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6-K

VIQ Solutions Inc. (VQSSF)

6-K 2023-05-11 For: 2023-05-11
View Original
Added on April 06, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TORULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2023

Commission File Number: 001-40717

VIQ SOLUTIONS INC.

(Name of registrant)

5915 Airport Road

Suite 700

Mississauga, Ontario L4V 1T1

Canada

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

x Form<br>20-F ¨ Form<br>40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

The information contained in Exhibits 99.1, 99.2, and 99.3 to this Report on Form 6-K is hereby incorporated by reference into the Company’s Registration Statement on Form F-3 (File No. 333-266874) and Registration Statement on Form S-8 (File No. 333-257263).”

SIGNATURES

Pursuant to the requirements 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.

VIQ SOLUTIONS INC.
(Registrant)
Date: May 11, 2023 By: /s/<br> Alexie Edwards
Name: Alexie Edwards
Title: Chief Financial Officer

Form 6-K Exhibit Index

Exhibit Number Document Description
99.1 Press Release of the Registrant<br> dated May 10, 2023.
99.2 Q1 2023 Interim Condensed Consolidated<br> Financial Statements
99.3 Q1 2023 Management Discussion<br> and Analysis
99.4 Form 52-109F2 Certification<br> of Interim Filing CEO
99.5 Form 52-109F2 Certification<br> of Interim Filing CFO

Exhibit 99.1

VIQ Solutions Reports First Quarter 2023 Financial Results

PHOENIX,AZ, May 10, 2023 - VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX and Nasdaq: VQS), a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, today reported its unaudited financial results for the first quarter ending March 31, 2023. Results are reported in US dollars and prepared in accordance with International Financial Reporting Standards ("IFRS").

“The increasing demand for digital content by global organizations necessitates the implementation of innovative, specialized technology to process data more swiftly and in a secure and precise manner. Transcribers play a critical role in leveraging Artificial Intelligence (AI) to achieve greater productivity and accuracy rates to meet evidentiary standards. We are encouraged by our strong Q1 bookings that represent an increase of 69% from the same period in 2022,” said Sebastien Paré, VIQ’s Chief Executive Officer.

“We are pleased to have completed the migration to the Queensland contract. Despite short-term revenue impacts, it is a crucial step to provide us with revenue predictability as we continue to scale. We believe this contract, combined with the effects of foreign currency exchange, would have normalized quarter-over-quarter revenue showing growth in Australian revenue.” said Sebastien Paré.

First Quarter 2023Operational Highlights

· $2.8M^1^ of<br> net new bookings sold for the quarter, representing 69% increase from Q1 2022.
· First active installations<br> of NetScribe sold in India for an International Transcription Company.
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· First quarter in full<br> implementation of Queensland contract in Australia.
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· Initial sales closed<br> in the ORdigiNAL agreement.
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· Launched CapturePro Mobile
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“As we pivot to meet market demand for SaaS solutions, there will be a positive impact to the revenue mix for organic and run rate revenue. This change is expected to protect long-term revenue and ultimately lead to significant margin improvement but will impact our top line revenue in the short term. Q1 had a slight decline in our U.S. revenue due to the acceleration of SaaS sales in Insurance and Law Enforcement,” said Susan Sumner, VIQ’s President and Chief Operating Officer.

First Quarter 2023Financial Highlights

· Revenue of $10.1 million,<br> a decrease of $1.5 million, or 13%, in the same period of the prior year, was primarily due<br> to the expected change in the Queensland contract. 
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· Gross profit was $4.4<br> million, or 44.0% of revenue, compared to $5.5 million, or 47.6% of revenue in in the same<br> period of the prior year. The decrease in the gross margin was primarily due to the expected<br> change in the Queensland contract.
· Net loss of $3.5 million,<br> or $0.10 per diluted share, versus net loss of $2.0 million, or $0.07 per diluted share in<br> the same period of the prior year.
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· Adjusted EBITDA^1^deficit of $1.1 million, versus Adjusted EBITDA deficit of $0.9 million in the same<br> period in the prior year. The increase in Adjusted EBITDA deficit was primarily due to decreased<br> gross profit, partially offset by decreased selling and administrative expenses primarily<br> due to lower insurance premiums, reduction in IT related costs due to system integrations<br> and lower headcount related costs due to organizational restructuring.
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^1^ Represents a non-IFRS measure. Please refer to the "Non-IFRS Measures" section below and the reconciliation tables at the end of this press release.

“With a focus on cost-containment and the refinancing in January, we were able to shore up our balance sheet. The new senior debt facility with Beedie Investments Ltd. extends the terms of our lending and will provide additional capacity to fuel our future growth while allowing the Company to execute on our operational plans to drive margin improvement. ” said Alexie Edwards, VIQ’s Chief Financial Officer.

As of March 31, 2023, the Company held a total of $2.5 million in cash. On January 13, 2023, the Company entered a senior debt facility with Beedie Investments Ltd, with maximum available funds of $15 million. Twelve ($12) million of the Loan was provided to the Company as an initial advance with an additional $3 million available to the Company to be drawn in subsequent advances in a minimum of $1 million tranches subject to the Company satisfying certain conditions.

Conference Call Details

VIQ will host a conference call and webcast to discuss its first quarter 2023 financial results on Thursday, May 11, 2023 at 11:00 AM Eastern Time. The call will consist of updates by Sebastien Paré, VIQ’s CEO, Alexie Edwards, VIQ’s CFO, and Susan Sumner, VIQ’s President and COO, followed by a question-and-answer period.

Investors may access a live webcast of the call on the Company’s website at www.viqsolutions.com/investors or by dialing 1-888-440-4052 (North America toll-free) or +1-646-960-0827 (international) to be connected to the call by an operator using conference ID number 4983233. 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’s website through the same link approximately one hour after the conference call concludes.

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For additional information:

Media Contact: Investor Relations Contact:
Laura Haggard Laura Kiernan
Chief Marketing Officer High Touch Investor Relations
VIQ Solutions Phone: 1-914-598-7733
Phone: (800) 263-9947 Email: viq@htir.net
Email: marketing@viqsolutions.com

For more information about VIQ, please visit viqsolutions.com.

AboutVIQ Solutions

VIQ 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.

Forward-lookingStatements

Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) 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. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

Forward-looking statements (typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur). These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company’s strategy, improvements to margins, and the conference call to discuss the Company’s first quarter 2023 results.

Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements 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 press release, assumptions have been made regarding, among other things, recent initiatives and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.

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Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Company’s annual report form on SEC Form 20-F form dated April 3, 2023, and form on SEC Form 20-F/A on April 13, 2023 and in the Company’s other materials filed with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission from time to time, available at www.sedar.com and www.sec.gov, respectively.

These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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VIQ Solutions Inc.

Consolidated Statements of Financial Position

(Expressed in United States dollars, Unaudited)

March 31, 2023 December 31, 2022
Assets
Current assets
Cash $ 2,513,529 $ 1,657,571
Trade and other receivables, net of allowance for doubtful accounts 5,992,968 5,305,728
Income tax recoverable 102,978 104,670
Inventories 38,649 37,807
Prepaid expenses and deposits 1,638,044 2,050,661
10,286,168 9,156,437
Non-current assets
Restricted cash 255,397 463,743
Property and equipment 1,312,485 1,432,133
Right-of-use assets, net 920,751 1,058,600
Intangible assets, net 9,933,942 10,731,917
Goodwill 11,981,099 12,047,048
Deferred tax assets 704,469 655,004
Total assets $ 35,394,311 $ 35,544,882
Liabilities
Current liabilities
Trade and other payables and accrued liabilities $ 6,170,348 $ 5,937,880
Income tax payable 37,532 45,212
Share-based payment liability 45,893 31,487
Derivative warrant liability 444,175 290,712
Current portion of long-term debt 509,425 8,634,258
Current portion of lease obligations 478,582 487,673
Contract liabilities 1,810,039 1,745,415
9,495,994 17,172,637
Non-current liabilities
Deferred tax liability 607,109 868,643
Long-term debt 9,168,792 19,812
Long-term lease obligations 634,491 718,575
Other long-term liabilities 1,019,491 1,121,805
Total liabilities 20,925,877 19,901,472
Shareholders' Equity
Capital stock 74,690,527 74,690,527
Contributed surplus 8,164,549 5,892,192
Accumulated other comprehensive income (loss) (1,202,006 ) (1,214,354 )
Deficit (67,184,636 ) (63,724,955 )
Total shareholders’ equity 14,468,434 15,643,410
Total liabilities and shareholders' equity $ 35,394,311 $ 35,544,882 
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VIQ Solutions Inc.

Consolidated Statements of Loss and Comprehensive Loss

(Expressed in United States dollars, Unaudited)

Three months ended March 31
2023 2022
Revenue $ 10,052,571 $ 11,524,981
Cost of Sales 5,624,614 6,035,932
Gross Profit 4,427,957 5,489,049
Expenses
Selling and administrative expenses 5,361,301 6,136,309
Research and development expenses 144,809 199,085
Stock based compensation 333,292 952,196
Gain on revaluation of options – (708,447 )
Gain on revaluation of RSUs (56,946 ) (174,253 )
(Gain) loss on revaluation of the derivative warrant liability 158,752 (886,816 )
Foreign exchange loss 237,018 258,760
Depreciation 226,159 135,714
Amortization 1,130,303 1,023,630
Interest expense 333,836 339,713
Accretion and other financing costs 163,716 132,973
(Gain) loss on contingent consideration (10,389 ) 103,561
Impairment of goodwill and intangibles 157,464 –
Restructuring costs 27,412 14,381
Business acquisition costs – 21,464
Other income (5,094 ) (609 )
Total expenses 8,201,633 7,547,661
Current income tax expense 7,362 62,507
Deferred income tax recovery (321,357 ) (111,203 )
Income tax recovery (313,995 ) (48,696 )
Net loss for the period $ (3,459,681 ) $ (2,009,916 )
Exchange gain on translating foreign operations 12,348 412,798
Comprehensive loss for the period $ (3,447,333 ) $ (1,597,118 )
Net loss per share
Basic (0.10 ) (0.07 )
Diluted (0.10 ) (0.07 )
Weighted average number of common shares outstanding – basic 34,649,697 29,881,717
Weighted average number of common shares outstanding – diluted 34,649,697 29,881,717 
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VIQ Solutions Inc.

Reconciliation of Non-IFRS Measures

(Expressed in United States dollars) (Unaudited)

The following is a reconciliation of Net Loss to Adjusted EBITDA, the most directly comparable IFRS measure for the periods ended March 31, 2023, and 2022:

Three months ended March 31
(Unaudited) 2023 2022
Net Loss (3,459,681 ) (2,009,916 )
Add:
Depreciation 226,159 135,714
Amortization 1,130,303 1,023,630
Interest expense 333,836 339,713
Current income tax expense 7,362 62,507
Deferred income tax recovery (321,357 ) (111,203 )
EBITDA (2,083,378 ) (559,555 )
Accretion and other financing costs 163,716 132,973
Gain on revaluation of options - (708,447 )
Gain on revaluation of RSUs (56,946 ) (174,253 )
(Gain) loss  on revaluation of the derivative warrant liability 158,752 (886,816 )
Impairment of Intangible assets 157,464 -
Restructuring costs 27,412 14,381
Business acquisition costs - 21,464
Other income (5,094 ) (609 )
Stock-based compensation 333,292 952,196
Foreign exchange loss 237,018 258,760
Adjusted EBITDA (1,067,764 ) (949,906 ) 
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Non-IFRS Measures

The 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. Adjusted EBITDA and bookings are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and bookings 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.

To evaluate the Company’s operating performance as a complement to results provided in accordance with IFRS, the term “Adjusted EBITDA” 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 options, (gain) loss on revaluation of restricted share units, gain (loss) on revaluation of derivative warrant liability, restructuring costs, (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.

We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s 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’s operating performance.

We calculate “Bookings” for a given period as the estimated contract value (for services tied to volume) of our recurring client contracts entered into during the period from (i) new clients and (ii) net upgrades by existing clients within the same workload, plus the actual (not annualized) estimated value of professional services consulting, advisory or project-based orders received, software licenses, subscriptions, SaaS, and hardware during the period.

Recurring client contracts are any contracts entered into on a multi-year or month-to-month basis, but excluding any professional services contracts for consulting, advisory or project-based work, software license and hardware.

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We use Bookings to measure the amount of new business generated in a period, which we believe is an important indicator of new client acquisition and our ability to cross-sell new services to existing clients. Bookings are also used by management as a factor in determining performance-based compensation for our sales force. While we believe Bookings, in combination with other metrics, are an indicator of our near-term future revenue opportunity, it is not intended to be used as a projection of future revenue. Booking information is a non-IFRS measure, which involves judgments, estimates and assumptions, which does not have a standard industry definition. Our calculation of Bookings may differ from similarly titled metrics presented by other companies.

Trademarks

This press release includes trademarks, such as “aiAssist”, “NetScribe” and “FirstDraft”, which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this news release may appear without the ® or TM symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names and services marks to the fullest extent under applicable law. Trademarks which may be used in this press release, other than those that belong to VIQ, are the property of their respective owners.

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Exhibit 99.2

VIQ Solutions Inc.

Interim Condensed Consolidated Financial Statements

Three months ended March 31, 2023 and 2022

(unaudited)

(Expressed in United States dollars)

VIQ Solutions Inc.

Interim Condensed Consolidated Statements of Financial Position

(Expressed in United States dollars, unaudited)

March 31, 2023 December 31, 2022
Assets
Current assets
Cash $ 2,513,529 $ 1,657,571
Trade and other receivables, net of allowance for doubtful accounts (notes 4) 5,992,968 5,305,728
Income tax recoverable 102,978 104,670
Inventories 38,649 37,807
Prepaid expenses and deposits 1,638,044 2,050,661
Non-current assets 10,286,168 9,156,437
Restricted cash 255,397 463,743
Property and equipment 1,312,485 1,432,133
Right-of-use assets, net 920,751 1,058,600
Intangible assets, net (note 5) 9,933,942 10,731,917
Goodwill (note 5) 11,981,099 12,047,048
Deferred tax assets 704,469 655,004
Total assets $ 35,394,311 $ 35,544,882
Liabilities
Current liabilities
Trade and other payables and accrued liabilities $ 6,170,348 $ 5,937,880
Income tax payable 37,532 45,212
Share-based payment liability (note 8) 45,893 31,487
Derivative warrant liability (note 7) 444,175 290,712
Current portion of long-term debt (note 6) 509,425 8,634,258
Current portion of lease obligations (note 14) 478,582 487,673
Contract liabilities 1,810,039 1,745,415
Non-current liabilities 9,495,994 17,172,637
Deferred tax liability 607,109 868,643
Long-term debt (note 6) 9,168,792 19,812
Long-term lease obligations (note 14) 634,491 718,575
Other long-term liabilities 1,019,491 1,121,805
Total liabilities 20,925,877 19,901,472
Shareholders' Equity
Capital stock (note 8) 74,690,527 74,690,527
Contributed surplus 8,164,549 5,892,192
Accumulated other comprehensive income (loss) (1,202,006 ) (1,214,354 )
Deficit (67,184,636 ) (63,724,955 )
Total shareholders’ equity 14,468,434 15,643,410
Total liabilities and shareholders' equity $ 35,394,311 $ 35,544,882

See accompanying notes to interim condensed consolidated financial statements.

Approved<br> by the Board Signed<br> “Larry Taylor” Signed<br> “Sebastien Paré”
Larry<br> Taylor, Director Sebastien<br> Paré, CEO and Director 
1

VIQ Solutions Inc.

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss

(Expressed in United States dollars, unaudited)

Three months ended March 31
2023 2022
Revenue (note 13) $ 10,052,571 $ 11,524,981
Cost of Sales 5,624,614 6,035,932
Gross Profit 4,427,957 5,489,049
Expenses
Selling and administrative expenses 5,361,301 6,136,309
Research and development expenses 144,809 199,085
Stock based compensation (note 9) 333,292 952,196
Gain on revaluation of options (note 8) – (708,447 )
Gain on revaluation of RSUs (note 8) (56,946 ) (174,253 )
(Gain) loss on revaluation of the derivative warrant liability (note 7) 158,752 (886,816 )
Foreign exchange loss (note 15) 237,018 258,760
Depreciation 226,159 135,714
Amortization (note 5) 1,130,303 1,023,630
Interest expense (note 6) 333,836 339,713
Accretion and other financing costs (note 6) 163,716 132,973
(Gain) loss on contingent consideration (10,389 ) 103,561
Impairment of goodwill and intangible assets (note 5) 157,464 –
Restructuring costs 27,412 14,381
Business acquisition costs – 21,464
Other income (5,094 ) (609 )
Total expenses 8,201,633 7,547,661
Current income tax expense 7,362 62,507
Deferred income tax recovery (321,357 ) (111,203 )
Income tax recovery (313,995 ) (48,696 )
Net loss for the period $ (3,459,681 ) $ (2,009,916 )
Exchange gain on translating foreign operations 12,348 412,798
Comprehensive loss for the period $ (3,447,333 ) $ (1,597,118 )
Net loss per share (note 10)
Basic (0.10 ) (0.07 )
Diluted (0.10 ) (0.07 )
Weighted average number of common shares outstanding – basic (note 10) 34,649,697 29,881,717
Weighted average number of common shares outstanding – diluted (note 10) 34,649,697 29,881,717

See accompanying notes to interim condensed consolidated financial statements.

2

VIQ Solutions Inc.

Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Expressed in United States dollars, unaudited)

Accumulated<br> other Total
Capital<br> stock Contributed comprehensive Shareholders’
Number Amount surplus Deficit income<br> (loss) equity
Balance<br> as at December 31, 2022 34,649,697 $ 74,690,527 $ 5,892,192 $ (63,724,955 ) $ (1,214,354 ) $ 15,643,410
Comprehensive<br> loss for the period – – – (3,459,681 ) 12,348 (3,447,333 )
Warrants<br> issued due to debt financing costs (note 8) – – 2,010,223 – – 2,010,223
Stock-based<br> compensation (note 9) – – 262,134 – – 262,134
Balance<br> as at March 31, 2023 34,649,697 $ 74,690,527 $ 8,164,549 $ (67,184,636 ) $ (1,202,006 ) $ 14,468,434
Capital<br> stock Contributed Accumulated<br> other<br><br> comprehensive Total<br><br> Shareholder’s
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Number Amount surplus Deficit income<br> (loss) equity
Balance<br> as at December 31, 2021 $ 29,881,717 $ 72,191,764 $ 4,842,208 $ (55,018,940 ) $ 74,526 $ 22,089,558
Comprehensive<br> loss for the period – – – (2,009,916 ) 412,798 (1,597,118 )
Stock-based<br> compensation (note 9) – – 118,406 – – 118,406
Balance<br> as at March 31, 2022 $ 29,881,717 $ 72,191,764 $ 4,960,614 $ (57,028,856 ) $ 487,324 $ 20,610,846

See accompanying notes to interim condensed consolidated financial statements.

3

VIQ Solutions Inc.

Interim Condensed Consolidated Statements of Cashflow

(Expressed in United States dollars, unaudited)

Three months ended March 31
2023 2022
Cash provided by (used in)
Operating activities
Net loss for the period $ (3,459,681 ) $ (2,009,916 )
Items not affecting cash:
Depreciation 226,159 135,714
Amortization (note 5) 1,130,303 1,023,630
Stock-based compensation (note 9) 333,292 952,196
Accretion and other financing costs (note 6) 163,716 132,973
Interest expense (note 6) 333,836 339,713
Income tax recovery (313,995 ) (48,696 )
(Gain) loss on contingent consideration (10,389 ) 103,561
Impairment of goodwill and intangible assets (note 5) 157,464 –
(Gain) loss on revaluation of options, RSUs, and derivative warrant liability (notes 7, 8) 101,806 (1,769,516 )
Other income (5,094 ) (609 )
Foreign exchange loss (note 15) 237,018 258,760
Unrealized foreign exchange loss 112,469 67,390
Changes in non-cash operating working capital (note 11) 130,902 (78,900 )
Cash used in operating activities (862,194 ) (893,700 )
Investing activities
Purchase of property and equipment (7,328 ) (16,462 )
Earn out payment (86,733 ) (110,077 )
Development costs related to internally generated intangible assets (note 5) (503,869 ) (460,401 )
Change in restricted cash – (234,286 )
Cash used in investing activities (597,930 ) (821,226 )
Financing activities
Proceeds from debt and warrants, net of issuance costs (note 6) 11,018,885 –
Payment of amendment fees on debt (note 6) – (239,880 )
Repayment of debt (note 6) (8,083,582 ) (4,252,511 )
Repayment of lease obligations (note 14) (79,628 ) (37,399 )
Payment of interest on debt (note 6) (498,985 ) (621,965 )
Payment of interest on lease obligations (note 14) (28,985 ) (28,889 )
Cash provided by (used in) financing activities 2,327,705 (5,180,644 )
Net increase (decrease) in cash for the period 867,581 (6,895,570 )
Cash, beginning of period 1,657,571 10,583,534
Effect of exchange rate changes on cash (11,623 ) 32,317
Cash, end of period $ 2,513,529 $ 3,720,281

See accompanying notes to interim condensed consolidated financial statements.

4

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

1. Nature of operations

VIQ Solutions Inc. (“VIQ” or the “Company”) is a technology and service platform provider for digital evidence capture, retrieval, and content management. VIQ’s modular software allows customers to easily integrate the platform at any stage of their organization's digitization, from the capture of digital content from video and audio devices through to online collaboration, mobility, data analytics, and integration with sensors, facial recognition, speech recognition, and case management or patient record systems. VIQ operates worldwide with a network of partners including security integrators, audio-video specialists, and hardware and data storage suppliers.

The Company also provides recording and transcription services directly to a variety of clients including medical, courtrooms, legislative assemblies, hearing rooms, inquiries and quasi-judicial clients in numerous countries including Canada, the United Kingdom, the United States and Australia.

VIQ was incorporated by articles of incorporation in the province of Alberta in November 2004. On June 21, 2017, the Company continued under articles of continuance in the province of Ontario. The Company’s head offices are located at 700 – 5915 Airport Road, Mississauga, Ontario, L4V 1H1. VIQ is a public company and the Company graduated from the Toronto Venture Exchange to the Toronto Stock Exchange in 2021. The Company's common shares began trading on the TSX and Nasdaq, under trading symbol VQS, at the market open on January 21, 2021, and August 12, 2021, respectively.

2. Basis of preparation
(a) Statement of compliance
--- ---

The Company prepares its interim condensed consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”), IAS 34, Interim Financial Reporting and International Financial Reporting Interpretations Committee (“IFRIC”) interpretations, as issued by the International Accounting Standards Board (“IASB”) and using the same accounting policies as described in the Company’s December 31, 2022 consolidated financial statements. The preparation of the interim condensed consolidated financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant to the interim condensed consolidated financial statements, are disclosed in note 2d and 3.

These interim condensed consolidated financial statements have been authorized for issue in accordance with a resolution from the Board of Directors on May 10, 2023.

(b) Basis<br>of preparation

The notes presented in these interim condensed consolidated financial statements include only significant changes and transactions occurring since the Company’s last year end and are not fully inclusive of all disclosures required by IFRS. These interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements, including the notes thereto, for the years ended December 31, 2022 and 2021. The interim condensed consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial assets and financial liabilities to fair value as noted below.

5

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

(c) Functional<br>currency, presentation currency and foreign currency translation
Company/Subsidiary Functional currency
--- ---
VIQ Solutions Inc. CAD
Dataworxs Systems Limited CAD
VIQ Solutions, Inc. USD
VIQ Australia PTY Ltd. AUD
Dataworxs Systems Australia Ltd. AUD
VIQ Solutions PTY Ltd. AUD
VIQ Solutions Australia PTY Ltd. AUD
VIQ PTY Ltd. AUD
VIQ Australia Services PTY Ltd. AUD
VIQ Services Inc. USD
Net Transcripts, Inc. USD
Hometech, Inc. USD
Transcription Express, Inc. USD
VIQ Media Transcription Inc. USD
wordZexpressed, Inc. USD
VIQ Solutions (UK) Limited GBP
VIQ Services (UK) Limited GBP
The Transcription Agency LLP GBP

All financial information is presented in USD unless otherwise stated.

USD / CAD exchange rate March 31, 2023 December 31, 2022 March 31, 2022
Closing at the reporting date 0.7383 0.7370 0.7996
Average rate for the year 0.7395 0.7685 0.7892
USD / AUD exchange rate March 31, 2023 December 31, 2022 March 31, 2022
--- --- --- --- --- --- ---
Closing at the reporting date 0.6695 0.6805 0.7490
Average rate for the year 0.6838 0.6940 0.7236
USD / GBP exchange rate March 31, 2023 December 31, 2022 March 31, 2022
--- --- --- --- --- --- ---
Closing at the reporting date 1.2368 1.2103 1.3132
Average rate for the year 1.2143 1.2368 1.3417

The financial results of each subsidiary consolidated in the Company’s interim condensed consolidated financial statements are measured using the subsidiary’s functional currency, which is the currency of the primary economic environment in which the entity operates for each of the Company’s wholly owned subsidiaries.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in currencies other than an operation’s functional currency are recognized in the interim condensed consolidated statements of loss and comprehensive loss.

The financial statements of entities that have a functional currency different from the presentation currency of USD are translated into USD as follows: assets and liabilities at the closing rate at the date of the interim condensed consolidated statement of financial position, and income and expenses at the average rate of the period as this is considered a reasonable approximation to actual rates. All resulting changes are recognized in other comprehensive income (loss) as translation adjustments.

6

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

The Company has monetary items that are receivable from foreign operations. A monetary item for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the parent company’s net investment in that foreign operation. Such exchange differences are recognized initially in other comprehensive income and reclassified from equity to net loss on disposal of the net investment in foreign operations.

(d) Use of estimates and judgments

The preparation of the interim condensed consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the application of the Company’s accounting policies and the amounts reported in the interim condensed consolidated financial statements and the related notes. These estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future. These estimates have been applied in a manner consistent with that in prior periods and there are no known trends, commitments, events or uncertainties that the Company believes will materially affect the assumptions utilized in these interim condensed consolidated financial statements. Estimates and underlying assumptions are reviewed on an ongoing basis and revisions to estimates are recognized prospectively. The estimates are impacted by many factors, some of which are highly uncertain and actual results may differ from those estimates.

The continuing uncertainty around the outbreak of the novel coronavirus (“COVID-19”) pandemic required the use of judgments and estimates in the preparation of the interim condensed consolidated financial statements for the quarter ended March 31, 2023. The future impact of COVID-19 uncertainties could generate, in future reporting periods, a significant impact to the reported amounts of assets, liabilities, revenue and expenses in these and any future interim condensed consolidated financial statements. Examples of accounting estimates and judgments that may be impacted by the pandemic include, but are not limited to, impairment of goodwill and intangible assets and allowance for doubtful accounts.

3. Significantaccounting policies
i) Significant accounting policies, estimates and judgements
--- ---

The preparation of the interim condensed consolidated financial statements in accordance with IAS 34 requires management to make estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and notes to the interim condensed consolidated financial statements. These estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future. Actual results may differ from those estimates. Significant estimates and judgments made by the Company include the following:

· Stock-based compensation
· Warrants
--- ---
· Internally generated development
--- ---
· Functional currency
--- ---
· Income taxes
--- ---
· Allocation of the transaction<br> price to multiple performance obligations in contracts with customers
--- ---
· Allowance for doubtful<br> accounts
--- ---
· Goodwill impairment testing<br> and recoverability of assets
--- ---
· Purchase price allocation
--- ---
· Contingency consideration
--- ---
· Incremental borrowing rate<br> used to discount leases
--- ---
· Property and equipment<br> and definite life intangible assets
--- --- 
7

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

ii) New Accounting Pronouncements<br> Adopted in 2023

Deferred Tax related assets and liabilities arising from a Single Transaction (Amendments to IAS 12)

The amendments narrow the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences – e.g. leases and decommissioning liabilities. The amendments apply for annual reporting periods beginning on or after January 1, 2023. For leases and decommissioning liabilities, the associated deferred tax asset and liabilities will need to be recognized from the beginning of the earliest comparative period presented, with any cumulative effect recognized as an adjustment to retained earnings or other components of equity at that date. For all other transactions, the amendments apply to transactions that occur after the beginning of the earliest period presented. The amendments are effective for annual periods beginning on or after January 1, 2023. The Company has concluded there is no impact of adopting these amendments on its consolidated financial statements.

Disclosureof Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)

In February 2021, the IASB issued Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2). The amendments provide guidance to help entities disclose their material (previously "significant") accounting policies. The amendments are effective for annual reporting periods beginning on or after January 1, 2023. The Company has concluded there is no impact of adopting these amendments on its consolidated financial statements.

Definitionof Accounting Estimates (Amendments to IAS 8)

In February 2021, the IASB issued Definition of Accounting Estimates (Amendments to IAS 8 - Accounting Policies, Changes in AccountingEstimates and Errors). The amendments define accounting estimates and clarify the distinction between changes in accounting estimates and changes in accounting policies. The amendments are effective for annual reporting periods beginning on or after January 1, 2023. The Company has concluded there is no impact of adopting these amendments on its consolidated financial statements.

Other standards

The following new and amended standards did not have a significant impact on the Company’s consolidated financial statements.

· Referenceto Conceptual Framework (Amendments to IFRS 3).
(iii) Standards<br>and interpretations issued but not yet effective
--- ---

In October 2022, the International Accounting Standards Board (the IASB or the Board) issued amendments to IAS 1 Presentation ofFinancial Statements. The amendments are based on those originally set out in the Exposure Draft ED/2021/9 Non-current Liabilitieswith Covenants, Proposed Amendments to IAS 1 (the ED). In the amendments, the Board clarifies that only covenants with which an entity must comply on or before the reporting date will affect a liability’s classification as current or non-current. Additional disclosures are required for non-current liabilities arising from loan arrangements that are subject to covenants to be complied with within twelve months after the reporting period. The amendments will be effective for annual periods beginning on or after January 1, 2024 with early adoption permitted. The Company is currently assessing the impact of these amendments.

4. Trade and other receivables
March 31, 2023 December 31, 2022
--- --- --- --- --- --- ---
Trade accounts receivable $ 5,206,780 $ 4,956,613
Other receivable 1,168,832 748,585
Less: allowance for doubtful accounts (382,644 ) (399,470 )
$ 5,992,968 $ 5,305,728

As at March 31, 2023, other receivable relates to unbilled revenue of $1,062,195 (December 31, 2022 - $634,226) and sales tax receivable and other receivables of $106,637 (December 31, 2022 - $114,359).

8

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

5. Intangible assets and goodwill

Details of the Company’s intangible assets as of March 31, 2023 are listed as follows:

December 31, 2022 Impairment Additions Foreign exchange March 31, 2023
Cost
Customer relationships $ 15,303,650 – – (18,859 ) $ 15,284,791
Technology 470,000 – – – 470,000
Non-compete 118,945 – – 445 119,390
Brand 2,379,289 – – (9,430 ) 2,369,859
Patents 15,232 – – – 15,232
Internally generated intangible assets 10,587,378 (157,464 ) 503,869 18,447 10,952,230
$ 28,874,495 (157,464 ) 503,869 (9,397 ) $ 29,211,502
Accumulated amortization
Customer relationships 9,058,485 – 677,607 (1,554 ) 9,734,538
Technology 470,000 – – – 470,000
Non-compete 126,431 – 7,474 (3,547 ) 130,358
Brand 1,945,161 – 101,892 (871 ) 2,046,182
Patents – – – – –
Internally generated intangible assets 6,542,501 – 343,330 10,651 6,896,482
18,142,578 – 1,130,303 4,679 19,277,560
Net book value $ 10,731,917 $ 9,933,942

Details of the Company’s goodwill as of March 31, 2023 are listed as follows:

December 31,<br> 2022 Foreign<br> exchange March 31,<br> 2023
VIQ Australia $ 5,036,815 $ (81,343 ) $ 4,955,472
Dataworxs 132,446 227 132,673
VIQ US 3,570,275 – 3,570,275
VIQ Media 2,614,802 – 2,614,802
VIQ UK 692,710 15,167 707,877
$ 12,047,048 $ (65,949 ) $ 11,981,099
6. Long-term debt
--- ---
March 31, 2023 December 31, 2022
--- --- --- --- --- --- ---
Beedie Investment Ltd. Note Payable (a) $ 9,168,791 $ –
Crown Capital Funding Partner LP Note Payable (b) – 7,972,790
Unsecured HomeTech interest-free promissory note (c) 189,958 263,539
Unsecured WordZ 5% promissory note (c) 319,467 417,741
Less current portion of long-term debt (509,425 ) (8,634,258 )
$ 9,168,791 $ 19,812 
9

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

a. Beedie<br>Investments Ltd. note payable

On January 13 2023, the Company entered into a secured debt facility (“Note Payable”) with Beedie Investments Ltd. (“Beedie”) of $12,000,000 (1) bearing an interest rate of 9.5% payable monthly, (2) interest rate of 1.5% payable monthly on $3,000,000 available to be drawn subsequently subject to certain conditions and (3) interest rate of 3% to be paid-in-kind per annum compounded monthly and added to the outstanding principal amount of the Note Payable and to be repaid on January 13 2027. The Note Payable is secured by a general security agreement covering all assets of the Company. The outstanding principal balance of the Note Payable is repayable on January 16, 2027.

In connection with the Note Payable, 7,968,750 common share purchase warrants were issued to Beedie on January 16, 2023.  Each warrant is convertible into one common share in the capital of the Company at a price per share equal to $0.256 until January 16, 2030. The Company recorded $2,010,223 reflecting the fair value of the 7,968,750 warrants associated with the loan payable as a reduction to the principal amount of $12,000,000 and the amount was recorded into equity.   The Company calculated the fair value of $2,190,197 using the Black-Scholes pricing model with the following assumptions: a share price of $0.50 CDN, an exercise price of $0.35 CDN, a volatility of 69.78%, an expected life of 7.0 years, a dividend yield of 0.0%, and a risk -free interest rate of 2.85%.

In addition, the Company has agreed to issue additional common share purchase warrants in connection with the subsequent advances, with such number of warrants to be equal to 17% of the amount of such subsequent advance divided by the exercise price of such subsequent warrants. The subsequent warrants are to have an exercise price equal to the 5-day volume weighted average price of the Company’s common shares immediately prior to the earlier of: (i) the announcement of the applicable subsequent advance, and (ii) the funding of the applicable subsequent advance.

In addition, the Company incurred transactions costs of $981,115 associated with establishing the Note Payable, $179,974 of transaction costs were deducted from the fair value of warrants of $2,190,197 based on relative fair value which resulted in $2,010,223 being credited to contributed surplus.

The Note Payable of $9,008,662 was determined using relative fair value and transaction costs were allocated to the host debt instrument based on relative fair value and is being accreted to the face value of $12,000,000 over the term of 4 years.   The transaction costs are recognized as accretion and other financing expense over the term of the loan.

During the three months ended March 31, 2023, the Company recorded interest expense of $243,958 representing the cash interest payable monthly and $153,152 recorded as accretion and other financing expense related to the Note Payable in the interim condensed consolidated statements of loss and comprehensive loss.

b. Crown Capital Funding Partner LP note payable

During the year ended December 31, 2018, the Company entered into a secured debt facility with Crown Capital Funding Partner LP (“Crown”) of $11,055,000 (CAD$15,000,000) bearing an interest rate of 10% payable quarterly. The loan was secured by a general security agreement covering all assets of the Company. Additionally, during the period ended September 30, 2020, the Company cancelled 450,000 previously issued common share purchase warrants and reissued new warrants to reflect a price per share equal to CAD$2.06 (the “Exercise Price”) until expiry on November 28, 2023. As a result of this modification, the Company recorded $84,287 (CAD$111,387) reflecting the incremental fair value of the warrant associated with the amendment as a reduction in the carrying value of the note payable as at September 30, 2020. The Company incurred fees of $353,115 (CAD$450,000) associated with establishing the amended debt facility, which was recorded as a reduction in the carrying value of the note payable. During the quarter ended March 31, 2023, the Company recorded interest expense of $34,276 (2022 - $300,653).

The difference between the face value and ascribed value of the Crown Capital note payable is being accreted over the remaining life of the debt facility. Corresponding transaction costs were netted against the face value of the debt facility and are recognized as accretion and other financing expense over the term of the loan. During the quarter ended March 31, 2023, the Company recorded $nil (2022

  • $87,642) of accretion and other financing expense related to the note payable in the interim condensed consolidated statements of loss and comprehensive loss.

The Company signed an amendment related to the Crown debt facility that required the Company to pay $4,005,768 (CAD$5,000,000) of the principal balance on March 30, 2022 and pay an amendment fee of approximately $239,880 (CAD$300,000). The interest on the Crown Debt facility remained at 10% annual interest and future interest payments were reduced to the reduced principal amount. The amendment did not result in the terms of the original agreement being substantially modified; as such the transaction is accounted for as a modification of the old debt. The amended secured debt facility waived the Fixed Charge Coverage Ratio for the quarter ended December 31, 2022 and the Net Debt to EBITDA ratio for quarters ended March 31, 2022 and June 30, 2022. Additional financial covenants were added to the amended Crown debt facility, which include restrictions on the amount of selling, administrative and research and development costs and restrictions on capital expenditure (including internally generated intangible assets and capitalized assets) in each of the respective quarters ended June 30, 2022, September 30, 2022 and December 31, 2022. As at March 31, 2023, the Company fully repaid the debt outstanding of $7,897,356 (CAD$10,550,000) which included a prepayment fee of $74,000 (CAD $100,000) for repaying the debt in advance of the maturity date November 28, 2023.

10

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

c. Unsecured promissory notes

As part of the acquisition of HomeTech, the Company issued an unsecured interest-free promissory note to the former owners of HomeTech with a face value of $1,200,000, to be paid monthly for 60 months in equal installments of $20,000 beginning February 25, 2019 to the period ending January 25, 2024. During the quarter ended March 31, 2023, the Company repaid a total principal of $80,000 (2022

  • $60,000). The Company recorded the unsecured promissory note by discounting the principal amounts due using a market annual interest rate of 12%. The difference between the present value and the face value is being accreted over the term of the unsecured promissory notes. The Company recorded an accretion expense of $6,420 (2022 - $12,154) for the quarter ended March 31, 2023.

An additional note was issued to the former owners of WordZ with a face value of $1,200,000 bearing interest at 5% to be paid quarterly for 36 months beginning January 5, 2021 to the period ending October 5, 2023. The fair value of the unsecured promissory notes was determined on a market annual interest rate of 12%. The difference between the face value and the ascribed value of the notes is being accreted over life of the notes. During the quarter ended March 31, 2023, the Company recorded interest expense of $4,094 (2022 – $9,238) and accretion expense of $9,270 (2022 - $19,719). In addition, the Company repaid $106,226 (2022 - 101,077) during the three months ended March 31, 2023.

7. Derivative warrant liability

On July 21, 2022, the Company completed a private placement offering to institutional investors (“PIPE”). Under the PIPE, the Company sold 3,551,852 units (the “Units”) at a price of $1.35 per Unit for gross proceeds to the Company of approximately $4,800,000 before the deduction of any fees and other PIPE expenses. Each Unit consists of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (“Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $1.39. The Warrants will be exercisable beginning on January 21, 2023 and will expire on July 21, 2027. Issuance costs of $741,000 were incurred with $344,000 being recorded as a reduction of common shares and $397,000 recorded in accretion and other financing costs.

On September 15, 2021, the Company closed its direct offering with institutional investors (the “Offering”). Under the Offering, the Company sold 4,235,294 units (the “Units”) at a price of $4.25 per Unit for gross proceeds to the Company of approximately $18,000,000 before the deduction of any fees and other estimated Offering expenses. Each Unit consists of one and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). A total of 2,117,647 Warrants were issued. Each Warrant entitles shareholder thereof to purchase one Common Share (a “Warrant Share”) at an exercise price of $5.00. The Warrants is exercisable as at March 15, 2022 and will expire five years from the issuance date on September 14, 2026.

In accordance with IFRS, a contract for the issuance of equity instruments that fails to meet the fixed for fixed criteria, i.e., issue a fixed number of shares for a fixed amount of cash or another financial asset, fails to meet the definition of equity. The exercise price for the Warrants issued under the PIPE and Offering are denominated in USD currency, which differs from the CAD functional currency of the issuing entity. As a result, the warrants are recorded as a derivative warrant liability since the Company will be receiving cash in a currency other than the issuing entity’s functional currency and therefore is deemed to be variable.

The derivative warrant liabilities are measured at fair value with changes in fair value recognized in the interim condensed consolidated statements of loss and comprehensive loss at each year-end. The derivative warrant liabilities will ultimately be converted into the Company’s equity (common shares) when the Warrants are exercised or will be extinguished on the expiry of the outstanding Warrants and will not result in the outlay of any cash by the Company.

The Company uses the Black-Scholes pricing model to estimate fair value at initial recognition and at each reporting date. The Company considers expected volatility of its common shares in estimating its future stock price volatility. The risk-free interest rate for the life of the Warrants was based on the yield available on government benchmark bonds with an approximate equivalent remaining term at the time of issue and at the time of revaluation. The life of warrant is based on an estimated exercise term.

11

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

The following are assumptions used by the Company to fair value for the quarter ended March 31, 2023:

PIPEJuly 21, 2022

March  31, 2023 December  31, 2022 July 21, 2022 initial recognition
Fair value (CAD) $ 0.15 $ 0.10 $ 0.93
Share price (CAD) $ 0.48 $ 0.36 $ 1.41
Exercise price (CAD) $ 1.89 $ 1.89 $ 1.79
Expected volatility 77.1 % 77.1 % 69.9 %
Risk free rate 3.19 % 3.50 % 3.06 %
Expected life (years) 4.31 4.55 5.0
Expected dividends 0 % 0 % 0 %

OfferingSeptember 15, 2021

March 31, 2023 December 31, 2022 September 15, 2021 initial<br><br> recognition
Fair value (CAD) $ 0.03 $ 0.02 $ 1.93
Share price (CAD) $ 0.48 $ 0.36 $ 4.43
Exercise price (CAD) $ 6.77 $ 6.78 $ 6.33
Expected volatility 78 % 75 % 62 %
Risk free rate 3.40 % 3.67 % 0.83 %
Expected life (years) 3.46 3.71 5.0
Expected dividends 0 % 0 % 0 %

For the quarter ended March 31, 2023, a loss on revaluation of derivative warrant liabilities was recorded in the amount of $158,752 (2022 - gain on revaluation of $886,816).

As at March 31, 2023, there were 5,669,499 warrants outstanding and nil exercised (2022 - 5,669,499 and nil exercised).

8. Capital stock

OmnibusEquity Incentive Plan

On April 29, 2021, the Company adopted a new omnibus equity incentive plan (the “Omnibus Equity Incentive Plan”) by way of a Shareholder Resolution. The Omnibus Equity Incentive Plan is a “rolling” plan that, subject to certain adjustment provisions, provides that the aggregate maximum number of Common Shares that may be issued upon the exercise or settlement of awards granted under the Omnibus Equity Incentive Plan shall not exceed 10% of the Company’s issued and outstanding Common Shares from time to time. The Omnibus Equity Incentive Plan is considered an “evergreen” plan, since the Common Shares covered by awards that have been exercised, settled or terminated shall be available for subsequent grants under the Omnibus Equity Incentive Plan, and the number of awards available to grant increases as the number of issued and outstanding Common Shares increases. As such, the Omnibus Equity Incentive Plan must be approved by the majority of the Company’s Board and its Shareholders every three years following its adoption pursuant to the requirements of the TSX.

Under the Omnibus Equity Incentive Plan, the Company is able to grant equity-based incentive awards in the form of stock options, restricted share units (“RSUs”), performance share units (“PSUs”) and deferred share units (“DSUs”). All future grants of equity-based awards will be made pursuant to the Omnibus Equity Incentive Plan, and no further equity-based awards will be made pursuant to the Company’s Stock Option Plan, DSU plan, and Stock Appreciation Rights Plan (collectively, the “Legacy Plans”). The Legacy Plans will continue to be authorized for the sole purposes of facilitating the vesting and exercise of existing awards previously granted under the Legacy Plans. Once the existing awards granted under the Legacy Plans are exercised or terminated, the Legacy Plans will terminate and be of no further force or effect.

No equity incentive securities have been granted under the Legacy Plans for the quarter ended March 31, 2023 (2022 - nil).

12

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

Commonshares

The Company’s authorized capital consists of an unlimited number of common shares with no par value. As at March 31, 2023, common shares of the Company were reserved as follows:

Exercise price<br><br> (CAD) Expirydates Numberoutstanding
Options – Legacy Plan $2.20 - $3.10 January 2024 – December 2024 37,850
$3.13 January 2025 – December 2025 60,000
Options – Omnibus Equity Incentive Plan $2.80 - 8.84 January 2031 – December 2031 70,000
$0.45 - 1.35 January 2032 – December 2032 795,947
Deferred share units – Legacy Plan $1.20 - $2.10 N/ A 66,667
Restricted share units – Omnibus Equity Incentive Plan N/A January 2024 – December 2024 16,667
N/A January 2031 – June 2031 168,017
N/A N/A 636,535
Performance share units – Omnibus Equity Incentive Plan N/A N/A 165,000

Warrants

On January 16, 2023, 7,968,750 common share purchase warrants were issued to Beedie in conjunction with the Beedie Note Payable. Each warrant is convertible into one common share in the capital of the Company at a price per share equal to $0.256 until January 16, 2030. In addition, the Company has agreed to issue additional common share purchase warrants in connection with the subsequent advances, with such number of warrants to be equal to 17% of the amount of such subsequent advance divided by the exercise price of such subsequent warrants. The subsequent warrants are to have an exercise price equal to the 5-day volume weighted average price of the Company’s common shares immediately prior to the earlier of: (i) the announcement of the applicable subsequent advance, and (ii) the funding of the applicable Subsequent Advance. The subsequent warrants will expire seven years from the date of issuance. See note 6(a) for accounting for warrants issued in connection with Beedie Note Payable.

During the quarter ended March 31, 2023, there were no warrants exercised (2022 - nil) for $nil proceeds (2022 - nil). And there were no warrants issued under the Legacy Plans (2022 - nil).

As at March 31, 2023, there were 7,968,750 of warrants outstanding associated with the Beedie financing (2022 - nil).

Stockoption plan

The Company has an incentive stock option plan for its directors, officers, employees, and contractors. The Company's legacy stock option plan allows for the granting of options (and DSUs as described below) up to an aggregate amount equal to 10% of the aggregate number of common shares of the Company outstanding. The options, which have a term not exceeding five years when issued, generally vest as follows:

· 1/3 at time of issue
· 1/3 after one year
--- ---
· 1/3 after two years
--- ---

Under the Omnibus Equity Incentive Plan, the stock options that are granted have a term not exceeding ten years when granted, and can be fully vested on date of grant or vest as follows:

· 1/3 after one year
· 1/3 after two years
--- ---
· 1/3 after three years
--- ---

During the year ended December 31, 2021, certain stock options granted included cash settlement alternatives at the discretion of the stock option holder, subject to the approval of the Company’s Plan Administrator. The option holder could elect to perform the following on the settlement date:

· acquire common shares of the Company on a 1:1 basis<br> to vested options
· receive cash payment, net of withholding taxes, equal<br> to vested options multiplied by the market price of common shares of the Company
--- ---
· acquire and receive a combination of common shares<br> and cash payment, respectively, as noted above
--- --- 
13

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

Since the election and choice of settlement method lies with the stock option holder, which includes a cash settlement, the Company recorded the associated grants with this option as a cash-settled share-based payment and recorded a share-based payment liability, which is remeasured at each reporting period. As at March 31, 2023, the Company had no options outstanding that are to be cash-settled as these options were all forfeited. For the quarter ended March 31, 2023, there was $nil recorded of gain or loss on revaluation of options (2022

  • gain on revaluation of $708,447) deemed to be cash-settled.
March 31, 2022
Omnibus Equity Incentive Plan
Fair value at grant date (CAD) 1.28 $0.20 - $ 0.81
Share price at grant date (CAD) 2.03 $0.34 - $1.32
Exercise price (CAD) 8.84 - 8.93 $0.45 - $1.35
Expected volatility 81.93% 62.5% - 72.3%
Expected option life 9.20 5.5 - 6.5
Expected dividends 0% 0%
Risk-free interest rate (based on government bonds) 2.4% 2.90%<br>- 3.16%

All values are in US Dollars.

As at March 31, 2023, 97,850 options were vested related to the Legacy Plan (December 31, 2022 - 720,100) with a weighted average exercise price of CAD $2.91 per share (December 31, 2022 - CAD $2.88).

As at March 31, 2023, 456,364 options were vested related to the Omnibus Equity Incentive Plan (December 31, 2022 - 486,864) with a weighted average exercise price of CAD$1.01 per share (December 31, 2022 - CAD$1.67).

During the quarter ended March 31, 2023, there were no stock options granted to directors, officers, employees, and contractors (2022 - nil).

During the quarter ended March 31, 2023, nil options were exercised (2022 - nil), for $nil proceeds (2022 - $nil). There were 880,250 stock options forfeited during the quarter ended March 31, 2023 (2022 - nil) and nil stock options that expired during the quarter ended March 31, 2023 (2022 – 72,000).

The following information applies to stock options outstanding per the Legacy Plan as at March 31, 2023, along with their respective exercise prices and related weighted average remaining contractual life:

Range of<br> exercise<br> prices<br> (CAD) Weighted average<br><br> remaining<br><br> contractual life Weighted average<br><br> exercise price<br><br> (CAD) Options<br><br> exercisable Weighted average<br><br> exercise price<br><br> (CAD)
2.20<br>- 3.10 37,850 1.2 years $ 2.56 37,850 $ 2.56
3.13 60,000 2.1 years $ 3.13 60,000 $ 3.13
97,850 1.7 years $ 2.88 97,850 $ 2.91

All values are in US Dollars.

The following information applies to stock options outstanding per the Omnibus Equity Incentive Plan as at March 31, 2023, along with their respective exercise prices and related weighted average remaining contractual life:

Range of <br>exercise<br> prices<br> (CAD) Weighted<br> average<br> remaining<br> contractual life Weighted<br> average <br> exercise price<br> (CAD) Options<br><br> exercisable Weighted average<br><br> exercise price<br><br> (CAD)
2.80 - 8.84 70,000 8.7 years $ 2.88 25,000 $ 2.88
0.45 - 1.35 795,947 9.4 years $ 0.92 431,364 $ 0.90
865,947 9.4 years $ 1.08 456,364 $ 1.01

All values are in US Dollars.

14

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

DeferredShare Units Plan

The Company established a DSU Plan to provide non-employee directors to participate in the long-term success of the Company. DSUs are fully vested upon being granted.

The Board of Directors may grant DSUs (and the number of options to purchase shares described above) up to a maximum of 10% of common shares outstanding and up to a maximum of 100,000 units.

Maximum allowable grants under the option and DSU plans in aggregate as at March 31, 2023 were 3,464,970 (December 31, 2022 -3,464,970) of which 963,797 were outstanding stock options, 66,667 were outstanding DSUs, 821,219 were outstanding RSUs, and 165,000 of outstanding PSUs for a total of 2,016,683 (December 31, 2022 - 2,896,933).

The Company did not grant any DSU’s to Directors of the Company during the quarter ended March 31, 2023 (2022 - nil).

RestrictedShare Units Plan

Under the Omnibus Equity Incentive Plan, the Company established an RSU Plan. RSUs have a term not exceeding ten years to indefinite expiry when granted and can fully vest after one year, vest each month, or vest as follows:

· 1/3 after one year
· 1/3 after two years
--- ---
· 1/3 after three years
--- ---

During the year ended December 31, 2021, certain RSUs granted included cash settlement alternatives at the discretion of the RSU holder, subject to the approval of the Company’s Plan Administrator. The RSU holder could elect to perform the following on the settlement date:

· acquire common shares of the Company on a 1:1 basis<br> to vested RSUs
· receive cash payment, net of withholding taxes, equal<br> to vested RSUs multiplied by the market price of common shares of the Company
--- ---
· acquire and receive a combination of common shares<br> and cash payment, respectively, as noted above
--- ---

Certain RSUs issued by the Company included the choice of settlement method lies with the RSU holder, which includes a cash settlement, the Company has recorded the associated RSU grants as a cash settled share-based payments and recorded a share-based payment liability. As at March 31, 2023, there are 155,517 RSUs outstanding that are classified as cash-settled share-based payments.

As a result of remeasuring the RSUs classified as cash-settled share-based payments related to the Omnibus Equity Incentive Plan at fair value, the Company recorded a gain of $56,946 for the quarter ended March 31, 2023 (2022 - $174,253). The RSUs were valued at the following fair values:

Three months ended March 31,
2023 2022
Fair value (CAD) $ 0.48 $ 2.03
Share price (CAD) $ 0.48 $ 2.03

During the quarter ended March 31, 2023, nil RSUs were granted to directors, officers, employees, and contractors (2022 - nil) which are equity accounted for. 31,250 RSUs were vested and nil RSUs were exercised for the quarter ended March 31, 2023 (2022 - 15,500 vested and nil RSUs exercised).

PerformanceShare Units Plan

Under the Omnibus Equity Incentive Plan, the Company established a PSU Plan. The PSUs have an indefinite term when granted and vest 100% after one year if the performance vesting conditions are met. As at March 31, 2023, the Company has determined that it is probable that the performance vesting condition will be met by the respective employees.

15

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

On May 16, 2022, 195,000 PSUs were granted to employees, of which 30,000 shares were forfeited during the year ended December 31, 2022. The PSUs were recorded at the fair value on the day of the grant. The PSUs were valued at the following fair value:

Year ended December 31, 2022
Omnibus Equity<br><br> Incentive Plan
Fair value (CAD) $ 1.32
Share price (CAD) $ 1.32
9. Stock-based compensation
--- ---

The total compensation expense relating to the value assigned to the stock options, RSUs, and PSUs granted to directors, officers, employees and contractors for the three months ended March 31, 2023 was $333,292 (2022 - $952,196), which was included in the stock-based compensation expense with a corresponding charge to contributed surplus of $262,134 (2022 - $118,406) and share-based payment liability of $71,158 (2022 - $833,790).

10. Net loss per share
Three months ended March 31
--- --- --- --- --- --- ---
2023 2022
Numerator for basic and diluted net loss per share:
Net loss for the period $ (3,459,681 ) $ (2,009,916 )
Denominator for basic net loss per share:
Weighted average number of common shares outstanding 34,649,697 29,881,717
Effect of potential dilutive securities – –
Adjusted denominator for diluted net loss per share 34,649,697 29,881,717
Basic net loss per share $ (0.10 ) $ (0.07 )
Diluted net loss per share $ (0.10 ) $ (0.07 )

For the quarter ended March 31, 2023, 15,654,932 of potentially dilutive common shares (2022 - 4,376,683) issuable upon the exercise of warrants, DSUs, RSUs, PSUs, and options were not included in the computation of loss per share because their effect was anti-dilutive.

11. Supplemental cash flow information

Components of the net change in non-cash working capital are as follows:

Three months ended March 31,
2023 2022
Trade and other receivables $ (720,821 ) $ (1,074,634 )
Inventories (842 ) (4,402 )
Prepaid expenses and deposits 606,114 319,248
Trade and other payables and accrued liabilities 271,973 769,943
Income tax payable (90,147 ) –
Contract liabilities 64,625 (89,055 )
Total $ 130,902 $ (78,900 ) 
16

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

Other supplemental cash flow information as follows:

Three months ended March 31,
2023 2022
Cash received for interest $ 6,739 $ 609
Cash paid for interest 527,970 650,854
12. Segmented financial information
--- ---

The Company has determined it has two reportable business segments, namely technology and related revenue and technology services. The technology and related revenue segment develops, distributes licenses computer-based digital solutions based on the Company’s proprietary technology; and the technology service segment, provides recording and transcription services.

The Company’s reportable segments are strategic business segments that offer different products and/or services. These business segments work on different business models and operate autonomously. The Company does not segregate sales and associated costs by individual technology products. Accordingly, segmented information on revenue and associated costs is only provided for the transcription services and computer-based digital solutions currently offered by the Company.

The Chief Executive Officer, President and Chief Operating Officer, and Chief Financial Officer (“CODMs”) are the operating decision makers and regularly reviews the Company’s operations and performance by segment. Effective January 1, 2023, the CODMs review segment Adjusted EBITDA as the key measure of profit for the purpose of assessing performance of each segment and to make decisions about the allocation of resources. Prior to this, the CODMs reviewed segment income (loss) as the key measure of profit for the purpose of assessing performance of each segment and to make decisions about the allocation of resources.

Financial information by reportable business segment is as follows:

Three months ended March 31, 2023
Technologyand related revenue Technology services Corporate Total
Revenue $ 893,388 $ 9,159,183 $ – $ 10,052,571
Gross Profit 627,562 3,800,395 – 4,427,957
Selling and administrative expenses 443,331 4,545,118 372,852 5,361,301
Research and development expenses 12,869 131,940 – 144,809
Gain on contingent consideration – (10,389 ) – (10,389 )
Adjusted EBITDA $ 171,362 $ (866,274 ) $ (372,852 ) $ (1,067,764 )
Stock-based compensation 333,292
Depreciation and amortization 1,356,462
Foreign exchange loss 237,018
Interest, accretion, and other financing costs 497,552
Gain on revaluation of RSUs (56,946 )
Gain on revaluation of the derivative warrant liability 158,752
Restructuring costs 27,412
Impairment of intangibles 157,464
Other income (5,094 )
Current income tax expense 7,362
Deferred income tax expense (recovery) (321,357 )
Net loss $ (3,459,681 ) 
17

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

Three months ended March 31, 2022
Technology and<br><br> related revenue Technology<br> services Corporate Total
Revenue $ 758,699 $ 10,766,282 $ – $ 11,524,981
Gross Profit 483,663 5,005,386 – 5,489,049
Selling and administrative expenses 360,987 5,122,565 652,757 6,136,309
Research and development expenses 13,106 185,979 – 199,085
Gain on contingent consideration – 103,561 – 103,561
Adjusted EBITDA $ 109,570 $ (406,719 ) $ (652,757 ) $ (949,906 )
Stock-based compensation 952,196
Depreciation and amortization 1,159,344
Foreign exchange loss 258,760
Interest, accretion, and other financing costs 472,686
Gain on revaluation of options (708,447 )
Gain on revaluation of RSUs (174,253 )
Gain on revaluation of the derivative warrant liability (886,816 )
Restructuring costs 14,381
Business acquisition costs 21,464
Other income (609 )
Current income tax expense 62,507
Deferred income tax expense (recovery) (111,203 )
Net loss $ (2,009,916 )

The comparative figures for selling and administrative expenses and research and development expenses have been adjusted for the three months ended March 31, 2022 to reflect the current quarter presentation. The selling and administrative and research and development expenses originally reported for the period ended March 31, 2022 for technology and related revenue were $2,001,535 and $199,085 respectively. The selling and administrative and research and development expenses for technology services originally reported for the period ended March 31, 2022 were $3,482,017 and $nil respectively. The adjustments were not considered material and did not affect the Company’s consolidated revenue or consolidated net loss.

13. Revenue

The Company generates revenue primarily from the delivery of technology and transcription services to its customers. Revenue from contracts with customers is disaggregated by primary geographical market, major products and services and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the Company’s reportable segments (note 12).

Three months ended March 31,
Primary geographic markets 2023 2022
Australia $ 5,445,424 $ 6,275,306
United States 4,158,513 4,677,880
United Kingdom 393,637 502,664
Canada 49,384 46,425
Other 5,613 22,706
Total $ 10,052,571 $ 11,524,981 
18

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

Three months ended March 31,
Major products/service lines 2023 2022
Technology services $ 9,159,183 $ 10,766,282
Software licenses 90,049 43,847
Support and maintenance 450,968 475,267
SaaS 25,277 21,579
Subscription 160,545 101,870
Professional services 89,037 48,093
Hardware 77,512 68,043
Total $ 10,052,571 $ 11,524,981

The Company had no customers who contributed greater than 10% of consolidated total revenues during the quarter ended March 31, 2023 (2022 – nil).

Technology services, software licenses, hardware and other revenue are recognized at a point in time, except for revenue for select customers which is recognized over time. Professional services, support and maintenance, SaaS, and subscription revenue is recognized over time.

14. Lease obligations

Below is a summary of the activity related to the Company’s lease liabilities for the three months ended March 31, 2023 and 2022:

Three months ended March 31,
2023 2022
Lease obligations, January 1 $ 1,206,248 $ 1,188,769
Interest on lease liabilities 28,985 28,889
Interest payments on lease liabilities (28,985 ) (28,889 )
Principal payments of lease liabilities (79,628 ) (37,399 )
Foreign exchange difference (13,547 ) 26,203
Total $ 1,113,073 $ 1,177,573

The Company and its subsidiaries have entered into agreements to lease office premises until 2025. The annual rent expenses for premises consist of minimum rent and do not include variable costs. The minimum payments under all agreements are as follows:

2023 $ 503,273
2024 489,206
2025 229,757
$ 1,222,236
15. Risk management for financial instruments
--- ---

The estimated fair values of cash, trade and other receivables, restricted cash, trade and other payables and accrued liabilities approximate their carrying values due to the relatively short-term nature of the instruments. The estimated fair values of current and long-term debt and obligations under finance lease also approximate carrying values due to the fact that effective interest rates are not significantly different from market.

Fair value measurements recognized in the consolidated statement of financial position must be categorized in accordance with the following levels:

a. Level 1: quoted prices (unadjusted) in active markets<br> for identical assets or liabilities;
b. Level 2: inputs other than quoted prices included in<br> Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices);<br> and
--- ---
c. Level 3: inputs for the asset or liability that are<br> not based on observable market data (unobservable inputs).
--- --- 
19

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

The Company’s financial instruments carried at fair value on the interim condensed consolidated statements of financial position consist of cash and restricted cash. Cash and restricted cash are valued using quoted market prices (Level 1). Share-based payment liability, contingent consideration, and derivative warrant liability are categorized using observable market inputs (Level 2). The Company did not value any financial instruments using valuation techniques based on non-observable market inputs (Level 3) as at March 31, 2023.

Liquidityrisk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach in managing liquidity is to ensure, to the extent possible, that it will have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, by continuously monitoring actual and budgeted cash flows.

The Company has sustained losses over the last number of periods and has financed these losses mainly through a combination of equity and debt offerings. Management believes that it has raised sufficient cash to meet all of its contractual debt that is coming due within twelve months and has the ability to fund any operating losses that may occur in the upcoming periods.

Creditrisk

Credit risk arises from the potential that a customer or counterparty will fail to perform its obligations. The Company is exposed to credit risk from its customers; however, the Company has a significant number of customers, minimizing the concentration of credit risk. Further, a large majority of the Company’s customers are economically stable organizations such as government agencies or departments with whom the Company transacts with on a regular basis, further reducing the overall credit risk. Historically, the Company has suffered losses under trade receivables. In order to minimize the risk of loss from trade receivables, the Company’s extension of credit to customers involves review and approval by senior management and conservative credit limits for new or higher risk accounts.

The Company reviews its trade receivable accounts regularly and writes down these accounts to their expected realizable values, by making an allowance for expected credit losses based on aging and historic collection of receivables. The allowance is recorded as an expense in the interim condensed consolidated statements of loss and comprehensive loss. Shortfalls in collections are applied against this provision. Estimates for allowance for expected credit losses are determined by a customer-by-customer evaluation of collectability at each balance sheet reporting date, taking into account the amounts that are past due and any available relevant information on the customers’ liquidity and going concern issues. Normal credit terms for amounts due from customers call for payment within 30 to 60 days.

The Company’s exposure to credit risk for trade receivables by geographic area was as follows:

March 31, 2023 December 31, 2022
United States 52 % 48 %
Australia 31 % 29 %
United Kingdom 10 % 16 %
Rest of world 7 % 7 %
100 % 100 %

Interestrate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company’s interest rate risk is primarily related to the Company’s interest-bearing debts on its interim condensed consolidated statement of financial position. The Company does not have a material amount of long-term debt with variable interest rates, thereby minimizing the Company’s exposure to cash flow interest rate risk.

Foreigncurrency risk

Foreign currency risk arises because of fluctuations in exchange rates. The Company conducts a significant portion of its business activities in foreign currencies, primarily the U.S. and Australian dollars and Great Britain pounds with a large portion of the Company’s sales and operating costs being realized in these foreign currencies. The Company’s objective in managing its foreign currency risk is to minimize its net exposure to foreign currency cash flows by transacting, to the greatest extent possible, with third parties in Great Britain pounds, Canadian, U.S., and Australian dollars.

20

VIQ Solutions Inc.

Notes to Interim Condensed Consolidated Financial Statements

(Expressed in United States dollars)

The financial assets and liabilities that are denominated in foreign currencies will be affected by changes in the exchange rate between the United States dollar and these foreign currencies. This primarily includes cash, restricted cash, trade and other receivables, trade and other payables, provisions and obligations under finance lease which were denominated in foreign currencies.

The Company’s Australian subsidiaries have a majority of revenue and expenses being transacted in Australian dollars. As of March 31, 2023, fluctuations of the Australian dollar relative to the United States dollar of 5% would result in an exchange gain or loss on the net financial assets, impacting the Company’s comprehensive income by approximately $9,000 (2022 - $25,000).

The Company’s Canadian operations are exposed to exchange rate changes in the U.S. dollar relative to the Canadian dollar since a substantial portion of this business unit’s sales are denominated in U.S. dollars with most of the related expenses in Canadian dollars. A 5% fluctuation of the U.S. dollar would result in an exchange gain or loss on the net financial assets of approximately $32,000 as at March 31, 2023 (2022 - $16,000).

The Company’s UK subsidiaries are exposed to exchange rate changes in the Great Britain pound relative to the United States dollar since a portion of this business unit’s sales are denominated in Great Britain pounds with most of the related expenses in United States dollars. A fluctuation of the Great Britain pound of 5% would result in an exchange gain or loss on the net financial assets of approximately $4,000 as at March 31, 2023 (2022 - $2,000).

The Company does not currently use foreign exchange contracts to hedge its exposure of its foreign currencies cash flows as management has determined that this risk is not significant at this point in time. The Company recognized a foreign exchange loss from operations of $237,018 for the three months ended March 31, 2023 (2022 - $258,760).

Capitalmanagement

The Company considers its capital structure to consist of shareholders’ equity and long-term debt. The Company’s objective in managing capital is to ensure sufficient liquidity to pursue its organic growth strategy, fund research and development and undertake selective acquisitions, while at the same time taking a conservative approach toward financial leverage and management of financial risk.

15. Seasonality

Interim period revenues, gross profit and net income or loss are not necessarily indicative of the results of operations for the full fiscal year. Within the Company’s Technology Services segment, the Company has identified that the first and fourth quarter revenues are generally lower than revenues generated during other interim periods, specifically due to decreased historic revenues in the months of December and January related to annual holidays.

21

Exhibit 99.3

VIQ Solutions Inc.

Q1 2023 Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Expressed in United States dollars)

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

The following Management’s Discussion and Analysis (“MD&A”) comments on the financial condition and results of operations of VIQ Solutions Inc. for the three months ended March 31, 2023. This MD&A should also be read in conjunction with our annual MD&A and audited financial statements for the years ended December 31, 2022, and 2021, which we prepared in accordance with IFRS and are available on SEDAR at www.sedar.com and filed as an Exhibit to our Annual Report on Form 20-F and Form 20-F/A available on EDGAR at www.sec.gov/edgar.

Certain information included herein is forward-looking and based upon assumptions and anticipated results that are subject to substantial risks and uncertainties. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results may vary significantly from those expected. See “Forward-Looking Statements” and “Risk Factors”. The information in this MD&A is provided as of May 10, 2023, unless otherwise indicated.

Unless the context otherwise requires, all references to “VIQ”, “Company”, “VIQ Solutions”, “our”, “us”, and “we” refer to VIQ Solutions Inc. and its subsidiaries.

All amounts herein are presented in United States dollars, unless otherwise indicated.

Forward-LookingStatements

This MD&A contains forward-looking statements about our expected achievements, the recovery of the global economy, the impacts of COVID-19, the timing of disclosure related to key performance indicators, the use of future cash and capital allocation, the remediation of material weaknesses in internal controls, the future adoption of technology, the future success of our business and technology strategies, performance, goals, and other future events. Management’s assessment of future plans and operations, cash flows, methods of financing and the ability to fund financial liabilities and the timing of and impact of adoption of IFRS and other accounting policies may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, the risks identified below.

Therefore, the Company’s actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although the Company currently 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 such statements are subject to substantial risks and uncertainties. The Company 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 document and other documents filed by the Company, assumptions have been made regarding, among other things: the expected impact of increasing competition; the general stability of the economic and political environment in which the Company operates, including significant changes in demand from the Company’s clients as a result of the impact of a global economic crisis and capital markets weakness; the risk of potential non-performance by counterparties, including but not limited to, clients and suppliers, during uncertain economic conditions; the Company’s dependence on a limited number of clients; the Company’s dependence on industries affected by rapid technological change; the Company’s ability to successfully manage its operations internationally including in the United Kingdom, Australia and the United States; the challenge of managing its financial exposures to foreign currency fluctuations; the Company’s ability to obtain and retain qualified staff and services in a timely and cost-efficient manner; the Company’s ability to obtain financing on acceptable terms when needed, including anticipated sources of funding of working capital and financial losses which may include securing credit facilities, accessing new equity, corporate acquisitions or business combinations or joint venture arrangements; the ability to secure new contracts on terms acceptable to the Company; the ability to successfully develop new products; the Company’s ability to effectively register, for protection, its new and existing technologies and products in certain jurisdictions; the Company’s ability to protect new and existing products from proprietary infringement by third parties and its ability to effectively enforce such proprietary infringements; taxes in the jurisdictions in which the Company operates, including Canada, the United Kingdom, Australia and the United States; and the Company’s ability to successfully market its products. Readers are cautioned that the foregoing list of factors is not exhaustive.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 1 |

| --- | --- |

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

The purpose of the forward-looking statements is to provide the reader with a description of management’s current expectations regarding the Company’s 2023 outlook and may not be appropriate for other purposes. Readers are encouraged to read the section entitled “Risk Factors” in this MD&A and the section entitled “Risk Factors” in the Company’s annual report on Form 20-F filed with the SEC for a broader discussion of the factors that could affect its future performance. Furthermore, the forward-looking statements contained in this document are made as at the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

ProForma Information

This MD&A also contains pro forma financial information, including with respect to annual recurring revenue (“ARR”) as at March 31, 2023 and December 31, 2022. The Company believes the pro forma results presented provide relevant and useful information for investors because they clarify the Company's operating performance, make it easier to compare the Company's results with those of other companies and allow investors to review performance in the same way as the Company's management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of the Company's performance, and they may not be comparable to similarly named measurements from other companies. The Company disclaims any intention or obligation to update or revise any pro forma financial information contained in this MD&A, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the pro forma financial information contained in this MD&A should not be used for purposes other than for which it is disclosed herein.

Trademarks

This MD&A includes trademarks, such as “CapturePro”, “aiAssist” and “NetScribe”, which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this MD&A may appear without the ® or ™ symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names and services marks to the fullest extent under applicable law. Trademarks which may be used in this MD&A, other than those that belong to VIQ, are the property of their respective owners.

Non-IFRSMeasures

The 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.

We use the following non-IFRS financial performance measures in our MD&A:

● Adjusted<br> EBITDA
● EBITDA
--- ---
● Annual<br> Recurring Revenue (“ARR”)
--- ---
● Bookings
--- ---
● Average<br> Technology Services Revenue per Day
--- ---
● Technology<br> Services Cost of Sales per Minute of Audio
--- ---
● Gross<br> Margin for Technology Services
--- ---
● Gross<br> Margin for Technology and related revenue
--- --- 
| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 2 |

| --- | --- |

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

For a detailed description of each of the non-IFRS measures and ratios used in this MD&A and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the “Key Operating Metrics – Non-IFRS Measures” section of this MD&A. The non-IFRS measures and ratios set out in this MD&A are intended to provide additional information to investors and do not have any standardized meaning under IFRS, and therefore may not be comparable to other issuers, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Overview

VIQ Solutions is a leading provider of capture software and cloud-based transcription workflow automation solutions to assist government agencies and commercial enterprises securely digitize information-intensive voice and video content.

Our technology, which delivers a seamless, proprietary workflow and documentation platform securely captures, transforms, distributes, and manages complex digital voice and video content for over 4,901 active clients in the criminal justice, legal, insurance, media, government, and financial services verticals. We have operations in the United States (U.S.), Canada, Australia, and Europe.

Our scalable technology utilizes Artificial Intelligence (“AI”) designed to ingest significant amounts of evidentiary content to produce accurate, verbatim, diarized transcripts for mission critical events that have lasting financial and social impacts. Over the past twelve months, our platforms processed over 17.5 million minutes of recorded, multi-speaker, multi-channel audio and video and created approximately 9.3 million pages of secure, industry specific evidence documentation creating actionable information for use by our clients.

Our technology solutions are proven to deliver productivity enhancements, which drive down our overall production costs and speed of delivery, leading to meaningful gross margin improvements. Our automated workflow has enabled profitable growth while improving the overall service levels, strengthening our AI learning, and bolstering our competitive advantage.

Revenue

The recurring nature of our revenue base is a key indication of performance. Most of our revenue is tied to major contracts and is expected to remain generally the same or increase in terms of the overall contribution to the Company. Also, these contracts are tied to government entities and multinational Fortune 500 companies that provide little credit risk and accordingly provide a reliable revenue stream.

Our revenue comes from transcription services, software-as-a-service (SaaS), software license fees, support and maintenance and other recurring fees, professional service fees, and hardware sales. Transcription service revenue consists of fees charged for editing documentation services provided to our clients. Technology service revenue consists of fees charged for automated transcription services. Software-as-a-service (SaaS) allows customers to use hosted software over a term without taking possession of the software and is provided on a subscription basis. Software license revenue is comprised of license fees charged for the use of our software products generally licensed under perpetual arrangements and to a lesser extent sale of third-party software licenses. These license sales are larger contracts with longer sales cycles and are more variable in nature. Support and maintenance and other recurring revenue primarily consist of fees charged for client support on our software products post-delivery. Professional service revenue consists of fees charged for customization, implementation, integration, training, and ongoing services associated with our software products and technology services. Hardware revenue includes the resale of third-party hardware that forms part of our client solutions. Occasionally, our clients may purchase a combination of software, maintenance, professional services, and hardware, although the type, mix and quantity vary by client to create a solution for the client’s unique requirements.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 3 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

Costof Sales

Cost of sales consists primarily of staff costs, independent contractors, professional services, the cost of hardware and third-party licenses to fulfill client arrangements.

Sellingand Administrative Expenses

Selling and administrative expenses consist of personnel and related costs for our sales and marketing functions, including salaries and benefits, contract acquisition costs including commissions earned by sales personnel, direct marketing campaigns, public relations, and other promotional activities. Selling and administrative expenses also consist primarily of personnel and related costs associated with the administrative functions of our business including corporate, finance, and internal information system support as well as legal, accounting, other professional fees, investor relations, occupancy costs and insurance.

We continue to invest globally in sales, marketing, and business development to continue to diversify across segments, industries and geographies building awareness of global brand to increase our future revenue growth opportunities.

Researchand Development Expenses

Research and development expenses include personnel and related costs for ongoing research, development, and product management initiatives.

BusinessOverview of Q1 2023

As per previous continuous disclosures, the first quarter of every year is where the seasonality in Australia courts has the highest impact on revenue.

● $2.8M<br> in net new bookings sold for the quarter, representing 69% increase from Q1 2022.
● First<br> active installations of NetScribe sold in India for an international transcription company.
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● First<br> quarter of full implementation of Queensland contract in Australia.
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● Initial<br> sales closed in the ORdigiNAL agreement.
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● Launched<br> CapturePro Mobile.
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Q1 2023 reflects a more stable operation, having completed the migration to the new Queensland agreement and regular operating cadence for the contract. As expected, the new contract, which is shared between two vendors, had lower volumes than the Auscript contract for the same services, resulting in an impact of approximately $1.2M in reduced revenue for Courts in Australia. This amount represented 81% of the revenue variance against Q1 2022. This combined with the negative impact of foreign currency exchange would have normalized quarter over quarter with slight growth in Australia and a slight decline in our U.S. revenue.

As we pivot to meet market demand for more SaaS solutions, there will be a positive impact to the revenue mix for organic and run rate revenue. This change will protect the long-term revenue of the company and expected to lead to significant margin improvement but may impact top line revenue negatively in the short term.

We also experienced a slower than expected return to pre-covid volumes in U.S. Insurance and Criminal Justice verticals. We are seeing the volumes return to early 2022 levels and the capacity to meet turnaround times which we believe will return the revenue base by increasing the average revenue per file.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 4 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

In Q1 2023, we announced the award of another major insurance agreement that began implementations late in the quarter. The revenue from this customer will begin to be realized later in Q2 2023 and into second half of the current year.

In Australia, we began the process of migrating targeted Court customers to move to NetScribe over the course of 2023 and early 2024. While it is early in the migration, indications show that the margin gain expectations should align with the projections in the U.S. as the utilization of the technology and the training of new editors institutionalizes the primary operations throughout Australia.

Also, we began the deployment of our new speak-to-text technology. We remain committed to our strategy to deploy the best available technologies and tools that allow us to focus on the customizations to our core segments. The results that we gain in our gross margin will continue to align with driving improvements in creating the most usable drafts in the most complex applications such as Legal and Criminal Justice. This improves our services margins but also accelerates the demand for our SaaS products.

We launched our new division, Request-for-Service, which focuses on the transactional growth available in the markets we service where data sovereignty is not a requirement. This segment allows us to focus on available capacity across all geographies to deliver accurate and fast content to business-to-business customers.

KeyOperating Highlights during the three months ended March 31, 2023

● Total<br> revenue for the three months ended March 31, 2023, was $10,052,571, a decrease of $1,472,410<br> or 13% from $11,524,981 recognized in the comparative period in 2022. The expected contractual<br> change in the Queensland contract accounted for the majority of the decrease.
● Gross<br> profit for the three months ended March 31, 2023, was $4,427,957 representing 44.0%<br> of revenue versus 47.6% of revenue in the comparative period in 2022. The decrease in gross<br> profit is attributed to the expected contractual change in the Queensland contract.
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● Net loss<br> for the three months ended March 31, 2023, was $3,498,534 an increase of $1,488,618<br> or 74% from a net loss of $2,009,916 recognized in the comparative period in 2022.
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● Adjusted<br> EBITDA^[3]^,<br> for the three months ended March 31, 2023, was a deficit of $1,067,764, an increase<br> of $117,859, from an Adjusted EBITDA deficit of $949,906 recognized in the comparative period<br> in 2022. The increase in Adjusted EBITDA deficit was primarily due to decreased gross profit<br> versus comparative period 2022. The increase in Adjusted EBITDA deficit was partially offset<br> by decreased selling and administrative expenses primarily due to lower insurance premiums,<br> reduction in IT related costs as a result of system integrations and lower headcount related<br> costs due to organizational restructuring.
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^[1]^ Annual Recurring Revenue is a non-IFRS measure. Please refer to the section entitled “Non-IFRS Measures.”

^[2]^ Bookings is a non-IFRS measure. Please refer to the section entitled “Non-IFRS Measures.”

^[3]^ Adjusted EBITDA is earnings before stock-based compensation, depreciation, amortization, interest expense, accretion and other financing costs, gain on revaluation of options, RSUs, and derivative warrant liability, restructuring costs, impairment of intangibles, business acquisition costs, other income, foreign exchange loss, and current and deferred income tax expense (recovery), is a non-IFRS measure. Please refer to the section entitled “Non-IFRS Measures.”

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 5 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

Resultsof Operations

Key financial performance indicators that we use to manage our business and evaluate our financial results and operating performance include revenue, expenses, net income (loss) and Adjusted EBITDA. We evaluate our performance on these metrics by comparing our actual results to management budgets, forecasts, and prior period performance.

The following table sets forth a summary of our results of operations for the three months ended March 31, 2023, and 2022:

Unaudited

Three<br> months ended <br> March 31 Period<br> over Period <br> Change
2023 2022 %
Revenue 10,052,571 11,524,981 ) (13 )
Cost of sales 5,624,614 6,035,932 ) (7 )
Gross profit 4,427,957 5,489,049 ) (19 )
Gross margin % 44.0 % 47.6 %
Expenses
Selling and administrative expenses 5,361,301 6,136,309 ) (13 )
Research and development expenses 144,809 199,085 ) (27 )
Loss (Gain) on contingent consideration (10,389 ) 103,561 ) (110 )
Stock-based compensation 333,292 952,196 ) (65 )
Depreciation 226,159 135,714 67
Amortization 1,130,303 1,023,630 10
Interest expense 333,836 339,713 ) (2 )
Accretion and other financing costs 163,716 132,973 23
Gain on revaluation of options - (708,447 ) (100 )
Gain on revaluation of RSUs (56,946 ) (174,253 ) (67 )
Gain (Loss) on revaluation of the<br> derivative warrant liability 158,752 (886,816 ) (118 )
Restructuring Costs 27,412 14,381 91
Impairment of Intangibles 157,464 - 100
Business acquisition costs - 21,464 ) (100 )
Other income (5,094 ) (609 ) ) 736
Foreign exchange loss 237,018 258,760 ) (8 )
Loss before income taxes (3,773,676 ) (2,058,612 ) ) 83
Current income tax recovery (expense) (7,362 ) (62,507 ) (88 )
Deferred income tax recovery (expense) 321,357 111,203 189
Income tax recovery (expense) 313,995 48,696 545
Net Loss (3,459,681 ) (2,009,916 ) ) 72
Adjusted EBITDA (3) (1,067,764 ) (949,906 ) ) 12
Weighted average number of common shares outstanding
Basic 34,649,697 29,881,717
Diluted 34,649,697 29,881,717
Net income (loss) per share
Basic (0.10 ) (0.07 )
Diluted (0.10 ) (0.07 )

All values are in US Dollars.

^3^Adjusted EBITDA is earnings before stock-based compensation, depreciation, amortization, interest expense, accretion and other financing costs, gain on revaluation of options, RSUs, and derivative warrant liability, restructuring costs, impairment of intangibles, business acquisition costs, other income, foreign exchange loss, and current and deferred income tax expense (recovery), is a non-IFRS measure. Please refer to the section entitled “Non-IFRS Measures.”

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 6 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

Comparisonof the three months ended March 31, 2023, and 2022

Revenue

Total revenue for the three months ended March 31, 2023, was $10,052,571, a decrease of $1,472,410, or 13%, from $11,524,981 recognized in the comparative period in 2022. The decrease in revenue for the three months ended March 31, 2023 was primarily due to lower technology service revenue generated from Australia Courts. The decrease is primarily attributed to the expected change in the Queensland contract, where in Q1 2022 we had all the volumes versus approximately half starting October 2022 where the contract is now shared with another Transcription service provider, as disclosed in Q4 2022 MD&A. The decrease in revenue was partially offset by higher technology sales than comparative period 2022.

Our revenue was impacted negatively by approximately $0.4M due to the weakening Australia and UK currencies in comparison to the USD.

Costof Sales

Cost of Sales for the three months ended March 31, 2023, decreased by $411,318, or 7%, to $5,624,614, from $6,035,932 for the comparative period in 2022. The decrease in Cost of Sales for the three months ended March 31, 2023 is primarily due to lower technology service revenue than comparative period 2022. Our Cost of Sales for the three months March 31, 2023 was impacted positively by approximately $0.2M due to weakening Australia and UK currencies in comparison to the USD.

GrossProfit

Gross Profit for the three months ended March 31, 2023, decreased by $1,061,092 or 19%, to $4,427,957, from $5,489,049, for the comparative period in 2022. Gross Profit for the three months ended March 31, 2023 represented 44.0% of revenue versus 47.6% of revenue in the comparative period in 2022. The decrease in Gross Profit for the three months ended March 31, 2023 is primarily due lower revenue than comparative period 2022. Our Gross Profit for the three months ended March 31, 2023 was impacted negatively by approximately $0.2M due to the weakening Australia and UK currencies in comparison to the USD.

Sellingand Administrative Expenses

Selling and Administrative Expenses for the three months ended March 31, 2023, decreased by $775,008, or 13%, to $5,361,301, from $6,136,309, for the comparative period in 2022. The decrease for the three months ended March 31, 2023, is primarily due to a decrease in headcount related costs due to organizational restructuring, lower insurance premiums and reduction in IT related costs as a result of system integrations with Q4 2021 acquisitions.

Researchand Development Expenses

Research and Development Expenses for the three months ended March 31, 2023, decreased by $54,276, or 27%, to $144,809, from $199,085, for the comparative period in 2022. The decrease in Research and Development Expenses for the three months ended March 31, 2023, is primarily due to lower project costs than the comparative period in 2022.

Loss(Gain) on Contingent Consideration

For the three months ended March 31, 2023, Contingent Consideration changed by $113,950, from a loss of $103,561 recognized in the comparative period in 2022 to a gain of $10,389. The change for the three months ended March 31, 2023, is mainly due to changes in anticipated acquisition earnout payments primarily as a result of revised forecasted revenue for the wordZXpressed, Inc. (“WordZ”) acquisition. Revenue forecasts are updated on a quarterly basis and the related anticipated acquisition earnout payment accruals are updated accordingly.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 7 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

Stock-BasedCompensation

For the three months ended March 31, 2023, Stock Based Compensation decreased by $618,904 to $333,292 from $952,196, recognized in the same period of 2022. The decrease in Stock Based Compensation is due to lower fair value of options recorded on options granted during 2022 versus 2021 due to decline in share price which are expensed over the vesting period. Included in the Stock Based Compensation during the current quarter was approximately $150,000 of accelerated expense due to the voluntary cancellation of options by certain employees and directors.

Depreciation

For the three months ended March 31, 2023, Depreciation increased by $90,445, to $226,159 from $135,714 recognized in the comparative period in 2022. The increase in depreciation for the three months and year ended March 31, 2023, is due primarily to the addition of property and equipment purchased in 2022.

Amortization

For the three months ended March 31, 2023, Amortization increased by $106,673, to $1,130,303, from $1,023,630 recognized in the comparative period in 2022. The increase in amortization for the three months ended March 31, 2023, is mainly attributable to higher amortization on capitalized internally generated intangible assets due to the timing of projects.

InterestExpense

For the three months ended March 31, 2023, Interest Expense decreased by $5,877, to $333,836, from $339,713 recognized in the comparative period in 2022. The decrease in Interest Expense for the three months ended March 31, 2023, is primarily due to lower debt outstanding offset by higher interest rate on new Beedie secured debt.

Accretionand Other Financing Costs

For the three months ended March 31, 2023, Accretion and Other Financing Costs increased by $30,743, to $163,716, from $132,973 recognized in the comparative period in 2022. The increase in Accretion and Other Financing Costs for the three months ended March 31, 2023 is due refinancing of secured debt facility which resulted in higher financing costs in comparison to previous debt facility.

Gainon Revaluation of Options

For the three months ended March 31, 2023, Gain on Revaluation of Options decreased by $708,447. The decrease is due to the forfeiture of options that were cash-settled options which resulted in no gain on revaluation of options being required for the current quarter.

Gainon Revaluation of RSUs

For the three months ended March 31, 2023, Gain on Revaluation of RSUs decreased by $117,307 to $56,946, from $174,253 recognized in the comparative period in 2022. This decrease is due to a reduced gain on revaluation of RSUs compared to prior quarter due to increase in stock price during Q1 2023.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 8 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

Gain(Loss) on Revaluation of Derivative Warrant Liability

For the three months ended March 31, 2023, Revaluation of Derivative Warrant Liability decreased from a gain of $886,816 to a loss of $158,752. The loss on Revaluation of Derivative Warrant Liability for the three months ended March 31, 2023 is due to an increase in share price on an increased number of warrants which resulted in a loss being recorded.

RestructuringCosts

For the three months ended March 31, 2023, Restructuring Costs increased by $13,031, to $27,412, from $14,381 recognized in the comparative period in 2022. The increase in Restructuring Costs for the three months ended March 31, 2023 is due to higher organizational restructuring costs.

Impairmentof Intangibles

For the three months ended March 31, 2023, Impairment of Intangibles increased by $157,464, recognized due to write-off of capitalized development costs related to a project that has been discontinued in order to focus resources on other development projects such as NetScribe for Australia court customers.

BusinessAcquisition Costs

There were no business combinations in the current period or in the prior year. For the three months ended March 31, 2023, Business Acquisition costs decreased by $21,464, to $nil from $21,464 recognized in the comparative period in 2022. The decrease in Business Acquisition Costs for the three months ended March 31, 2023, is primarily due lower business acquisition costs incurred than comparative period 2022.

OtherIncome

For the three months ended March 31, 2023, Other Income increased by $4,485, to $5,094, from $609 recognized in the comparative period in 2022. The increase in Other Income for the three months ended March 31, 2023, is due to higher interest earned on term deposits.

ForeignExchange Loss

For the three months ended March 31, 2023, Foreign Exchange Loss decreased by $21,742, to $237,018, from $258,760 recognized in the comparative period in 2022. The gain/loss on foreign exchange is due to fluctuations in the foreign exchange rates. Our businesses are organized geographically so many of our expenses are incurred in the same currency as our revenues, which mitigates some of our exposure to currency fluctuations. Foreign exchange gain and losses are primarily related to the unrealized foreign translation gains and losses of certain USD, AUD and GBP denominated working capital balances to CAD and USD denominated working capital balances to AUD.

IncomeTax Recovery

We operate globally and we calculate our tax provision in each of the jurisdictions in which we conduct business. Our effective tax rate on a consolidated basis is, therefore, affected by the realization and anticipated relative profitability of our operations in those various jurisdictions, as well as different tax rates that apply and our ability to utilize tax losses and other credits. For the three months ended March 31, 2023, Income tax recovery, increased by $265,299 to a tax recovery of $313,995, from a tax recovery of $48,696 in the comparative period in 2022. The increase for the three months ended March 31, 2023 is mainly due to set up of deferred tax assets for tax losses for Australian subsidiaries.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 9 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

NetLoss and Earnings Per Share

Net loss for the three months ended March 31, 2023, was $3,459,681 compared to net loss of $2,009,916, for the same period in 2022. On a per weighted average share basis, this translated into a net loss per share of $0.10 in the three months ended March 31, 2023, compared to a net loss per weighted average share of $0.07 for the comparative period in 2022.

QuarterlyResults of Operations

The following table sets out selected financial information for each of the eight most recent quarters, the latest of which ended March 31, 2023. Our quarterly operating results have historically fluctuated significantly and may continue to fluctuate significantly in the future. Therefore, we believe that past operating results and period to period comparisons should not be relied upon as an indication of the Company’s future performance.

(unaudited)
Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 Jun-21
Revenue 10,052,571 10,181,580 11,785,713 12,351,655 11,524,981 7,514,421 7,086,357 8,191,812
Net<br> income (loss) (3,459,681 ) (2,168,022 ) (1,329,940 ) (3,198,138 ) (2,009,916 ) (3,653,793 ) (3,859,505 ) (10,498,662 )
Weighted average number of shares outstanding:
Basic 34,649,697 34,003,334 32,749,800 28,653,056 29,881,717 29,880,185 26,359,517 25,029,019
Diluted 34,649,697 34,003,334 32,749,800 28,653,056 29,881,717 29,880,185 26,359,517 25,029,019
Net income (loss) per share:
Basic (0.10 ) (0.06 ) (0.04 ) (0.11 ) (0.07 ) (0.12 ) (0.15 ) (0.42 )
Diluted (0.10 ) (0.06 ) (0.04 ) (0.11 ) (0.07 ) (0.12 ) (0.15 ) (0.42 )

Key factors that account for the fluctuation in quarterly results include the variability in the Company’s revenue due to timing of acquisitions and seasonality of revenue. Seasonality impacts the transcription services industry in some cases by summer holiday seasons, such as court closings in January in Australia, and the Thanksgiving and December holidays in the U.S., Canada, and the UK. It also has a slight impact in the U.S. summer period. Our quarterly results may also fluctuate as a result of the various acquisitions which may be completed by the Company in any given quarter. We may experience variations in our net income(loss) on a quarterly basis depending upon the timing of certain expenses or gains, which may include changes in provisions and acquired contract liabilities.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 10 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

KeyOperating Metrics – Non-IFRS Measures

ARR

Metric: The ARR has decreased to $41.5M from $42.7M reported in the previous quarter. The decrease in ARR is primarily due to anticipated changes in volume to Criminal Justice and the expected contractual change in the Queensland contract, which was fully migrated to the new contract as of Oct 10, 2022. In addition, the ARR was impacted by capacity constraints in quality assurance, as we expand our global capacity and retrain resources. Also, ARR impacted by reduction in demand in Insurance and Criminal Justice verticals and the weakening Australian dollar.

MeasureDefinition ARR: is the annualized equivalent value of the (i) software support maintenance, (ii) software subscription (iii) SaaS and (iv) technology services revenue of all existing contracts as of the date being measured. This excludes non-recurring revenue from implementation, support, and maintenance fees. The majority of our editing services contracts are volume based. Accordingly, our calculation of ARR assumes that the clients will renew the contractual commitments on a periodic basis as those commitments come up for renewal. A portion of the contract renewals are through a competitive tender process. Contracts may be subject to contract value increases upon renewal reflecting both inflationary increases and the additional value and added products and services provided by our solutions. ARR is not adjusted for the impact of any projected future client cancellations, loss of renewals, service upgrades or downgrades or price increases or decreases.

The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate its operating performance. We believe ARR is useful supplemental information as it provides a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring client contracts. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company’s operating performance.

This measure provides a fair real-time measure of the performance in a volume and subscription-based environment. ARR provides us with the visibility for consistent and predicable growth to our cash flows. Our total revenue, ARR and bookings allow us to look at the strength of the expansion of our business on a go forward basis.

At March 31, 2023 – Reconciliationof 2022 Technology Services, Support and Maintenance, SaaS, and Subscription revenues to ARR

2023
Technology Services 41,812,479
Support & Maintenance 1,872,620
SaaS 89,692
Subscription 493,845
Add: Client Adjustments (2,786,314 )
Total Annual Recurring Revenue $ 41,482,322 
| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 11 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

At December 31,2022 – Reconciliation of 2022 Technology Services, Support and Maintenance, SaaS, and Subscription revenues to ARR

2022
Technology Services 41,812,479
Support & Maintenance 1,872,620
SaaS 89,692
Subscription 493,845
Add: Client Adjustments (1,532,468 )
Total Annual Recurring Revenue $ 42,736,168

AdjustedEBITDA

Measure Definition:

To evaluate the Company’s operating performance as a complement to results provided in accordance with IFRS, the term “Adjusted EBITDA”, as defined by management, refers to net income (loss) before stock-based compensation, depreciation, amortization, interest expense, accretion and other financing costs, gain on revaluation of options, gain on revaluation of RSUs, gain on revaluation of derivative warrant liability, restructuring costs, impairment of intangibles, business acquisition costs, other expense (income), foreign exchange (gain) loss, current and deferred income tax expense (recovery). We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the recurring operating performance of the Company. “EBITDA” is a non-IFRS financial measure and is not a standardized financial measure under the financial reporting framework used to prepare the financial statements of the Company and accordingly might not be comparable to similar financial measures disclosed by other issuers. To evaluate the Company’s operating performance as a complement to results provided in accordance with IFRS, the term “EBITDA”, as defined by management, refers to earnings before depreciation, amortization, interest expense, current and deferred income tax expense (recovery).

The Corporation believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate its operating performance. We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities prior to taking into consideration how those activities are financed, taxed and expenses related to stock-based compensation, depreciation, amortization, restructuring costs, acquisition, 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’s operating performance.

The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net income (loss) as determined in accordance with IFRS. These non-IFRS measures should be read in conjunction with the financial statements of the Company.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 12 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

The following is a reconciliation of Net Loss the most directly comparable IFRS measure to Adjusted EBITDA, for the three months ended March 31, 2023, and 2022:

Three<br> months ended <br> March 31
(Unaudited) 2023 2022
Net Loss (3,459,681 ) (2,009,916 )
Add:
Depreciation 226,159 135,714
Amortization 1,130,303 1,023,630
Interest expense 333,836 339,713
Current income tax (recovery) expense 7,362 62,507
Deferred income tax recovery (321,357 ) (111,203 )
EBITDA (2,083,378 ) (559,555 )
Accretion and other financing costs 163,716 132,973
Gain on revaluation of options - (708,447 )
Gain on revaluation of RSUs (56,946 ) (174,253 )
Gain (Loss) on revaluation of the<br> derivative warrant liability 158,752 (886,816 )
Impairment of Intangibles 157,464 -
Restructuring Costs 27,412 14,381
Business acquisition financing<br> costs - 21,464
Other expense (income) (5,094 ) (609 )
Stock-based compensation 333,292 952,196
Foreign exchange loss 237,018 258,760
Adjusted EBITDA (1,067,764 ) (949,906 )

Bookings

MeasureDefinition: We calculate “Bookings” for a given period as the estimated contract value (for services tied to volume) of our recurring client contracts entered into during the period from (i) new clients and (ii) net upgrades by existing clients within the same workload, plus the actual (not annualized) estimated value of professional services consulting, advisory or project-based orders received, software licenses, subscriptions, SaaS, and hardware during the period.

Recurring client contracts are any contracts entered into on a multi-year or month-to-month basis, but excluding any professional services contracts for consulting, advisory or project-based work, software license and hardware.

We use Bookings to measure the amount of new business generated in a period, which we believe is an important indicator of new client acquisition and our ability to cross-sell new services to existing clients. Bookings are also used by management as a factor in determining performance-based compensation for our sales force. While we believe Bookings, in combination with other metrics, are an indicator of our near-term future revenue opportunity, it is not intended to be used as a projection of future revenue. Booking information is a non-IFRS measure, which involves judgments, estimates and assumptions, which does not have a standard industry definition. Our calculation of Bookings may differ from similarly titled metrics presented by other companies.

While we continue to acquire new clients, we also aim to deepen relationships with these clients through high-margin technology services and software bookings. In addition, we are investing in initiatives to drive sales productivity improvements.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 13 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

(unaudited)

**** Q1 2023 Q1 2022 Q4 2022
Bookings $ 2,808,017 $ 1,659,993 $ 608,245

As our segments recover from Covid, bookings continue to see strong growth, overall bookings were up 69% percent over Q1 2022 and 362% over Q4 2022.

AverageTechnology Services Revenue per Day

MeasureDefinition: Average Technology Service Revenue per Day is calculated by region based on the total technology services revenue divided by the total billing days during the period. This number is highly impacted by seasonality and should be looked at for monthly trends. As an example, average revenue per day will likely drop in November and December in the US and December and January in Australia and the UK. The billing days represents billing days excluding statutory holidays and court closures in Australia and the UK.

(unaudited)

U.S. Q1 2023 Q1 2022 Q4 2022
Technology Services<br> Revenue $ 3,966,846 $ 4,551,571 $ 3,779,778
Number of Billing Days 62 61 62
Average Technology Services Revenue per Day $ 63,981 $ 74,616 $ 60,964

Q1 2023 Average Technology Services Revenue per day increased when compared to Q4 2022, however, Average Technology Services Revenue per day decreased compared to Q1 2022 primarily due to the impact of FirstDraft and Speech-to-Text services displacing Insurance Technology Services revenue. In addition, Average Technology Services Revenue per day was negatively impacted by decreases in demand from Insurance and slower than expected ramp up for Criminal Justice revenues in the U.S.

(unaudited)

Australia Q1 2023 Q1 2022 Q4 2022
Technology Services<br> Revenue $ 4,916,477 $ 5,838,753 $ 5,097,095
Average Number of Billing Days 49.7 50.5 55.9
Average Technology Services Revenue per Day $ 98,923 $ 115,658 $ 91,182

Q1 2023 Australia Technology Services Revenue decreased when compared to Q4 2022 due to seasonality and reduced number of billing days. We saw improvement in the Average Technology Services Revenue per day compared to Q4 2022 due to increase demand. The decrease in Q1 2023 revenue compared to Q1 2022 is primarily due to the expected contractual change in the Queensland contract.

(unaudited)

UK Q1 2023 Q1 2022 Q4 2022
Technology Services<br> Revenue $ 275,860 $ 375,958 $ 262,762
Number of Billing Days 64 63 63
Average Technology Services Revenue per Day $ 4,310 $ 5,968 $ 4,171

Q1 2023 UK Average Technology Services Revenue per day increased compared to Q4 2022 primarily due to the recovery of economic conditions in the courts and a greater number of billing days. The decrease in Average Technology Services Revenue per day compared to Q1 2022 is primarily due to foreign currency exchange and reduced court cases held in the UK and longer turnaround times associated with the volume produced.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 14 |

| --- | --- |

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

(unaudited)

Consolidated Q1 2023 Q1 2022 Q4 2022
Technology Services<br> Revenue $ 9,159,183 $ 10,766,282 $ 9,139,635
Average Number of Billing Days 54.8 54.9 58.5
Average Technology Services Revenue per Day $ 167,138 $ 196,242 $ 156,233

In Q1 2023 the consolidated Average Technology Services Revenue per day declined when compared to Q1 2022 is primarily due to the expected contractual change in the Queensland contract. In addition, Average Technology Services Revenue per day was negatively impacted by foreign exchange rates in Australia and the UK which weakened against USD and the impact of the slow recovery in Insurance and Criminal Justice verticals in the U.S.

TechnologyServices Cost of Sales per Minute of Audio

MeasureDefinition: Technology Services Cost of Sales per Minute of Audio is defined as the direct labor cost of edited content divided by the volume of audio content delivered. Calculation for number of minutes revised starting 2023 to include volume from additional platforms and to standardize calculation across multiple verticals.

(unaudited)

**** Q1 2023 Q1 2022 Q4 2022
Technology Services<br> Revenue $ 9,159,183 $ 10,766,282 $ 9,139,635
Cost of Sales $ 5,358,788 $ 5,760,896 $ 5,142,583
Number of Minutes 4,117,872 4,046,079 4,114,715
Technology Services Cost of Sales per Minute of Audio $ 1.30 $ 1.42 $ 1.25

Technology Services Costs per Minute of Audio continues to improve when compared to prior year quarter as a result of the efficiency gains from the deployment of NetScribe. However, overall Technology Services Cost of Sales per Minute of Audio is higher compared to Q4 2022 as cost of sales are impacted by the court closings in Australia. In addition, cost of sales has increased by hiring and training costs incurred in the preparation for the NetScribe migration in Australia, which will commence in the second half of 2023.

GrossMargin for Technology Services

MeasureDefinition: Gross Margin for Technology Services as reported.

(unaudited)

**** Q1 2023 **** Q1 2022 **** Q4 2022 ****
Technology Services<br> Revenue $ 9,159,183 $ 10,766,282 $ 9,139,635
Cost of Sales $ 5,358,788 $ 5,760,896 $ 5,142,583
Gross Margin $ 3,800,395 $ 5,005,386 $ 3,997,052
Gross Margin % **** 41.5 % **** 46.5 % **** 43.7 %

Q1 2023 Gross margin % for Technology Services decreased compared to Q1 2022 primarily due to the expected contractual change in the Queensland contract. Q1 2023 Gross margin % for Technology Services decreased compared to Q4 2022 due mainly to increased hiring and training costs.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 15 |

| --- | --- |

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

GrossMargin for Technology and related revenue

MeasureDefinition: Gross margin for technology and related revenue as reported.

(unaudited)

**** Q1 2023 **** Q1 2022 **** Q4 2022 ****
Technology Revenue $ 893,388 $ 758,699 $ 1,041,945
Cost of Sales $ 265,826 $ 275,036 $ 273,730
Gross Margin $ 627,562 $ 483,663 $ 768,215
Gross Margin % **** 70.2 % **** 63.7 % **** 73.7 %

Q1 2023 gross margin % increase compared to Q1 2022 primarily due to increase in subscription and software license sales with minimal costs associated with these sales. Decrease in gross margin % compared to Q4 2022 primarily due to lower professional service revenue associated to implementation of court hardware for one of our major Australia contracts.

KeyPerformance Indicators

VIQ Solutions monitors several KPIs to help it evaluate its business, measure its performance, identify trends affecting its business and formulate strategic plans.

AnnualDelivered Content

MeasureDefinition: We define Annual Delivered Content as the annualized equivalent of the total number of unstructured digital audio minutes transformed into client specific structured text that is delivered electronically to the clients in the form of delivered pages.

(unaudited)

Annual Delivered Content Q1 2023 Q1 2022 Q4 2022
Minutes 4,117,872 4,046,079 4,114,715
Pages 2,196,022 2,251,249 2,207,084

Overall, minutes and pages of annual delivered content for Q1 2023 remained consistent compared to Q1 2022 and Q4 2022.

Productivity

MeasureDefinition: We define Productivity as the ratio of time the top 30% of editors spend working on a particular document, including idle time, over the duration of the associated recording. This ratio is called OpenRT.

(unaudited)

Productivity Q1 2023 Q1 2022 Q4 2022
OpenRT 1:3.0 1:3.5 1:3.2

OpenRT continues to improve across as our contracted editors have more experience with the technology and the efficiency of the technology continues to improve.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 16 |

| --- | --- |

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

ActiveClients and Client Retention

MeasureDefinition: We define Active Clients as customer invoiced accounts who have an active license and technology service agreement with us that remains in effect in the twelve months ending at the specified period. The retention and expansion of our relationships with existing clients are key indicators of our revenue potential.  We started tracking this metric in Q4 2021.

(unaudited)

Active Clients Q1 2023 Q1 2022 Q4 2022
Technology 1,094 961 1,056
Technology Services 3,807 2,818 4,221
Total 4,901 3,779 5,277

Total Active Clients increases highlights the growth of our net new clients globally.

NetPromoter Score

MeasureDefinition: The Net Promoter Score (“NPS”) measures the loyalty of clients to a company. NPS scores are measured with a survey and reported with a number from the range -100 to +100, a higher score is desirable. We conduct transactional surveys which are sent out after the client interacts with VIQ. It is used to understand client satisfaction on a granular level and provide feedback about a very specific topic and are likely to recommend the Company’s services.

(unaudited)

**** Q1 2023 Q1 2022 Q4 2022
Net Promoter Score 91 86 92

The NPS shows a high probability that customers are secure and likely to recommend VIQ.

TotalNumber of Minutes of Content Processed on aiAssist

MeasureDefinition: We define the total number of minutes of content processed on aiAssist.

(unaudited)

**** Q1 2023 Q1 2022 Q4 2022
Number of Minutes of Content Processed on aiAssist 1,326,702 1,316,245 1,554,194

Q1 number of minutes of content processed on aiAssist negatively impacted by seasonality.

Liquidity

As of March 31, 2023, we held cash of $2,513,529 as compared to $3,720,281 as of March 31, 2022 and $1,657,571 as of December 31, 2022.

On January 13, 2023, the Company entered into a secured debt facility with Beedie Investments Ltd. (“Beedie”), with maximum available funds of $15 million. $12 million of the Loan has been advanced to the Company as an initial advance with an additional $3 million available to the Company to be drawn in subsequent advances in a minimum of $1 million tranches.

We believe that ongoing operations, working capital and associated cash flows in addition to our cash resources provide sufficient liquidity to support our ongoing business operations and satisfy our obligations as they become due for at least the next 12 months.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 17 |

| --- | --- |

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

Below is a summary of our cash provided by (used in) operating, investing, and financing activities for the periods indicated:

(Unaudited) Three months<br> ended March 31,
2023 2022
Cash provided by (used<br> in) operating activities (862,194 ) (893,700 )
Cash used in investing activities (597,930 ) (821,226 )
Cash provided by (used in) financing<br> activities 2,327,705 (5,180,644 )
Net increase (decrease) in cash<br> for the year 867,581 (6,895,570 )
Cash, beginning of period 1,657,571 10,583,534
Effect of foreign exchange (11,623 ) 32,317
Cash, end of period 2,513,529 3,720,281

CashProvided by (used in) Operating Activities

We utilized cash of $862,194 in operating activities for the three months ended March 31, 2023. This resulted from $3,459,681 in net loss plus $2,466,585 of non-cash adjustments and $130,902 attributable to movements in non-cash working capital.

CashProvided by (used in) Investing Activities

For the three months ended March 31, 2023, cash used in investing activities was $597,930 which consisted of purchase of property and equipment of $7,328 development costs related to internally generated intangible assets of $503,869 and earnout payout for WordZ of $86,733.

CashProvided by (used in) Financing Activities

Cash provided by Financing Activities for the three months ended March 31, 2023, was $2,327,705 which consisted of $11,018,885 of cash provided by issuance of debt and warrants net of issuance costs, cash used in repayment of debt of $8,083,582, repayment of lease obligations of $79,628, payment of interest on lease obligations of $28,985, and payment of interest on debt of $498,985.

DebtCovenants

On January 13, 2023, the Company entered a secured debt facility with Beedie Investments Ltd. ("Beedie"), with maximum available funds of $15 million. $12 million of the Loan has been advanced to the Company as an initial advance with an additional $3 million available to the Company to be drawn in subsequent advances in a minimum of US$1 million tranches, subject to certain conditions. Under the secured debt facility with Beedie, the Company is required to comply with financial covenants regarding (i) a minimum balance of unrestricted cash and cash equivalents (ii) minimum adjusted monthly EBITDA starting May 2023 and (iii) maximum total secured debt leverage ratio. As at March 31, 2023, the Company was in compliance with these financial covenants.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 18 |

| --- | --- |

VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

ContractualObligations

The following table summarizes our contractual obligations as at March 31, 2023, including commitments relating to leasing contracts:

2023 2024 2025 2026 2027 Total
Trade and other payables $ 6,170,348 $ – $ – $ – $ – $ 6,170,348
Lease obligations 503,273 489,206 229,757 – – 1,222,236
Beedie Investments Ltd. – – – – 13,530,176 13,530,176
Contingent Consideration - WordZ 150,075 – – – – 150,075
Income taxes payable 37,532 – – – – 37,532
WordZ promissory note 334,914 – – – – 334,914
HomeTech VTB loan 180,000 20,000 – – – 200,000
Total $ 7,376,142 $ 509,206 $ 229,757 $ – $ 13,530,176 $ 21,645,281

CapitalResources

Our objective in managing capital is to ensure sufficient liquidity to pursue our growth strategy, fund research and development to enhance existing product offerings as well as to develop new product offerings to maintain our competitive advantage, pursue accretive acquisitions and provide sufficient resources to meet day-to-day operating requirements, while managing financial risk. We intend to use our operating income and funds on hand to meet funding requirements for the development and commercialization of our technology products and services based on anticipated market demand and working capital purposes. Our actual funding requirements will vary depending on a variety of factors, including our success in executing our business plan, the progress of our research and development efforts, our commercial sales, and our ability to manage our working capital requirements.

Our officers and senior management are responsible for managing the capital and do so through monthly meetings and regular review of financial information. Our Board of Directors is responsible for overseeing this process. We manage capital to ensure that there are adequate capital resources while maximizing the return to shareholders through the optimization of the cash flows from operations and capital transactions.

CapitalAllocation

A significant component of our strategy is to effectively and efficiently allocate capital between opportunities that generate the highest return on our capital with the goal over time to maximize shareholder equity.

The Company's capital allocation is centered on generating organic growth, investment in technologies, mergers and acquisitions, and balance sheet deleveraging. VIQ's focus is on closing and integrating strategic and accretive acquisitions, continuing to grow and drive market share and achieve consolidation efficiencies while maturing its AI engines through technology service volumes.

Paying out dividends, or buying back stock, are not anticipated as being part of our capital allocation strategy for the immediate future. Our goal with capital allocation is to increase the earning power of the Company and reinvest the free cash flow of the business to generate more cash.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 19 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

OtherCommitments

Other commitments include operating leases for facilities. Also, occasionally we structure some of our acquisitions with contingent consideration based on the future performance of the acquired business. The fair value of contingent consideration recorded in our March 31, 2023, consolidated financial statements was $148,563 in trade and other payables and accrued liabilities. Aside from the aforementioned, we do not have any other business arrangements or any equity interests in any non-consolidated entity.

ContingentOff-Balance Sheet Arrangements

As a general practice, we have not entered into off-balance sheet financing arrangements.

TransactionsBetween Related Parties

There were no transactions between related parties for the three months ended March 31, 2023.

CriticalAccounting Policies and Estimates

General

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. These estimates and assumptions are affected by management’s application of accounting policies and historical experience and are believed by management to be reasonable under the circumstances. Such estimates and assumptions are evaluated on an ongoing basis and form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from these estimates.

Our significant accounting policies are fully described in Note 3 to our financial statements for the years ended December 31, 2022, and 2021 which are available on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar). Certain accounting policies are particularly important to the reporting of our financial position and results of operations and require the application of significant judgment by our management. An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different, estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could have a material impact on the financial statements. We believe that there have been no significant changes in our critical accounting estimates for the three months ended March 31, 2023, from the years presented in our annual financial statements for the years ended December 31, 2022, and 2021.

NewAccounting Pronouncements Adopted

We adopted the following accounting amendments that were effective for our annual consolidated financial statements commencing January 1, 2023.

● Deferred<br> Tax related assets and liabilities arising from a Single Transaction (Amendments to IAS 12)
● Disclosure<br> of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
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● Definition<br> of Accounting Estimates (Amendments to IAS 8)
--- ---

The adoption of these standards did not have a material impact to our financial results and are not expected to have a material impact in the future.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 20 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

The following new and amended standard did not have a significant impact on the Company’s consolidated financial statements.

● Reference<br> to Conceptual Framework (Amendments to IFRS 3)

InternalControls over Financial Reporting and Disclosure Controls and Procedures

DisclosureControls & Procedures

Management is responsible for establishing and maintaining a system of disclosure controls and procedures to provide reasonable assurance that all material information relating to the Company is gathered and reported to senior management, including the CEO and the CFO, on a timely basis so that appropriate decisions can be made regarding public disclosure, including to ensure that information required to be disclosed by the Company in reports that the Company files or submits under Canadian securities legislation and the U.S. Securities Exchange Act of 1934, as amended (the “U.S. Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in securities legislation. Management, under the oversight of the CEO and CFO, has evaluated the design and effectiveness of the Company’s disclosure controls and procedures as of March 31, 2023. Based on this evaluation, the CEO and the CFO concluded that, as of March 31, 2023, 2-22 the Company’s disclosure controls and procedures (as defined in National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings and in Rule 13a-15I and Rule 15d-15(e) under the U.S. Exchange Act) were ineffective as a result of material weaknesses identified in the Company’s internal control over financial reporting, which is further described below.

The Company’s disclosure controls and procedures are designed to provide reasonable assurance that material information relating to the Company is made known to us by others, particularly during the period in which the annual filings are being prepared and of achieving their objectives, and the CEO and CFO do not expect that the disclosure controls and procedures will prevent all errors and fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

Notwithstanding the material weaknesses, management has concluded that the Company’s unaudited interim condensed financial statements for the three months ended March 31, 2023, present fairly, in all material respects, the Company’s financial position, statement of loss and comprehensive loss, changes in shareholders’ equity and cash flows in accordance with IFRS.

InternalControls over Financial Reporting

Management is also responsible for establishing and maintaining adequate internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial reports for external purposes in accordance with IFRS.

There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and overriding of controls. Consequently, an effective internal control system can only provide reasonable, not absolute assurance, with respect to reporting financial information. Further, because of changes in conditions, the effectiveness of internal control over financial reporting may vary over time.

An evaluation of the design and effectiveness of the Company’s internal controls over financial reporting was carried out by management, under the supervision of the CEO and CFO. In making this evaluation, the CEO and CFO used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework (2013). Based on this evaluation, the CEO and CFO have concluded that the Company’s internal control over financial reporting was ineffective as of March 31, 2023 due to the material weaknesses described below. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 21 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

The material weaknesses that our management identified related to the following:

● the<br> Company did not have sufficient resources, including contractors, in place throughout the<br> reporting period with the appropriate training and knowledge of internal controls to monitor<br> the design, implementation and operating effectiveness of internal control over financial<br> reporting;
● the<br> Company’s review controls in various financial reporting processes did not operate<br> with sufficient precision, particularly with respect to the determination of the appropriate<br> period in which to recognize revenue and expenses;
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● the<br> Company did not maintain adequate review controls to ensure that complex accounting areas<br> such as business combinations, impairment of non-financial assets, financial instruments,<br> revenue recognition and accounting for income tax provisions were appropriately recorded<br> in accordance with IFRS; and
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● the<br> Company did not effectively design and maintain appropriate segregation of duties and controls<br> over the effective preparation, review and approval, and associated documentation of journal<br> entries.
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These material weaknesses resulted in material misstatements, which were corrected prior to the release of the consolidated financial statements as of and for the three months ended March 31, 2023.

Remediation

We intend to implement a remediation plan that involves a third-party software solution to formalize the documentation and evidence of our review and approval of subjective and higher risk journal entries in our financial reporting system including implementing improved process over cut off of transactions. We will implement more formalized documentation and evidence of review over complex accounting transactions. The plan will include the involvement of management and sufficient training of all relevant personnel. We will take the measures necessary to address the material weaknesses, which may require significant management attention, and our efforts may not prove to be successful in remediating the material weaknesses and do not guarantee that we will not suffer additional material weaknesses and/or significant deficiencies in the future.

The CEO and CFO do not expect that internal controls over financial reporting will prevent all misstatements. The design of a system of internal controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that the design will succeed in achieving the stated goals under all potential future conditions.

InternalControls over Financial Reporting

Except for the material weaknesses described above, there were no changes in the Company’s Internal Control over Financial Reporting that occurred during the period ended March 31, 2023 that has materially affected or reasonably likely to materially affect the Company’s Internal Control over Financial Reporting.

RiskFactors

A complete description of the risks and uncertainties affecting the Company is included in the most recently filed annual report on Form 20-F filed with the SEC. Additional risks and uncertainties not presently known to us or that we currently consider immaterial also may impair our business and operations and cause the price of our common shares (the “Common Shares”) to decline. If any of the noted risks actually occur, our business may be harmed, and the financial condition and results of operation may suffer significantly. In that event, the trading price of the Common Shares could decline, and shareholders may lose all or part of their investment.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 22 |

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VIQSolutions Inc.

VIQ Solutions Inc.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations for the three months ended March 31, 2023

Disclosureof Outstanding Share Data

The Common Share trade on the Toronto Stock Exchange and the Nasdaq Capital Market under the symbol “VQS.” The Company is authorized to issue an unlimited number of Common Shares. As at May 10, 2023 there were (i) 34,649,697 Common Shares issued and outstanding, (ii) 97,850 stock options outstanding with a weighted average exercise price per Common Share of $2.91 CAD expiring between 2024 and 2025 under the Company’s legacy stock option plan (iii) 865,947 stock options outstanding with a weighted average exercise price per Common Share of $1.08 CAD expiring 2031 and 2032 under the Omnibus Equity Incentive Plan, (iv) 66,667 deferred share units outstanding with an average exercise price per Common Share of $1.29 CAD with no expiry date (v) 821,219 RSUs outstanding expiring 2024 and 2031 and selective units with no expiry dates under the Omnibus Equity Incentive Plan (vi) 165,000 PSUs with no expiry dates (vii) warrants to purchase 2,117,647 Common Shares at an exercise price of $5.00 USD expiring 2026(viii) warrants to purchase 3,551,852 Common Shares at an exercise price of $1.39 USD expiring July 21, 2027 and (ix) 7,968,750 warrants to purchase Common Shares at an exercise price of $0.256 USD expiring January 16, 2030.

Diversity

Our success as a company continues to be made possible by our global workforce. We aim to attract, develop, and retain exceptional talent to meet the needs of our clients and create value for our shareholders. We understand that we have more to do to increase our overall representation to better reflect the world we live in. We believe that when people come from diverse backgrounds and have a variety of life experiences, they bring unique perspectives to the table. These perspectives increase innovation, creativity, and overall corporate performance.

In order to continue to produce our innovative technologies and technology services, it is crucial that we continue to attract and retain top talent. To facilitate talent attraction and retention, we strive to make VIQ a diverse and safe workplace, with opportunities for our employees in each region and functional area to grow and develop in their careers, supported by advancements and programs that build connections between our employees and their communities.

We believe that a diverse workforce is critical to our success, and we continue to focus on the hiring, retention and advancement of women and underrepresented populations. Our recent efforts have been focused in three areas: inspiring innovation through a diverse culture; expanding our efforts to recruit and hire world-class diverse talent; and identifying strategic partners to accelerate our diversity, equity and in the coming years inclusion (“DE&I”) programs.

Under the leadership of the current management team and the Board of Directors, VIQ has worked to create an environment and culture that enables all employees to participate and thrive. We know that onboarding people with diverse backgrounds and skillsets is a key ingredient for innovation, which is why our recruitment processes are built around improving our ability to identify the best, most diverse candidate pools. We use gender-neutral language in job descriptions and commit to bringing a diverse slate of candidates to a diverse interview panel at all levels of the Company. VIQ has a variety of diversity-related data points that exemplify how our workforce looks like the world around us and thrives as a result of it.

As of March 31, 2023, VIQ Diversity Metrics were as follows:

● Global<br> Employee Gender Diversification for all roles: 57% Women, 43% Men
● Global<br> Employee Gender Diversification for leadership roles: 55% Women, 45% Men
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● Global<br> Race and Ethnicity Representation for all roles: 76% White, 19% Asian, 1% Black and 4% Latino
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● Geography<br> where we work: 75% Australia, 12% United States, 2% Canada, 4% India, 3% Mexico, 2% United<br> Kingdom and Philippines 2%
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● Brick &<br> Mortar: Six physical Offices in three Countries
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Due to its global footprint, VIQ has come to appreciate that amazing perspectives are grown all around the world and that DE&I programs can be most powerful when they are localized to the individual experiences that resonate with people in the countries, cities, and communities where they live.

Further support of DE&I includes changes that were made at the Board of Directors level through the Nomination Committee to align with the diversity of the organization globally as the Company scales to its next level in 2023.

| MANAGEMENT DISCUSSION & ANALYSIS | PAGE 23 |

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Exhibit 99.4

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Sebastien Pare, Chief Executive Officer of VIQ Solutions Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”)<br>of VIQ Solutions Inc. (the “issuer”) for the interim period ended March 31, 2023.
2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain<br>any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement<br>not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
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3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together<br>with the other financial information included in the interim filings fairly present in all material respects the financial condition,<br>financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
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4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining<br>disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National<br>Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
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5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying<br>officer(s) and I have, as at the end of the period covered by the interim filings
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(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance<br>that
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(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings<br>are being prepared; and
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(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it<br>under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation;<br>and
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(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding<br>the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s<br>GAAP.
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5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the<br>issuer’s ICFR is the Committee of Sponsoring Organizations (COSO) 2013 financial controls framework.
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1
5.2 ICFR – material weakness relating to design: The issuer has disclosed in its interim MD&A for each material<br>weakness relating to design existing at the end of the interim period
(a) a description of the material weakness;
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(b) the impact of the material weakness on the issuer’s financial reporting and its ICFR; and
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(c) the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.
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5.3 Limitation on scope of design: N/A
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6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that<br>occurred during the period beginning on January 1, 2023 and ended on March 31, 2023 that has materially affected, or is reasonably<br>likely to materially affect, the issuer’s ICFR.
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Date: May 10, 2023

/s/ Sebastien Pare
Sebastien Pare
Chief Executive Officer 
2

Exhibit 99.5

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Alexie Edwards, Chief Financial Officer of VIQ Solutions Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”)<br>of VIQ Solutions Inc. (the “issuer”) for the interim period ended March 31, 2023 .
2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain<br>any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement<br>not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
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3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together<br>with the other financial information included in the interim filings fairly present in all material respects the financial condition,<br>financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
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4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining<br>disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National<br>Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
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5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying<br>officer(s) and I have, as at the end of the period covered by the interim filings
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(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
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(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings<br>are being prepared; and
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(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it<br>under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation;<br>and
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(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial<br>reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
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5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the<br>issuer’s ICFR is the Committee of Sponsoring Organizations (COSO) 2013 financial controls framework.
--- --- 
1
5.2 ICFR – material weakness relating to design: The issuer has disclosed in its interim<br>MD&A for each material weakness relating to design existing at the end of the interim period
(a) a description of the material weakness;
--- ---
(b) the impact of the material weakness on the issuer’s financial reporting and its ICFR; and
--- ---
(c) the issuer’s current plans, if any, or any actions already undertaken, for remediating the material<br>weakness.
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5.3 Limitation on scope of design: N/A
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6. Reporting changes in ICFR: The issuer<br>has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1,<br>2023 and ended on March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
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Date: May 10, 2023

/s/ Alexie Edwards
Alexie Edwards
Chief Financial Officer 
2

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