EX-99.1 2 alithyagroupinterimfsengli.htm EX-99.1 Document

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Interim Condensed Consolidated
Financial Statements
of Alithya Group inc.

For the three and six months ended September 30, 2024 and 2023
(unaudited)

Exhibit 99.1


TABLE OF CONTENTS


INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended September 30,For the six months ended September 30,
(in thousands of Canadian dollars, except per share data) (unaudited)2024202320242023
Notes$$$$
Revenues11111,514 118,492 232,389 250,087 
Cost of revenues777,386 83,701 159,731 177,203 
Gross margin34,128 34,791 72,658 72,884 
Operating expenses
Selling, general and administrative expenses725,869 29,930 57,528 62,429 
Business acquisition, integration and reorganization costs8549 2,663 1,332 3,768 
Depreciation71,102 1,498 2,197 3,166 
Amortization of intangibles4,635 6,177 9,279 13,001 
Foreign exchange loss (gain)259 112 242 (16)
32,414 40,380 70,578 82,348 
Operating income (loss)1,714 (5,589)2,080 (9,464)
Net financial expenses91,502 3,073 3,874 6,293 
Earnings (loss) before income taxes212 (8,662)(1,794)(15,757)
Income tax expense
Current195 86 299 287 
Deferred287 428 939 377 
482 514 1,238 664 
Net loss(270)(9,176)(3,032)(16,421)
Other comprehensive (loss) income
Items that may be classified subsequently to profit or loss
Cumulative translation adjustment on consolidation of foreign subsidiaries(330)1,436 215 24 
(330)1,436 215 24 
Comprehensive loss(600)(7,740)(2,817)(16,397)
Basic and diluted loss per share6(0.00 )(0.10)(0.03)(0.17)
The accompanying notes are an integral part of these interim condensed consolidated financial statements.


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As atSeptember 30,March 31,
(in thousands of Canadian dollars) (unaudited)20242024
Notes$$
Assets
Current assets
Cash12,429 8,859
Accounts receivable and other receivables92,457 98,808
Unbilled revenues14,834 14,937
Tax credits receivable9,404 9,942
Prepaids 7,089 7,069
136,213 139,615
Non-current assets
Tax credits receivable5,569 10,938
Other assets1,483 2,267 
Property and equipment4,214 4,590
Right-of-use assets4,612 5,606
Intangibles72,038 81,273
Deferred tax assets4,856 5,715
Goodwill166,327 166,493
395,312 416,497
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities66,678 74,917 
Deferred revenues23,932 25,293
Current portion of lease liabilities3,656 4,136
Current portion of long-term debt34,078 12,687
98,344 117,033
Non-current liabilities
Contingent consideration4,074 4,082
Long-term debt3104,893 104,695
Lease liabilities6,027 7,384
Deferred tax liabilities8,176 8,099
221,514 241,293
Shareholders' equity
Share capital4313,599 312,409
Deficit(160,002)(157,370)
Accumulated other comprehensive income4,821 4,606
Contributed surplus15,380 15,559
173,798 175,204
395,312 416,497
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended September 30,
(in thousands of Canadian dollars, except share data) (unaudited)
NotesShares
outstanding		Share capitalDeficitAccumulated other
comprehensive
income		Contributed
surplus		Total
Number$$$$$
Balance as at March 31, 202495,415,248 312,409 (157,370)4,606 15,559 175,204 
Net loss— — (3,032)— — (3,032)
Other comprehensive income— — — 215 — 215 
Total comprehensive (loss) income— — (3,032)215 — (2,817)
Share-based compensation5— — — — 1,464 1,464 
Share-based compensation granted on business acquisition5— — — — 573 573 
Issuance of Subordinate Voting Shares pursuant to vesting of share-based compensation granted on business acquisitions4622,420 1,971 — — (1,971)— 
Shares purchased for cancellation4(205,483)(717)315 — — (402)
Shares purchased for settlement of RSUs4,5(63,856)(223)85 — — (138)
Delivery of Subordinate Voting Shares upon settlement of RSUs4,563,856 159 — — (245)(86)
Total contributions by, and distributions to, shareholders416,937 1,190 400 — (179)1,411 
Balance as at September 30, 202495,832,185 313,599 (160,002)4,821 15,380 173,798 
Balance as at March 31, 202395,195,816 311,967 (141,481)4,610 14,092 189,188 
Net loss— — (16,421)— — (16,421)
Other comprehensive income— — — 24 — 24 
Total comprehensive (loss) income— — (16,421)24 — (16,397)
Share-based compensation5— — — — 1,679 1,679 
Share-based compensation granted on business acquisition5— — — — 1,287 1,287 
Issuance of Subordinate Voting Shares pursuant to vesting of share-based compensation granted on business acquisition622,421 1,924 — — (1,924)— 
Shares purchased for cancellation(139,512)(487)163 — — (324)
Issuance of Subordinate Voting Shares from exercise of stock options2,500 8 — — (2)6 
Issuance of Subordinate Voting Shares from settlement of RSUs14,707 33 — — (33)— 
Cash settlement of RSUs issued as share-based compensation— — — — (371)(371)
Total contributions by shareholders500,116 1,478 163 — 636 2,277 
Balance as at September 30, 202395,695,932 313,445 (157,739)4,634 14,728 175,068 
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended September 30,For the six months ended September 30,
(in thousands of Canadian dollars) (unaudited)2024202320242023
Notes$$$$
Operating activities
Net loss(270)(9,176)(3,032)(16,421)
Adjustments for:
Depreciation and amortization5,7377,67511,47616,167
Net financial expenses91,5023,0733,8746,293
Share-based compensation56961,2452,0372,966
Deferred taxes287428939377
Unrealized foreign exchange (gain) loss(63)433(117)89
Realized foreign exchange loss (gain) on repayment of long-term debt72(27)126(27)
Impairment of property and equipment and right-of-use assets and loss on lease termination———1,383
Settlement of RSUs———(371)
Other———18
7,9613,65115,30310,474
Changes in non-cash working capital items10(4,979)(20,931)4,375(20,157)
Net cash from (used in) operating activities2,982(17,280)19,678(9,683)
Investing activities
Additions to property and equipment(369)(71)(608)(266)
Additions to intangibles(64)—(64)(41)
Net cash used in investing activities(433)(71)(672)(307)
Financing activities
Increase in long-term debt, net of related transaction costs32,03839,59866,33270,361
Repayment of long-term debt(30,173)(37,441)(74,978)(66,606)
Repayment of lease liabilities, including lease termination costs(1,198)(987)(2,712)(1,958)
Exercise of stock options—6—6
Shares purchased for settlement of RSUs4——(138)—
Shares purchased for cancellation4(230)(175)(402)(324)
Financial expenses paid9(1,403)(2,890)(3,610)(5,885)
Net cash used in financing activities(966)(1,889)(15,508)(4,406)
Effect of exchange rate changes on cash1418772(101)
Net change in cash1,597(19,053)3,570(14,497)
Cash, beginning of period10,83227,1398,85922,583
Cash, end of period12,4298,08612,4298,086
Cash paid (included in cash flow from (used in) operating activities)
Income taxes paid 139135355370
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
1. GOVERNING STATUTES AND NATURE OF OPERATIONS
Alithya Group inc. (together with its subsidiaries, “Alithya” or the “Company”) is a professional services firm providing IT services and solutions through the optimal use of digital technologies in the areas of strategic consulting, enterprise transformation and business enablement.
The Company’s Class A subordinate voting shares (the “Subordinate Voting Shares”) trade on the Toronto Stock Exchange (“TSX”) under the symbol “ALYA”.
The Company’s head office is located at 1100, Robert-Bourassa Boulevard, Suite 400, Montréal, Québec, Canada, H3B 3A5.
2. BASIS OF PREPARATION
Statement of Compliance
These interim condensed consolidated financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, and should be read in conjunction with the annual audited consolidated financial statements for the year ended March 31, 2024. The Company applied the accounting policies adopted in its most recent annual audited consolidated financial statements for the year ended March 31, 2024, except for changes as detailed below.
These interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors (the “Board”) on November 13, 2024.
Basis of Measurement
These interim condensed consolidated financial statements have been prepared under the historical cost basis except for
•Identifiable assets acquired and liabilities and contingent liabilities resulting from a business combination, which are generally measured initially at their fair values at the acquisition date;
•Lease obligations, which are initially measured at the present value of the lease payments that are not paid at the lease commencement date; and
•Equity classified share-based payment arrangements which are measured at fair value at grant date pursuant to IFRS 2, Share-Based Payment.


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
2. BASIS OF PREPARATION (CONT’D)
ACCOUNTING STANDARD AMENDMENTS EFFECTIVE FOR THE YEAR ENDING MARCH 31, 2025
The following amendments to existing standards were adopted by the Company on April 1, 2024:
IAS 1 - Presentation of Financial Statements
On January 23, 2020, the IASB issued amendments to IAS 1 - Presentation of Financial Statements, to clarify the classification of liabilities as current or non-current. For the purposes of non-current classification, the amendments removed the requirement for a right to defer settlement or roll over of a liability for at least twelve months to be unconditional. Instead, such a right must have substance and exist at the end of the reporting period. After reconsidering certain aspects of the 2020 amendments, the IASB reconfirmed that only covenants with which a company must comply on or before the reporting date affect the classification of a liability as current or non-current. Additional disclosure will be required to help users understand the risk that those liabilities could become repayable within twelve months after the reporting date. The amendments also clarify how a company classifies a liability that includes a counterparty conversion option. The amendments state that: settlement of a liability includes transferring a company’s own equity instruments to the counterparty; and when classifying liabilities as current or non-current, a company can ignore only those conversion options that are recognized as equity. The amendments to IAS 1 apply retrospectively and are effective for annual periods beginning on or after January 1, 2024. The amendments of IAS 1 had no impact on the Company’s interim condensed consolidated financial statements.
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
At the date of authorization of these interim condensed consolidated financial statements, certain new standards, amendments and interpretations, and improvements to existing standards have been published by the IASB but are not yet effective and have not been adopted early by the Company. Management anticipates that all the relevant pronouncements will be adopted in the first reporting period following the date of application. Information on new standards, amendments and interpretations, and improvements to existing standards, which could potentially impact the Company’s consolidated financial statements, are detailed as follows:
IFRS 18 - Presentation and Disclosures in Financial Statements
On April 9, 2024, the IASB published the new IFRS 18 – Presentation and Disclosures in Financial Statements that will replace IAS 1 – Presentation of Financial Statements.
IFRS 18 covers four main areas:
•Introduction of defined subtotals and categories in the statement of profit or loss;
•Introduction of requirements to improve aggregation and disaggregation;
•Introduction of disclosures about management-defined performance measures (MPMs) in the notes to the financial statements; and
•Targeted improvements to the statement of cash flows by amending IAS 7 – Statement of Cash Flows.
IFRS 18 applies retrospectively and is effective for annual periods beginning on or after January 1, 2027, with earlier application permitted. Management is currently evaluating the impact of the amendment on its consolidated financial statements.

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
2. BASIS OF PREPARATION (CONT’D)
IFRS 7 and IFRS 9 - Classification and measurement of Financial Instruments
In May 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The standard amendments clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system. Furthermore, they clarify the description of non-recourse assets and contractually linked instruments and they introduce additional disclosures for financial instruments with contractual terms that can change cash flows, and equity instruments classified at fair value through other comprehensive income. The amendments to IFRS 7 and IFRS 9 apply retrospectively and are effective for annual periods beginning on or after January 1, 2026, with earlier application permitted. Management is currently evaluating the impact of the amendment on its consolidated financial statements.
3. LONG-TERM DEBT
The following table summarizes the Company’s long-term debt:
As atSeptember 30,March 31,
20242024
$$
Senior secured revolving credit facility (the "Credit Facility") (a)
85,183 81,073 
Secured loans (b)
— 8,537 
Subordinated unsecured loans (c)
20,000 20,000 
Balance of purchase price payable with a nominal value of $4,210,000 (US$3,115,000) (March 31, 2024 - $8,436,000 (US$6,230,000)), non-interest bearing (4.4% effective interest rate), payable in annual installments of $4,210,000 (US$3,115,000), maturing on July 1, 2025
4,078 8,172 
Unamortized transaction costs (net of accumulated amortization of $293,000 and $215,000)
(290)(400)
108,971 117,382 
Current portion of long-term debt4,078 12,687 
104,893 104,695 
(a) The Credit Facility is available to a maximum amount of $140,000,000 which can be increased under an accordion provision to $190,000,000, under certain conditions, and can be drawn in Canadian dollars and the equivalent amount in U.S. dollars. It is available in prime rate advances, CORRA advances, SOFR advances and letters of credit of up to $2,500,000.
The advances bear interest at the Canadian or U.S. prime rate, plus an applicable margin ranging from 0.75% to 1.75%, or CORRA or SOFR rates, plus an applicable margin ranging from 2.00% to 3.00%, as applicable for Canadian and U.S. advances, respectively. The applicable margin is determined based on threshold limits for certain financial ratios. As security for the Credit Facility, Alithya provided a first ranking hypothec on the universality of its assets excluding any leased equipment and Investissement Québec’s first ranking lien on tax credits receivable for the financing related to refundable tax credits. Under the terms of the agreement, the Company is required to maintain certain financial covenants which are measured on a quarterly basis.
The Credit Facility matures on April 1, 2026 and is renewable for additional one-year periods at the lender’s discretion, provided that the term of the Credit Facility never exceeds three years at a given time.


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
3. LONG-TERM DEBT (CONT’D)
As at September 30, 2024, the amount outstanding under the Credit Facility includes $70,283,000 (March 31, 2024 - $71,773,000) payable in U.S. dollars (US$52,000,000; March 31, 2024 - US$53,000,000).
The Company has an additional operating credit facility available to a maximum amount of $2,703,000 (US$2,000,000), bearing interest at the U.S. prime rate plus 1.00%. This operating credit facility can be terminated by the lender at any time. There was no amount outstanding under this additional operating credit facility as at September 30, 2024.
(b) The secured loans issued by Investissement Québec to finance the Company’s 2023 refundable tax credits have been full repaid during the six months ended September 30, 2024.
(c) The subordinated unsecured loans with Investissement Québec, in the amount of $20,000,000, mature on October 1, 2026 and are renewable for one additional year at the lender’s discretion. For the period up to October 1, 2025, the first $10,000,000 bears fixed interest rates ranging between 6.00% and 7.25% and the additional $10,000,000 bears interest ranging between 7.10% and 8.35%, determined and payable quarterly, based on threshold limits for certain financial ratios. The interest rates for the period between October 1, 2025 to October 1, 2026 will be communicated by the lender at the latest fifteen days prior to October 1, 2025. Once communicated, the Company will have the option to partially or fully repay the loans, without penalties, by October 1, 2025 at the latest.
Under the terms of the loans, the Company is required to maintain compliance with certain financial covenants which are measured on a quarterly basis.
(a)(c) The Company was in compliance with all of its financial covenants as at September 30, 2024 and March 31, 2024.
4. SHARE CAPITAL
The following table presents information concerning issued share capital activity for the period:
Subordinate Voting SharesMultiple Voting Shares
Number of shares$Number of shares$
Beginning balance as at April 1, 202488,141,000 307,585 7,274,248 4,824 
Shares issued pursuant to vesting of share-based compensation granted on business acquisition622,420 1,971 — — 
Shares purchased for cancellation(205,483)(717)— — 
Shares purchased for settlement of RSUs(63,856)(223)— — 
Delivery of shares upon settlement of RSUs63,856 159 — — 
Ending balance as at September 30, 202488,557,937 308,775 7,274,248 4,824 
During the six months ended September 30, 2024, the following transactions occurred:
•As part of the acquisition of Datum Consulting Group, LLC and its international affiliates (the “Datum Acquisition”), 622,420 Subordinate Voting Shares, with a total value of $1,971,000 (US$1,438,000), reclassified from contributed surplus, were issued as settlement of the second anniversary share consideration.
•205,483 Subordinate Voting Shares were purchased for cancellation under the Company's normal course issuer bid for a total cash consideration of $402,000 and a carrying value of $717,000. The excess of the carrying value over the purchase price in the amount of $315,000 was recorded as a reduction to deficit.

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
4. SHARE CAPITAL (CONT’D)
•63,856 Subordinate Voting Shares were purchased for settlement of RSUs for a total cash consideration of $138,000 and a carrying value of $223,000. The excess of the carrying value over the purchase price in the amount of $85,000 was recorded as a reduction to deficit. 103,748 RSUs were settled net of tax and 63,856 Subordinate Voting Shares were delivered with a carrying value of $159,000, which was reclassified from contributed surplus. The purchase and delivery of Subordinate Voting Shares upon settlement of RSUs were completed by the administrative agent of the Share Unit Plan (“SUP”), in accordance with the terms of the SUP and the Services Agreement entered into between the Company and the administrative agent.
5. SHARE-BASED COMPENSATION
Stock options
The following tables present information concerning outstanding stock options issued by currency:
Number of stock optionsWeighted average exercise price (CAD)
$
Beginning balance as at April 1, 20243,320,696 3.22 
Forfeited(105,769)3.24 
Expired(299,629)3.12 
Ending balance as at September 30, 20242,915,298 3.23 
Exercisable at period end2,216,546 3.23 
Number of stock optionsWeighted average exercise price (USD)
$
Beginning balance as at April 1, 20241,016,575 2.55 
Forfeited(42,250)2.58 
Ending balance as at September 30, 2024974,325 2.54 
Exercisable at period end714,407 2.54 
Included in the 2,216,546 stock options exercisable issued in Canadian dollars, 505,264 stock options are available to purchase Multiple Voting Shares at a weighted average exercise price of $2.74 as at September 30, 2024.
Deferred Share Units (“DSUs”)
The following table presents information concerning the outstanding number of DSUs for the period:
Number of DSUs
Beginning balance as at April 1, 20241,178,080 
Granted to non-employee directors187,993 
Ending balance as at September 30, 20241,366,073 


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
5. SHARE-BASED COMPENSATION (CONT’D)
During the six months ended September 30, 2024, 187,993 fully vested DSUs, in aggregate, were granted under the Long Term Incentive Plan (“LTIP”) to non-employee directors of the Company at an average grant date fair value of $1.93, per DSU, for an aggregate fair value of $363,000.
As at September 30, 2024, included in the 1,366,073 DSUs are 1,061,385 DSUs issued under the LTIP and 304,688 DSUs issued under the SUP.
Restricted Share Units (“RSUs”)
The following table presents information concerning the outstanding number of RSUs for the period:
Number of RSUs
Beginning balance as at April 1, 2024349,700 
Settled(103,748)
Ending balance as at September 30, 2024245,952 
RSUs issued under the SUP are settled in Subordinate Voting Shares purchased on the open market through the SUP’s administrative agent, and to the extent that the Company has an obligation under tax laws to withhold an amount for an employee’s tax obligation associated with the settlement, the Company settles RSUs on a net basis.
During the six months ended September 30, 2024, 103,748 RSUs issued under the SUP with a carrying value of $245,000, were settled on a net basis. 63,856 Subordinate Voting Shares were purchased on the open market and delivered, with an amount of $159,000 previously credited to contributed surplus transferred to share capital. The balance of 39,892 RSUs, representing an amount of $86,000, were surrendered for cancellation to satisfy the employee’s statutory withholding tax requirements and are included in accounts payable and accrued liabilities in the statement of financial position as at September 30, 2024.
As at September 30, 2024, all 245,952 RSUs were issued under the SUP.
Performance Share Units (“PSUs”)
The following table presents information concerning the outstanding number of PSUs for the period:
Number of PSUs
Beginning balance as at April 1, 20242,156,527 
Forfeited(213,770)
Ending balance as at September 30, 20241,942,757 
As at September 30, 2024, all 1,942,757 PSUs were issued under the LTIP.
Other
During the six months ended September 30, 2024, the Company committed to the issuance of RSUs under the SUP and PSUs under the LTIP to certain eligible employees as part of their long-term incentives for the fiscal year ending March 31, 2025. The terms and conditions of the awards were not finalized as at September 30, 2024. The estimated total fair values are based on a percentage of the eligible employees’ annual base salary and represent $2,501,000 for RSUs and $2,291,000 for PSUs. The RSUs and PSUs will vest in the first quarter of the year ending March 31, 2028 and the related expense is recognized over the vesting period.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
5. SHARE-BASED COMPENSATION (CONT’D)
Share-Based Compensation expense
Total share-based compensation expense for the period is summarized as follows:
For the three months ended September 30,For the six months ended September 30,
2024202320242023
$$$$
Stock options19 151 69 336 
Share purchase plan – employer contribution343 350 687 707 
Share-based compensation granted on business acquisitions163 402 573 1,287 
DSUs182 135 364 319 
RSUs253 111 560 126 
PSUs79 446 471 898 
1,039 1,595 2,724 3,673 
6. EARNINGS (LOSS) PER SHARE
For the three months ended September 30,For the six months ended September 30,
2024202320242023
$$$$
Net loss(270)(9,176)(3,032)(16,421)
Weighted average number of Shares outstanding (a)
95,909,89895,767,04895,649,38195,480,413
Basic and diluted loss per share(0.00)(0.10)(0.03)(0.17)
(a) "Shares" include the Subordinate Voting Shares and Multiple Voting Shares
The potentially dilutive outstanding equity instruments, which are the DSUs, PSUs and options mentioned in Note 5 granted under the LTIP and certain shares to be issued as part of anniversary payments related to business acquisition, were not included in the calculation of diluted earnings per share since the Company incurred losses and the inclusion of these equity instruments would have an antidilutive effect.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
7. ADDITIONAL INFORMATION ON CONSOLIDATED LOSS
The following table provides additional information on the consolidated loss:
For the three months ended September 30,For the six months ended September 30,
2024202320242023
$$$$
Expenses by Nature
Employee compensation and subcontractor costs97,067 105,223 204,293 223,066 
Tax credits (a)
(1,935)(1,148)(3,889)(3,540)
Licenses and telecommunications3,280 3,362 6,577 6,821 
Professional fees1,690 2,220 3,737 3,977 
Other expenses3,153 3,974 6,541 7,925 
Impairment of property and equipment and right-of-use assets and loss on lease termination— — — 1,383 
Depreciation of property and equipment505 850 995 1,849 
Depreciation of right-of-use assets597 648 1,202 1,317 
104,357 115,129 219,456 242,798 
Expenses by Function
Cost of revenues77,386 83,701 159,731 177,203 
Selling, general and administrative expenses (b)
25,869 29,930 57,528 62,429 
Depreciation1,102 1,498 2,197 3,166 
104,357 115,129 219,456 242,798 
(a) Tax credits are included in cost of revenues.
(b) For the six months ended September 30, 2024, selling, general and administrative expenses includes termination and benefit costs for key management personnel of $1,502,000 (2023 - nil) and $246,000 (2023 - nil) of reversal of share-based compensation expense for forfeited equity instruments.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
8. BUSINESS ACQUISITION, INTEGRATION AND REORGANIZATION COSTS
The following table summarizes business acquisition, integration and reorganization costs:
For the three months ended September 30,For the six months ended September 30,
2024202320242023
$$$$
Acquisition costs (a)
— 262 — 262 
Integration costs (b)
512 901 636 1,640 
Reorganization costs (c)
— 1,409 566 1,575 
Employee compensation on business acquisition (d)
3791130291
5492,6631,3323,768
(a) The acquisition costs consisted mainly of professional fees incurred in relation to business acquisitions.
(b) For the three and six months ended September 30, 2024, integration costs consisted mainly of transition costs related to system integrations. For the three and six months ended September 30, 2023, integration costs referred mainly to retention bonuses in relation to business acquisitions and to termination of leases of vacated premises previously acquired as part of business combinations.
(c) Reorganization costs consisted of employee termination costs.
(d) Employee compensation on business acquisition included deferred cash consideration from the Datum acquisition.
9. NET FINANCIAL EXPENSES
The following table summarizes net financial expenses:
For the three months ended September 30,For the six months ended September 30,
2024202320242023
$$$$
Interest on long-term debt1,315 2,741 3,452 5,762 
Interest on lease liabilities113 186 237 375 
Amortization of finance costs55 99 132 197 
Interest accretion on balance of purchase price payable44 84 132 211 
Financing fees75 40 183 92 
Interest income(100)(77)(262)(344)
1,5023,0733,8746,293
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
10. SUPPLEMENTARY CASH FLOW INFORMATION
Changes in non-cash working capital items are as follows:
For the three months ended September 30,For the six months ended September 30,
2024202320242023
$$$$
Accounts receivable and other receivables(8,581)(6,171)6,487 547 
Unbilled revenues7,624 (3,123)130 1,123 
Tax credits receivable(1,926)(1,006)5,934 (3,360)
Prepaids913 1,464 (3)532 
Other assets783 (555)783 (494)
Accounts payable and accrued liabilities(3,901)(12,151)(7,574)(17,819)
Deferred revenues109 611 (1,382)(686)
(4,979)(20,931)4,375(20,157)
During the six months ended September 30, 2024, non-cash investing and financing activities included additions
to right-of-use assets and lease liabilities in the amount of $183,000 (September 30, 2023 - $454,000).


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
11. SEGMENT INFORMATION
The following tables present the Company's operations based on reportable segments:
For the three months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Revenues59,642 46,808 5,064 111,514 
Operating income by segment8,690 7,536 514 16,740 
Head office general and administrative expenses8,481 
Business acquisition, integration and reorganization costs549 
Foreign exchange loss (gain)259 
Operating income before depreciation and amortization7,451 
Depreciation and amortization5,737 
Operating income1,714 
For the three months ended September 30, 2023
CanadaU.S.InternationalTotal
$$$$
Revenues67,959 45,745 4,788 118,492 
Operating income by segment8,071 5,664 262 13,997 
Head office general and administrative expenses9,136 
Business acquisition, integration and reorganization costs2,663 
Foreign exchange loss (gain)112 
Operating income before depreciation and amortization2,086 
Depreciation and amortization7,675 
Operating loss(5,589)
For the six months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Revenues124,777 97,516 10,096 232,389 
Operating income by segment18,567 16,375 636 35,578 
Head office general and administrative expenses20,448 
Business acquisition, integration and reorganization costs1,332 
Foreign exchange loss (gain)242 
Operating income before depreciation and amortization13,556 
Depreciation and amortization11,476 
Operating income2,080 

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
11. SEGMENT INFORMATION (CONT’D)
For the six months ended September 30, 2023
CanadaU.S.InternationalTotal
$$$$
Revenues144,946 94,989 10,152 250,087 
Operating income by segment16,041 14,104 974 31,119 
Head office general and administrative expenses20,664 
Business acquisition, integration and reorganization costs3,768 
Foreign exchange loss (gain)(16)
Operating income before depreciation and amortization6,703 
Depreciation and amortization16,167 
Operating loss(9,464)
Information about revenues
An analysis of the Company’s revenues from customers for each major service category is as follows:
For the three months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (a)
49,776 25,889 4,523 80,188 
Enterprise transformation services - fixed-fee arrangements6,401 7,037 481 13,919 
Business enablement services3,465 13,882 60 17,407 
59,642 46,808 5,064 111,514 
For the three months ended September 30, 2023
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (a)
59,221 24,490 4,412 88,123 
Enterprise transformation services - fixed-fee arrangements5,487 9,419 376 15,282 
Business enablement services3,251 11,836 — 15,087 
67,959 45,745 4,788 118,492 
(a) Including $29,925,000 (2023 - $25,245,000) of time and materials arrangements applying the Input Method for the three months ended September 30, 2024.




Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
11. SEGMENT INFORMATION (CONT’D)
For the six months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (b)
105,637 52,890 9,177 167,704 
Enterprise transformation services - fixed-fee arrangements12,208 16,191 860 29,259 
Business enablement services6,932 28,435 59 35,426 
124,777 97,516 10,096 232,389 
For the six months ended September 30, 2023
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (b)
125,690 53,507 8,688 187,885 
Enterprise transformation services - fixed-fee arrangements13,090 17,806 1,464 32,360 
Business enablement services6,166 23,676 — 29,842 
144,946 94,989 10,152 250,087 
(b) Including $61,873,000 (2023 - $51,578,000) of time and materials arrangements applying the Input Method for the six months ended September 30, 2024.
Major customer
During the three months ended September 30, 2024, no client generated more than 10% of total revenues (September 30, 2023 - one client generated more than 10% of total revenues for $13,231,000).
During the six months ended September 30, 2024, no client generated more than 10% of total revenues (September 30, 2023 - one client generated more than 10% of total revenues for $28,679,000).
As at September 30, 2024 and as at March 31, 2024, no customer represented more than 10% of total accounts receivable and other receivables.
12. FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments
The carrying amount of cash, accounts receivable and other receivables, other assets, accounts payable and accrued liabilities and long-term debt bearing interest at variable rates is a reasonable approximation of fair value.
The fair value of the long-term debt bearing interest at fixed rates is estimated by discounting expected cash flows at rates that would be currently offered to the Company for debts of the same remaining maturities and conditions (Level 2). For both September 30, 2024 and March 31, 2024, the Company has determined that the fair value of the Credit Facility, the secured loans, the subordinated unsecured loans and the balance of purchase price payable are not significantly different than their carrying amount.



Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023
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