# EDGAR Filing Document

**Accession Number:** 0001617765
**File Stem:** 0000000000-23-001638
**Filing Date:** 2023-2
**Character Count:** 10181
**Document Hash:** 46191b5ac942c80b0a38384aeb43c506
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-001638.hdr.sgml**: 20230412

**ACCESSION NUMBER**: 0000000000-23-001638

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230217

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Salona Global Medical Device Corp
- **CENTRAL INDEX KEY:** 0001617765
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 6160 INNOVATION WAY
- **CITY:** CARLSBAD
- **STATE:** CA
- **ZIP:** 92009
- **BUSINESS PHONE:** 800-760-6826

**MAIL ADDRESS:**
- **STREET 1:** 6160 INNOVATION WAY
- **CITY:** CARLSBAD
- **STATE:** CA
- **ZIP:** 92009

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INSPIRA FINANCIAL INC
- **DATE OF NAME CHANGE:** 20140825
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001062993-22-013882

## Text-Extract

```

United States securities and exchange commission logo

                              February 17, 2023

       Dennis Nelson
       Chief Financial Officer
       Salona Global Medical Device Corporation
       6160 Innovation Way
       Carlsbad, California 92009

                                                        Re: Salona Global
Medical Device Corporation
                                                            Form 10-K for the
Fiscal Year Ended February 28, 2022
                                                            Filed May 31, 2022
                                                            Form 10-Q for the
Quarterly Period Ended November 30, 2022
                                                            Filed January 17,
2023
                                                            File No. 333-255642

       Dear Dennis Nelson:

              We have limited our review of your filing to the financial
statements and related
       disclosures and have the following comments. In some of our comments, we
may ask you to
       provide us with information so we may better understand your disclosure.

              Please respond to these comments within ten business days by
providing the requested
       information or advise us as soon as possible when you will respond. If
you do not believe our
       comments apply to your facts and circumstances, please tell us why in
your response.

                                                        After reviewing your
response to these comments, we may have additional comments.

       Form 10-K for the Fiscal Year Ended February 28, 2022

       Management's Discussion and Analysis and Results of Operations
       Non-GAAP Measures, page 30

   1.                                                   The table on page 30
appears to give more prominence to the non-GAAP Adjusted
                                                        EBITDA measure over the
GAAP net loss since you only include the non-GAAP
                                                        measure. Please revise
future filings to include your GAAP net loss in that table or revise
                                                        to remove Adjusted
EBITDA. Refer to Item 10(e)(1)(i) of Regulation S-K and Question
                                                        102.10 of the Non-GAAP
Financial Measures Compliance and Disclosure
                                                        Interpretations Updated
December 13, 2022.
   2.                                                   We note that you have
excluded transaction costs including legal, financial, audit and US
                                                        & Canadian regulatory
expenses in Adjusted EBITDA. Please quantify the amounts
 Dennis Nelson
FirstName LastNameDennis
Salona Global Medical DeviceNelson
                             Corporation
Comapany17,
February  NameSalona
            2023       Global Medical Device Corporation
February
Page 2 17, 2023 Page 2
FirstName LastName
         included in these transaction costs and explain to us how the
exclusion of these costs is
         consistent with the guidance in Question 100.01 of the Non-GAAP
Financial Measures
         Compliance and Disclosure Interpretations Updated December 13, 2022.
Financial Statements
Consolidated Statement of Operations and Comprehensive Loss, page F-3

3.       Please explain to us how the presentation of net (loss) income before
the undernoted and
         amortization of intangible assets, depreciation of property and
equipment, amortization of
         right-of-use assets, transaction costs and regulatory expenses, and
provision for
         impairment included below operating expenses is consistent with the
guidance in Article
         8 of Regulation S-X and SAB Topic 11B, which indicates that
depreciation and
         amortization should not be positioned in the income statement in a
manner which results
         in reporting a figure for income before depreciation. In addition,
this presentation appears
         to result in a non-GAAP measure that is based on individually tailored
accounting
         principles as it does not contemplate all operating expenses. Refer to
the
         requirements guidance in Question 100.04 of the Non-GAAP Financial
Measures
         Compliance and Disclosure Interpretations Updated December 13, 2022.
Note 4. Acquisitions
Assets Acquired from ALG-Health, LLC, page F-18

4.       We see from your disclosure that you completed an asset acquisition of
certain assets from
         ALG for up to a maximum of 21 million nonvoting Class A shares of the
company subject
         to the achievement of certain revenue and EBITDA targets. Further, we
see that ALG has
         yet to earn the right to exchange any of its non-voting shares in ALG
Health Plus for
         nonvoting Class A shares of the company and as a result, no purchase
price has been
         allocated to these assets. Provide us with your calculation of the
purchase price for the
         ALG assets and tell us how you recorded the acquisition of these
assets at closing.
Simbex LLC Purchase Price, page F-18

5.       We see that the total purchase price for Simbex was approx. $12.5
million. Please
         provide us with your consideration of the requirements of Rule 3-05 of
Regulation S-X for
         the acquisition, including your calculation of the significance tests
as set forth under Rule
         1-02(w).
6.       In this regard, we note your disclosure that Simbex generated over
$8,000,000 in audited
         revenues in 2020 with reported gross margins of 50% and was cash flow
positive. We
         noted similar unaudited information related to the Mio-Guard
acquisition as well. Please
         tell us why you believe that disclosure of unaudited information is
appropriate or remove
         it in future filings.
 Dennis Nelson
FirstName LastNameDennis
Salona Global Medical DeviceNelson
                             Corporation
Comapany17,
February  NameSalona
            2023       Global Medical Device Corporation
February
Page 3 17, 2023 Page 3
FirstName LastName
Form 10-Q for the Quarterly Period Ended November 30, 2022

Note 4. Acquisitions
Mio-Guard LLC, page 20

7.       We see your disclosure that the acquisition of Mio-Guard was comprised
of $589,340 of
         cash and Salona stock at closing, and on future periods on an earnout
basis, however the
         tabular calculation of the purchase price that follows does not appear
to include the cash
         payment. Please advise.
8.       Please provide us with your consideration of the requirements of Rule
3-05 of Regulation
         S-X for the DaMar acquisition, including your calculation of the
significance tests as set
         forth under Rule 1-02(w).
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations, page 37

9.       Please revise future filings to provide a more comprehensive and
quantified discussion
         and analysis of your results of operations, including the factors that
impacted your results
         between comparative periods. You should also discuss how much of the
increase in
         revenues was from acquisitions or changes in volume, selling prices or
product mix. Refer
         to the requirements of Item 303(b)(2) of Regulation S-K.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures, page 40

10.      We note that Disclosure Controls and Procedures and Internal Control
over Financial
         Reporting were effective in your February 28, 2022 Form 10-K. However,
you indicate in
         this filing that you concluded as of November 30, 2022, the Company
s disclosure
         controls and procedures were not effective. We also note your
disclosure that there have
         not been any changes to internal control over financial reporting.
Please explain to us
         why you concluded that controls and procedures were not effective as
of November 30,
         2022, including providing details of any material weaknesses that were
identified in your
         assessment.
       In closing, we remind you that the company and its management are
responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review,
comments, action or
absence of action by the staff.
 Dennis Nelson
Salona Global Medical Device Corporation
February 17, 2023
Page 4

        You may contact Julie Sherman at (202) 551-3640 or Brian Cascio,
Accounting Branch
Chief, at (202) 551-3676 with any questions.

                                                         Sincerely,
FirstName LastNameDennis Nelson
                                                     Division of Corporation
Finance
Comapany NameSalona Global Medical Device Corporation
                                                     Office of Industrial
Applications and
February 17, 2023 Page 4                             Services
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

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