This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20210816005739\/en\/<\/a><\/p>\n \n\u201cVIQ Solutions reached a significant milestone and began trading on the Nasdaq Stock Exchange on the Nasdaq Capital Market (\u201cthe Nasdaq\u201d) last Thursday. This milestone cements our commitment to change the way evidentiary documentation is captured, transformed, analyzed, and distributed. While we were disappointed to terminate our IPO due to market conditions, we are very excited about our recent listing on the Nasdaq. We expect this move will lead to increased liquidity for our shareholders with the trading of our shares occurring on both the Nasdaq and the TSX markets,\u201d said Sebastien Par\u00e9, VIQ Chief Executive Officer.\n<\/p>\n \n\u201cEarlier this month, we provided a look into our operational results. At that time, we felt it was prudent to align expectations with lockdowns in Australia and the UK, which delayed some revenue. Despite the impact on our revenue, we decided to protect our workforce in preparation for work with existing accounts, as well as new contracts expected to begin when we emerge from these region-specific lockdowns. These shutdowns also temporarily impacted our gross margin as we incurred expenses without revenue. The level of subsidies to offset this impact was significantly reduced this year versus the prior year with approximately $2.5 million less in Covid-19 wage subsidies,\u201d said Susan Sumner, VIQ President and Chief Operating Officer.\n<\/p>\n Second Quarter 2021 Financial Highlights:<\/b><\/p>\n Expenses Related to Corporate Actions Impacting 2021<\/b><\/p>\n \nMr. Par\u00e9 continued, \u201cWe completed a significant amount of due diligence on potential acquisitions over the past several months, and we believe that the stage is set for us to continue executing on our M&A roll-up strategy.\u201d\n<\/p>\n \nVIQ plans to complete several corporate milestones related to the acceleration of its innovation and global expansion initiatives in 2021. The one-time expenses associated with these corporate milestones are and will be included in the Company\u2019s financial results.\n<\/p>\n \nThe Company invested significantly in a variety of corporate actions during the first half of 2021 aimed at executing key growth milestones. Investments include upfront expenses in cost of sale and employee retention related to staffing for backlog and expanded contract in Australia, banking, legal and advisory fees related to the Company\u2019s Nasdaq listing, and due diligence for planned acquisitions. These one-time fees are estimated to be approximately $0.2 million in the first quarter and $0.6 million in the second quarter and additional amounts are expected in the second half of 2021. These expenses, while considered \u201cone-time\u201d in nature, will not be added back as part of the Company\u2019s adjusted EBITDA calculation.\n<\/p>\n \n\u201cWe continue to focus on improving the quality of our revenue as we grow our SaaS strategy and AI innovation at a faster pace. FirstDraft, powered by aiAssist\u2122, creates machine-based documentation with breakthrough accuracy and has proven to improve gross margin by approximately 80% when compared to traditional services. We are improving our productivity and scalability, which should drive significant margin expansion in the future,\u201d said Alexie Edwards, Chief Financial Officer of VIQ.\n<\/p>\n First Half of 2021 Financial Highlights:<\/b><\/p>\n \n\u201cOur $12 million cash balance at quarter end, provides the liquidity to begin acquiring more accretive companies with a tremendous amount of rich domain specific content to help us improve our offerings and expand our client base globally while maintaining a substantial pipeline of potential acquisitions to consider,\u201d Mr. Edwards continued.\n<\/p>\n Long-term Global Growth Strategy for VIQ as the Branded Industry Leader \u2013 Secure, Accurate, Fast <\/b><\/p>\n \nVIQ remains on track to grow organically this year and next year at double-digit rates despite the impacts of Covid-19, which continue to affect some of the Company\u2019s industry verticals and regions, particularly in Australian courts.\n<\/p>\n \nVIQ\u2019s scalable technology utilizes sophisticated technology and artificial intelligence (AI) designed to securely ingest significant amounts of evidentiary content to produce accurate, verbatim, diarized documents for mission critical events that have lasting financial and social impact.\n<\/p>\n \nAI-powered workflow processed over 20 million minutes of recorded, multi-speaker, multi-channel audio and video in 2020 and transcribed 40 million pages of secure, industry specific evidence documentation creating actionable information for use by their more than 1,800 clients worldwide.\n<\/p>\n \n\u201cWe generated consistent growth in multi-speaker, highly regulated, evidentiary voice and video data in our core verticals across the globe,\u201d said Susan Sumner. \u201cThe U.S. total addressable market in the industries we serve is estimated to be over $10 billion with an annual CAGR of 6.1%. This highlights the increased need for technology and innovative capabilities to manage the vast amount of data collected. Our proprietary workflow solution, powered by AI, will drive transformation in the marketplace while driving margin expansion.\u201d\n<\/p>\n \n\u201cWe are regarded as the leader in our core verticals, providing advanced technology solutions solving compliance and workflow challenges for our global client base. With the addition of FirstDraft, powered by aiAssist\u2122, we will expand the overall opportunity to digitize an entire library of client content versus only the critical files that are professionally edited for final consumption today. Product innovation remains central to our core strategy and initiatives to drive revenue and increase gross margin,\u201d Ms. Sumner continued.\n<\/p>\n \nThe Company expects to migrate clients to bundled SaaS hybrid pricing models during the fourth quarter of 2021 and during 2022. These pricing models are expected to drive stronger, long-term client relationships with predictable recurring revenue and higher margins.\n<\/p>\n Q3 Outlook:<\/b><\/p>\n \nVIQ reiterates from its July 30, 2021 news release that it anticipates revenue in the third quarter to be in the range of $8.2 to $8.5 million. Gross margins are expected to be in the range of 46.0% to 47.0%. Gross margin estimates do not include any potential positive impact related to wage subsidies.\n<\/p>\n \nThe Company continues to execute its planned commitment to scale its technology editing infrastructure, M&A, and sales globally to meet new demands and opportunities for its products and services.\n<\/p>\n Conference Call Details<\/b><\/p>\n \nVIQ will host a conference call to discuss its second quarter 2021 results on Tuesday, August 17 at 11:00 AM Eastern Time. The call will consist of a brief update by Sebastien Par\u00e9, VIQ\u2019s CEO, Alexie Edwards, VIQ’s CFO, and Susan Sumner, VIQ’s President and COO, followed by a question-and-answer period.\n<\/p>\n \nInvestors may access a live webcast of the call on the Company\u2019s website at www.viqsolutions.com\/investors<\/a> or by dialing 1-833-378-1030 (North America toll-free) or +1-236-712-2544 (international) to be connected to the call by an operator using conference ID number 3387846. Participants should dial in at least 10 minutes prior to the start of the call. A replay of the webcast will be available on the Company\u2019s website through the same link approximately one hour after the conference call concludes.\n<\/p>\n \nFor more information about VIQ, please visit viqsolutions.com<\/a>.\n<\/p>\n About VIQ Solutions Inc.<\/b><\/p>\n \nVIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.\n<\/p>\n Forward-looking Statements <\/b><\/p>\n \nCertain statements included in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future, which are considered reasonable by management. Readers are cautioned that reliance on such information may not be appropriate for other purposes.\n<\/p>\n \nForward-looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information in this news release include, but are not limited to, the impact of the Nasdaq listing on shareholder liquidity, the Company continuing to execute its M&A roll-up strategy, the timing of revenue from the Company\u2019s contract backlog, the Company\u2019s plans to complete several of its corporate milestones related to the acceleration of its innovation, global expansion, and public market related initiatives in 2021, the estimated fees associated with the Company\u2019s corporate actions during the first half of 2021, the Company improving the quality of its revenue as it grows its SaaS strategy and AI innovation, the Company improving its productivity and scalability and the anticipated effect of driving significant margin expansion in the future, the Company growing organically this year and next year at double-digit rates, the estimated size of the U.S. total addressable market in the industries the Company serves, the Company\u2019s proprietary workflow solution, powered by AI, driving transformation in the marketplace while driving margin expansion, the Company expanding the overall opportunity to digitize its client\u2019s entire library of content, the Company migrating its clients to bundled SaaS hybrid pricing models during the fourth quarter of 2021 and during 2022 and the anticipated effect of these pricing models, the Company executing on its planned commitment to scale its technology editing infrastructure and sales globally to meet new demands and to address new opportunities for its products and services, the Company\u2019s expected one-time strategic initiative costs and the Company\u2019s ability to begin acquiring bigger, more accretive companies with tremendous amount of rich domain specific content that help us improve our offerings and expand our client base globally while maintaining a substantial pipeline of potential acquisitions to consider.\n<\/p>\n \nIn this news release, forward-looking information that constitutes \u201cfinancial outlooks\u201d within the meaning of applicable Canadian securities laws, consists of VIQ\u2019s expectations regarding its future performance, as disclosed under the heading \u201cQ3 Outlook\u201d, including expectations with respect to revenue and gross margin. These estimates are preliminary and are inherently uncertain due to a number of factors, and remain subject to VIQ management and its audit committee reviews and the completion of regular financial closing and review procedures and audit procedures for the period ended September 30, 2021. Additional adjustments to the preliminary estimates presented above may be identified, and final results for the relevant fiscal periods may differ materially from these preliminary estimates and will not be finalized until after the Company completes its normal year-end accounting procedures, including execution of internal controls over financial reporting. These preliminary estimates are intended to provide information about management\u2019s current expectations regarding certain aspects of VIQ\u2019s financial performance. Reliance on the information presented herein may not be appropriate for other purposes.\n<\/p>\n \nThese forward-looking statements or information are based on several factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things; the Company\u2019s ability to execute its business plan as currently contemplated; the Company\u2019s ability to migrate its customers to the bundled SaaS hybrid pricing models in accordance with projected timelines; the Company\u2019s ability to maintain its existing customer contracts in good standing; the Company\u2019s ability to identify and acquire suitable acquisition targets; the accuracy of the Company\u2019s financial projections; the Company\u2019s ability to continue to grow its customer base in accordance with current projections; and the Company\u2019s ability to execute its productivity and scalability strategy. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.\n<\/p>\n \nForward-looking statements or information is based on current expectations, estimates and projections that involve several risks and uncertainties which could cause actual results to differ materially from those anticipated by VIQ, including but not limited to; the risk that the Company will be unable to successfully execute its business plan; the risk that Company will be unable to successfully migrate its customers to its bundled SaaS hybrid pricing models as anticipated or at all; the risk that certain of the Company\u2019s customer contracts will be terminated; the risk that the Company\u2019s projections are not accurate; the risk that the Company will be unable to identify or acquire suitable acquisition targets; the risk that the Company will be unable to integrate future acquisitions into its existing operations and the risks and uncertainties described under the heading \u201cRisk Factors\u201d in VIQ\u2019s Annual Information Form for the year ended December 31, 2020, filed with the Canadian securities regulatory authorities under VIQ\u2019s SEDAR profile at www.sedar.com<\/a>.\n<\/p>\n \nThese risks and uncertainties may cause actual results to differ materially from the forward-looking statements or information. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. The forward-looking statements contained in this release are made as of the date of this release and, except as required by applicable law, VIQ undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.\n<\/p>\n \nVIQ Solutions Inc. \n\u00a0\n<\/p>\n<\/td>\n June 30, 2021<\/b><\/p>\n<\/td>\n December 31, 2020<\/b><\/p>\n<\/td>\n<\/tr>\n Assets<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nCurrent assets\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nCash\n<\/p>\n<\/td>\n \n$ 12,374,826\n<\/p>\n<\/td>\n \n$ 16,835,671\n<\/p>\n<\/td>\n<\/tr>\n \nTrade and other receivables, net of allowance for doubtful accounts (note 5, 6)\n<\/p>\n<\/td>\n \n5,733,043\n<\/p>\n<\/td>\n \n4,475,751\n<\/p>\n<\/td>\n<\/tr>\n \nInventories\n<\/p>\n<\/td>\n \n76,248\n<\/p>\n<\/td>\n \n49,381\n<\/p>\n<\/td>\n<\/tr>\n \nPrepaid expenses and deposits\n<\/p>\n<\/td>\n \n621,021\n<\/p>\n<\/td>\n \n254,230\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n18,805,138\n<\/p>\n<\/td>\n \n21,615,033\n<\/p>\n<\/td>\n<\/tr>\n \nNon-current assets\n<\/p>\n<\/td>\n \nRestricted cash\n<\/p>\n<\/td>\n \n92,428\n<\/p>\n<\/td>\n \n42,835\n<\/p>\n<\/td>\n<\/tr>\n \nProperty and equipment\n<\/p>\n<\/td>\n \n199,536\n<\/p>\n<\/td>\n \n215,835\n<\/p>\n<\/td>\n<\/tr>\n \nRight of use assets\n<\/p>\n<\/td>\n \n229,557\n<\/p>\n<\/td>\n \n309,566\n<\/p>\n<\/td>\n<\/tr>\n \nIntangible assets (note 7)\n<\/p>\n<\/td>\n \n11,018,562\n<\/p>\n<\/td>\n \n12,118,352\n<\/p>\n<\/td>\n<\/tr>\n \nGoodwill (note 7)\n<\/p>\n<\/td>\n \n6,963,118\n<\/p>\n<\/td>\n \n6,976,096\n<\/p>\n<\/td>\n<\/tr>\n \nDeferred tax assets\n<\/p>\n<\/td>\n \n389,481\n<\/p>\n<\/td>\n \n1,441,942\n<\/p>\n<\/td>\n<\/tr>\n \nTotal assets\n<\/p>\n<\/td>\n \n$ 37,697,820\n<\/p>\n<\/td>\n \n$ 42,719,659\n<\/p>\n<\/td>\n<\/tr>\n Liabilities<\/b><\/p>\n<\/td>\n \nCurrent liabilities\n<\/p>\n<\/td>\n \nTrade and other payables and accrued liabilities\n<\/p>\n<\/td>\n \n$ 4,737,942\n<\/p>\n<\/td>\n \n$ 5,305,600\n<\/p>\n<\/td>\n<\/tr>\n \nIncome tax payable\n<\/p>\n<\/td>\n \n190,284\n<\/p>\n<\/td>\n \n201,592\n<\/p>\n<\/td>\n<\/tr>\n \nShare appreciation rights plan obligations (note 9)\n<\/p>\n<\/td>\n \n37,416\n<\/p>\n<\/td>\n \n126,503\n<\/p>\n<\/td>\n<\/tr>\n \nShare based payment liability (note 9)\n<\/p>\n<\/td>\n \n177,316\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n<\/tr>\n \nCurrent portion of long-term debt (note 8)\n<\/p>\n<\/td>\n \n1,260,251\n<\/p>\n<\/td>\n \n1,486,136\n<\/p>\n<\/td>\n<\/tr>\n \nCurrent portion of lease obligations (note 17)\n<\/p>\n<\/td>\n \n50,479\n<\/p>\n<\/td>\n \n113,218\n<\/p>\n<\/td>\n<\/tr>\n \nCurrent portion of contract liabilities\n<\/p>\n<\/td>\n \n1,007,300\n<\/p>\n<\/td>\n \n1,252,957\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n7,460,988\n<\/p>\n<\/td>\n \n8,486,006\n<\/p>\n<\/td>\n<\/tr>\n \nNon-current liabilities\n<\/p>\n<\/td>\n \nDeferred tax liability\n<\/p>\n<\/td>\n \n59,778\n<\/p>\n<\/td>\n \n60,587\n<\/p>\n<\/td>\n<\/tr>\n \nLong-term debt (note 8)\n<\/p>\n<\/td>\n \n12,347,567\n<\/p>\n<\/td>\n \n12,138,799\n<\/p>\n<\/td>\n<\/tr>\n \nLong-term contingent consideration (note 4)\n<\/p>\n<\/td>\n \n1,111,940\n<\/p>\n<\/td>\n \n1,575,528\n<\/p>\n<\/td>\n<\/tr>\n \nLong-term lease obligations (note 17)\n<\/p>\n<\/td>\n \n217,021\n<\/p>\n<\/td>\n \n240,981\n<\/p>\n<\/td>\n<\/tr>\n \nLong-term contract liabilities\n<\/p>\n<\/td>\n \n3,139\n<\/p>\n<\/td>\n \n70,834\n<\/p>\n<\/td>\n<\/tr>\n \nOther long-term liabilities\n<\/p>\n<\/td>\n \n384,851\n<\/p>\n<\/td>\n \n360,525\n<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities\n<\/p>\n<\/td>\n \n21,585,284\n<\/p>\n<\/td>\n \n22,933,260\n<\/p>\n<\/td>\n<\/tr>\n Shareholders’ Equity<\/b><\/p>\n<\/td>\n \nCapital stock (note 9)\n<\/p>\n<\/td>\n \n58,630,831\n<\/p>\n<\/td>\n \n50,234,551\n<\/p>\n<\/td>\n<\/tr>\n \nContributed surplus\n<\/p>\n<\/td>\n \n4,800,219\n<\/p>\n<\/td>\n \n4,970,945\n<\/p>\n<\/td>\n<\/tr>\n \nAccumulated other comprehensive income (loss)\n<\/p>\n<\/td>\n \n187,128\n<\/p>\n<\/td>\n \n(78,906)\n<\/p>\n<\/td>\n<\/tr>\n \nDeficit\n<\/p>\n<\/td>\n \n(47,505,642)\n<\/p>\n<\/td>\n \n(35,340,191)\n<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities and shareholders’ equity\n<\/p>\n<\/td>\n \n$ 37,697,820\n<\/p>\n<\/td>\n \n$ 42,719,659\n<\/p>\n<\/td>\n<\/tr>\n \nVIQ Solutions Inc. \n\u00a0\n<\/p>\n<\/td>\n Three Months ended June 30,<\/b><\/p>\n<\/td>\n Six Months ended June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n 2021<\/b><\/p>\n<\/td>\n 2020<\/b><\/p>\n<\/td>\n 2021<\/b><\/p>\n<\/td>\n 2020<\/b><\/p>\n<\/td>\n<\/tr>\n Revenue <\/b>(note 14)\n<\/p>\n<\/td>\n \n$ 8,191,812\n<\/p>\n<\/td>\n \n$ 8,253,015\n<\/p>\n<\/td>\n \n$ 16,446,034\n<\/p>\n<\/td>\n \n$ 15,801,219\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nCost of Sales\n<\/p>\n<\/td>\n \n4,210,733\n<\/p>\n<\/td>\n \n3,202,737\n<\/p>\n<\/td>\n \n8,447,120\n<\/p>\n<\/td>\n \n7,521,049\n<\/p>\n<\/td>\n<\/tr>\n \nGross Profit\n<\/p>\n<\/td>\n \n3,981,079\n<\/p>\n<\/td>\n \n5,050,278\n<\/p>\n<\/td>\n \n7,998,914\n<\/p>\n<\/td>\n \n8,280,170\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nExpenses (note 15)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nSelling and administrative expenses\n<\/p>\n<\/td>\n \n3,953,046\n<\/p>\n<\/td>\n \n3,090,612\n<\/p>\n<\/td>\n \n7,492,156\n<\/p>\n<\/td>\n \n5,467,766\n<\/p>\n<\/td>\n<\/tr>\n \nResearch and development expenses\n<\/p>\n<\/td>\n \n260,010\n<\/p>\n<\/td>\n \n209,537\n<\/p>\n<\/td>\n \n499,673\n<\/p>\n<\/td>\n \n461,858\n<\/p>\n<\/td>\n<\/tr>\n \nStock based compensation (note 10)\n<\/p>\n<\/td>\n \n6,687,792\n<\/p>\n<\/td>\n \n483,253\n<\/p>\n<\/td>\n \n6,773,787\n<\/p>\n<\/td>\n \n530,978\n<\/p>\n<\/td>\n<\/tr>\n \nForeign exchange (gain) loss (note 18)\n<\/p>\n<\/td>\n \n153,400\n<\/p>\n<\/td>\n \n(54,651)\n<\/p>\n<\/td>\n \n368,725\n<\/p>\n<\/td>\n \n(306,900)\n<\/p>\n<\/td>\n<\/tr>\n \nDepreciation\n<\/p>\n<\/td>\n \n70,101\n<\/p>\n<\/td>\n \n95,219\n<\/p>\n<\/td>\n \n143,656\n<\/p>\n<\/td>\n \n203,073\n<\/p>\n<\/td>\n<\/tr>\n \nAmortization\n<\/p>\n<\/td>\n \n1,118,014\n<\/p>\n<\/td>\n \n1,083,910\n<\/p>\n<\/td>\n \n2,292,822\n<\/p>\n<\/td>\n \n2,074,607\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n12,242,363\n<\/p>\n<\/td>\n \n4,907,880\n<\/p>\n<\/td>\n \n17,570,819\n<\/p>\n<\/td>\n \n8,431,382\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nIncome (loss) before undernoted items\n<\/p>\n<\/td>\n \n(8,261,284)\n<\/p>\n<\/td>\n \n142,398\n<\/p>\n<\/td>\n \n(9,571,905)\n<\/p>\n<\/td>\n \n(151,212)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nInterest expense\n<\/p>\n<\/td>\n \n(335,594)\n<\/p>\n<\/td>\n \n(375,018)\n<\/p>\n<\/td>\n \n(667,013)\n<\/p>\n<\/td>\n \n(4,070,970)\n<\/p>\n<\/td>\n<\/tr>\n \nAccretion and other financing costs (note 8)\n<\/p>\n<\/td>\n \n(254,712)\n<\/p>\n<\/td>\n \n(334,013)\n<\/p>\n<\/td>\n \n(519,661)\n<\/p>\n<\/td>\n \n(564,561)\n<\/p>\n<\/td>\n<\/tr>\n \nLoss on revaluation of conversion feature liability (note 8)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n(72,791)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n(1,191,552)\n<\/p>\n<\/td>\n<\/tr>\n \nLoss on repayment of long-term debt (note 8)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n(1,290,147)\n<\/p>\n<\/td>\n<\/tr>\n \nLoss on contingent consideration (note 4)\n<\/p>\n<\/td>\n \n(109,269)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n(13,275)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n<\/tr>\n \nRestructuring costs\n<\/p>\n<\/td>\n \n(238,037)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n(360,253)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n<\/tr>\n \nOther income (expense)\n<\/p>\n<\/td>\n \n4,841\n<\/p>\n<\/td>\n \n(99)\n<\/p>\n<\/td>\n \n8,294\n<\/p>\n<\/td>\n \n105\n<\/p>\n<\/td>\n<\/tr>\n \n(9,194,055)\n<\/p>\n<\/td>\n \n(639,523)\n<\/p>\n<\/td>\n \n(11,123,813)\n<\/p>\n<\/td>\n \n(7,268,337)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nCurrent income tax expense\n<\/p>\n<\/td>\n \n(43,348)\n<\/p>\n<\/td>\n \n(390,831)\n<\/p>\n<\/td>\n \n(1,358)\n<\/p>\n<\/td>\n \n(444,275)\n<\/p>\n<\/td>\n<\/tr>\n \nDeferred income tax expense\n<\/p>\n<\/td>\n \n(1,261,259)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n \n(1,040,280)\n<\/p>\n<\/td>\n \n\u2013\n<\/p>\n<\/td>\n<\/tr>\n \nIncome tax expense\n<\/p>\n<\/td>\n \n(1,304,607)\n<\/p>\n<\/td>\n \n(390,831)\n<\/p>\n<\/td>\n \n(1,041,638)\n<\/p>\n<\/td>\n \n(444,275)\n<\/p>\n<\/td>\n<\/tr>\n Net loss for the period<\/b><\/p>\n<\/td>\n \n$ (10,498,662)\n<\/p>\n<\/td>\n \n$ (1,030,354)\n<\/p>\n<\/td>\n \n$ (12,165,451)\n<\/p>\n<\/td>\n \n$ (7,712,612)\n<\/p>\n<\/td>\n<\/tr>\n \nExchange gain (loss) on translating foreign operations\n<\/p>\n<\/td>\n \n101,642\n<\/p>\n<\/td>\n \n(166,265)\n<\/p>\n<\/td>\n \n266,034\n<\/p>\n<\/td>\n \n(150,326)\n<\/p>\n<\/td>\n<\/tr>\n Comprehensive loss for the period<\/b><\/p>\n<\/td>\n \n$ (10,397,020)\n<\/p>\n<\/td>\n \n$ (1,196,619)\n<\/p>\n<\/td>\n \n$ (11,899,417)\n<\/p>\n<\/td>\n \n$ (7,862,938)\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Net loss per share <\/b>(note 11)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \nBasic\n<\/p>\n<\/td>\n \n(0.42)\n<\/p>\n<\/td>\n \n(0.06)\n<\/p>\n<\/td>\n \n(0.49)\n<\/p>\n<\/td>\n \n(0.46)\n<\/p>\n<\/td>\n<\/tr>\n \nDiluted\n<\/p>\n<\/td>\n \n(0.42)\n<\/p>\n<\/td>\n \n(0.06)\n<\/p>\n<\/td>\n \n(0.49)\n<\/p>\n<\/td>\n \n(0.46)\n<\/p>\n<\/td>\n<\/tr>\n \nWeighted average number of common shares outstanding – basic (note 11)\n<\/p>\n<\/td>\n \n25,029,019\n<\/p>\n<\/td>\n \n18,364,354\n<\/p>\n<\/td>\n \n24,749,637\n<\/p>\n<\/td>\n \n16,728,647\n<\/p>\n<\/td>\n<\/tr>\n \nWeighted average number of common shares outstanding – diluted (note 11)\n<\/p>\n<\/td>\n \n25,029,019\n<\/p>\n<\/td>\n \n18,364,354\n<\/p>\n<\/td>\n \n24,749,637\n<\/p>\n<\/td>\n \n16,728,647\n<\/p>\n<\/td>\n<\/tr>\n Reconciliation of Non-IFRS Measures<\/b><\/p>\n \nThe following is a reconciliation of Net Loss to Adjusted EBITDA, the most directly comparable IFRS measure for the periods ended June 30, 2021 and 2020:\n<\/p>\n Unaudited<\/b><\/p>\n Three months ended June 30<\/b><\/p>\n<\/td>\n Six months ended June 30<\/b><\/p>\n<\/td>\n<\/tr>\n 2021<\/b><\/p>\n<\/td>\n 2020<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2021<\/b><\/p>\n<\/td>\n 2020<\/b><\/p>\n<\/td>\n<\/tr>\n Net Loss<\/b><\/p>\n<\/td>\n (10,498,662)<\/b><\/p>\n<\/td>\n (1,030,354)<\/b><\/p>\n<\/td>\n (12,165,451)<\/b><\/p>\n<\/td>\n (7,712,612)<\/b><\/p>\n<\/td>\n<\/tr>\n \nAdd:\n<\/p>\n<\/td>\n \nDepreciation\n<\/p>\n<\/td>\n \n70,101\n<\/p>\n<\/td>\n \n95,219\n<\/p>\n<\/td>\n \n143,656\n<\/p>\n<\/td>\n \n203,073\n<\/p>\n<\/td>\n<\/tr>\n \nAmortization\n<\/p>\n<\/td>\n \n1,118,014\n<\/p>\n<\/td>\n \n1,083,910\n<\/p>\n<\/td>\n \n2,292,822\n<\/p>\n<\/td>\n \n2,074,607\n<\/p>\n<\/td>\n<\/tr>\n \nInterest expense\n<\/p>\n<\/td>\n \n335,594\n<\/p>\n<\/td>\n \n375,018\n<\/p>\n<\/td>\n \n667,013\n<\/p>\n<\/td>\n \n4,070,970\n<\/p>\n<\/td>\n<\/tr>\n \nCurrent income tax expense\n<\/p>\n<\/td>\n \n43,348\n<\/p>\n<\/td>\n \n390,831\n<\/p>\n<\/td>\n \n1,358\n<\/p>\n<\/td>\n \n444,275\n<\/p>\n<\/td>\n<\/tr>\n \nDeferred income tax expense\n<\/p>\n<\/td>\n \n1,261,259\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n1,040,280\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n<\/tr>\n EBITDA<\/b><\/p>\n<\/td>\n (7,670,346)<\/b><\/p>\n<\/td>\n 914,624<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (8,020,322)<\/b><\/p>\n<\/td>\n (919,687)<\/b><\/p>\n<\/td>\n<\/tr>\n \nAccretion and other financing expense\n<\/p>\n<\/td>\n \n254,712\n<\/p>\n<\/td>\n \n334,013\n<\/p>\n<\/td>\n \n519,661\n<\/p>\n<\/td>\n \n564,561\n<\/p>\n<\/td>\n<\/tr>\n \nLoss on revaluation of conversion feature liability\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n72,791\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n1,191,552\n<\/p>\n<\/td>\n<\/tr>\n \nLoss on repayment of long-term debt\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n1,290,147\n<\/p>\n<\/td>\n<\/tr>\n \nRestructuring Costs\n<\/p>\n<\/td>\n \n238,037\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n360,253\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n<\/tr>\n \nOther expense (income)\n<\/p>\n<\/td>\n \n(4,841)\n<\/p>\n<\/td>\n \n99\n<\/p>\n<\/td>\n \n(8,294)\n<\/p>\n<\/td>\n \n(105)\n<\/p>\n<\/td>\n<\/tr>\n \nStock-based compensation\n<\/p>\n<\/td>\n \n6,687,792\n<\/p>\n<\/td>\n \n483,253\n<\/p>\n<\/td>\n \n6,773,787\n<\/p>\n<\/td>\n \n530,978\n<\/p>\n<\/td>\n<\/tr>\n \nForeign exchange (gain) loss\n<\/p>\n<\/td>\n \n153,400\n<\/p>\n<\/td>\n \n(54,651)\n<\/p>\n<\/td>\n \n368,725\n<\/p>\n<\/td>\n \n(306,900)\n<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA<\/b><\/p>\n<\/td>\n (341,246)<\/b><\/p>\n<\/td>\n 1,750,129 <\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (6,190)<\/b><\/p>\n<\/td>\n 2,350,546<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Non-IFRS Measures<\/b><\/p>\n \nThe Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are used by management to provide additional insight into our performance and financial condition. We believe non-IFRS measures are an important part of the financial reporting process and are useful in communicating information that complements and supplements the consolidated financial statements. This MD&A also includes certain measures which have not been prepared in accordance with IFRS such as Adjusted EBITDA. To evaluate the Company\u2019s operating performance as a complement to results provided in accordance with IFRS, the term \u201cAdjusted EBITDA\u201d refers to net income (loss) before adjusting earnings for stock-based compensation, depreciation, amortization, interest expense, accretion and other financing expense, (gain) loss on revaluation of conversion feature liability, loss on repayment of long-term debt, business acquisition costs, impairment of goodwill and intangibles, other expense (income), foreign exchange (gain) loss, current and deferred income tax expense. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of the Company.\n<\/p>\n \nWe believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company\u2019s main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, impairment of goodwill and intangibles, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company\u2019s operating performance.\n<\/p>\n \nAdjusted EBITDA is not a measure recognized by IFRS and do not have standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net income (loss) as determined in accordance with IFRS.\n<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20210816005739\/en\/<\/a><\/span><\/p>\n Media Contact: Investor Relations Contact: KEYWORDS:<\/b> United States North America Arizona<\/p>\n INDUSTRY KEYWORDS:<\/b> Technology Audio\/Video Other Technology Telecommunications<\/p>\n\n
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\n \u00a0<\/td>\n<\/tr>\n \n \n
\n
Interim Condensed Consolidated Statements of Financial Position
\n
(Expressed in United States dollars) (Unaudited)\n<\/p>\n<\/td>\n<\/tr>\n\n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n <\/tr>\n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n <\/tr>\n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n <\/tr>\n \n \n
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Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
\n
(Expressed in United States dollars) (Unaudited)\n<\/p>\n<\/td>\n<\/tr>\n\n <\/tr>\n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n <\/p>\n
\n<\/b>
Laura Haggard
\n
Chief Marketing Officer
\n
VIQ Solutions
\n
Phone: (800) 263-9947
\n
Email: marketing@viqsolutions.com<\/a><\/p>\n
\n<\/b>
Laura Kiernan
\n
High Touch Investor Relations
\n
Phone: 1-914-598-7733
\n
Email: viq@htir.net<\/a><\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20210816005739\/en\/749168\/3\/VIQ_Blue_Inline_ClearBG_512_%401x.jpg\")
<\/td>\n<\/tr>\n