The balance sheet dated June 30, 2025 shall be referred

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to as the "<u>Most Recent Balance Sheet</u>" and the income statement dated June 30, 2025 shall be referred to as the "<u>Most Recent Income Statement</u>" (and, together with the Most Recent Balance Sheet, the "<u>Most Recent Financial Statements</u>"). The Financial Statements are true, complete and correct and fairly present the financial condition and the results of operations of the Company in all material respects as of the respective dates and periods thereof. The assets of the Company include all of the assets of the Company reflected in the Most Recent Financial Statements and all assets acquired since the date of such Financial Statements, excepting only such assets as have been acquired or consumed in the ordinary course of business or those that have become obsolete or unnecessary to the Company. The Financial Statements: (i) are in accordance with the books and records of the Company, (ii) are consistently applied with prior periods and the accounting methods applied by the Company for tax purposes, excluding however, the Most Recent Financial Statements; and (iii) have been prepared on an accrual basis applied by the Company on a consistent basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except (i) to the extent reflected or reserved against in the Most Recent Balance Sheet or (ii) for unsecured current liabilities incurred since the date of the Most Recent Balance Sheet in the ordinary course of business, the Company has no liabilities or obligations, whether accrued, absolute, contingent or otherwise, whether due or to become due and whether the amounts thereof are readily ascertainable or not, or any unrealized or anticipated losses from any commitments of a contractual nature, including Taxes (as defined below) with respect to or based upon the transactions or events occurring prior to the Closing. The Company will not have any Indebtedness as of the Closing Date (other than Indebtedness set forth on the Most Recent Balance Sheet which shall specifically include Equipment Indebtedness set forth in <u>Schedule 3.8(b)</u> and auto loans). The Most Recent Balance Sheet does not contain receivables or any payables or loans due to or from the Company for amounts due to or from the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9<u>Absence of Adverse Changes or Other Events</u>. Except as set forth on <u>Schedule 3.9</u>, since the Most Recent Balance Sheet, the Company has not: (a) created or incurred any liability (absolute or contingent) other than in the Ordinary Course; (b) loaned any money or otherwise pledged the credit of the Company, or mortgaged, pledged or subjected to any lien or otherwise encumbered any of the Assets; (c) suffered any losses or any other event or condition of any character materially adverse to its business, or waived any rights of substantial value; (d) made any capital expenditures or capital additions or improvements other than in the ordinary course of business; (e) directly or indirectly purchased, retired, redeemed or otherwise acquired any interests in, the Units or other equity or ownership interests; (f) paid or promised to pay any bonuses or increased the compensation to any Company employee; (g) issued or sold any equity interests or rights, options or warrants to purchase its equity interests (other than as required by this Transaction) or any securities convertible into its equity interests or redeemed or made any agreement to redeem any of its outstanding equity interests; (h) become bound by or entered into any contract, commitment or transaction other than in the ordinary course of business; (i) entered into any contract or agreement to do or perform any of the foregoing actions; or (j) acquired or disposed of any Assets except in the ordinary course of business or pursuant to satisfaction of any debt or liabilities owed by the Company or any subsidiaries of the Company to an Owner or its Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10<u>Employees</u>.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company is not a party to any employment agreement, written or oral, which it cannot terminate at will without liability to the Company (assuming fulfillment of any accrued benefits or retirement plan distributions as listed in <u>Schedule 3.10(b)</u> and assuming compliance with all applicable laws and regulations, including, without limitation, anti-discrimination and equal employment opportunity and health care regulatory laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Schedule 3.10(b)</u> lists and briefly describes the Company's pension, profit sharing, accrued benefit, retirement, or other employee benefit plans, and any health care, life insurance or other employee welfare plans and a copy of each such plan has been provided to the Buyer. Each such plan complies and has been administered in all material respects in accordance with all applicable Laws, including the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder or in connection therewith, and the Code, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The names, initials, titles and rates of compensation of all of the employees of the Company are listed in <u>Schedule 3.10(c)</u>. Except as otherwise listed in <u>Schedule 3.10(c)</u>, as of the Effective Date, no Company employee has informed the Company of his/her any intention to terminate his/her employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Company: (i) is not a party to any collective bargaining agreement, nor has the Company had any discussions or negotiations with any Person or group looking toward any such agreement; (ii) has not within the last five (5) years, experienced any strike, grievance, unfair labor practice claim or other labor difficulty; (iii) is unaware of any threatened strike, grievance, unfair practice claim or other labor difficulty, and there exists no reasonable basis for the assertion of any grievance or unfair labor practice claim or other charge or complaint against any Company by or before the National Labor Relations Board or any state, labor relations board or commission or representative thereof; (iv) is not aware of any filing by any employee or employee group seeking recognition as a collective bargaining representative or unit; and (v) has no reason to believe that any former employer of any of its employees is contemplating remedial action of any nature against such employee or the Company based on such employee having terminated the former employment and having become an employee of the Company. To the Seller's Knowledge, the Company has complied in all material respects with all applicable Laws relating to labor or labor relations or employment, including, without limitation, any provisions thereof relating to equal employment opportunity, wages, hours, employee safety, immigration control, drug testing, termination pay, vacation pay, fringe benefits, collective bargaining and the payment and/or accrual of the same and all taxes, insurance and all other costs and expenses applicable thereto, and the Company is not liable for any arrearage, or any taxes, costs or penalties for failure to comply with any of the foregoing. The Company has not incurred any liabilities, penalties or other charges under the Worker Adjustment and Retraining Notification Act ("<u>WARN</u>") or any similar state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11<u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Company owns, and/or is properly and sufficiently licensed or otherwise possesses rights to use all: (i) trademarks and service marks (registered or unregistered), trade

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dress, trade names and other names and slogans embodying business goodwill or indications of origin, all applications or registrations in any jurisdiction pertaining to the foregoing and all goodwill associated therewith; (ii) inventions, technology, computer programs and software (including password unprotected interpretive code or source code, object code, development documentation, programming tools, drawings, specifications and data), and all applications and patents pertaining to the foregoing, including re-issues, continuations, divisions, continuations-in-part, renewals or extensions; (iii) trade secrets, including confidential and other non-public information; (iv) writings, designs, software programs, mask works or other works, applications or registrations in any jurisdiction for the foregoing and all moral rights related thereto; (v) databases and all database rights; (vi) internet websites, domain names and applications and registrations pertaining thereto; and (vii) to the Seller's Knowledge, other intellectual property rights ("<u>Company Intellectual Property</u>") that are used in the Business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)There are no infringements of any Company Intellectual Property by any third party and, to the Knowledge of Seller, the conduct of the Business as currently conducted or as currently planned to be conducted does not infringe any proprietary right of a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>S</u><u>chedule 3.11(c)</u> sets forth a complete list of all patents, trademarks, registrations and pending registration applications pertaining to the Company Intellectual Property owned by the Company (collectively, the "<u>Registered Intellectual Property</u>"). All such Registered Intellectual Property is owned by the Company free and clear of liens or encumbrances of any nature, except as listed in <u>Schedule 3.11(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Schedule 3.11(d)</u> sets forth a complete list of all licenses, sublicenses and other agreements in which either Company has granted rights to any Person or entity to make, use, sell, distribute or service any products or services which utilize or incorporate the Company Intellectual Property and a separate list of all material licenses, sublicenses and other agreements in which Company has received rights from any Person to use the Company Intellectual Property (the "<u>Licensed Intellectual Property</u>"). As a result of the execution and delivery of this Agreement or any of the Related Documents or the performance of its obligations under this Agreement or the Related Documents, neither Company nor Seller shall be in breach of any license, sublicense or other agreement relating to the Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Company owns or has properly and sufficiently licensed or otherwise has the right to use all computer software currently used by the Company in the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12<u>Customer Contracts and Business Documents</u>. All of the Customer Contracts and Business Documents that are material to the Business are listed in <u>Schedule 3.12</u>. Other than the material Customer Contracts and the material Business Documents set forth on <u>Schedule 3.12</u>, the real property leases set forth on <u>Schedule 3.6(b)</u> (the "<u>Real Property Leases</u>"), the licenses, sublicenses and other agreements set forth on <u>Schedule 3.11(d)</u> (the "<u>IP Licenses</u>"), and the agreements set forth on <u>Schedule 3.14</u> (the "<u>Other Contracts</u>" and together with the material Customer Contracts, the material Business Documents and the IP Licenses, the "<u>Company Contracts</u>"), Company does not have any other presently existing material contracts, agreements, leases, or commitments, whether written or oral, affecting or relating to the Business, except for Payor Contracts. All of the material Company Contracts are valid and enforceable against the Company and are in full force and effect in accordance with their terms, and the consummation of

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the Transaction will not require obtaining the consent of or providing notice to any party to such Company Contract, except as described in <u>Schedule 3.4</u>, <u>Schedule 3.6(b)</u>, <u>Schedule 3.12</u>, or <u>Schedule 3.14</u>. The Company has delivered or made available copies of all of the Company Contracts to the Buyer as of the Effective Date, except as described in <u>Schedule 3.4</u>, <u>Schedule 3.6(b)</u>, <u>Schedule 3.12</u>, or <u>Schedule 3.14</u>. The Business and all equipment used in connection with it are now being utilized, operated and maintained, in all material respects, in conformity with the Company Contracts. The Company has not at any time in any manner failed to so utilize, operate and maintain the Business in a manner that could now or hereafter result in cancellation or termination of any of the Company Contracts or in liability for damages under any of the Company Contracts, except as described in <u>Schedule 3.4</u>, <u>Schedule 3.6(b)</u>, <u>Schedule 3.12</u>, or <u>Schedule 3.14</u>, nor has either Company or, to the Seller's Knowledge, the other party(s) to such Company Contracts, defaulted in its obligations pursuant to any of the Company Contracts, which default could result in the cancellation of any Company Contract or adversely affect the rights of such Company under such Company Contract. To Seller's Knowledge, no party has indicated its intent to cancel any of the Company Contracts. The Company is not a party to any franchise, license, distributor or other similar type of agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13<u>Broker or Finder</u>**.** The Company retained the Braff Group as its broker and the Seller is responsible for the payment of such broker fees, which will be paid as a Transaction Expense as set forth in <u>Section 1.2(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14<u>Contracts</u>. Except as set forth in <u>Schedule 3.14</u>, the Company is not a party to or bound by any written or oral: (a) agreement or understanding not made in the ordinary course of the Business, except for Payor Contracts and agreements otherwise disclosed in the Schedules to this Agreement; (b) contract for personal services not terminable at will without liability to the Company; (c) continuing contract for the future purchase of materials, supplies, machinery or other equipment; (d) contracts or commitments for capital expenditures in excess of $50,000 in the aggregate; (e) loan, credit or financing agreements, including all agreements for any commitments for future loans, credit or financing; or (f) guarantee or suretyship agreement. <u>Schedule 3.14</u> also identifies all guaranties by the Seller and Affiliates thereof relating to the Business and any Assets of the Company. All of such guaranties are valid and subsisting. True and correct copies of such guaranties have been furnished by the Company to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15<u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Schedule 3.15</u> lists and describes all insurance policies currently insuring any of the Assets or relating to the Business. All such policies are on (and for the applicable statute of limitations period plus one year have been on) an "occurrence basis," which means, for example, that if a claim arose after the Closing Date for an event which occurred prior to the Closing Date, the applicable Company's insurance policy in existence on the date such event occurred would cover such claim. All such policies are in full force and effect and the Company has not received any notice of cancellation with respect thereto. Except as disclosed in <u>Schedule 3.15</u>, during the past five (5) years, (i) no application by Company for insurance with respect to the Assets or the Business has been denied for any reason, and (ii) Company has had no claim made against it by any customer that would adversely affect such Company's insurance rating. Attached to <u>Schedule 3.15</u> is a copy of Company's insurance claims history for the past five (5) years for each of the policies listed in <u>Schedule 3.15</u> as well as for any claims that were self-insured.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All policies to which Company is a party or that provide coverage to members, managers or officers of the Company: (i) taken together, provide adequate insurance coverage for the Assets and the operations of the Company for all risks normally insured against by a company carrying on the same business or businesses as the Company; (ii) are sufficient for compliance with all applicable Laws, rules, regulations and orders and all material Customer Contracts and Business Documents; and (iii) will continue in full force and effect following the consummation of the Transaction, excepted as described in <u>Schedule 3.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16<u>Environmental Matters</u>. Other than storage and sale of oxygen in the ordinary course of business, Company has not used, generated, stored or disposed of any Hazardous Materials on any property owned, occupied or leased by either Company or any of its Affiliates. To Seller's Knowledge, no Hazardous Materials have been used, generated, stored or disposed of by any previous owner or other third party on any property owned, occupied or leased by any Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17<u>Accounts Receivable</u>. All accounts receivable of the Company that are reflected on the Most Recent Balance Sheet or on the accounting records of the Company as of the Closing Date (collectively, the "<u>Accounts Receivable</u>") represent or will represent valid obligations arising from sales actually made or services actually performed in the ordinary course of business. <u>Schedule 3.17</u> contains a complete and accurate list of all Accounts Receivable as of the date of the Most Recent Balance Sheet, which list sets forth the aging of such Accounts Receivable, including those receivables which have been outstanding for more than one hundred eighty (180) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18<u>Banks, Officers and Powers of Attorney</u>. <u>Schedule 3.18</u> lists: (a) all banks (with account numbers) in which Company has an account or safe deposit box and the names of all persons authorized to draw thereon or have access thereto; (b) the names of all incumbent directors and officers of the Company; and (c) the names of all persons holding powers of attorney from the Company and a summary statement of the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19<u>Certain Business Relationships with Affiliates</u>. Except as disclosed in <u>Schedule 3.19</u>, the Seller: (a) does not own any property or right, tangible or intangible, which is used in the Business, (b) does not have any claim or cause of action against the Company, (c) does not owe any money to and is not owed money by Company other than as may be reflected on the Most Recent Balance Sheet or for expenses required to be reimbursed in the ordinary course of business, (d) does not have and has not had any ownership, leasehold or other interest, whether direct or indirect, in any customer of the Business, (e) is not and has not been employed in any sales or management position, whether directly or indirectly, by any customer of the Business, and (f) is not and has not been able to control or authorize the purchase or procurement of any pharmacy or home health care services or related products by any customer from the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20<u>Questionable Payments</u>. Neither the Company, nor any of its directors, officers, agents, employees or other Person or entity associated with or acting on behalf of the Company, directly or indirectly, has: (i) used any of the Company's funds for unlawful contributions, gifts, entertainment or other unlawful payments or expenses relating to political activity, (ii) made any direct or indirect unlawful payments to government officials or employees, or foreign government officials or employees, from Company funds, (iii) established or maintained any unlawful or

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unrecorded fund of Company monies or other assets, (iv) made any false or fictitious entries on the books of account of the Company or (v) made or received any bribe, payoff, or other influence payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21<u>Medicare and Medicaid Program Participation</u>. Company (a) is currently participating in good standing with the Medicare and applicable Medicaid Programs in the geographic areas in which such Company conducts the Business, (b) is eligible to receive payment under those Programs for which such Company is a participating provider, (c) and is a party to valid provider agreements related to such programs. Company has obtained and maintains a Medicare Provider Transaction Number ("<u>PTAN</u>") and Medicaid provider numbers as necessary for the Business. <u>Schedule 3.21</u> contains a list of all PTAN and Medicaid provider numbers held by the Company. Neither the Company nor Seller has received any notice indicating that such participation may be terminated or withdrawn and neither has any reason to believe that such qualification may be terminated or withdrawn. Except as set forth in <u>Schedule 3.21</u>, there are no material pending appeals, overpayment determinations, adjustments, challenges, audits, litigation or notices of intent to open Medicare or Medicaid claim determinations or other reports required to be filed by the Company. The Company shall conduct a search of relevant databases as they exist prior to the Closing Date to confirm that no member, officer, board member, or employee of the Company is identified as "excluded individuals or entities" as said term is defined by Section 1128(a) of the Social Security Act (codified at 42 U.S.C. Section 1320a-7).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22<u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company has timely filed or caused to be timely filed or will timely file or cause to be timely filed with the appropriate taxing authorities all material returns, statements, forms and reports for Taxes that are required to be filed by, or with respect to, the Company on or prior to the Closing Date (the "<u>Returns</u>"). The Returns have accurately reflected and will accurately reflect in all material respects all liability for Taxes of the Company for the periods covered thereby. The Company has paid all material Taxes due and owning by it on or before the date on which such Taxes were due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All material Taxes which the Company is (or was) required by law to withhold or collect have been duly withheld or collected, and have been or will be timely paid over to the proper authorities to the extent due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Company is not and has never been a publicly traded partnership for United States federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Company is not liable for any amounts in respect of Taxes imposed on or with respect to any other Person or entity, whether by law or by contract (other than a contract not primarily relating to Taxes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)No United States federal, state or local or foreign audits, examinations, investigations or other administrative proceedings or court proceedings are currently pending or, to the Seller's Knowledge, threatened with regard to any income Tax or any other material Tax of, or any income Return or other material Return filed by or on behalf of, the Company. There is no material claim against the Company for any Tax, and no assessment, deficiency or adjustment has

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been asserted, proposed or threatened in writing that has not been fully resolved with respect to any Return or Tax with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)There are no outstanding waivers, extensions or comparable consents regarding the application of the statute of limitations with respect to any Taxes or Returns of the Company (other than ordinary course automatic extensions of Returns).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)No closing agreements, private letter rulings or technical advice memoranda or similar agreements or rulings with respect to Taxes have been entered into or issued by any taxing authority with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)No power of attorney has been granted by or with respect to the Company with regard to any material matters relating to Taxes, except for the tax preparation professionals and payroll professionals retained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)No taxing authority has asserted that the Company should be filing Returns in any jurisdiction where the Company has not been filing Returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)The Company has not participated in any (i) "tax shelter" within the meaning of Section 6111 of the Code (as in effect prior to the enactment of Public Law 108-357) (or any comparable laws of jurisdictions other than the United States) or (ii) "reportable transaction" within the meaning of Treasury Regulations Section 1.6011-4 (as in effect at the relevant time) (or any comparable laws of jurisdictions other than the United States).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)No tax is or will be required to be withheld under Section 1445 of the Code as a result of the acquisition of the Units by the Buyer pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Since January 1, 2013, the Company has been, for federal (and, where applicable, state and local) income Tax purposes, properly treated as a partnership. The Company is not a successor (whether by merger, liquidation, conversion or otherwise) to any Person that at any time was taxable as a "corporation" for federal, state or local Income Tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)For the purposes of this Agreement, "<u>Tax</u>" or "<u>Taxes</u>" means all taxes, assessments, charges, duties, fees, levies or other governmental charges, including, without limitation, all federal, state, local, foreign and other income, franchise, profits, capital gains, membership interest, transfer, sales, use, occupation, property, excise, severance, windfall profits, stamp, license, payroll, withholding and other taxes, assessments, charges, duties, fees, levies or other governmental charges of any kind whatsoever (whether payable directly or by withholding and whether or not requiring the filing of a Return), all estimated taxes, deficiency assessments, additions to tax, penalties and interest and shall include any liability for such amounts as a result either of being a member of a combined, consolidated, unitary or affiliated group or of contractual obligations to indemnify any Person or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23<u>Billing Practices</u>. All billing practices of the Company with any commercial insurance payor, managed care plan, other prepaid plan, health care service plan or other third party payor, including any Governmental Entity payor or private payor (collectively "<u>Payors</u>"), are and have been in material compliance with all applicable Laws and/or billing guidelines of the Programs and the Payors, except as described in <u>Schedule 3.23</u>. The Company has not intentionally

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billed or received any payment or reimbursement in excess of amounts allowed by applicable Law or contract. There are no claims, actions, or appeals pending before any commission, board or agency, including, without limitation, any fiscal intermediary or carrier or the Centers for Medicare & Medicaid Services ("<u>CMS</u>"), with respect to any state or federal Medicare or Medicaid claims filed on behalf of such Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24<u>Certain Actions</u>. Except as set forth on <u>Schedule 3.24</u>, the Company is not a party to a corporate integrity agreement with the Office of the Inspector General of the Department of Health and Human Services or any other Governmental Entity, or has any reporting obligations pursuant to any settlement agreement entered into with any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER** 

As an inducement to the Seller Parties to enter into this Agreement and to consummate the transactions contemplated by this Agreement, Buyer represents, warrants and covenants to the Seller Parties as hereafter set forth in this <u>Article 4</u>, and acknowledge that Seller Parties are relying upon such representations, warranties and covenants contained in this <u>Article 4</u> as being true and correct as of the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<u>Organization</u>. Buyer is a corporation duly incorporated and organized, validly existing and in good standing under the laws of the State of Delaware. Buyer is duly qualified to do business, and is in good standing, in each jurisdiction in which the character of the properties owned or leased by it or in which the conduct of its business requires it to be so qualified, except where the failure to be so qualified or to be in good standing would not have a material adverse effect on Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<u>Authority of Buyer</u>. Buyer has full corporate power and authority to enter into this Agreement and the Related Documents, to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder, and the board of directors of Buyer has determined it to be in the best interest of the corporation to consummate the Transaction. The execution, delivery and performance by the Buyer of this Agreement and the Related Documents have been duly and validly approved by all necessary corporate action. This Agreement and each Related Document to which Buyer is a party, upon its execution and delivery, constitutes the legal, valid and binding obligation of Buyer. Neither the execution and delivery of this Agreement and the Related Documents nor the consummation of the transactions contemplated hereby and thereby will conflict with or result in any violation of or constitute a default under any term of the Articles of Incorporation or equivalent charter document or Bylaws of Buyer or any agreement, mortgage, debt instrument, indenture or other instrument, judgment, decree, order, award, law or regulation by which each Buyer is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3<u>Efforts; Cooperation</u>. Upon the terms and subject to the conditions set forth in this Agreement, Buyer agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties hereto in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement and to obtain satisfaction or waiver of the conditions precedent to the consummation of the transactions contemplated hereby, including: (a) obtaining all of the necessary consents from governmental authorities and other third

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parties and the making of all filings and the taking of all steps as may be necessary to obtain consent from, or to avoid an action by, any Governmental Entity; (b) the defending of any actions, whether judicial or administrative, challenging this agreement or the consummation of the transactions contemplated hereby, including seeking to have any stay or temporary restraining order entered by any court or other Governmental Entity vacated or reversed; and (c) the execution and delivery of any additional instruments necessary to consummate the transactions contemplated by, and to fully carry out the purposes of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4<u>Investment Intent</u>. The Sales Units are being acquired for Buyer's own account and not with the view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. Buyer is an "accredited investor" as defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5<u>No Conflict; Required Filings and Consent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Neither the execution and delivery of this Agreement by Buyer, nor the consummation by Buyer of the transactions contemplated hereby, nor compliance by Buyer with any of the provisions hereof, will: (i) conflict with or result in a breach of any provisions of the certificate of incorporation, certificate of formation, bylaws or limited liability company agreement (or equivalent organizational documents) of Buyer; (ii) constitute or result in the breach, in any material respect, of any material contract or instrument to which Buyer is a party or by which Buyer or any of Buyer's material properties or assets are subject, and that would, in any such event, be reasonably expected to materially impair Buyer's ability to consummate the transactions contemplated hereby; or (iii) violate any legal order or law applicable to Buyer or any of Buyer's respective properties or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)No consent is required to be obtained by Buyer for the consummation by Buyer of the transactions contemplated by this Agreement that if not obtained would have a material adverse effect on Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6<u>Independent Investigation; No Reliance</u>. In connection with its investment decision, Buyer or its representatives have inspected and conducted such reasonable independent review, investigation and analysis (financial and otherwise) of the Company as desired by Buyer. The acquisition of the Sales Units and the other transactions contemplated hereby by Buyer are not done in reliance upon any representation or warranty by, or information from, the Seller Parties, the Company or any of their respective Affiliates, employees or representatives, whether oral or written, express or implied, including any implied warranty of merchantability or of fitness for a particular purpose, except for the representations and warranties specifically and expressly set forth in <u>Article 3</u> (as modified by the Schedules), and Buyer acknowledges that the Seller Parties and the Company expressly disclaim any other representations and warranties and Buyer hereby expressly disclaims any reliance on such other representations and warranties. Such acquisition and such other transactions are instead done entirely on the basis of Buyer's own investigation, analysis, judgment and assessment of the present and potential value and earning power of the Company, as well as those representations and warranties by the Company and the Seller Parties, as applicable, specifically and expressly set forth in <u>Article 3</u> (as modified by the Schedules).

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Buyer acknowledges that none of the Seller Parties nor the Company have made any representations or warranties to Buyer regarding the probable success or profitability of the Company and Buyer hereby expressly disclaim any reliance on such other representations and warranties. Buyer further acknowledges that none of the Seller Parties, the Company nor any other Person has made any representation or warranty, express or implied, as to the accuracy or completeness of any information regarding the Company, its business or the transactions contemplated by this Agreement not specifically and expressly set forth in <u>Article 3</u> (as modified by the Schedules), and none of the Seller Parties, the Company nor any other Person will have or be subject to any liability to Buyer or any other Person resulting from the distribution to Buyer or its representatives or Buyer's use of any such information, including any confidential information memoranda distributed on behalf of the Company relating to its business or other publications or data room (including any electronic or "virtual" data room) information provided or made available to Buyer or its representatives, or any other document or information in any form provided or made available to Buyer or its representatives, including management presentations, in connection with the acquisition of the Sales Units and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7<u>Reserved</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8<u>Solvency</u>. After giving effect to the transactions contemplated by this Agreement, Buyer and the Company: (a) will be solvent (in that both the fair value of their assets will not be less than the sum of their liabilities and that the present saleable value of their assets will not be less than the amount required to pay their probable liabilities as they become absolute and matured); (b) will have adequate capital with which to engage in their business; and (c) will not have incurred and will not plan to incur liabilities beyond their ability to pay as they become absolute and matured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9<u>Legal Proceedings</u>. There are no legal actions pending or, to the knowledge of Buyer (or its parent companies), threatened against or affecting Buyer (or its parent companies) that, if adversely decided, would have a material adverse effect on Buyer (or its parent companies) or prevent the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10<u>No Brokers</u>. No broker, finder or similar agent has been employed by or on behalf of Buyer, and no Person with which Buyer has had any dealings or communications of any kind is entitled to any brokerage commission, finder's fee or any similar compensation in connection with this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11<u>Foreign Person</u>. Buyer is not a "Foreign Person" as that term is defined at 31 C.F.R. § 800.224.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12<u>Compliance with Laws and Litigation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Buyer and its Affiliates, and their managers and officers have operated in compliance with all Laws, including but not limited to, the Healthcare Laws, which are applicable to the Buyer, except where such failure would not have a material adverse effect. To the knowledge of Buyer, the Buyer has not received at its corporate address, and the Buyer has no knowledge of any written notice or other written communication from any Governmental Entity

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since October 31, 2013, regarding (i) any actual, alleged, possible, or potential violation of, or failure to comply with, any Healthcare Laws or any other applicable laws, rules, regulations, ordinances or administrative orders, or (ii) any actual, alleged, possible, or potential obligations on the part of Buyer to undertake, or to bear all or any portion of the cost of, any remedial action of any nature. The Buyer has not been served with any subpoenas, notices of investigation, or otherwise been provided with notice of any investigation from any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All reports and schedules required to be filed by Buyer or its Affiliates with any Governmental Entity have been timely filed (except where such failure would not have a material adverse effect) and all such claims, reports, schedules and/or returns are complete and accurate in all material respects. The Buyer and its Affiliates have no liabilities to any payer with respect to claims submitted outside the ordinary course of business. The Buyer and its Affiliates have maintained substantially all records required to be maintained by the Food and Drug Administration, Drug Enforcement Administration and State Board of Pharmacy and the Medicare and Medicaid programs and the laws of all other applicable federal, state and local Governmental Entities as required by applicable Healthcare Laws. To the actual knowledge of Buyer's officers, there are no presently existing circumstances relating to the operations of the Buyer or its Affiliates that would result or would be reasonably likely to result in material violation of any such Healthcare Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)There are no lawsuits, claims, proceedings or investigations pending or, to Buyer's knowledge, threatened against, or affecting the Buyer (or its parent companies), except as disclosed in <u>Schedule 4.12(c)</u>. Neither the Buyer nor to Buyer's knowledge, any of its employees, contractors or subcontractors have been convicted of, charged with or investigated for a Medicare, Medicaid or other Federal Health Care Program (as defined in 42 U.S.C. § 1320a-7b(f)) related offense, or convicted of, charged with or investigated for a violation of federal or state law relating to fraud, theft, embezzlement, breach of fiduciary duty or responsibility, financial misconduct, obstruction of an investigation or controlled substances. Neither the Buyer nor, to Buyer's knowledge, any of its employees, contractors or subcontractors have been excluded or suspended from participation in Medicare, Medicaid or any other Federal Health Care Program, or have been debarred, suspended or are otherwise ineligible to participate in federal programs. Neither the Buyer nor any of its employees, contractors or subcontractors have committed any offense which may reasonably serve as the basis for any such exclusion, suspension, debarment or other ineligibility. The Buyer has not arranged or contracted with any individual or entity that is suspended, excluded or debarred from participation in, or otherwise ineligible to participate in a Federal Health Care Program or other federal program. There are no lawsuits, claims, or proceedings pending in which Buyer is the plaintiff or claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13<u>Billing Practices</u>. All billing practices of Buyer and its Affiliates with any Payors, are and have been in material compliance with all applicable Laws and/or billing guidelines of the programs and the Payors. The Buyer and its Affiliates have not intentionally billed or received any payment or reimbursement in excess of amounts allowed by applicable Law or contract. There are no claims, actions, or appeals pending before any commission, board or agency, including, without limitation, any fiscal intermediary or carrier or CMS, with respect to any state or federal Medicare or Medicaid claims filed on behalf of Buyer or its Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14<u>Certain Actions</u>. Except as set forth on <u>Schedule 4.14</u>, the Buyer and its Affiliates are not a party to any corporate integrity agreement with the Office of the Inspector General of the Department of Health and Human Services or any other Governmental Entity, or have any reporting obligations pursuant to any settlement agreement entered into with any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1<u>Termination</u>. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at any time prior to the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)by the mutual written consent of Buyer and the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)by Buyer or Seller, upon written notice to the other party, if the transactions contemplated by this Agreement have not been consummated on or prior to September 15, 2025 or such later date, if any, as Buyer and Seller agree upon in writing (the "<u>Termination Date</u>"); provided, however, that the right to terminate this Agreement pursuant to this <u>Section 5.1(b)</u> is not available to any party hereto whose breach of any provision of this Agreement results in or causes the failure of the transactions contemplated by this Agreement to be consummated by such time as a result of the failure of a condition to the consummation of the transactions contemplated by this Agreement as provided in <u>Article 6</u> or <u>Article 7</u>, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)by Buyer or Seller, upon written notice to the other party, if a Governmental Entity of competent jurisdiction has issued an order or any other action permanently enjoining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement, and such order has become final and non-appealable; provided, however, that the right to terminate this Agreement pursuant to this <u>Section 5.1(c)</u> is not available to any party hereto whose breach of any provision of this Agreement results in or causes such order or other action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)by the Seller if: (i) Buyer has breached or failed to perform any of its covenants or other agreements contained in this Agreement to be complied with by Buyer such that the closing condition set forth in <u>Article 7</u> would not be satisfied; or (ii) there exists a breach of any representation or warranty of Buyer contained in this Agreement such that the closing condition set forth in <u>Article 7</u> would not be satisfied, and, in the case of clauses (i) and (ii) of this <u>Section 5.1(d)</u>, such breach or failure to perform is not cured within thirty (30) days after Buyer's receipt of written notice thereof from the Seller or is incapable of being cured by Buyer by the Termination Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)by Buyer if: (i) the Seller or the Company has breached or failed to perform any of their covenants or other agreements contained in this Agreement to be complied with by them such that the closing condition set forth in <u>Article 6</u> would not be satisfied; or (ii) there exists a breach of any representation or warranty of the Seller or the Company contained in this Agreement such that the closing condition set forth in <u>Article</u> <u>6</u> would not be satisfied, and, in the case of clauses (i) and (ii) of this <u>Section 5.1(e)</u>, such breach or failure to perform is not cured

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within thirty (30) days after the Seller's receipt of written notice thereof from Buyer or is incapable of being cured by the Company or the Seller by the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2<u>Effect of Termination</u>. In the event of termination of this Agreement pursuant to <u>Section 5.1</u> by either Buyer or the Seller, this Agreement will become void and have no effect, without any liability or obligation on the part of Buyer, the Company or the Seller, other than the provisions of this <u>Section 5.2</u>, <u>Section 6.7</u> and <u>Article 10</u>, which will survive any termination of this Agreement; <u>provided</u>, <u>however</u>, that nothing herein will relieve any party hereto from any liability for fraud or any pre-termination willful and deliberate breach by such party of its covenants or agreements set forth in this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER** 

The obligations of Buyer to consummate the transactions contemplated hereby are subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Buyer in whole or in part); <u>provided</u>, <u>however</u> Buyer may not rely on the failure of any condition set forth in this <u>Article 6</u>, as the case may be, to be satisfied if such failure was caused by Buyer's failure to comply with its obligations to consummate the transactions contemplated by this Agreement as required by and subject to <u>Section 4.3</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1<u>Buyer's Satisfaction by Due Diligence</u>. This Agreement is, in all respects, conditional upon the Buyer being satisfied with the results of (i) Buyer's tax review being conducted by RSM and (ii) Buyer's quality of earnings review being conducted by KPMG.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2<u>Accuracy of Representations and Warranties</u>. Each of the representations and warranties of the Seller in this Agreement must have been accurate in all material respects as of the Effective Date and must be accurate as of the Closing Date as if made on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3<u>Seller's Performance</u>. All of the covenants and obligations that Seller is required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been duly performed and complied with in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4<u>Documents, Certificates and Other Items</u>. The Seller Parties will have delivered or caused to be delivered to Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)A duly executed assignment of the Sales Units in form and substance satisfactory to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)A current Certificate of Good Standing issued by the Secretary of State of the State of Michigan, such certificate dated not more than fifteen (15) days from the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)A certificate signed by an officer of the Company certifying (i) a true and complete copy of the Company's articles of organization, (ii) a true and complete copy of the Company's operating agreement, and (iii) resolutions of the managers and members of the Company and the Seller approving and authorizing the Company's and Seller's execution of this Agreement and the Related Documents and the Company's and Seller's performance of its obligations under this Agreement and the Related Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)A certificate signed by the Seller and an officer of the Company, stating that the conditions specified in <u>Section 6.2</u> and <u>Section 6.3</u> have been satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)An executed Amended and Restated Operating Agreement of the Company in the form attached hereto as **Exhibit A** (the "<u>Operating Agreement</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)An Administrative Support Services Agreement executed and delivered by the Company and Buyer in the form attached hereto as **Exhibit B** (the "<u>ASSA</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)An IRS Form W-9 executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)An Estimated Closing Date Statement in form mutually agreed by Buyer and Seller setting forth the payments to be made on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)All other documents and instruments required under this Agreement or reasonably requested by Buyer in connection with the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5<u>Adverse Change</u>. Since the date of the Most Recent Balance Sheet, there has been no Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6<u>Adverse Orders</u>. None of the Parties hereto will be subject to any order of a court of competent jurisdiction that prohibits the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7<u>Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The obligations of Buyer to consummate the transactions contemplated by this Agreement are expressly conditioned upon Buyer having obtained, on or before the Closing Date, debt financing under its existing credit facility (the "<u>Buyer Loan Facility</u>"), on terms and conditions satisfactory to Buyer in its sole discretion, in an amount sufficient to enable Buyer to pay the Purchase Price and consummate the transactions contemplated by this Agreement (the "<u>Financing</u>"). Buyer shall use commercially reasonable efforts to obtain such Financing under its existing credit facility. In the event that Buyer is unable to obtain the Financing under its existing credit facility on or before the Closing Date, Buyer may terminate this Agreement by providing written notice to Seller, and upon such termination, this Agreement shall become null and void and of no further force or effect, except as otherwise expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In the event that Buyer (i) fails to obtain an amount sufficient to enable Buyer to pay the Purchase Price prior to September 15, 2025 and does not close the transaction; (ii) terminates this Agreement pursuant to this <u>Section 6.7; or (iii) fails to close the Transaction pursuant to Section 6.1</u>, Buyer shall pay to the Company a fee of Two Hundred Fifty Dollars ($250,000) (the "Closing Failure <u>Fee</u>") by wire transfer of immediately available funds within two (2) business days. The Parties acknowledge that (i) the Closing Failure Fee is not a penalty but is liquidated damages in a reasonable amount that will compensate the Company in circumstances in which the Closing Failure Fee is payable, which amount would otherwise be impossible to calculate with precision and (ii) in no event shall Buyer be required to pay the Closing Failure Fee

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on more than one occasion. This <u>Section 6.7</u> shall survive any termination of this Agreement resulting from subsection (i), (ii), or (iii) hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Parties acknowledge and agree that upon consummation of the transactions contemplated by this Agreement, the Buyer will contemporaneously draw on the Buyer Loan Facility to repay in full the Company's existing credit facility with JPMorgan Chase Bank, N.A. (which credit facility will be terminated).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER** 

The obligations of the Seller Parties to consummate the transactions contemplated hereby are subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Seller, in whole or in part):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1<u>Intentionally Omitted</u>. <u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2<u>Accuracy of Representations and Warranties</u>. Each of the representations and warranties of the Buyer in this Agreement must have been accurate in all material respects as of the Effective Date and must be accurate as of the Closing Date as if made on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3<u>Buyer's Performance</u>. All of the covenants and obligations that Buyer is required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been duly performed and complied with in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4<u>Documents, Certificates and Other Items</u>. Buyer will have delivered the following to Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All of the documents or instruments required to be delivered by the Buyer under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All other documents and instruments reasonably required by the Seller Parties in connection with the consummation of the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)A certificate signed by an officer of the Buyer stating that the conditions specified in <u>Sections 7.2</u> and <u>7.3</u> have been satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Operating Agreement signed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The ASSA signed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)A copy of the Closing Statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)All other documents and instruments required under this Agreement or reasonably requested by the Seller in connection with the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5<u>Adverse Change</u>. Since the Effective Date, there has been no material adverse change in the Buyer's business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6<u>Adverse Orders</u>. None of the Parties hereto will be subject to any order of a court of competent jurisdiction that prohibits the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **INDEMNIFICATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1<u>Indemnification by the</u> <u>Seller</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Seller hereby agrees to indemnify and hold harmless Buyer and its respective past, present and future employees, directors, officers, managers and agents from, against and with respect to any and all damage, loss, deficiency, expense (including any reasonable attorney and accountant fees, legal costs or expenses), action, suit, proceeding, demand, assessment or judgment to or against Buyer, together with its respective past, present and future employees, directors, officers, managers, agents, attorneys, successors and assigns, (collectively, "<u>Buyer's Aggregate Net Loss</u>") arising out of or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Any breach or inaccuracy of any representation or warranty of the Seller contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Any claim by a third party asserting any ownership interest in or rights to the Business or to acquire any equity interest of the Company or its subsidiaries based on the conduct of Seller or relating to a transaction to which the Seller is party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Any fees and expenses of persons engaged by the Seller in connection with the negotiation and execution of this Agreement or consummation of the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Any liability with respect to the Business activities of the Company prior to the Closing Date including, but not limited to, those arising from any services or products provided by Company prior to the Closing Date (excluding however, customary warranty and service work performed by the Company in the ordinary course of business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Any claims by third parties made against the Company or its subsidiaries, or Buyer after the Closing Date arising from or relating to any action, inaction, event, occurrence or circumstance occurring or existing prior to the Closing Date (excluding however, customary warranty and service work performed by the Company in the ordinary course of business); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Any violation of, or nonperformance by, any Seller Party of any of their respective covenants or obligations contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2<u>Indemnification by the</u> <u>Buyer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Buyer agrees to indemnify and hold harmless the Seller Parties and their respective past, present and future employees, directors, officers, managers and agents, from,

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against and with respect to any and all damage, loss, deficiency, expense (including any reasonable attorney and accountant fees, legal costs or expenses), action, suit, proceeding, demand, assessment or judgment to or against the Seller Parties, together with their respective past, present and future employees, directors, officers, managers, agents, attorneys, successors and assigns (collectively, the "<u>Seller Parties' Aggregate Net Loss</u>") arising out of or in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Any breach or inaccuracy of any representation or warranty of Buyer contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Any claim by a third party asserting any ownership interest in or rights to the Business or to acquire any equity interest of the Company or its subsidiaries based on the conduct of Buyer or relating to a transaction to which the Buyer is party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Any fees and expenses of persons engaged by any Buyer in connection with the negotiation and execution of this Agreement or consummation of the transactions contemplated hereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Any violation of, or nonperformance by, the Buyer of any of its covenants or obligations contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3<u>No Duplicate</u> <u>Recovery</u>. In the event an indemnified party recovers damages in respect of an indemnification claim, no other indemnified party may recover the same damages in respect of a claim for indemnification under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4<u>Tax Treatment of Indemnity Payments</u>. Seller and Buyer agree that any indemnification payments made pursuant to <u>Article 8</u> of this Agreement shall be treated for all tax purposes as an adjustment to the purchase price unless otherwise required by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5<u>Notice of Claims</u>. If any claim is made by or against a Party which, if sustained, would give rise to a liability of the other Party under this <u>Article 8</u>, that Party (the "<u>Claiming Party</u>") will promptly cause a written notice of the claim to be delivered to the other Party (the "<u>Indemnifying Party</u>"). Any notice of a claim will state, with reasonable specification, the alleged basis for the claim and the amount of liability asserted by or against the other Party by reason of the claim. If such notice is not given, it will not release the Indemnifying Party, in whole or in part, from its obligations under this <u>Article 8</u>, except to the extent that the Indemnifying Party's ability to defend against such claim is materially prejudiced thereby. In the event the claim is made by a third party, the Indemnifying Party shall have the right to conduct the defense of the claim through counsel selected by the Indemnifying Party and approved by the Claiming Party (which approval shall not be unreasonably withheld, conditioned or delayed), unless such third party claim involves a governmental authority, does not solely involve monetary damages, or seeks an injunction or other equitable relief against the indemnified Party. The assertion of such right shall constitute an acknowledgment by the Indemnifying Party that such claim is an indemnifiable claim for which the Indemnifying Party is responsible under this <u>Article 8</u>. The Claiming Party shall not voluntarily settle any such third party claim without the prior written approval of the Indemnifying Party, which approval shall not be unreasonably withheld. In connection with any such third party claim, all Parties shall cooperate with each other and provide each other with access to relevant books

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and records in their possession. In no event shall the Indemnifying Party admit the fault of the Claiming Party in the defense or settlement of such third party claims or enter into a settlement imposing non-monetary obligations on the Claiming Party or monetary obligations which are not paid by the Indemnifying Party, in each case without the prior written consent of the Claiming Party. In the event Buyer is entitled to recover any Buyer's Aggregate Net Loss, Buyer shall first recover Buyer's Aggregate Net Loss from the funds associated with the Retention Amount, and, only thereafter, Seller shall be responsible for making full payment of amounts due Buyers under this <u>Article 8</u> (subject to the limitations described in <u>Section 8.6</u>). The Buyer and Seller agree and acknowledge that neither shall be entitled to be indemnified by, or receive contribution from, the Company with respect to any indemnification claims made against them hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6<u>Limitations</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For the sole purpose of determining the amount of Buyer's Aggregate Net Loss or Seller Parties' Aggregate Net Loss (and not determining whether or not any breaches of representations and warranties have occurred), the representations and warranties of Seller and Buyer shall not be deemed qualified by any references to materiality, Material Adverse Effect or Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding anything to the contrary contained in this <u>Article 8</u>, the Seller will not be obligated to indemnify or hold harmless Buyer (other than Fraud, for which the following limitation will not apply) in excess of fifty percent (50.0%) of the Purchase Price that has actually been received by the Seller (the "<u>Cap</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding anything to the contrary contained in this <u>Article 8</u>, the Seller will not be obligated to indemnity or hold harmless Buyer (other than Fraud, for which the following limitation will not apply) unless and until the Buyer's Aggregate Net Loss exceeds one half of one percent (0.5%) of the Purchase Price (the "<u>Basket</u>"). Upon the occurrence of Buyer's Aggregate Net Loss exceeding the Basket, Buyer will be entitled to seek payment from the first dollar of such losses that is in excess of the Basket. For the avoidance of doubt, any indemnification obligation hereunder will not apply to the aggregate amount of Buyer's Aggregate Net Loss that are less than or equal to the Basket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The amount of Buyer's Aggregate Net Loss or Seller Parties' Aggregate Net Loss which a Claiming Party seeking indemnification under this <u>Article 8</u> shall have suffered or incurred shall be determined net of the amount of any insurance proceeds or other cash receipts actually paid to such Claiming Party by any third party (net of any co-pays, deductibles, retro-premium adjustments, increase in premiums or costs relating to such proceeds or receipts). Each such Claiming Party shall use commercially reasonable efforts to recover with respect to Buyer's Aggregate Net Loss or Seller Parties' Aggregate Net Loss (as applicable) from available insurance policies or third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Notwithstanding anything to the contrary contained in this <u>Article 8</u>, the Buyer will not be obligated to indemnify or hold harmless the Seller Parties (other than for Fraud, for which the following limitation will not apply) in excess of fifty percent (50%) of the Purchase Price that has actually been paid to the Seller (the "<u>Buyer Cap</u>"). For the avoidance of doubt,

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payment of the Purchase Price or any other amount to be paid by Buyer under this Agreement not provided for in this <u>Article 8</u> shall not be added when calculating the Buyer Cap.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Notwithstanding anything to the contrary contained in this <u>Article 8</u>, the Buyer will not be obligated to indemnify or hold harmless the Seller Parties (other than for Fraud, for which the following limitation will not apply) unless and until the Seller Parties' Aggregate Net Loss exceeds one half of one percent (0.5%) of the Purchase Price (the "<u>Buyer Basket</u>"). Upon the occurrence of Seller Parties' Aggregate Net Loss exceeding the Buyer Basket, the Seller Parties will be entitled to seek payment from the first dollar of such losses that is in excess of the Buyer Basket. For the avoidance of doubt, any indemnification obligation hereunder will not apply to the aggregate amount of Seller Parties' Aggregate Net Loss that are less than or equal to the Buyer Basket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7<u>Retention</u>. The Seller shall retain an aggregate amount of not less than $1,000,000 for the exclusive use in satisfaction of any indemnification claims of Buyer arising under <u>Section 8.1</u> (the "<u>Retention Amount</u>"). For sake of clarity, no portion of the Retention Amount shall be available to satisfy any costs or expenses of the Seller, including without limitation, legal fees or other costs incurred in defending any such indemnification claim. The Retention Amount shall be retained by the Seller from the period commencing on the Closing Date and ending on the eighteen (18) month anniversary of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8<u>Mitigation of Loss</u>. Each Claiming Party shall be required to use reasonable commercial efforts to mitigate any losses that may be indemnifiable or reimbursable under this <u>Article 8</u> after becoming aware of an event or condition that would reasonably be expected to give rise to any such losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9<u>Releases</u>. In addition to the indemnification obligations of Buyer pursuant to this <u>Article 8</u>, Buyer shall use all commercially reasonable efforts to obtain the release of the Seller, the Owners, and their Affiliates from any and all guarantees in respect of liabilities and obligations of the Company, including without limitation, any third party leases, Equipment Indebtedness and vendors and suppliers of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10<u>Exclusive Remedy</u>. Subject to and except for <u>Section 9.5</u>, the Parties acknowledge and agree that from and after Closing their sole and exclusive remedy with respect to any and all claims (other than claims of Fraud against a party hereto committing Fraud) for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this <u>Article 8</u>. In furtherance of the foregoing, except with respect to <u>Section 9.5</u>, each party hereby waives, from and after Closing, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates and each of their respective representatives arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this <u>Article 8</u>. Nothing in this <u>Section 8.10</u> shall limit any person's right to seek and obtain any equitable relief to which any Person shall be entitled pursuant to <u>Section 9.5</u> or to pursue a claim of Fraud against a party hereto committing Fraud outside of the indemnification provisions set forth in this <u>Article 8</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11<u>Owner Release</u>. As additional consideration for the Transaction, effective on the Closing Date (and only relating to events prior to the Closing Date), each Owner hereby releases any and all claims, rights, obligations, debts and causes of action, whether matured or unmatured, known or unknown, that such Owner, in his or her capacity as a member, manager, officer, employee or otherwise, may have against the Company, any subsidiaries of the Company, the Buyer, or any Affiliates of the Buyer, other than (i) claims arising under this Agreement, (ii) obligations arising in the ordinary course between the Company and an Owner or its Affiliates, including, but not limited to, obligations relating to leases and Payor Contracts, (iii) obligations arising in the ordinary course relating to any payor arrangement between an Owner or its Affiliates and the Buyer or any Affiliates of the Buyer, and (iv) debt owed by the Company or any subsidiaries of the Company to an Owner or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12<u>Equity Adjustment</u>. In the event any valid and undisputed indemnification claim pursuant to <u>Article 8</u> is not satisfied by Seller (whether from the Retention Amount or otherwise in cash) or by Buyer (in each case, the "<u>Outstanding Claim Amount(s)</u>" and the relevant Party the "<u>Shortfall Party</u>"), there shall be an adjustment to the ownership of the Company. In the event the Seller is the Shortfall Party, the adjustment shall be determined as follows: (i) first, the Enterprise Value will be reduced by the aggregate amount of such Outstanding Claim Amounts, and such amount shall be referred to as the "<u>Re-Adjusted Enterprise Value</u>", (ii) the per Unit Re-Adjusted Enterprise Value of outstanding Units of the Company will be determined by dividing the Re-Adjusted Enterprise Value by the total outstanding Units ("<u>Adjusted Per Unit Value</u>"), (iii) the Units of the Company purchased by Buyer pursuant to this Agreement will be adjusted to reflect the number of Units that would have been purchased by Buyer by dividing the aggregate Purchase Price paid by Buyer by the Adjusted Per Unit Value ("<u>Adjusted Sale Units</u>"), and (iv) the Units of the Company owned by the Seller will be reduced to be equal to the total outstanding Units prior to the adjustments pursuant to this <u>Section 8.12</u>, less the aggregate Adjusted Sale Units. In the event the Buyer is the Shortfall Party, the adjustment shall be determined as follows (i) first, the Enterprise Value will be increased by the aggregate amount of such Outstanding Claim Amounts, and such amount shall be referred to as the "<u>Re-Adjusted Enterprise Value</u>"; (ii) the per Unit Re-Adjusted Enterprise Value of outstanding Units of the Company will be determined by dividing the Re-Adjusted Enterprise Value by the total outstanding Units ("<u>Adjusted Per Unit Value</u>"); (iii) the Units of the Company purchased by Buyer pursuant to this Agreement will be adjusted to reflect the number of Units that would have been purchased by Buyer by dividing the aggregate Purchase Price paid by Buyer by the Adjusted Per Unit Value ("<u>Adjusted Sale Units</u>"); and (iv) the Units of the Company owned by the Seller will be increased to be equal to the total outstanding Units prior to the adjustments pursuant to this <u>Section 8.12</u>, less the aggregate Adjusted Sale Units. For the avoidance of doubt, no adjustment shall occur until any dispute over the claim is resolved under <u>Section 10.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Buyer and Seller Party Covenants.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1<u>Confidentiality</u>. From and after the Closing, Buyer, Buyer's Affiliates, and each Seller Party (altogether the "<u>Covered Parties</u>") shall maintain the confidentiality of, and refrain from using or disclosing to any Person, all confidential and proprietary information solely regarding the Business and the Company (the "<u>Confidential Information</u>"). In the event that a Covered Party is requested or required (by oral question or request for information or documents in any Action, interrogatory, subpoena, civil investigative demand, or similar process of any

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### governmental authority or any other similar body) to disclose any Confidential Information, such Covered Party will (a) if permitted by law, notify the other Covered Parties promptly in writing of the request or requirement so that the other Covered Parties may seek an appropriate protective order (at the sole cost of the Covered Party that seeks such order) or waive compliance with the provisions of this Section 9.1 and (b) reasonably cooperate with the other Covered Parties in attempting to obtain such order or assurance. If, in the absence of a protective order or the receipt of a waiver hereunder, such Covered Party is, after consultation with counsel, required by law to disclose any Confidential Information, such Covered Party may disclose the Confidential Information to such governmental authority or other similar body without recourse hereunder; provided, however, that such Covered Party discloses only that portion of the Confidential Information that is legally required to be disclosed and that the disclosing party shall use commercially reasonable efforts to obtain, at the request of, and at the expense of, the non-disclosing party, an order or other assurance that confidential treatment will be accorded to any Confidential Information required to be disclosed (as designated by the non-disclosing party).
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2<u>Non-Competition; Non-Solicitation; Non-Disparagement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Non-competition</u>. During the Restricted Period, no Covered Party shall (other than when employed by, and on behalf of the Company) in any manner, either directly or indirectly (through a controlled Affiliate), whether as principal, agent, partner, officer, director, shareholder, manager, member, employee, consultant or otherwise, either alone or acting jointly or in conjunction with any Person, (A) engage in or compete with the Business within the Territory, or (B) own, operate, lease, manage, control, engage in, invest in, permit his, her or its name to be used by, act as consultant or advisor to, supply, render services for (of an executive, management, supervising, marketing, manufacturing, research and development, administrative, financial, consulting or other nature) or otherwise assist in any manner any Person in any business that engages in or competes with the Business within the Territory; <u>provided</u> that the passive ownership of less than two percent (2%) of an entity, the equity interests of which are publicly traded on a national exchange, shall not be considered a breach of this <u>Section 9.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Non-interference</u>. During the Restricted Period, no Covered Party shall in any manner, either directly or indirectly (through a controlled Affiliate), whether as principal, agent, partner, officer, director, shareholder, manager, member, employee, consultant or otherwise, either alone or acting jointly or in conjunction with any Person, request, knowingly induce or knowingly attempt to influence any distributor, supplier, customer or other business relation of the Company, the Buyer or any of their Affiliates to curtail in any material respect or cancel or terminate any business which such distributor, supplier or customer or other business relation is currently transacting with the Company, the Buyer or any of their Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Non-solicitation</u>. During the Restricted Period, no Covered Party shall (other than when employed by or acting on behalf of the Company or its subsidiaries) in any manner, directly or indirectly (through a controlled Affiliate), whether as principal, agent, partner, officer, director, shareholder, manager, member, employee, consultant or otherwise, either alone or acting jointly or in conjunction with any Person, (i) hire, recruit, employ or solicit or attempt to hire, recruit, employ, retain or solicit on such Person's own behalf or on behalf of any other Person, any employee of the Company or its subsidiaries or any Person who was an employee of the

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Company or its subsidiaries during the Restricted Period or (ii) otherwise encourage, influence, or induce any employee to discontinue his or her employment by the Company or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Non-Disparagement</u>. No Seller Party shall, directly or indirectly, at any time, intentionally disparage in any material respect the Company, the Buyer or the Business or the reputation of any of the foregoing. The Buyer shall not, nor shall its Affiliates, directly or indirectly, at any time, intentionally disparage in any material respect any Seller Party or the reputation of any of the foregoing. This <u>Section 9.2(d)</u> shall not apply to (i) testimony obtained through subpoena or (ii) any information provided pursuant to an investigation by any governmental authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Severability</u>. The Parties agree that a court or arbitrator of competent jurisdiction shall have the power with respect to this <u>Section 9.2</u> to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified to cover the maximum, duration, scope or area permitted by law. The time period during which the prohibitions set forth in this <u>Section 9.2</u> shall apply to a Covered Party shall be tolled and suspended for a period equal to the aggregate time during which that Covered Party violates such prohibitions in any respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3<u>Employees; Employee Matters</u>. The Covered Parties agree that the Company will employ, at current (or greater) compensation and benefits, for a period of at least one (1) year following the Closing Date the following key employees of the Company: Allen Hunt, Brenda Papp, Tiffanie Robinson-Steffes, Brian Boulanger, and Leslie Martz ("<u>Key Employees</u>"). The Covered Parties agree that Company (and any Covered Party who may be a successor employer) will give credit for seniority to all employees of the Company who continue to work for any Covered Party. Buyer (or its Affiliates) will pay severance, consistent with Company policy in place as of the date prior to the Closing Date, to any employees of Company who are terminated without cause within one (1) year following the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4<u>Intentionally Omitted.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5<u>Injunctive Relief</u>. Each Covered Party agrees that any remedy at law for any breach of the provisions contained in this <u>Article 9</u> may be inadequate and each Covered Party, the Company and their respective successors or assigns shall, in addition to other rights and remedies available hereunder, be entitled to seek specific performance or injunctive relief in the case of a breach of this <u>Article 9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6<u>Acknowledgment by the Covered Parties</u>. Each Covered Party agrees to the covenants set forth in this <u>Article 9</u> and acknowledges that (i) the covenants set forth in this <u>Article 9</u> are reasonable in terms of duration, scope and area restrictions, (ii) the covenants set forth in this <u>Article 9</u> are reasonably necessary for the protection of the other Covered Parties, (iii) Covered Parties would not have entered into this Agreement but for the agreement of the other Covered Parties to the restrictions set forth in this <u>Article 9</u>, and (iv) the covenants set forth in this <u>Article 9</u> have been made in order to induce the Covered Parties to enter into this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **GENERAL PROVISIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1<u>Confidentiality</u>. The Buyer and Seller Parties agree to maintain in confidence, and will cause the directors, officers, employees, agents, and advisors of Buyer and the Seller Parties, respectively, to maintain in confidence, any written, oral, or other information obtained in confidence from another party in connection with this Agreement or the transactions contemplated hereby, unless (i) such information is already known to such party or to others not bound by a duty of confidentiality or such information becomes publicly available through no fault of such party, (ii) the use of such information is necessary or appropriate in making any filing or obtaining any consent or approval required for the consummation of the transactions contemplated hereby or otherwise is reasonably necessary to satisfy any of the conditions precedent specified in <u>Article 6</u> and <u>Article 7</u>, or (iii) the furnishing or use of such information is required by or necessary or appropriate in connection with legal proceedings. Notwithstanding the foregoing, Buyer or its Affiliates may make announcements regarding this Agreement and the transactions contemplated hereby to comply with Canadian securities regulations, provided that the Seller Parties, the Company or their representative) shall have the opportunity to review and comment on any proposed announcement. If the Transaction is not consummated, each party will return or destroy all confidential information provided by the other party as the providing party may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2<u>Governing Law</u>. This Agreement, including all exhibits and schedules and all documents or instruments delivered in connection herewith, and all disputes among the parties under this Agreement will be governed by, and construed and enforced in accordance with and decided pursuant to, the laws of the State of Ohio (and in accordance with federal law interpreting the Federal Arbitration Act where applicable), without regard to any jurisdiction's conflicts or choice of law provisions; <u>provided</u>, <u>however</u>, any action, cause of action, claim, cross-claim or third party claim against any Financing Lender of Buyer in any way relating to the financing arrangements between such Financing Lender and Buyer shall be governed by, and construed and enforced in accordance with and decided pursuant to, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3<u>Notices</u>. All notices or other communications required or permitted hereunder will be in writing and will be deemed given or delivered when delivered personally, by registered or certified mail, by legible facsimile transmission or by overnight courier (fees prepaid) addressed as follows:

If to Buyer: QHM Holdings, Inc. c/o Quipt Home Medical Corp.<br>100 Crossing Down DriveWilder, KY 41076<br>Attn: Hardik Mehta <br> With a copy by email to: <u>fhmehta@myquipt.com</u>

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| | |
|:---|:---|
| &nbsp;&nbsp;With a copy to: | &nbsp;&nbsp;Katz, Teller, Brant & Hild<br>255 East Fifth Street, Suite 2400<br>Cincinnati, Ohio 45202<br>Attn: John R. Gierl, Esq. |
| &nbsp;&nbsp;With a copy by email to: | &nbsp;&nbsp;<u>jgierl@katzteller.com</u><br>|
| &nbsp;&nbsp;If to Seller:<br>| &nbsp;&nbsp;McLaren Health Management Group <br>c/o Hart HoldCo, LLC<br>1515 Cal Drive <br>Davison, MI 48325<br>Attn: Bart Buxton |
| &nbsp;&nbsp;With a copy by email to: | &nbsp;&nbsp;Barton.Buxton@mclaren.org |
| &nbsp;&nbsp;With a copy to: | &nbsp;&nbsp;Blanchard Valley Health System<br>c/o Hart HoldCo, LLC<br>1900 South Main St.<br>Findlay, OH 45840<br>Attn: Myron D. Lewis |
| &nbsp;&nbsp;With a copy by email to: | &nbsp;&nbsp;mlewis@bvhealthsystem.org |
| &nbsp;&nbsp;With a copy to:<br>| &nbsp;&nbsp;Henry Ford Health<br>Community Care Services<br>c/o Hart HoldCo, LLC<br>30100 Telegraph Rd., Suite 200<br>Bingham Farms, MI 48025<br>Attn: David F. Shepherd  |
| &nbsp;&nbsp;With a copy by email to: | &nbsp;&nbsp;dshephe1@hfhs.org<br>|
| &nbsp;&nbsp;With a copy to:  | &nbsp;&nbsp;Jones Day<br>150 West Jefferson, Suite 2100<br>Detroit, MI 48226-4438<br>Attn: Ann T. Hollenbeck |
| &nbsp;&nbsp;With a copy by email to: | &nbsp;&nbsp;ahollenbeck@jonesday.com<br>|

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or to such address as such party may indicate by a notice delivered to the other parties. Notice will be deemed received the same day (when delivered personally), five (5) days after mailing (when sent by registered or certified mail) and the next business day (when delivered by overnight courier). Any party to this Agreement may change its address to which all communications and notices may be sent by addressing notices of such change in the manner provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4<u>Assignment</u>. This Agreement may not be assigned by any party without the prior written consent of all of the other parties hereto. Notwithstanding the foregoing, Buyer may assign its rights and obligations hereunder, in whole or in part, to any of its respective lenders for borrowed money as collateral security, in each case, without the consent of any of the other parties hereto; provided, however, that, with respect to any such assignments, Buyer remains primarily liable for the full and timely performance of all of Buyer's obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5<u>Entire Agreement; Amendments</u>. This Agreement along with the Schedules and Exhibits attached hereto and the Related Documents is an integrated document, contains the entire agreement between the parties, wholly cancels, terminates and supersedes any and all previous and/or contemporaneous oral agreements, negotiations, commitments and writings of the parties with respect to such subject matter. Subject to the proviso set forth in <u>Section 10.12</u>, no change, modification, extension, termination, notice of termination, discharge, abandonment or waiver of this Agreement, or any schedule or exhibit hereto, or any document or instrument delivered in connection herewith, or any of its provisions, nor any representation, promise or condition relating hereto or thereto, will be binding upon any party unless made in writing and signed by all of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6<u>Expenses</u>. Except as otherwise expressly provided in this Agreement, each party to this Agreement will bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the transactions contemplated hereby, including all fees and expenses of agents, representatives, counsel, and accountants; <u>provided</u>, <u>however</u>, that the Buyer and Seller agree to share equally the expenses of VMG's fair market value analysis in connection with the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7<u>Partial Invalidity</u>. Wherever possible, each provision will be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of these provisions will, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Agreement, and this Agreement will be construed as if such invalid, illegal or unenforceable provision or provisions had never been contained herein, unless the deletion of such provision or provisions would result in such a material change as to cause the completion of these transactions to be unreasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8<u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Tax Cooperation</u>. The Parties shall cooperate fully, as and to the extent reasonably requested by another Party, in connection with the filing of any tax returns of the Company and any audit, litigation or other proceeding with respect to Taxes. Upon the request of a Party in connection with any such audit, litigation or other proceeding, the other Parties shall provide such records and information which are reasonably relevant and shall make employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Parties further agree, upon request, to provide the other Parties with information about the transactions contemplated by this Agreement that the requesting Party may be required to report pursuant to the Code and all Treasury Department Regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Certain Taxes and Fees</u>. All transfer, documentary, sales, use, stamp, registration, value added and other similar Taxes and fees (including any penalties and interest) incurred in connection with this Agreement shall be borne and paid by the Party that owes such Taxes and fees. Buyer shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Seller shall cooperate with respect thereto as necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Tax Refunds</u>. To the extent that the Company receives any refund of, or is otherwise given credit (in lieu of such a refund) that reduces Taxes and that is attributable to any

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Taxes for a Tax period (or portion thereof) ending on or prior to the Company Date, the Company will (and Buyer will cause the Company to) pay, to Seller, by wire transfer of immediately available funds, an amount equal to any such refund or credit in lieu of a refund and any interest thereon received from the applicable taxing authority, net of out-of-pocket costs and expenses incurred by Buyer or the Company (including Taxes) in connection with receiving such refund or credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Post-Closing Tax Actions</u>. Without the prior written consent of the Seller (not to be unreasonably withheld, conditioned, or delayed), with respect to any Tax or Returns of the Company relating to any Tax period (or portion thereof) ending on or prior to the Closing Date, none of the Buyer, any Affiliate of the Buyer or the Company shall (i) file, amend, re-file or otherwise modify any Return, (ii) initiate discussions or examination with any taxing authority (including making any voluntary disclosure to a taxing authority), (iii) enter into any closing agreement, (iv) file any private letter ruling, (v) make, change or revoke any Tax election or (vi) surrender any right to claim a Tax refund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9<u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which will be considered an original instrument and all of which together will be considered one and the same agreement, and will become effective when counterparts, which together contain the signatures of each party, will have been delivered to Buyer and the Seller. Delivery of executed signature pages by facsimile transmission, "pdf" or other electronic transmission will constitute effective and binding execution and delivery of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10<u>Interpretation</u>. Article titles and headings to Sections are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of any of the provisions of this Agreement. All references to Sections and subsections contained in this Agreement refer to the Sections and subsections of this Agreement. All references to Schedules or Exhibits contained in this Agreement are references to the Schedules or Exhibits described on the list immediately following the signature page hereto. All references to the words "include" or "including" shall mean "including without limitation." Any and all Schedules, Exhibits, statements, reports, certificates or other documents or instruments referred to in or attached to this Agreement, including the "Background" portion of this Agreement, are incorporated by reference as though fully set forth at the point referred to in this Agreement. There will be no presumption against any party on the ground that such party was responsible for preparing this Agreement or any part of it. All pronouns and any variations thereof will be deemed to refer to the masculine, feminine, neuter, singular or plural as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11<u>Disputes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All disputes that arise out of or relate to this Agreement or the subject matter hereof (but not including disputes under employment agreements, which shall be governed by the provisions of such agreements) shall be resolved exclusively by arbitration in accordance with the provisions of this <u>Section 10.11</u>. A Party may commence arbitration by sending a written demand for arbitration to the other parties. However, such demand shall not be effective unless it sets forth

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in detail the nature of the controversy, the dollar amount involved, if any, the remedies sought, and attached to such demand is a copy of this subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)There shall be one arbitrator. If the parties shall fail to select a mutually acceptable arbitrator within ten (10) days after the demand for arbitration is received, then the parties stipulate to arbitration before a single arbitrator sitting on the panel of the American Arbitration Association ("<u>AAA</u>"), and selected in the sole discretion of the AAA administrator. The arbitrator will have background and qualifications to consider disputes involving mergers and acquisitions law, corporate law and health care regulatory law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The parties shall share all costs of arbitration, except that the prevailing party shall be entitled to reimbursement by the other party of such party's attorneys' fees and costs and any arbitration fees and expenses incurred in connection with the arbitration hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The substantive law of the State of Ohio shall be applied by the arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Arbitration shall take place in Columbus, Ohio unless the parties otherwise agree. As soon as reasonably practicable, a hearing with respect to the dispute or matter to be resolved shall be conducted by the arbitrator. As soon as reasonably practicable thereafter, the arbitrator shall arrive at a final decision, which shall be reduced to writing, signed by the arbitrator and mailed to each of the parties and their legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)All decisions of the arbitrator shall be final, binding and conclusive on the parties and shall constitute the only method of resolving disputes or matters subject to arbitration pursuant to this Agreement. The arbitrator or a court of appropriate jurisdiction may issue a writ of execution to enforce the arbitrator's judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Notwithstanding the foregoing, because time is of the essence of this Agreement, the parties specifically reserve the right to seek a judicial temporary restraining order, preliminary injunction, or other similar short term equitable relief, and grant the arbitrator the right to make a final determination of the parties' rights, including whether to make permanent or dissolve such court order. The arbitrator shall have the power to grant all legal and equitable remedies provided by Ohio or federal law; provided however, said arbitrator shall not have the power to award punitive or exemplary damages. The decision of the arbitrator may be entered in any court having jurisdiction thereof and the award may be judicially enforced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Notwithstanding anything to contrary contained in this Agreement, each of the parties hereto agrees that any action, cause of action, claim, cross-claim or third party claim against any Financing Lender of Buyer in any way relating to the financing arrangements between such Financing Lender and Buyer shall be subject to the jurisdiction of the courts of the State of New York sitting in the County of New York and of the United States District Court for the Southern District of New York, and any appellate court from any thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12<u>Third-Party Beneficiaries</u>. This Agreement will not confer any rights or remedies upon any Person (including any Affiliate) other than the parties to this Agreement and their respective successors and permitted assigns; provided that any Financing Lender of Buyer shall be an intended third party beneficiary of <u>Section 9.3</u>, <u>Section 10.2</u>, <u>Section 10.4</u>, <u>Section 10.5</u>, <u>Section 10.11</u> and this <u>Section 10.12</u>, and shall be entitled to enforce such provisions directly (and no

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amendment or modification to such provisions in respect of any Financing Lender of Buyer may be made without the prior consent of such Financing Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13<u>Survival of</u> <u>Representations and Warranties</u>. The representations and warranties of this Agreement shall survive the Closing Date for a period of twelve (12) months, except that <u>Section 3.2</u> (Capitalization), <u>Section 3.3</u> (Ownership of Company Units), <u>Section 3.4</u> (Authority of Seller), <u>Section 3.7</u> (Permits; Compliance with Laws; Litigation), <u>Section 3.16</u> (Environmental Matters), <u>Section 3.20</u> (Questionable Payments), <u>Section 3.21</u> (Medicare and Medicaid Program Participation), <u>Section 3.22</u> (Tax Matters), <u>Section 4.2</u> (Authority of Buyer), <u>Section 4.9</u> (Legal Proceedings), <u>Section 4.12</u> (Compliance with Laws and Litigation) (collectively the "<u>Fundamental Representations</u>") shall continue until the earlier of (a) the date on which the running of the statute of limitations with respect to any such subject will bar the assessment and collection of the related claim or (b) the six (6) year anniversary of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14<u>Waiver of Financing Lender</u>. Notwithstanding anything herein to the contrary, each of the parties hereto hereby waives any rights or claims, and agrees not to commence any action or proceeding against, any Financing Lender in connection with this Agreement or the consummation or failure to consummate the transactions hereunder, including without limitation, the Buyer's failure to obtain the approval of the Financing Lender to the acquisition hereunder by Buyer (or financing) under the agreements between such Financing Lender and Buyer, whether such claim is in respect of any other document or theory of law or equity (whether in tort, contract or otherwise), or any oral or written representations made or alleged to be made in connection herewith or therewith and each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15<u>Definitions</u>. In addition to words and terms defined elsewhere in this Agreement, the following words and terms shall have the following respective meanings:

"<u>Agreement</u>" shall mean this Purchase Agreement, including the exhibits and schedules attached hereto, as the same may be amended, supplemented or modified in accordance with the terms hereof.

"<u>Affiliate</u>" means, with respect to any Person, any of (a) a manager, member, director, officer or shareholder of such Person and (b) any other Person that, directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another Person. The Term "<u>control</u>" includes the possession, directly or indirectly, of the power to direct the management and policies of a Person, whether through the ownership of voting securities, by Contract or otherwise.

"<u>ASSA</u>" shall have the meaning set forth in <u>Section 6.4(f)</u> of this Agreement.

"<u>Business Day</u>" shall mean any day other than a Saturday, Sunday or day on which national banks located in the United States are authorized or obligated to close.

"<u>Business Documents</u>" means all of the Company's rights in, to and under all supplier agreements and any other agreements with the vendor or manufacturer of any equipment or goods used by such Company in the Business, equipment service agreements, leases of equipment that are related to and used by the Company in the Business and all agreements that are related to the

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Company's conduct of the Business, except Payor Contracts and any agreements referenced in any other Schedule to this Agreement.

"<u>Code</u>" means the U.S. Internal Revenue Code of 1986, as amended.

"<u>Covered Parties</u>" or "<u>Covered Party</u>" shall have the meaning described in <u>Section 9.1</u> of this Agreement.

"<u>Customer Contracts</u>" means all of the Company's rights in, to and under all agreements with the Company's customers.

"<u>Equipment Indebtedness</u>" means Indebtedness incurred with a specialized leasing company, lender and/or supplier, to finance the acquisition cost of supplies, equipment and other consumables used in the Business, including without limitation, capitalized lease obligations and purchase money security financing, as identified in <u>Schedule 3.8(b)</u>, but does not include any accounts receivable obligations in the ordinary course of business.

"<u>Financing Lender</u>" means Buyer's financing lender, from which Buyer received funds used for the Purchase Price, together with its successors and assigns.

"<u>Fraud</u>" means, with respect to a party, an actual and intentional misrepresentation of a material existing fact with respect to the making of any representation or warranty in Article 3 or Article 4, made by such party, (a) with respect to Seller, to Seller's Knowledge or (b) with respect to Buyer, to Buyer's actual knowledge, of its falsity and made for the purpose of inducing the other party to act, and upon which the other party justifiably relies with resulting losses. For the avoidance of doubt, Fraud shall not include any claim for equitable fraud, constructive fraud, promissory fraud, unfair dealings fraud, fraud by reckless or negligent misrepresentations or any tort based on negligence or recklessness.

"<u>Hazardous Materials</u>" includes hazardous waste, hazardous substances, toxic substances and related materials, including all materials and substances regulated by the Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Hazardous Materials Transportation Act, the Toxic Substances Control Act, the Federal Water Pollution Control Act, the Federal Safe Drinking Water Act, the Federal Air Pollution Control Act, the Oil Pollution Act, the Federal Insecticide, Fungicide and Rodenticide Act, the Atomic Energy Act, Occupational Safety and Health Act, each as amended, and any regulations promulgated thereunder or any other applicable federal, state or local environmental law, statute, rule, regulation or ordinance.

"<u>Indebtedness</u>" shall mean as applied to a Person ("such Person") means, without duplication, (i)(a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by debentures, promissory notes, bonds (other than performance, surety or customs bonds in the ordinary course of business), loan agreements or other similar instruments and (c) all interest-bearing obligations of such Person to the extent not otherwise covered by clauses (a) and (b); (ii) capitalized lease obligations and any synthetic lease obligations of such Person, (iii) all reimbursement obligations of such Person in connection with letters of credit or letter of credit guaranties issued for the account of such Person; and (iv) all obligations of such

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Person to pay the deferred purchase price of property or services including Purchase Money Indebtedness.

<u>"Key Employees</u>" shall have the meaning described in <u>Section 9.3</u> of this Agreement.

"<u>Material Adverse Effect</u>" or "<u>Material Adverse Change</u>" means any effect, event, development, circumstance or change that has been, or would reasonably be expected to be, individually or in the aggregate, materially adverse to the business, assets, financial condition, operations, operating results or any other condition of the Company other than any effect or change to the extent resulting from or relating to: (a) general business or economic conditions, (b) national or international political or social conditions, including the engagement by the United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the United States, or any of its territories, possessions, or diplomatic or consular offices or upon any military installation, equipment or personnel of the United States, (c) financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index), (d) changes in Laws, and (e) the announcement or pendency of the Transaction or the identity of the Buyer or the Buyer parent companies, including any impact thereof on relationships, contractual or otherwise, with any customers, suppliers or employees of the Company, except, in the case of clauses (a), (b), (c), and (d), to the extent the Company is disproportionately affected thereby as compared with other participants in the industries in which the Company operates.

"<u>Minimum Cash Amount</u>" means $1,000,000.00.

"<u>Operating Agreemen</u>t" shall have the meaning set forth in <u>Section 6.4(e)</u> of this Agreement.

"<u>Payor Contract</u>" means a contract with a managed care company or third-party payor for the Company.

"<u>Permitted Liens</u>" means (i) liens for Taxes not yet due and payable or being contested in good faith by appropriate proceedings and for which there are adequate reserves on the books; (ii) workers or unemployment compensation liens arising in the ordinary course of Business that are not yet due and payable or not exceeding an amount of $1,000, in the aggregate; (iii) landlords', carriers', mechanic's, materialman's, supplier's, vendor's or similar liens arising in the ordinary course of Business securing amounts that are not delinquent, not yet due and payable, or not exceeding an amount of $1,000, in the aggregate; and (iv) zoning ordinances, recorded easements and other restrictions of legal record affecting the Real Property Leases or matters which would be revealed by a survey, and that in either case do not, individually or in the aggregate, impair the current use or occupancy of the Real Property Leases or have a Material Adverse Effect on the Company or the Business.

"<u>Person</u>" shall be construed broadly and shall include an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a Governmental Authority (or any department, agency, or political subdivision thereof).

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"<u>Reconciliation Date</u>" means the date that is one hundred eighty (180) days after the Closing Date.

"<u>Related Documents</u>" means the Operating Agreement, the ASSA, the consents of third party landlords, and all other written agreements, documents and certificates expressly required by this Agreement to be delivered to another Party on the date hereof.

"<u>Restricted Period</u>" means the five (5) year period commencing on the Closing Date.

"<u>Seller's Knowledge</u>" or "<u>Knowledge of Seller</u>" means and includes the actual knowledge of Allen Hunt (as the Company's President), Brenda Papp (as the Company's Vice President of Finance), Brian Boulanger (as the Company's Vice President of Information Technology), Deborah Holman (as the Company's Chief Compliance Officer), and Tiffanie Robinson-Steffes (as the Company's Director of Reimbursement).

"<u>Territory</u>" shall have the meaning defined in the Operating Agreement.

"<u>Working Capital</u>" shall mean, as of any specified date, the amount equal to (a) the sum of the following current assets of the Company: (i) accounts receivable (net of contractual allowance reserves and bad debt reserves), (ii) other receivables, (iii) inventory, and (iv) prepaid expenses (including deposits), *less* (b) the sum of the following liabilities of the Company: (x) accounts payable (excluding any payables to Affiliates), (y) credit card liabilities, and (z) accrued liabilities.

"<u>Transaction Expenses</u>" shall mean (i) amounts owed to Jones Day for legal services provided, (ii) amounts owed to Braff Group, and (iii) one half (50%) of amounts owed to VMG pursuant to the fair market value analysis performed in connection with the Transaction.

"<u>Working Capital Deficit</u>" shall mean the amount by which Working Capital is less than the Working Capital Target.

"<u>Working Capital Surplus</u>" shall mean the amount by which Working Capital is more than the Working Capital Target.

"<u>Working Capital Target</u>" shall mean $1,100,000.

*[Remainder of page intentionally blank; signature page follows]*

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on as of the date first written above.

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| | |
|:---|:---|
| &nbsp;&nbsp;Buyer: | &nbsp;&nbsp;**QHM HOLDINGS, INC.** <br>By: <u>&nbsp;&nbsp;&nbsp;&nbsp; /s/ Hardik Mehta&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hardik Mehta, Chief Financial Officer <br>|
| &nbsp;&nbsp;Company: | &nbsp;&nbsp;**IRB MEDICAL EQUIPMENT, LLC**<br>dba Hart Medical Equipment <br>By: <u>/s/ M. Allen Hunt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. Allen Hunt, President <br>|
| &nbsp;&nbsp;Seller: | &nbsp;&nbsp;**HART HOLDCO, LLC** <br>By: <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Designated Representative&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[TBD], Designated Representative<br>|

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[Signature Page – Equity Purchase Agreement]

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**EXHIBIT A**

Operating Agreement

See attached.

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**EXHIBIT B**

Administrative Support Services Agreement

See attached.

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**EXHIBIT C**

Illustrative Working Capital Calculation

See attached.

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## Exhibit 10.3

**Exhibit 10.3**

*CERTAIN INFORMATION CONTAINED IN THIS EXHIBIT HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE REGISTRANT HAS DETERMINED THAT IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED INFORMATION IS INDICATED BY [\*\*\*]*

**EXECUTIVE EMPLOYMENT AGREEMENT**

This Executive Employment Agreement (the "*Agreement*") is entered into effective as of Commencement Date set forth below by and between QHM Holdings Inc., a Delaware corporation ("*Employer*"), and Gregory J. Crawford ("*Employee*") pursuant to the following terms and conditions, and shall supersede any and all prior employment agreements between the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;**1.EMPLOYMENT TERM.** Effective January 1, 2025 ("*Commencement Date*"), Employer shall employ Employee in the position of Chief Executive Officer for a three-year period ("*Initial Term*"), unless terminated earlier pursuant to <u>Section 3</u> below. Employee's employment under this Agreement shall renew automatically for additional one year terms (each, a "*Renewal Term*" and, together with the Initial Term, referred to herein as the "*Employment Term*") upon the expiration of the Initial Term and/or Renewal Term, as applicable thereafter, unless, either party gives the other a written notice, at least sixty (90) calendar days prior to the expiration of the Initial Term or the then Renewal Term, of its intention not to renew this Agreement and/ or any extension thereof.

&nbsp;&nbsp;&nbsp;&nbsp;**2.ACKNOWLEDGEMENT OF TERMS OF EMPLOYMENT.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)<u>Title and Reporting</u>. Employee's title shall be Chief Executive Officer and Employee shall report directly to the Board of Directors (the "*Board*") of Quipt Home Medical Corp. (the "Parent").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)<u>Devotion of Business Time</u>. Employee will perform the duties appropriate for the Chief Executive Officer position and other such duties, services, and responsibilities as may be assigned to Employee by the Board, and Employee may be obligated, from time to time and as business needs necessitate, to act as an officer or director of Employer's affiliates and subsidiaries (collectively, the "*Services*") and Employee agrees and acknowledges that the compensation described in <u>Section</u><u> </u><u>3</u> below constitutes payment-in-full for all Services performed. Employee shall at all times during the Employment Period, faithfully, with diligence and to the best of his ability, experience, and talents, perform the Services pursuant to the express and implicit terms hereof and to Employer's reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)<u>Place of Performance</u>. Employee shall perform the Services under this Agreement primarily in Wilder, Kentucky, Long Boat Key, Florida and Employee shall have the ability to work remotely from time to time (subject to necessary travel requirements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)<u>Compliance</u>. Employee shall comply with all of Employer's rules and regulations as they are adopted and amended from time to time. Employee shall also comply with all laws, regulations, and ordinances applicable to the performance of his duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;**3.COMPENSATION.** As compensation for the Services provided during the Employment Period by Employee under this Agreement, Employer shall pay Employee as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)<u>Base Salary</u>. An annual initial base salary of $**736,160.00**, less applicable deductions and withholdings (the "*Base Salary*"), payable biweekly or such other regular periods as Employer shall determine in accordance with Employer's normal payroll policies. The Base Salary will increase annually by seven percent (7%) throughout the Employment Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)<u>Bonus</u>. In addition to Base Salary, Employee may be eligible to receive an annual, discretionary Executive Bonus in an amount up to 100% of his Base Salary, and contingent upon achievement of specific performance measures and strategic and tactical undertakings directed and set by the Board, along with consideration of the overall performance of Employer and its affiliates. The Compensation Committee of the Board shall meet together with Employee prior to the commencement of each fiscal year to determine the specific performance targets that need to be satisfactorily achieved in such fiscal year in order for the Employee to receive the Executive Bonus. Additionally, to receive a bonus hereunder, Employee must complete a self-assessment in a timely fashion and meet deadlines set for evaluation of bonus eligibility by Executive Compensation Committee. Employee acknowledges that the fact that Employee may have received a bonus at any time does not give rise to any expectation or entitlement to receive any bonus in the future, or as to the size of any future bonus. A bonus, if any, will be paid no later than sixty (60) days following the calendar year in which it is earned, subject to the completion of the self-assessment. Employee will be entitled payment of an Executive Bonus if Employee has earned it and if the employee was employed at the end of the applicable calendar year. Employee will not be entitled to an Executive Bonus if the employee was no longer employed or was serving out any notice given by him or by Employer to terminate employment at the end of the applicable calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)<u>Change of Control Retention Bonus</u>. To induce Employee to remain employed by the Employer and/or its affiliates from the date hereof through the consummation of any change of control transaction (a "Transaction"), Employer agrees to pay Employee a separate Retention Bonus in the amounts and timeframes set forth below. Nothing herein is intended to guarantee employment by Employer through the date of a Transaction, but rather to incentivize Employee not to leave voluntarily before such a Transaction is consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. If Employer terminates Employee's employment without Cause (as defined below) or Employee terminates employment with Good Reason (as defined below) within sixty (60) days of the consummation of a Transaction, Employee shall be entitled to receive a Retention Bonus in an amount equal to Employee's then-existing Base Salary payable by Employer within thirty (30) days of Employee's qualifying termination upon Employee's execution of a release of claims in a form acceptable to Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser in a Transaction does not offer Employee continued employment after the consummation of the Transaction in a commensurate role with commensurate salary and benefits and with no relocation requirement, Employee shall be entitled to receive a Retention Bonus in an amount equal to Employee's then-

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existing Base Salary payable by the Purchaser within thirty (30) days of the Closing of the Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser offers Employee continued employment after the consummation of the Transaction in a commensurate role with commensurate salary and benefits and with no relocation requirement and Employee accepts such offer of continued employment after the consummation of the Transaction, Employee shall be entitled to receive a Retention Bonus equal to twenty-five percent (25%) of the Employee's then-existing Base Salary payable by the Purchaser within thirty (30) days of the consummation of the Transaction. Any additional Retention Bonus depends on Employee's tenure and termination basis, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If Employee remains with Purchaser as of the first anniversary of the consummation of the Transaction or is terminated without Cause (as defined below) or resigns for Good Reason (as defined below) before the first anniversary of the consummation of the Transaction, Employee shall be entitled to receive an additional Retention Bonus in an amount equivalent to that paid under Section 3(C)(iii) above within ten (10) days after the first anniversary of the consummation of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If Employee is terminated for Cause or resigns without Good Reason prior to the first anniversary of the consummation of the Transaction, Employee may retain the Retention Bonus paid under Section 3(C)(iii) above, but shall receive no further Retention Bonus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser offers Employee continued employment after the consummation of the Transaction, and the offer is in a commensurate role with commensurate salary and benefits and with no relocation requirement, and Employee refuses to accept such offer, Employee shall be entitled to receive a Retention Bonus equal to twenty-five percent (25%) of Employee's then-existing Base Salary, payable within thirty (30) days of the Closing of the Transaction.

In all circumstances, if Employee is terminated for Cause or resigns without Good Reason prior to the consummation of a Transaction, Employee shall receive no benefits under this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)<u>Benefits</u>. Employee will be entitled to participate in such benefit plans as generally provided by Employer to similarly situated employees, but only to the extent provided in such

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plans and for so long as Employer provides or offers such plans. Employer reserves the right to modify, amend or terminate such benefit plans at any time without prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)<u>Paid Time Off, Holidays, and Sick Days</u>. Employee shall be entitled to four (4) weeks paid vacation per year, subject to company policy on PTO. Employee shall also be entitled to the following holidays: New Year's Day, Good Friday, Memorial Day, July 4th, Labor Day, Thanksgiving Day, the day following Thanksgiving Day and Christmas Day. Employer may change company recognized holidays with advanced notice and in its sole discretion. Employee will receive four (4) sick days per year and may request use of sick leave in accordance with Employer's sick leave policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)<u>Expense Reimbursement</u>. In accordance with and subject to Employer's reimbursement policies in effect from time to time and Employer's receipt of evidence of such expenses, Employer will reimburse Employee for all reasonable business expenses incurred by Employee in connection with the performance of the Services hereunder. Employer shall provide Employee with a company credit card and for reasonable business use. Employer will also reimburse Employee for cellular phone expenses consistent with the practice in effect immediately prior to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)<u>Vehicle</u>. Employer shall provide Employee a company vehicle or current company vehicle allowance. In addition, Employee can use company credit card for fuel. If the employee opts for the company vehicle, the company will also provide for vehicle maintenance purchases upon employment. Employer reserves the right to change, vary or withdraw Employee's car in the event Employee loses his driving license (e.g. as a result of a motoring offense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)<u>Clawback Policy</u>. Employee acknowledges and agrees that all incentive-based compensation to Employee shall be subject to the Clawback Policy implemented by Employer from time to time in compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Clawback Policy"). In the event of any conflict between the Clawback Policy and this Agreement or applicable state law, the Clawback Policy shall be controlling.

&nbsp;&nbsp;&nbsp;&nbsp;**4.TERMINATION**. The date upon which this Agreement, and Employee's employment pursuant to this Agreement, terminates, for any reason whatsoever, shall be referred to herein as the "*Termination Date*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)<u> </u><u>Termination in the Event of Employee's Death</u>. In the event of Employee's death during the Employment Period, the parties' obligations under this Agreement shall immediately and automatically terminate. In such event, Employer shall pay to Employee's estate within ninety (90) days of the Termination Date: (1) any of the Compensation from <u>Section 3(A)</u> and <u>Section 3(B)</u> that was earned but not paid through the Termination Date; (2) a monetary amount equal to the value of any accrued, but unused, vacation vested pursuant to <u>Section 3(E)</u>; and (3) any reimbursable expenses incurred by Employee under <u>Section 3(F)</u> but un-reimbursed on the Termination Date, provided that such expenses and required substantiation and documentation are submitted within ninety (90) days of the Termination Date and that such expenses are reimbursable under Employer's reimbursement policy (all of the foregoing, cumulatively, the "*Final Compensation*").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)<u> </u><u>Termination in the Event of Employee's Permanent Disability</u>. In the event of Employee is deemed permanently disabled during the Employment Period, the parties' obligations under this Agreement shall immediately and automatically terminate. For purposes of this Agreement, "permanent disability" means Employee's incapacity due to physical or mental illness that prevents Employee from satisfactorily performing the Services on a full-time basis for any one hundred eighty (180) days during the immediately preceding twelve (12)-month period. These determinations shall be made by mutual agreement of the Parties or, in the absence of mutual agreement, a physician selected by Employer or its insurers and a physician selected by Employee (or his representatives); provided, however, that if the opinion of Employer's physician and the Employee's physician conflict, Employer's physician and the Employee's physician shall together agree upon a third physician, whose opinion shall be binding on the Parties hereto. Upon termination of this Agreement by reason of Employee's permanent disability, Employer shall have no further obligations to Employee, other than Employer's obligation to pay the Final Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)<u> </u><u>Termination by Employer "For Cause" During Term</u>. During the Term, Employer may terminate this Agreement "For Cause" upon the delivery of written notice to Employee at any time immediately upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Employee's material breach of representations or obligations under this Agreement or Employee's material failure to satisfactorily perform the Services, which is not cured by Employee within thirty (30) days after receiving written notice of such material breach or failure from Employer or the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Any act or omission by Employee which would reasonably be likely to have a material adverse effect on the business of Employer, which is not cured by Employee within thirty (30) days of receiving written notice of such act or omission from Employer, provided that any breach of Employee's duties pursuant to <u>Sections 5</u>, <u>6</u>, or <u>7</u> of this Agreement will be cause for immediate termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Employee's material misconduct, theft, dishonesty, fraud, misappropriation, embezzlement, or gross negligence; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Employee's conviction, guilty plea, or plea of nolo contendere for any crime that: (1) involves moral turpitude, (2) is fraud, embezzlement, larceny, forgery, bribery, theft or dishonesty, or (3) casts doubt on Employee's ability to perform his work or Employee's trust, judgment, or other similar moral characteristics.

Upon termination of this Contract during the Initial Term "For Cause," Employer shall have no further obligations to Employee, other than Employer's obligation to pay Final Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)<u> </u><u>Termination by Employer "Without Cause"</u>. During the Employment Term, Employer shall have the right to, at any time, terminate this Agreement "Without Cause" for any or no reason. In the event of a termination of this Agreement by Employer "Without Cause" during the Employment Term, Employer shall pay Employee the Final Compensation as well as a severance payment equal to Employee's Base Salary for a 12-month period less applicable

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deductions and withholdings plus Employee's full Executive Bonus for the then-current year (the "*Severance Payment*"), as well as a payment intended to account for premiums associated with health insurance coverage for a period of 12 months (the "*Benefits Payment*"), upon Employee's execution and delivery of a full release from liability to Employer (the "*Release*"). The Severance Payment shall be paid in equivalent installments in accordance with Employer's normal payroll practices, while the Benefits Payment shall be paid in a lump sum within 10 days of the effective date of the Release. Notwithstanding the foregoing, Employee's transfer of employment to any affiliate or subsidiary of the Employer will not constitute a termination of employment under this Agreement, and will not entitle Employee to the payment of any benefits under this <u>Section 4(D)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)<u> </u><u>Termination by Employee With "Good Reason"</u>. During the Employment Term and after a Change in Control, Employee may terminate this Agreement with "Good Reason" upon the delivery of written notice to Employer at any time immediately upon the occurrence of any of the following events without the prior written consent of Employee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any change in Employee's title from Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)a material reduction in the nature or scope of Employee's responsibilities, or the assignment to Employee of duties that are materially inconsistent with Employee's position (in each case as compared to Employee's responsibilities, duties or position on the Commencement Date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Employer's requiring the Executive to relocate or otherwise move from his home residence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)A diminution in Employee's Base Salary from the amount set forth in <u>Section 3</u>, which is not cured by Employer within thirty (30) days of receiving notice of such diminution from Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)any failure by Employer to obtain the assumption of this Agreement by any successor or assign of Employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Employer's breach of any material obligation under this Agreement which is not cured by Employer within thirty (30) days of receiving notice of such breach from Employee.

In the event of a termination of this Agreement by Employee with "Good Reason", Employer shall be obligated to pay Employee in all particulars as if a termination occurred Without Cause as set forth in Section 4(D) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)<u> </u><u>Termination by Employee Without "Good Reason" During the Term</u>. Employee may terminate this Agreement during the Term without "Good Reason" upon providing Employer with fifteen (15) days' notice (the "*Notice Period*"). Following the expiration of the Notice Period, Employer shall not have any further obligations to Employee, other than for the Final Compensation, which shall be paid on the regularly scheduled payday following the expiration of the Notice Period. At the sole option of Employer, the Employer may accept or require Employee's

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immediate resignation and waive the Notice Period. In such case, Employer shall pay Employee the Final Compensation. Such payment shall be made on the second regularly scheduled payday following Employee's resignation.

&nbsp;&nbsp;&nbsp;&nbsp;**5.NON-COMPETITION.** Employee acknowledges that Employer and Affiliates (as defined below) have invested substantial money and resources in establishing relationships with Clients (as defined below). Employee further acknowledges that the restrictions contained in this <u>Section 5</u> are reasonable and necessary to protect Employer and Affiliates from unfair competition and that Employer and Affiliates have a protectable property interest in Clients, and that such restrictions will not deprive Employee of his ability to earn a living. Accordingly, during the Restricted Period (as defined below), Employee shall not as an individual, owner, proprietor, partner, joint venturer, shareholder, independent contractor, consultant, agent, director, officer, employee, beneficiary or in any other capacity whatsoever, either directly or indirectly, render services or advice to, accept employment with, lend Employee's name or credit to, work for, participate in the ownership, management, operation or control of an entity currently engaged in, or desiring to become engaged in, a Covered Service (as defined below) in the Restricted Area (as defined below). Notwithstanding the foregoing, nothing in this Agreement restricts Employee from owning less than one percent (1%) of any class of securities of such entity as a passive investor, if such securities are listed on a national securities exchange. Employee understands that this provision does not restrict Employee from accepting any employment with any entity that does not engage in a Covered Service.

The following terms as used in this <u>Section 5</u> and the below <u>Section 6</u> shall have the meanings described below:

"Affiliate" means any entity that directly or indirectly, through one or more intermediaries or otherwise, controls, is controlled by or is under common control with Employer, where "control" means the ability to direct management or policies through the ownership of voting securities, by contract or otherwise.

"Client" means any individual, corporation, limited liability company, partnership, business or other entity, whether for-profit or not-for-profit (i) that is a business entity or individual with whom Employer or an Affiliate has contracted or negotiated or to whom Employer or an Affiliate has provided Covered Services during the course of Employee's employment; (ii) who refers patients to Employer or an Affiliate; (iii) who provides diagnostic services to or on behalf of Employer or an Affiliate during the course of Employee's employment; (iv) insurance companies, health care providers and such health care provider's insurance companies who have a contractual or other relationship with, or makes payments to, Employer or an Affiliate, or (v) who is a customer of Employer or an Affiliate during the course of Employee's employment or becomes a prospective customer to whom Employer or an Affiliate has within the last twelve months of Employee's employment with Employer has had direct and substantive communications regarding the sale or provision of health care equipment, supplies, and services.

"Covered Services" means (i) the sale or provision of health care equipment, supplies, and services for sleep apnea sufferers, chronic respiratory failure patients, oxygen therapy patients, and the provision of respiratory support services through the use of state of the art specialized medical

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equipment and highly trained respiratory therapists; (ii) the sale or provision of other products or services offered or provided by Employer or an Affiliate.

"Restricted Period" means the Employment Period and a period of one (1) year following the Termination Date for any reason whatsoever.

"Restricted Area" means the United States, or if such provision is deemed to be overbroad, any state in which Employer has made sales or provided services in the one (1) year period preceding Employee's separation from employment.

&nbsp;&nbsp;&nbsp;&nbsp;**6.NON-SOLICITATION.** Employee acknowledges that the restrictions contained this <u>Section 6</u> of the Agreement are reasonable and necessary to protect Employer from unfair competition, and that Employer has a protectable property interest in its Clients and its Employees, and that such restrictions will not deprive Employee of the ability to earn a living. Employee agrees that during the Restricted Period, Employee shall not, either directly or indirectly: (i) solicit the services, or attempt to solicit the services, of, or hire, any employee of Employer or an Affiliate to be employed by or to perform services on behalf of any other person or entity (provided, however, that nothing in this <u>Section 6</u> shall prohibit the use of a general solicitation in a publication or by other means) or (ii) solicit or attempt to solicit any Client in order to provide any Covered Service to such Client.

&nbsp;&nbsp;&nbsp;&nbsp;**7.CONFIDENTIALITY AND RETURN OF MATERIALS.** Employer shall furnish Employee with Confidential Information related to Employer and/or its affiliates and subsidiaries during Employee's employment. Employee acknowledges that this Confidential Information is furnished for the purpose of enabling Employee to provide the Services to the Employer. During the Employment Period and after the Termination Date: (i) Employee shall hold all Confidential Information in strict confidence and take all reasonable precautions to prevent its inadvertent disclosure to any unauthorized person; (ii) Employee shall not, directly or indirectly, use, disclose, or make available to any other person or entity any of the Confidential Information, other than as specifically required by law, regulation, subpoena or court order or in the proper performance of Employee's duties; and (iii) Employee shall not use the Confidential Information to solicit, induce, recruit, seek or enter into a relationship with, or seek to interfere or adversely affect Employer's relationship with any of its Clients or employees. Upon the termination of Employee's employment for any reason or upon Employer's request at any time, Employee shall immediately return to Employer all of Employer's property, including, but not limited to, mobile phone, personal digital assistant (PDA), keys, pass cards, credit cards, confidential or proprietary lists (including, but not limited to, customer, supplier, licensor, and client lists), rolodexes, tapes, laptop computer, software, computer files, marketing and sales materials, and any other property, record, document, or piece of equipment belonging to Employer. Employee will not (i) retain any copies of Employer's property, including any copies existing in electronic form, which are in Employee's possession, custody, or control (even if they reside on a personal device or email account), or (ii) destroy, delete, or alter any property of Employer, including, but not limited to, any files stored electronically, without Employer's prior written consent.

"Confidential Information," as used in this <u>Section</u><u> </u><u>7</u>, means, but is not necessarily limited to, any information relating to the business or affairs of Employer and any Affiliate, which may

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include, in whole or part, information concerning: accounts, sales, sales volume, sales methods, sales proposals, Clients, prospect lists, manuals, formulae, products, processes, methods, financial information or data, business and financial strategies, methods or practices, patients or customers of Employer or any of its subsidiaries, pricing data or lists, business plans, financial models, compositions, ideas, improvements, inventions, research, computer programs, computer related information or data, system documentation, software products, patented products, copyrighted information, know-how and operating methods and any other trade secret or proprietary information developed, owned, possessed or used by Employer. "Confidential Information" shall not include information that: (i) is or becomes generally available to the public other than as a result of a disclosure of such information by Employee; or (ii) is or becomes available to Employee on a non-confidential basis from a source other than Employer, any of its subsidiaries or their respective representatives and Clients and such source is not bound by a confidentiality agreement with, or other obligation of secrecy to, the Employer or any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;**8.REMEDIES.** Employee acknowledges and agrees that if Employee breaches any of the provisions of <u>Sections</u><u> </u><u>5</u>, <u>6</u>, or <u>7</u> of this Agreement, Employer may suffer immediate and irreparable harm for which monetary damages alone will not be a sufficient remedy, and that, in addition to all other remedies that Employer may have, Employer shall be entitled to seek injunctive relief, specific performance, and any other form of equitable relief to remedy a breach or threatened breach of this Agreement and to enforce the provisions of this Agreement without the need to post bond. The existence of this right shall not preclude or otherwise limit the applicability or exercise of any other rights and remedies which Employer may have at law or in equity. In any action or proceeding brought by a party to enforce this Agreement, the prevailing party shall be entitled to recover the costs and expenses incurred (including, but not limited to, legal fees and expenses incurred by the prevailing party).

If Employee violates the noncompetition and/or non-solicitation covenants of this Agreement and Employer brings legal action for injunctive or other relief, then Employer will not be deprived of the benefit of the full Restricted Period, as a result of the time involved in obtaining the relief. Accordingly, Employee agrees that the regularly scheduled expiration date of such Restricted Period will be extended by the same amount of time that Employee is determined to have violated such covenant.

It is further agreed that <u>Sections</u><u> </u><u>5</u>, <u>6</u>, or <u>7</u> of this Agreement will be regarded as divisible, and if any part of such covenant is declared invalid, unenforceable, or void as to time, area or scope of activities, a court with appropriate jurisdiction shall be authorized to rewrite, substitute, and enforce provisions which are valid; and the validity and enforceability of this Agreement as modified will not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;**9.GOVERNING LAW.** This Agreement is made under and shall be construed according to the laws of the Commonwealth of Kentucky. All disputes which in any manner arise out of or relate to this Agreement or the subject matter thereof shall be resolved exclusively by arbitration in accordance with the provisions of this <u>Section 9</u>. A Party may commence arbitration by sending a written demand for arbitration to the other Parties. However, such demand shall not be effective unless it sets forth in detail the nature of the controversy, the dollar amount involved, if any, the remedies sought, and attached to such demand is a copy of this subsection.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)There shall be one arbitrator. If the Parties shall fail to select a mutually acceptable arbitrator within 10 days after the demand for arbitration is mailed, then the Parties stipulate to arbitration before a single arbitrator sitting on the panel of the American Arbitration Association ("*AAA*"), and selected in the sole discretion of the AAA administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)The Parties shall share all costs of arbitration equally, except that the prevailing Party shall be entitled to reimbursement by the other Party of such Party's attorneys' fees and costs and any arbitration fees and expenses incurred in connection with the arbitration hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)The substantive law of the State of Kentucky shall be applied by the arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)Arbitration shall take place in Covington, Kentucky, unless the Parties otherwise agree in writing. As soon as reasonably practicable, a hearing with respect to the dispute or matter to be resolved shall be conducted by the arbitrator. As soon as reasonably practicable thereafter, the arbitrator shall arrive at a final decision, which shall be reduced to writing, signed by the arbitrator and mailed to each of the Parties and their legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)All decisions of the arbitrator shall be final, binding and conclusive on the Parties and shall constitute the only method of resolving disputes or matters subject to arbitration pursuant to this Agreement. The arbitrator or a court of appropriate jurisdiction may issue a writ of execution to enforce the arbitrator's judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)Notwithstanding anything to the contrary in this Agreement, claims for emergency or preliminary or permanent injunctive relief may be brought in, and decided by, a state or federal court located in Kenton County, Kentucky.

&nbsp;&nbsp;&nbsp;&nbsp;**10.AMENDMENT.** This Agreement shall not be modified, amended, rescinded, canceled, or waived in whole or in part, except by written amendment authorized by the Board and executed by Employee.

&nbsp;&nbsp;&nbsp;&nbsp;**11.WAIVER.** The waiver by either party of a breach or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.

&nbsp;&nbsp;&nbsp;&nbsp;**12.NOTICES**. All notices and other communications hereunder shall be in writing and shall be deemed received if delivered personally or by commercial delivery service, or mailed by registered or certified mail (return receipt requested) or sent via facsimile or e-mail (with confirmation of receipt) to the Parties at the following address (or at such other address for a Party as shall be specified by like notice):

If to Employer:QHM Holdings Inc.

1019 Towne Dr. Wilder, KY 41076

With a copy to:Katz Teller

255 E. Fifth Street, Suite 2400

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Cincinnati, Ohio 45202

Attn: John R. Gierl, Esq.

If to Employee: Gregory J. Crawford

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;**13.ENTIRE AGREEMENT, BINDING EFFECT.** This Agreement constitutes the entire agreement between the Parties concerning the subject matter thereof. No oral statements or prior written material not specifically incorporated herein shall be of any force and effect, and no changes in or additions to this Agreement shall be recognized unless incorporated herein by written amendment, such amendment to become effective on the date stipulated therein. Employee acknowledges and represents that, in executing this Agreement, he did not rely, and has not relied, on any communications, promises, statements, inducements, or representation(s), oral or written, by Employer, except as expressly contained in this Agreement. This Agreement supersedes in its entirety that certain Employment Agreement dated November 1, 2020 by and between Employer and Employee and any other prior agreement affecting employment entered before the effective date of this Agreement, whether with an affiliate or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;**14.THIRD-PARTY BENEFICIARIES.** This Agreement will not confer any rights or remedies upon any person or entity other than the Employer and Employee, and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;**15.ASSIGNMENT AND SUBCONTRACTORS.** Employee shall not assign this Agreement or subcontract any work required to be performed by it without the prior written consent of Employer.

&nbsp;&nbsp;&nbsp;&nbsp;**16.SEVERABILITY**. If any provision or provisions of this Agreement shall be held to be invalid, illegal, or unenforceable for any reason whatsoever, (i) the validity, legality and unenforceability of the remaining provisions of this Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable), shall not in any way be affected or impaired thereby, and (ii) such provision or provisions held to be invalid, illegal or unenforceable shall be limited or modified in its or their application to the minimum extent necessary to avoid such invalidity, illegality or unenforceability, and, as so limited or modified, such provision or provisions and the balance of this Agreement shall be enforceable in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;**17.COUNTERPARTS.** This Agreement may be executed in multiple counterparts, each of which shall be deemed an original. The Parties agree that a fully executed photocopy of this Agreement, and signature transmitted by PDF or other electronic means, shall be valid as an original.

*[Signature Page Follows]*

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**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed on the date written below.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;<br><u>_____________________________</u><br>| &nbsp;&nbsp;<br>**ORY J. CRAWFORD**<br>|
| &nbsp;&nbsp;&nbsp;**QHM HOLDINGS INC.**<br>By: <u>__/s/ Kevin Carter_____________</u><br>Kevin Carter<br>Director & Chair Compensation Committee | &nbsp;&nbsp;Employee:<br><u>/s/ Gregory J. Crawford___________</u> <br>**GREGORY J. CRAWFORD** |

---

[Signature Page – Executive Employment Agreement]

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## Exhibit 10.4

**Exhibit 10.4**

*CERTAIN INFORMATION CONTAINED IN THIS EXHIBIT HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE REGISTRANT HAS DETERMINED THAT IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED INFORMATION IS INDICATED BY [\*\*\*]*

#### EXECUTIVE EMPLOYMENT AGREEMENT
This Executive Employment Agreement (the "*Agreement*") is entered into effective as of Commencement Date set forth below by and between QHM Holdings Inc., a Delaware corporation ("*Employer*"), and Hardik Mehta ("*Employee*") pursuant to the following terms and conditions, and shall supersede any and all prior employment agreements between the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;**1.Employment Term.** Effective January 1, 2025 ("*Commencement Date*"), Employer shall employ Employee in the position of Chief Financial Officer for a three-year period ("*Initial Term*"), unless terminated earlier pursuant to Section 3 below. Employee's employment under this Agreement shall renew automatically for additional one year terms (each, a "*Renewal Term*" and, together with the Initial Term, referred to herein as the "*Employment Term*") upon the expiration of the Initial Term and/or Renewal Term, as applicable thereafter, unless, either party gives the other a written notice, at least sixty (90) calendar days prior to the expiration of the Initial Term or the then Renewal Term, of its intention not to renew this Agreement and/ or any extension thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Acknowledgement Of Terms Of Employment .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Title and Reporting. Employee's title shall be Chief Financial Officer and Employee shall report directly to the Chief Executive Officer of Quipt Home Medical Corp. (the "Parent").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Devotion of Business Time. Employee will perform the duties appropriate for the Chief Financial Officer position and other such duties, services, and responsibilities as may be assigned to Employee by the Company's Chief Executive Officer and the Board, and Employee may be obligated, from time to time and as business needs necessitate, to act as an officer or director of Employer's affiliates and subsidiaries (collectively, the "*Services*") and Employee agrees and acknowledges that the compensation described in Section3 below constitutes payment-in-full for all Services performed. Employee shall at all times during the Employment Period, faithfully, with diligence and to the best of his ability, experience, and talents, perform the Services pursuant to the express and implicit terms hereof and to Employer's reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)Place of Performance. Employee shall perform the Services under this Agreement primarily in Wilder, Kentucky and Employee shall have the ability to work remotely (subject to necessary travel requirements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)Compliance. Employee shall comply with all of Employer's rules and regulations as they are adopted and amended from time to time. Employee shall also comply with all laws, regulations, and ordinances applicable to the performance of his duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Compensation .** As compensation for the Services provided during the Employment

Period by Employee under this Agreement, Employer shall pay Employee as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Base Salary. An annual initial base salary of **$624,000.00**, less applicable deductions and withholdings (the "*Base Salary*"), payable biweekly or such other regular periods as Employer shall determine in accordance with Employer's normal payroll policies. The Base Salary will increase annually by seven percent (7%) throughout the Employment Term.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Bonus. In addition to Base Salary, Employee may be eligible to receive an annual, discretionary Executive Bonus in an amount up to 100% of his Base Salary, and contingent upon achievement of specific performance measures and strategic and tactical undertakings directed and set by the Board, along with consideration of the overall performance of Employer and its affiliates. The Compensation Committee of the Board shall meet together with Employee prior to the commencement of each fiscal year to determine the specific performance targets that need to be satisfactorily achieved in such fiscal year in order for the Employee to receive the Executive Bonus. Additionally, to receive a bonus hereunder, Employee must complete a self-assessment in a timely fashion and meet deadlines set for evaluation of bonus eligibility by Executive Compensation Committee. Employee acknowledges that the fact that Employee may have received a bonus at any time does not give rise to any expectation or entitlement to receive any bonus in the future, or as to the size of any future bonus. A bonus, if any, will be paid no later than sixty (60) days following the calendar year in which it is earned, subject to the completion of the self-assessment. Employee will be entitled payment of an Executive Bonus if Employee has earned it and if the employee was employed at the end of the applicable calendar year. Employee will not be entitled to an Executive Bonus if the employee was no longer employed or was serving out any notice given by him or by Employer to terminate employment at the end of the applicable calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)Change of Control Retention Bonus. To induce Employee to remain employed by the Employer and/or its affiliates from the date hereof through the consummation of any change of control transaction (a "Transaction"), Employer agrees to pay Employee a separate Retention Bonus in the amounts and timeframes set forth below. Nothing herein is intended to guarantee employment by Employer through the date of a Transaction, but rather to incentivize Employee not to leave voluntarily before such a Transaction is consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.If Employer terminates Employee's employment without Cause (as defined below) or Employee terminates employment with Good Reason (as defined below) within sixty (60) days of the consummation of a Transaction, Employee shall be entitled to receive a Retention Bonus in an amount equal to Employee's then-existing Base Salary payable by Employer within thirty (30) days of Employee's qualifying termination upon Employee's execution of a release of claims in a form acceptable to Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser in a Transaction does not offer Employee continued employment after the consummation of the Transaction in a commensurate role with commensurate salary and benefits and with no relocation requirement, Employee shall be entitled to receive a Retention Bonus in an amount equal to Employee's then-existing Base Salary payable by the Purchaser within thirty (30) days of the Closing of the Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser offers Employee continued employment

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after the consummation of the Transaction in a commensurate role with commensurate salary and benefits and with no relocation requirement and Employee accepts such offer of continued employment after the consummation of the Transaction, Employee shall be entitled to receive a Retention Bonus equal to twenty-five percent (25%) of the Employee's then-existing Base Salary payable by the Purchaser within thirty (30) days of the consummation of the Transaction. Any additional Retention Bonus depends on Employee's tenure and termination basis, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If Employee remains with Purchaser as of the first anniversary of the consummation of the Transaction or is terminated without Cause (as defined below) or resigns for Good Reason (as defined below) before the first anniversary of the consummation of the Transaction, Employee shall be entitled to receive an additional Retention Bonus in an amount equivalent to that paid under Section 3(C)(iii) above within ten (10) days after the first anniversary of the consummation of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If Employee is terminated for Cause or resigns without Good Reason prior to the first anniversary of the consummation of the Transaction, Employee may retain the Retention Bonus paid under Section 3(C)(iii) above, but shall receive no further Retention Bonus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser offers Employee continued employment after the consummation of the Transaction, and the offer is in a commensurate role with commensurate salary and benefits and with no relocation requirement, and Employee refuses to accept such offer, Employee shall be entitled to receive a Retention Bonus equal to twenty-five percent (25%) of Employee's then-existing Base Salary, payable within thirty (30) days of the Closing of the Transaction.

In all circumstances, if Employee is terminated for Cause or resigns without Good Reason prior to the consummation of a Transaction, Employee shall receive no benefits under this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)Benefits. Employee will be entitled to participate in such benefit plans as generally provided by Employer to similarly situated employees, but only to the extent provided in such plans and for so long as Employer provides or offers such plans. Employer reserves the right to modify, amend or terminate such benefit plans at any time without prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)Paid Time Off, Holidays, and Sick Days. Employee shall be entitled to four (4) weeks paid vacation per year, subject to company policy on PTO. Employee shall also be entitled

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to the following holidays: New Year's Day, Good Friday, Memorial Day, July 4th, Labor Day, Thanksgiving Day, the day following Thanksgiving Day and Christmas Day. Employer may change company recognized holidays with advanced notice and in its sole discretion. Employee will receive four (4) sick days per year and may request use of sick leave in accordance with Employer's sick leave policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)Expense Reimbursement. In accordance with and subject to Employer's reimbursement policies in effect from time to time and Employer's receipt of evidence of such expenses, Employer will reimburse Employee for all reasonable business expenses incurred by Employee in connection with the performance of the Services hereunder. Employer shall provide Employee with a company credit card and for reasonable business use. Employer will also reimburse Employee for cellular phone expenses consistent with the practice in effect immediately prior to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)Vehicle. Employer shall provide Employee a company vehicle or current company vehicle allowance. In addition, Employee can use company credit card for fuel. If the employee opts for the company vehicle, the company will also provide for vehicle maintenance purchases upon employment. Employer reserves the right to change, vary or withdraw Employee's car in the event Employee loses his driving license (e.g. as a result of a motoring offense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)Clawback Policy. Employee acknowledges and agrees that all incentive-based compensation to Employee shall be subject to the Clawback Policy implemented by Employer from time to time in compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Clawback Policy"). In the event of any conflict between the Clawback Policy and this Agreement or applicable state law, the Clawback Policy shall be controlling.

&nbsp;&nbsp;&nbsp;&nbsp;**4.Termination**. The date upon which this Agreement, and Employee's employment pursuant to this Agreement, terminates, for any reason whatsoever, shall be referred to herein as the "*Termination Date*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Termination in the Event of Employee's Death. In the event of Employee's death during the Employment Period, the parties' obligations under this Agreement shall immediately and automatically terminate. In such event, Employer shall pay to Employee's estate within ninety

&nbsp;&nbsp;&nbsp;&nbsp;(90) days of the Termination Date: (1) any of the Compensation from Section 3(A) and Section 3(B) that was earned but not paid through the Termination Date; (2) a monetary amount equal to the value of any accrued, but unused, vacation vested pursuant to Section 3(E); and (3) any reimbursable expenses incurred by Employee under Section 3(F) but un-reimbursed on the Termination Date, provided that such expenses and required substantiation and documentation are submitted within ninety (90) days of the Termination Date and that such expenses are reimbursable under Employer's reimbursement policy (all of the foregoing, cumulatively, the "*Final Compensation*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Termination in the Event of Employee's Permanent Disability. In the event of Employee is deemed permanently disabled during the Employment Period, the parties' obligations under this Agreement shall immediately and automatically terminate. For purposes of this Agreement, "permanent disability" means Employee's incapacity due to physical or mental illness that prevents Employee from satisfactorily performing the Services on a full-time basis for any

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one hundred eighty (180) days during the immediately preceding twelve (12)-month period. These determinations shall be made by mutual agreement of the Parties or, in the absence of mutual agreement, a physician selected by Employer or its insurers and a physician selected by Employee (or his representatives); provided, however, that if the opinion of Employer's physician and the Employee's physician conflict, Employer's physician and the Employee's physician shall together agree upon a third physician, whose opinion shall be binding on the Parties hereto. Upon termination of this Agreement by reason of Employee's permanent disability, Employer shall have no further obligations to Employee, other than Employer's obligation to pay the Final Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)Termination by Employer "For Cause" During Term. During the Term, Employer may terminate this Agreement "For Cause" upon the delivery of written notice to Employee at any time immediately upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Employee's material breach of representations or obligations under this Agreement or Employee's material failure to satisfactorily perform the Services, which is not cured by Employee within thirty (30) days after receiving written notice of such material breach or failure from Employer or the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Any act or omission by Employee which would reasonably be likely to have a material adverse effect on the business of Employer, which is not cured by Employee within thirty (30) days of receiving written notice of such act or omission from Employer, provided that any breach of Employee's duties pursuant to Sections 5, 6, or 7 of this Agreement will be cause for immediate termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Employee's material misconduct, theft, dishonesty, fraud,

misappropriation, embezzlement, or gross negligence; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Employee's conviction, guilty plea, or plea of nolo contendere for any crime that: (1) involves moral turpitude, (2) is fraud, embezzlement, larceny, forgery, bribery, theft or dishonesty, or (3) casts doubt on Employee's ability to perform his work or Employee's trust, judgment, or other similar moral characteristics.

Upon termination of this Contract during the Initial Term "For Cause," Employer shall have no further obligations to Employee, other than Employer's obligation to pay Final Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)Termination by Employer "Without Cause". During the Employment Term, Employer shall have the right to, at any time, terminate this Agreement "Without Cause" for any or no reason. In the event of a termination of this Agreement by Employer "Without Cause" during the Employment Term, Employer shall pay Employee the Final Compensation as well as a severance payment equal to Employee's Base Salary for a 12-month period less applicable deductions and withholdings plus Employee's full Executive Bonus for the then-current year (the "*Severance Payment*"), as well as a payment intended to account for premiums associated with health insurance coverage for a period of 12 months (the "*Benefits Payment*"), upon Employee's execution and delivery of a full release from liability to Employer (the "*Release*"). The Severance Payment shall be paid in equivalent installments in accordance with Employer's normal payroll

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practices, while the Benefits Payment shall be paid in a lump sum within 10 days of the effective date of the Release. Notwithstanding the foregoing, Employee's transfer of employment to any affiliate or subsidiary of the Employer will not constitute a termination of employment under this Agreement, and will not entitle Employee to the payment of any benefits under this Section 4(D).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)Termination by Employee With "Good Reason". During the Employment Term and after a Change in Control, Employee may terminate this Agreement with "Good Reason" upon the delivery of written notice to Employer at any time immediately upon the occurrence of any of the following events without the prior written consent of Employee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any change in Employee's title from Chief Financial Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)a material reduction in the nature or scope of Employee's responsibilities, or the assignment to Employee of duties that are materially inconsistent with Employee's position (in each case as compared to Employee's responsibilities, duties or position on the Commencement Date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Employer's requiring the Employee to relocate or otherwise move from his home residence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)A diminution in Employee's Base Salary from the amount set forth in Section 3, which is not cured by Employer within thirty (30) days of receiving notice of such diminution from Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)any failure by Employer to obtain the assumption of this Agreement by any successor or assign of Employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Employer's breach of any material obligation under this Agreement which is not cured by Employer within thirty (30) days of receiving notice of such breach from Employee.

In the event of a termination of this Agreement by Employee with "Good Reason", Employer shall be obligated to pay Employee in all particulars as if a termination occurred Without Cause as set forth in Section 4(D) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)Termination by Employee Without "Good Reason" During the Term. Employee may terminate this Agreement during the Term without "Good Reason" upon providing Employer with fifteen (15) days' notice (the "*Notice Period*"). Following the expiration of the Notice Period, Employer shall not have any further obligations to Employee, other than for the Final Compensation, which shall be paid on the regularly scheduled payday following the expiration of the Notice Period. At the sole option of Employer, the Employer may accept or require Employee's immediate resignation and waive the Notice Period. In such case, Employer shall pay Employee the Final Compensation. Such payment shall be made on the second regularly scheduled payday following Employee's resignation.

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&nbsp;&nbsp;&nbsp;&nbsp;**5.Non-Competition.** Employee acknowledges that Employer and Affiliates (as defined below) have invested substantial money and resources in establishing relationships with Clients (as defined below). Employee further acknowledges that the restrictions contained in this Section 5 are reasonable and necessary to protect Employer and Affiliates from unfair competition and that Employer and Affiliates have a protectable property interest in Clients, and that such restrictions will not deprive Employee of his ability to earn a living. Accordingly, during the Restricted Period (as defined below), Employee shall not as an individual, owner, proprietor, partner, joint venturer, shareholder, independent contractor, consultant, agent, director, officer, employee, beneficiary or in any other capacity whatsoever, either directly or indirectly, render services or advice to, accept employment with, lend Employee's name or credit to, work for, participate in the ownership, management, operation, financing or control of an entity currently engaged in, or desiring to become engaged in, a Covered Service (as defined below) in the Restricted Area (as defined below). Notwithstanding the foregoing, nothing in this Agreement restricts Employee from owning less than one percent (1%) of any class of securities of such entity as a passive investor, if such securities are listed on a national securities exchange. Employee understands that this provision does not restrict Employee from accepting any employment with any entity that does not engage in a Covered Service.

The following terms as used in this <u>Section 5</u> and the below <u>Section 6</u> shall have the meanings described below:

"Affiliate" means any entity that directly or indirectly, through one or more intermediaries or otherwise, controls, is controlled by or is under common control with Employer, where "control" means the ability to direct management or policies through the ownership of voting securities, by contract or otherwise.

"Client" means any individual, corporation, limited liability company, partnership, business or other entity, whether for-profit or not-for-profit (i) that is a business entity or individual with whom Employer or an Affiliate has contracted or negotiated or to whom Employer or an Affiliate has provided Covered Services during the course of Employee's employment; (ii) who refers patients to Employer or an Affiliate; (iii) who provides diagnostic services to or on behalf of Employer or an Affiliate during the course of Employee's employment; (iv) insurance companies, health care providers and such health care provider's insurance companies who have a contractual or other relationship with, or makes payments to, Employer or an Affiliate, or (v) who is a customer of Employer or an Affiliate during the course of Employee's employment or becomes a prospective customer to whom Employer or an Affiliate has within the last twelve months of Employee's employment with Employer has had direct and substantive communications regarding the sale or provision of health care equipment, supplies, and services.

"Covered Services" means (i) the sale or provision of health care equipment, supplies, and services for sleep apnea sufferers, chronic respiratory failure patients, oxygen therapy patients, and the provision of respiratory support services through the use of state of the art specialized medical equipment and highly trained respiratory therapists; (ii) the sale or provision of other products or services offered or provided by Employer or an Affiliate.

"Restricted Period" means the Employment Period and a period of one (1) year following the Termination Date for any reason whatsoever.

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"Restricted Area" means the United States, or if such provision is deemed to be overbroad, any state in which Employer has made sales or provided services in the one (1)-year period preceding Employee's separation from employment.

&nbsp;&nbsp;&nbsp;&nbsp;**6.Non-Solicitation.** Employee acknowledges that the restrictions contained this Section 6 of the Agreement are reasonable and necessary to protect Employer from unfair competition, and that Employer has a protectable property interest in its Clients and its Employees, and that such restrictions will not deprive Employee of the ability to earn a living. Employee agrees that during the Restricted Period, Employee shall not, either directly or indirectly: (i) solicit the services, or attempt to solicit the services, of, or hire, any employee of Employer or an Affiliate to be employed by or to perform services on behalf of any other person or entity (provided, however, that nothing in this Section 6 shall prohibit the use of a general solicitation in a publication or by other means) or (ii) solicit or attempt to solicit any Client in order to provide any Covered Service to such Client.

&nbsp;&nbsp;&nbsp;&nbsp;**7.Confidentiality And Return of Materials.** Employer shall furnish Employee with Confidential Information related to Employer and/or its affiliates and subsidiaries during Employee's employment. Employee acknowledges that this Confidential Information is furnished for the purpose of enabling Employee to provide the Services to the Employer. During the Employment Period and after the Termination Date: (i) Employee shall hold all Confidential Information in strict confidence and take all reasonable precautions to prevent its inadvertent disclosure to any unauthorized person; (ii) Employee shall not, directly or indirectly, use, disclose, or make available to any other person or entity any of the Confidential Information, other than as specifically required by law, regulation, subpoena or court order or in the proper performance of Employee's duties; and (iii) Employee shall not use the Confidential Information to solicit, induce, recruit, seek or enter into a relationship with, or seek to interfere or adversely affect Employer's relationship with any of its Clients or employees. Upon the termination of Employee's employment for any reason or upon Employer's request at any time, Employee shall immediately return to Employer all of Employer's property, including, but not limited to, mobile phone, personal digital assistant (PDA), keys, pass cards, credit cards, confidential or proprietary lists (including, but not limited to, customer, supplier, licensor, and client lists), rolodexes, tapes, laptop computer, software, computer files, marketing and sales materials, and any other property, record, document, or piece of equipment belonging to Employer. Employee will not (i) retain any copies of Employer's property, including any copies existing in electronic form, which are in Employee's possession, custody, or control (even if they reside on a personal device or email account), or (ii) destroy, delete, or alter any property of Employer, including, but not limited to, any files stored electronically, without Employer's prior written consent.

"Confidential Information," as used in this <u>Section</u><u> </u><u>7</u>, means, but is not necessarily limited to, any information relating to the business or affairs of Employer and any Affiliate, which may include, in whole or part, information concerning: accounts, sales, sales volume, sales methods, sales proposals, Clients, prospect lists, manuals, formulae, products, processes, methods, financial information or data, business and financial strategies, methods or practices, patients or customers of Employer or any of its subsidiaries, pricing data or lists, business plans, financial models, compositions, ideas, improvements, inventions, research, computer programs, computer related

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information or data, system documentation, software products, patented products, copyrighted information, know-how and operating methods and any other trade secret or proprietary information developed, owned, possessed or used by Employer. "Confidential Information" shall not include information that: (i) is or becomes generally available to the public other than as a result of a disclosure of such information by Employee; or (ii) is or becomes available to Employee on a non-confidential basis from a source other than Employer, any of its subsidiaries or their respective representatives and Clients and such source is not bound by a confidentiality agreement with, or other obligation of secrecy to, the Employer or any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;**8.Remedies.** Employee acknowledges and agrees that if Employee breaches any of the provisions of Sections 5, 6, or 7 of this Agreement, Employer may suffer immediate and irreparable harm for which monetary damages alone will not be a sufficient remedy, and that, in addition to all other remedies that Employer may have, Employer shall be entitled to seek injunctive relief, specific performance, and any other form of equitable relief to remedy a breach or threatened breach of this Agreement and to enforce the provisions of this Agreement without the need to post bond. The existence of this right shall not preclude or otherwise limit the applicability or exercise of any other rights and remedies which Employer may have at law or in equity. In any action or proceeding brought by a party to enforce this Agreement, the prevailing party shall be entitled to recover the costs and expenses incurred (including, but not limited to, legal fees and expenses incurred by the prevailing party).

If Employee violates the noncompetition and/or non-solicitation covenants of this Agreement and Employer brings legal action for injunctive or other relief, then Employer will not be deprived of the benefit of the full Restricted Period, as a result of the time involved in obtaining the relief. Accordingly, Employee agrees that the regularly scheduled expiration date of such Restricted Period will be extended by the same amount of time that Employee is determined to have violated such covenant.

It is further agreed that <u>Sections</u><u> </u><u>5</u>, <u>6</u>, or <u>7</u> of this Agreement will be regarded as divisible, and if any part of such covenant is declared invalid, unenforceable, or void as to time, area or scope of activities, a court with appropriate jurisdiction shall be authorized to rewrite, substitute, and enforce provisions which are valid; and the validity and enforceability of this Agreement as modified will not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;**9.Governing Law.** This Agreement is made under and shall be construed according to the laws of the Commonwealth of Kentucky. All disputes which in any manner arise out of or relate to this Agreement or the subject matter thereof shall be resolved exclusively by arbitration in accordance with the provisions of this Section 9. A Party may commence arbitration by sending a written demand for arbitration to the other Parties. However, such demand shall not be effective unless it sets forth in detail the nature of the controversy, the dollar amount involved, if any, the remedies sought, and attached to such demand is a copy of this subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)There shall be one arbitrator. If the Parties shall fail to select a mutually acceptable arbitrator within 10 days after the demand for arbitration is mailed, then the Parties stipulate to arbitration before a single arbitrator sitting on the panel of the American Arbitration Association ("*AAA*"), and selected in the sole discretion of the AAA administrator.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)The Parties shall share all costs of arbitration equally, except that the prevailing Party shall be entitled to reimbursement by the other Party of such Party's attorneys' fees and costs and any arbitration fees and expenses incurred in connection with the arbitration hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The substantive law of the State of Kentucky shall be applied by the arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)Arbitration shall take place in Covington, Kentucky, unless the Parties otherwise agree in writing. As soon as reasonably practicable, a hearing with respect to the dispute or matter to be resolved shall be conducted by the arbitrator. As soon as reasonably practicable thereafter, the arbitrator shall arrive at a final decision, which shall be reduced to writing, signed by the arbitrator and mailed to each of the Parties and their legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)All decisions of the arbitrator shall be final, binding and conclusive on the Parties and shall constitute the only method of resolving disputes or matters subject to arbitration pursuant to this Agreement. The arbitrator or a court of appropriate jurisdiction may issue a writ of execution to enforce the arbitrator's judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)Notwithstanding anything to the contrary in this Agreement, claims for emergency or preliminary or permanent injunctive relief may be brought in, and decided by, a state or federal court located in Kenton County, Kentucky.

&nbsp;&nbsp;&nbsp;&nbsp;**10.AMENDMENT.** This Agreement shall not be modified, amended, rescinded, canceled, or waived in whole or in part, except by written amendment authorized by the Board and executed by Employee.

&nbsp;&nbsp;&nbsp;&nbsp;**11.WAIVER.** The waiver by either party of a breach or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.

&nbsp;&nbsp;&nbsp;&nbsp;**12.NOTICES**. All notices and other communications hereunder shall be in writing and shall be deemed received if delivered personally or by commercial delivery service, or mailed by registered or certified mail (return receipt requested) or sent via facsimile or e-mail (with confirmation of receipt) to the Parties at the following address (or at such other address for a Party as shall be specified by like notice):

If to Employer:

With a copy to:

If to Employee:

QHM Holdings Inc. 1019 Towne Dr.

Wilder, KY 41076

Katz Teller

255 E. Fifth Street, Suite 2400

Cincinnati, Ohio 45202 Attn: John R. Gierl, Esq.

Hardik Mehta

[\*\*\*]

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&nbsp;&nbsp;&nbsp;&nbsp;**13.Entire Agreement, Binding Effect.** This Agreement constitutes the entire agreement between the Parties concerning the subject matter thereof. No oral statements or prior written material not specifically incorporated herein shall be of any force and effect, and no changes in or additions to this Agreement shall be recognized unless incorporated herein by written amendment, such amendment to become effective on the date stipulated therein. Employee acknowledges and represents that, in executing this Agreement, he did not rely, and has not relied, on any communications, promises, statements, inducements, or representation(s), oral or written, by Employer, except as expressly contained in this Agreement. This Agreement supersedes in its entirety that certain Employment Agreement dated November 1, 2020 by and between Employer and Employee and any other prior agreement affecting employment entered before the effective date of this Agreement, whether with an affiliate or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;**14.Third-Party Beneficiaries.** This Agreement will not confer any rights or remedies upon any person or entity other than the Employer and Employee, and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;**15.Assignment and Subcontractors.** Employee shall not assign this Agreement or subcontract any work required to be performed by it without the prior written consent of Employer.

&nbsp;&nbsp;&nbsp;&nbsp;**16.SEVERABILITY**. If any provision or provisions of this Agreement shall be held to be invalid, illegal, or unenforceable for any reason whatsoever, (i) the validity, legality and unenforceability of the remaining provisions of this Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable), shall not in any way be affected or impaired thereby, and (ii) such provision or provisions held to be invalid, illegal or unenforceable shall be limited or modified in its or their application to the minimum extent necessary to avoid such invalidity, illegality or unenforceability, and, as so limited or modified, such provision or provisions and the balance of this Agreement shall be enforceable in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;**17.COUNTERPARTS.** This Agreement may be executed in multiple counterparts, each of which shall be deemed an original. The Parties agree that a fully executed photocopy of this Agreement, and signature transmitted by PDF or other electronic means, shall be valid as an original.

*[Signature Page Follows]*

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**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed on the date written below.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Name: Kevin Carter<br> Director & Chairman<br> Home Medical Corp Compensation Committee<br>| &nbsp;&nbsp;&nbsp;&nbsp;<br>**MEHTA**<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**QHM HOLDINGS INC.**<br>By: <u>/s/ Kevin Carter</u> Name: Kevin Carter<br>Title: Director & Chairman<br>Quipt Home Medical Corp Compensation Committee | &nbsp;&nbsp;&nbsp;&nbsp;Employee:<br><u>/s/ Hardik Mehta</u> <br>**HARDIK MEHTA** |

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## Exhibit 10.10

**Exhibit 10.10**

**RETENTION BONUS AGREEMENT**

This Retention Bonus Agreement (the "Retention Agreement") is made and entered into as of this 31st day of March, 2025 by and between **QHM Holdings Inc**., a Delaware corporation (the "Company") and **Thomas Roehrig** (the "Employee"), who agree as follows:

Employee renders services to the Company and circumstances exist that make it desirable for the Company to incentivize Employee to remain at the Company to ensure continuity of profitable operations through a possible transaction; and

Now, therefore, in consideration of the foregoing recitals, it is mutually agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Change of Control Retention Bonus</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) To induce Employee to remain employed by the Company and/or its affiliates from the date hereof through the consummation of any change of control transaction (a "Transaction"), the Company agrees to pay Employee a separate Retention Bonus in the amounts and timeframes set forth below. Nothing herein is intended to guarantee employment by the Company through the date of a Transaction, but rather to incentivize Employee not to leave voluntarily before such a Transaction is consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If the Company terminates Employee's employment without Cause or Employee terminates employment with Good Reason within sixty (60) days of the consummation of a Transaction, Employee shall be entitled to receive a Retention Bonus in an amount equal to Employee's then-existing Base Salary payable by the Company within thirty (30) days of Employee's qualifying termination upon Employee's execution of a release of claims in a form acceptable to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser in a Transaction does not offer Employee continued employment after the consummation of the Transaction in a commensurate role with commensurate salary and benefits and with no relocation requirement, Employee shall be entitled to receive a Retention Bonus in an amount equal to Employee's then-existing Base Salary payable by the Purchaser within thirty (30) days of the Closing of the Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser offers Employee continued employment after the consummation of the Transaction in a commensurate role with commensurate salary and benefits and with no relocation requirement and Employee accepts such offer of continued employment after the consummation of the Transaction, Employee shall be entitled to receive a Retention Bonus equal to twenty-five percent (25%) of the Employee's then-existing Base Salary payable by the Purchaser within thirty (30) days of the consummation of the Transaction. Any additional Retention Bonus depends on Employee's tenure and termination basis, as follows:

1)If Employee remains with Purchaser as of the first anniversary of the consummation of the Transaction or is terminated without Cause (as defined below) or resigns for Good Reason before the first anniversary of the consummation of the Transaction, Employee shall be entitled to receive an additional Retention Bonus in an amount equivalent to that paid under Section 1(A)(iii) above within ten (10) days after the first anniversary of the consummation of the Transaction.

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2)If Employee is terminated for Cause or resigns without Good Reason prior to the first anniversary of the consummation of the Transaction, Employee may retain the Retention Bonus paid under Section 1(A)(iii) above, but shall receive no further Retention Bonus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)If Employee remains employed up to and until the consummation of a Transaction, and the Purchaser offers Employee continued employment after the consummation of the Transaction, and the offer is in a commensurate role with commensurate salary and benefits and with no relocation requirement, and Employee refuses to accept such offer, Employee shall be entitled to receive a Retention Bonus equal to twenty-five percent (25%) of Employee's then-existing Base Salary, payable within thirty (30) days of the Closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)In all circumstances, if Employee is terminated for Cause or resigns without Good Reason prior to the consummation of a Transaction, Employee shall receive no benefits under this Retention Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Cause</u>. "Cause" shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The conviction of Employee of, or the entering of a plea of "guilty" or "no contest" to, a felony offense or a misdemeanor involving moral turpitude as defined under Ohio Revised Code 4776.10; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The commission by Employee of an act of fraud upon Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The misappropriation, or attempted misappropriation, by Employee of any funds or property of Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The failure by Employee to perform his obligations and responsibilities as an employee of Company which failure continues after the delivery of written notice to Employee of such failure and that the continuation of such failure will result in the termination of Employee for Cause, provided that this provision shall not apply to such failure resulting from Employee's incapacity due to physical or mental illness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The willful act, willful failure to act, willful misconduct or gross negligence by Employee that is materially injurious to Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Employee's drug or alcohol addiction that materially impairs Employee's ability to perform normal business activities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The engagement by Employee in any activity that would constitute a breach of the covenants not to compete or disclose confidential information between Employee and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) <u>Good Reason</u>. "Good Reason" to resign Employee's employment shall mean any of the following without Employee's consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Employee has been assigned duties and responsibilities that are either materially inconsistent with or a reduction of the position duties, responsibilities, status, or authority;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the reduction of Employee's Base Salary or bonus opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the relocation of Employee's principal place of employment by more than forty (40) miles; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company's breach of any of its material obligations under this Retention Agreement.

Provided, however, that "Good Reason" shall not exist unless Employee has first provided written notice to the Company/Purchaser of the occurrence of one or more of the conditions under clauses 1(C)(i)-(iv) above within ninety (90) days of the condition's occurrence and such condition is not fully remedied by the Company/Purchaser within thirty (30) days after the Company's/Purchaser's receipt of written notice from Employee.

&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Governing Law; Jurisdiction</u>. This Retention Agreement shall be governed by the laws of the State of Ohio, and all parties hereto consent to the jurisdiction of the courts of the State of Ohio, and specifically the jurisdiction and venue of the federal or state courts sitting in Hamilton County, Ohio.

&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Assignment</u>. This Retention Agreement, and the obligations of the Employee hereunder, shall inure to the benefit of Company and its successors and assigns, including, without limitation, any Purchaser of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Entire Agreement, Integration</u>. This Retention Agreement constitutes the complete agreement between the parties, and no prior negotiations or communications shall vary or modify this Retention Agreement, which represents the final understanding and agreement of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Severability</u>. The invalidity or unenforceability of any provision of this Retention Agreement shall not affect the validity or enforceability of any other provision hereof. To the extent that any provision of this Retention Agreement may be found to be invalid or unenforceable, it is the intention of the parties to this Retention Agreement that such provision will be enforced to the extent or degree that it is valid and enforceable.

EACH PARTY HAS CAREFULLY READ THIS RETENTION AGREEMENT, FULLY UNDERSTANDS THIS RETENTION AGREEMENT, AND SIGNS IT AS THE PARTY'S OWN FREE ACT. EACH PARTY HAS CONSULTED WITH COUNSEL ABOUT ITS TERMS OR HAS FREELY CHOSEN NOT TO DO SO. IN SIGNING THIS RETENTION AGREEMENT, NO PARTY IS RELYING ON ANY FACT, STATEMENT OR ASSUMPTION NOT SPECIFICALLY SET FORTH IN THIS RETENTION AGREEMENT.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**QHM HOLDINGS INC.**<br>By:<u>/s/ Gregory Crawford</u><br>Its Chairman of the Board of Directors<br>and Chief Executive Officer<br>| &nbsp;&nbsp;**Employee**<br><u>/s/ Thomas Roehrig</u><br>Thomas Roehrig<br>|

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## Ex-21

**Exhibit 21**

**Subsidiaries of the Registrant**

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| | |
|:---|:---|
| &nbsp;&nbsp;Subsidiary | &nbsp;&nbsp;State of Incorporation |
| &nbsp;&nbsp;100 W. Commercial Street, LLC | &nbsp;&nbsp;Missouri |
| &nbsp;&nbsp;Acadia Medical Supply, Inc. | &nbsp;&nbsp;Maine |
| &nbsp;&nbsp;Access Respiratory Home Care, L.L.C. | &nbsp;&nbsp;Louisiana |
| &nbsp;&nbsp;Advanced Medical DME, LLC | &nbsp;&nbsp;Kansas |
| &nbsp;&nbsp;<br>-<br>dba Focus Respiratory<br>|  |
| &nbsp;&nbsp;Alliance Homecare & Mobile Diagnostics, L.L.C. | &nbsp;&nbsp;Arizona |
| &nbsp;&nbsp;<br>-<br>dba Alliance Homecare<br>|  |
| &nbsp;&nbsp;At Home Health Equipment, LLC | &nbsp;&nbsp;Indiana |
| &nbsp;&nbsp;Black Bear Medical Group, Inc. | &nbsp;&nbsp;Maine |
| &nbsp;&nbsp;Black Bear Medical NH, Inc. | &nbsp;&nbsp;New Hampshire |
| &nbsp;&nbsp;Black Bear Medical, Inc. | &nbsp;&nbsp;Maine |
| &nbsp;&nbsp;Care Medical Atlanta, LLC | &nbsp;&nbsp;Georgia |
| &nbsp;&nbsp;Care Medical of Athens, Inc. | &nbsp;&nbsp;Georgia |
| &nbsp;&nbsp;Care Medical of Augusta, LLC | &nbsp;&nbsp;Georgia |
| &nbsp;&nbsp;Care Medical of Gainesville, LLC | &nbsp;&nbsp;Georgia |
| &nbsp;&nbsp;Care Medical Partners LLC | &nbsp;&nbsp;Georgia |
| &nbsp;&nbsp;Care Medical Savannah, LLC | &nbsp;&nbsp;Georgia |
| &nbsp;&nbsp;<br>-<br>dba Resource Medical Group of Charleston<br>|  |
| &nbsp;&nbsp;Central Oxygen, Inc. | &nbsp;&nbsp;Indiana |
| &nbsp;&nbsp;Coastal Med-Tech Corp. | &nbsp;&nbsp;Maine |
| &nbsp;&nbsp;Cooley Medical Equipment, Incorporated | &nbsp;&nbsp;Kentucky |
| &nbsp;&nbsp;Focus Respiratory, LLC | &nbsp;&nbsp;Arizona |
| &nbsp;&nbsp;Good Night Medical of Ohio, LLC | &nbsp;&nbsp;Ohio |
| &nbsp;&nbsp;<br>-<br>dba Good Night Medical<br>-<br>dba Resource Medical Group<br>|  |
| &nbsp;&nbsp;Good Night Medical of Texas, Inc | &nbsp;&nbsp;Texas |
| &nbsp;&nbsp;<br>-<br>dba Good Night Medical<br>|  |
| &nbsp;&nbsp;Good Night Medical, LLC | &nbsp;&nbsp;Ohio |
| &nbsp;&nbsp;Great Elm Healthcare, LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Health Technology Resources, LLC | &nbsp;&nbsp;Illinois |
| &nbsp;&nbsp;Heartland Health Therapy, LLC | &nbsp;&nbsp;Arizona |
| &nbsp;&nbsp;Heckman Healthcare Service & Supplies Inc. | &nbsp;&nbsp;Illinois |
| &nbsp;&nbsp;Hometown Medical LLC | &nbsp;&nbsp;Mississippi |
| &nbsp;&nbsp;IRB Medical Equipment, LLC | &nbsp;&nbsp;Michigan |
| &nbsp;&nbsp;<br>-<br>dba Hart Medical Equipment<br>|  |
| &nbsp;&nbsp;Legacy Oxygen and Home Care Equipment, LLC | &nbsp;&nbsp;Kentucky |
| &nbsp;&nbsp;Mayhugh Drugs, Inc. | &nbsp;&nbsp;Florida |
| &nbsp;&nbsp;<br>-<br>dba Mayhugh's Medical Equipment<br>|  |
| &nbsp;&nbsp;Med Supply Center, Inc. | &nbsp;&nbsp;Mississippi |
| &nbsp;&nbsp;Medical West Healthcare Center, LLC | &nbsp;&nbsp;Missouri |
| &nbsp;&nbsp;Mediserve Medical Equipment of Kingsport, Inc  | &nbsp;&nbsp;Tennessee |
| &nbsp;&nbsp;Metro-Med, Inc. | &nbsp;&nbsp;California |
| &nbsp;&nbsp;Metro-Med, Inc. - Los Alamitos | &nbsp;&nbsp;California |
| &nbsp;&nbsp;Metro-Med, Inc. - Ventura | &nbsp;&nbsp;California |
| &nbsp;&nbsp;NorCal Respiratory, Inc. | &nbsp;&nbsp;California |
| &nbsp;&nbsp;Northwest Medical, LLC | &nbsp;&nbsp;Oregon |

---

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---

| | |
|:---|:---|
| &nbsp;&nbsp;Oxygen Plus | &nbsp;&nbsp;California |
| &nbsp;&nbsp;Patient Home Monitoring, Inc. | &nbsp;&nbsp;Washington |
| &nbsp;&nbsp;Patient-Aids, Inc. | &nbsp;&nbsp;Kentucky |
| &nbsp;&nbsp;<br>-<br>dba Legacy Oxygen and Home Care Equipment<br>|  |
| &nbsp;&nbsp;PM Sleep Lab, LLC | &nbsp;&nbsp;Kansas |
| &nbsp;&nbsp;QHM Holdings Inc. | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;QHM Investments I, LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Quipt Home Medical Inc. | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Rejuvenight, LLC | &nbsp;&nbsp;Arizona |
| &nbsp;&nbsp;Resource Medical Group of Charleston, LLC | &nbsp;&nbsp;South Carolina |
| &nbsp;&nbsp;Resource Medical Group, LLC | &nbsp;&nbsp;South Carolina |
| &nbsp;&nbsp;Resource Medical, Inc. | &nbsp;&nbsp;South Carolina |
| &nbsp;&nbsp;Respicare, Inc. | &nbsp;&nbsp;California |
| &nbsp;&nbsp;Riverside Medical, Inc. | &nbsp;&nbsp;Tennessee |
| &nbsp;&nbsp;RTA Homecare, LLC | &nbsp;&nbsp;Arizona |
| &nbsp;&nbsp;<br>-<br>dba Valley Seating & Mobility<br>|  |
| &nbsp;&nbsp;Semo Drugs-Care Plus of Mo., Inc.  | &nbsp;&nbsp;Missouri |
| &nbsp;&nbsp;Sleep Health Diagnostics, LLC | &nbsp;&nbsp;Ohio |
| &nbsp;&nbsp;Sleepwell, LLC | &nbsp;&nbsp;Georgia |
| &nbsp;&nbsp;Southeastern Biomedical Services, LLC | &nbsp;&nbsp;Kentucky |
| &nbsp;&nbsp;Southern Pharmaceutical Corporation | &nbsp;&nbsp;Mississippi |
| &nbsp;&nbsp;Thrift Home Care, Inc. | &nbsp;&nbsp;Mississippi |
| &nbsp;&nbsp;Tuscan, Inc. | &nbsp;&nbsp;Ohio |
| &nbsp;&nbsp;United Respiratory Services, LLC | &nbsp;&nbsp;Arizona |
| &nbsp;&nbsp;<br>-<br>dba Valley Respiratory Services<br>|  |
| &nbsp;&nbsp;West Home Health Care, Inc.  | &nbsp;&nbsp;Virginia |

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## Ex-23

**Exhibit 23**

<u>Consent of Independent Registered Public Accounting Firm</u>

We hereby consent to the incorporation by reference in the Registration Statements on Form F-10 (No. 333-276253) and Form S-8 (File No. 333-278648) of Quipt Home Medical Corp. (the Company) of our report dated December 15, 2025, relating to the consolidated financial statements which appears in this Annual Report on Form 10-K.

/s/BDO USA, P.C.

Cincinnati, Ohio

December 15, 2025

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## Exhibit 31.1

**EXHIBIT 31.1**<br>

**Certification of Chief Executive Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Gregory Crawford, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Quipt Home Medical Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

------

December 15, 2025

---

| |
|:---|
| **/s/ GREGORY CRAWFORD**<br>|
| Gregory Crawford<br>|

---

Chief Executive Officer

(Principal Executive Officer)

------

## Exhibit 31.2

**EXHIBIT 31.2**<br>

**Certification of Chief Financial Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Hardik Mehta, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Quipt Home Medical Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

------

December 15, 2025

---

| |
|:---|
| **/s/ HARDIK MEHTA**<br>|
| Hardik Mehta<br>|
| Chief Financial Officer<br>|
| (Principal Financial Officer)<br>|

---

------

## Ex-32

**EXHIBIT 32**<br>

The following certifications are being furnished solely to accompany the Annual Report pursuant to 18 U.S.C. Section 1350 and in accordance with SEC Release No. 33-8238. These certifications shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be incorporated by reference in any filing made by Quipt Home Medical Corp. under the Securities Act of 1933, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

**CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Gregory Crawford, Chief Executive Officer of Quipt Home Medical Corp., a British Columbia corporation (the "Company"), hereby certify that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accompanying Annual Report on Form 10-K of the Company for the year ended September 30, 2025 (the "Annual Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

December 15, 2025

---

| |
|:---|
| **/s/ GREGORY CRAWFORD**<br>|
| Gregory Crawford<br>|
| Chief Executive Officer<br>|
| (Principal Executive Officer)<br>|

---

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Hardik Mehta, Chief Financial Officer of the Company, hereby certify that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accompanying Annual Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

December 15, 2025

---

| |
|:---|
| **/s/ HARDIK MEHTA**<br>|
| Hardik Mehta<br>|
| Chief Financial Officer<br>|
| (Principal Financial Officer)<br>|

---

A signed original of this written statement required by Section 906 has been provided to Quipt Home Medical Corp. and will be retained by Quipt Home Medical Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

------