RE:RE:RE:RE:RE:RE:RE:Bad news/ Good newsThe co. never use to disclose the amount of SG&A that was phantom expense but started several qtrs ago. I think the analysts are hounding mgmt to be more transparent.
Torontojay wrote: Another thing to think about. What happens to sga and fair value liability are related but still different. You can amortize a phantom share expense even prior to shares being fully vested. For example if shares vest over the next 12 months I am still able to recognize an sga expense from the amortization schedule even though nothing has been paid out. In this case we have an increase in sga expense and an increase in contract liabilities by approximately the same amount. This will show up as an increase in non cash working capital in the first year. The following year, the contract liabilities gets reduced when you physically have to pay out the shares that have vested but you do not report this as an expense on the income statement. This will reduce your cash flow which could be shown on your "changes to non cash working capital."
The fair liability value on mar 31,2021 for Viemed is $7,808,000. If the remaining shares vest over the next 2 years and no more shares are issued then we know the company must pay out $3,904,000 per year or $976,000 per quarter on average if the share price remains the same as at Mar 31,2021. This will hold true if we assume the share price will remain constant up until Mar 31, 2023. In reality, the share price will increase and fluctuate over the duration of the vesting period and so we can expect a higher expense at the end of the term.