Re: envisAGE Project - Accounting Treatment

Hi Adriana,

Attached is the backup documentation.

Let me know if you need anything else.

Meighen Fitzpatrick
Vice President, Market Development
1-514-975-6849 | www.joinlifeguard.com

On Mar 3, 2026, at 6:40 AM, adriana.mendez@thekey.com wrote:

Thanks Meighen for sharing the breakdown and explanation behind the claim, to wrap this up, could you please send over the backup documentation for our records?

Tim, just to double-check, does this reimbursement sit within the envisAGE project scope, or should it be allocated elsewhere?

Phuong, if this reimbursement is under envisAGE, I agree with recording using 900115 Non-Operating Income, under TheKey Care Ltd. – Montreal.

Technical Accounting Memo: https://docs.google.com/document/d/1yv3j9uTAGKOtLmla1feJC7jp1FbBBGcH/edit?usp=drive_link&ouid=112187701048412037166&rtpof=true&sd=true

Thank you

Adriana Mendez
Accounting Manager | TheKey
adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com>
Deerfield Beach, FL

<image001.png>

From: Meighen Fitzpatrick <mfitzpatrick@joinlifeguard.com<mailto:mfitzpatrick@joinlifeguard.com>>
Sent: Friday, February 27, 2026 5:18 PM
To: adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com>
Cc: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>; Phuong Plazola <phuynh@thekey.com<mailto:phuynh@thekey.com>>; eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>; Lyndsey Organ <lyndsey.organ@thekey.com<mailto:lyndsey.organ@thekey.com>>; sara.stuhlsatz@thekey.com<mailto:sara.stuhlsatz@thekey.com>; Wethned Mertilien <wethned.mertilien@thekey.com<mailto:wethned.mertilien@thekey.com>>
Subject: Re: envisAGE Project - Accounting Treatment

Hi Adriana,

Here are the details of the claim that was submitted to Medteq:

The amount was for claim 15R which it is for the period of April 1st to June 30th, 2025. The overhead is 15% of the eligible costs of the claim.

Here is a breakdown of the costs:

Contribution Ratio
Overhead Ratio
Direct Labour Costs
Overhead Costs
Total Supported Eligible Costs
Direct Labor Overhead
Total Overhead
Total Reimbursement
25.00%
15.00%
$25,809.53
$6,000.72
$31,810.24
$14,195.24
$40,004.77
$7,952.56

Let me know if you have any further questions.

Meighen Fitzpatrick
Vice President, Market Development
1-514-975-6849 | www.joinlifeguard.com<http://www.joinlifeguard.com/>


On Feb 26, 2026, at 11:52 AM, adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com> wrote:

Thank you all.

Tim / Meighen, could you please confirm if the payment received on 02/19/26 in the amount of $7,952.56 from MEDTEQ ADHOC represent a reimbursement on costs? If yes, which period? Is it associated to Montreal or other location?

Hopefully, the supporting documentation will bring more clarity on the appropriate accounting treatment @Phuong Plazola<mailto:phuynh@thekey.com>.

Adriana Mendez
Accounting Manager | TheKey
adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com>
Deerfield Beach, FL

<image001.png>

From: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Sent: Thursday, February 26, 2026 11:39 AM
To: Phuong Plazola <phuynh@thekey.com<mailto:phuynh@thekey.com>>; Meighen Fitzpatrick <mfitzpatrick@joinlifeguard.com<mailto:mfitzpatrick@joinlifeguard.com>>
Cc: eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>; Adriana Mendez <adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com>>; Lyndsey Organ <lyndsey.organ@thekey.com<mailto:lyndsey.organ@thekey.com>>; sara.stuhlsatz@thekey.com<mailto:sara.stuhlsatz@thekey.com>; Wethned Mertilien <wethned.mertilien@thekey.com<mailto:wethned.mertilien@thekey.com>>
Subject: Re: envisAGE Project - Accounting Treatment

@Meighen Fitzpatrick<mailto:mfitzpatrick@joinlifeguard.com> Can you please support this request? I don't have access to the backup documentation.

On Wed, Feb 25, 2026 at 5:42 PM Phuong Plazola <phuynh@thekey.com<mailto:phuynh@thekey.com>> wrote:
Hi Adriana,

We received a wire payment on February 19, 2026, in the amount of $7,952.56 for MEDTEQ ADHOC.

Could you please confirm if you would like me to record this to Corporate Canada under 900115 Non-Operating Income, similar to the previous envisAGE project treatment?

@Timothy Thomas<mailto:tt@thekey.com>, could you please provide the reimbursement explanation and supporting documentation for this reimbursement, similar to the information provided in July 2025?




Thank you,
Phuong Plazola
Sr. Accountant | TheKey

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On Thu, Aug 21, 2025 at 1:27 PM <eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>> wrote:
Good afternoon,

This information is much appreciated, thank you, Tim!

If we could obtain supporting documentation for the overhead portion of the claim #1 (Period Covered: Oct 1 - Dec 31, 2024) by the end of next week, that would be perfect!

Thank you for confirming the funds received should be attributed to Montreal location – we will reflect that correction in Aug25 close.

Kind regards,
Eve Malishevski
Assistant Manager, Audit & Financial Reporting | TheKey
Mobile: 305.528.8471

<image003.png><http://www.thekey.com/>

From: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Sent: Thursday, August 21, 2025 4:11 PM
To: eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>
Cc: Lyndsey Organ <lyndsey.organ@thekey.com<mailto:lyndsey.organ@thekey.com>>; sara.stuhlsatz@thekey.com<mailto:sara.stuhlsatz@thekey.com>; Phuong Plazola <phuynh@thekey.com<mailto:phuynh@thekey.com>>; Wethned Mertilien <wethned.mertilien@thekey.com<mailto:wethned.mertilien@thekey.com>>; Adriana Mendez <adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com>>
Subject: Re: envisAGE Project - Accounting Treatment

Hi there,

Here's the explanation I received:
- The Key claimed $20,887.01 in Direct Labor.
- To this $20,887.01, an Overhead portion of $4,856.23 is added, bringing the total eligible amount to $25,743.24.
- Finally, their reimbursement rate is 25%, so $25,743.24 x 25% = $6,435.81, which corresponds to the amount received through the 11R disbursement.

I will request the supporting documentation

The allocation is up to you. My preference would be Montreal given that's the majority of where the costs were allocated.

Thanks
Tim

On Wed, Aug 20, 2025 at 5:31 PM <eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>> wrote:
Good afternoon, Tim.

Hope your week is going well.

We are reaching out to kindly follow up on the questions below.
Please let us know if there is anyone else whom we can contact to finalize these outstanding items as soon as possible.

Questions
Contact
Answers
11. Claim submission total of $5,221.78 does not match the amount received from MEDTEQ - is there a breakdown/approval response that can support the total received of $6,435.81?
Tim

12. Can Accounting obtain supporting documents for all submissions, and be copied/forwarded these going forward as they become available?
Tim

13. Per earlier communications, the direction from Tim was to apply the funds received to Montreal P&L. Is this still the case, or do we prefer to allocate based on employee default location per payroll reports/Workday?
Tim


Thank you for your help!

Kind regards,
Eve Malishevski
Assistant Manager, Audit & Financial Reporting | TheKey
Mobile: 305.528.8471

<image003.png><http://www.thekey.com/>

From: eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com> <eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>>
Sent: Tuesday, August 12, 2025 12:28 PM
To: 'Timothy Thomas' <tt@thekey.com<mailto:tt@thekey.com>>; 'Adriana Mendez' <adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com>>
Cc: 'Lyndsey Organ' <lyndsey.organ@thekey.com<mailto:lyndsey.organ@thekey.com>>; sara.stuhlsatz@thekey.com<mailto:sara.stuhlsatz@thekey.com>; 'Phuong Plazola' <phuynh@thekey.com<mailto:phuynh@thekey.com>>; 'Wethned Mertilien' <wethned.mertilien@thekey.com<mailto:wethned.mertilien@thekey.com>>
Subject: RE: envisAGE Project - Accounting Treatment
Importance: High

Good day,

Thank you for this information, @Timothy Thomas<mailto:tt@thekey.com> !

Upon further review, we have identified additional questions – please see below:

Questions
Contact
Answers
11. Claim submission total of $5,221.78 does not match the amount received from MEDTEQ - is there a breakdown/approval response that can support the total received of $6,435.81?
Tim

12. Can Accounting obtain supporting documents for all submissions, and be copied/forwarded these going forward as they become available?
Tim

13. Per earlier communications, the direction from Tim was to apply the funds received to Montreal P&L. Is this still the case, or do we prefer to allocate based on employee default location per payroll reports/Workday?
Tim


Given the time constraints to close out July and the deposit amount being immaterial considering overall financials, we recommend recognizing grant revenue related to this project as follows for now:

Date
NetSuite GL
Description
Location
Subsidiary
Debit (CAD)
Credit (CAD)
7/31/2025
122200 JPMC Clearing (Canada)
envisAGE project - Grant Revenue
Corporate Canada
HCA Home Care Assistance Canada Inc.
$6,435.81

7/31/2025
900115 Non-Operating Income
envisAGE project - Grant Revenue
Corporate Canada
HCA Home Care Assistance Canada Inc.

$6,435.81

and recording a reclass/allocation accordingly in Aug25, once we have all the support required.

@'Adriana Mendez'<mailto:adriana.mendez@thekey.com> As discussed, can you coordinate with your team to record the reclass entry? The attached research workbook and PDF of this email can be used as supporting documentation for the entry.

Thank you all for your support!

Kind regards,
Eve Malishevski
Assistant Manager, Audit & Financial Reporting | TheKey
Mobile: 305.528.8471

<image003.png><http://www.thekey.com/>

From: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Sent: Friday, August 8, 2025 12:36 PM
To: Wethned Mertilien <wethned.mertilien@thekey.com<mailto:wethned.mertilien@thekey.com>>
Cc: Lyndsey Organ <lyndsey.organ@thekey.com<mailto:lyndsey.organ@thekey.com>>; sara.stuhlsatz@thekey.com<mailto:sara.stuhlsatz@thekey.com>; Adriana Mendez <adriana.mendez@thekey.com<mailto:adriana.mendez@thekey.com>>; Phuong Plazola <phuynh@thekey.com<mailto:phuynh@thekey.com>>; Eve Malishevski <eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>>
Subject: Re: envisAGE Project - Accounting Treatment

Hi,

The funds TheKey received from the envisAGE Project represent a reimbursement on costs incurred from October 1 - December 31 2024. Please see attached the Claim file that was submitted. Answers to the questions are below. Let me know if you need anything else!



  1.  Copy of submission summary/paycheck total in CAD for 04/01/2025–06/30/2025 - see attached. Pay slips and Claim for Submission #1 which is from October 1 to December 31 2024.
  2.  Confirmation of any other deposits received for this project (dates, amounts, supporting docs) this is the first deposit received. There will be a total of 8 submissions for the project
  3.  Actual project kick-off/start date October 21, 2024
  4.  Were any project deliverables/conditions already met before the deposit was received? Yes
  5.  Are we expected to refund any portion if deliverables aren’t met? (Please confirm) No, funds are not dispersed until the claim we submit is audited and approved by the program
  6.  Will additional funds be reimbursed based on future claims? (Please confirm) Yes, total of 8 Claims will be submitted
  7.  Was the $6K advanced (prepayment) or reimbursement for already submitted costs? The funds received are a reimbursement of costs already incurred
  8.  Is the total projected reimbursable amount CAD 9,750? Total amount we expect to receive from the program is $32,000
  9.  Locations affected by payroll expense related to this project Montreal, Toronto, Winnipeg, Calgary, Vancouver




On Fri, Aug 8, 2025 at 8:04 AM Wethned Mertilien <wethned.mertilien@thekey.com<mailto:wethned.mertilien@thekey.com>> wrote:
Hi Tim,

Hope you’re doing well. I’m following up on the email sent Wednesday regarding the EnvisAGE project reimbursement deposit. As today is the journal entry submission deadline, we’ll need your responses to the items below by end of day to finalize our accounting treatment:

  1.  Copy of submission summary/paycheck total in CAD for 04/01/2025–06/30/2025
  2.  Confirmation of any other deposits received for this project (dates, amounts, supporting docs)
  3.  Actual project kick-off/start date
  4.  Were any project deliverables/conditions already met before the deposit was received?
  5.  Are we expected to refund any portion if deliverables aren’t met? (Please confirm)
  6.  Will additional funds be reimbursed based on future claims? (Please confirm)
  7.  Was the $6K advanced (prepayment) or reimbursement for already submitted costs?
  8.  Is the total projected reimbursable amount CAD 9,750?
  9.  Locations affected by payroll expense related to this project

Your timely response will ensure we can meet our close deadline. Please let me know if you need clarification on any of the above.

Thanks so much for your help,

Wethned ("Whitney") Mertilien
Senior Accountant | TheKey

[https://lh7-rt.googleusercontent.com/docsz/AD_4nXdb1qj_K9bhWQpZQcJ5iZWFkrBuDkyqEzlIq5v_87gP0sQHvLcrG4UQcaz70Df5xKTCF6IqJHdZWauhDWuaIuPzr_zVeDf-NdrFJR7nYSvqFKGMPehArcj0EOhNXeXqoJ3STJh7sQ?key=V5mKPZVpqe0VLiGYg_VB1A75]<http://www.thekey.com/>



On Wed, Aug 6, 2025 at 4:15 PM <eve.malishevski@thekey.com<mailto:eve.malishevski@thekey.com>> wrote:
Hi team,

Hope your day is going well.

We are in the process of determining the appropriate accounting treatment for recording reimbursement deposit(s) related to envisAGE project. Kindly see below list of questions to help us finalize our analysis.
*** If someone else on the team should be included in this discussion, kindly add them to this thread. ***

Questions
Contact
Answers
1. Can we obtain a copy of submission summary/paycheck total in CAD for the period 04/01/2025 to 06/30/2025?
Tim
2. Were there any other deposits received for this project? If so, please provide dates, amounts, supporting submission docs.
Tim
3. What was the actual kick-off/project start date? Projected start date was Oct 01, 2024.
Tim
4. Does TheKey account for project related expenses separately from regular payroll?
Lyndsey
5. Were any project deliverables/conditions already met before the deposit was received?
Tim
6. Are we expected to refund any portion if deliverables aren’t met?
Eve and Wethned, Tim to confirm
Yes, if Ultimate Recipients are in default, suspended for cause, or terminate agreement from their end (see sheet "Termination")
7. Will additional funds be reimbursed based on future claims?
Eve and Wethned, Tim to confirm
Yes, based on project timeline
8. Was the $6K advanced (prepayment) or reimbursement for already submitted costs?
Tim
9. Is the total projected reimbursable to TheKey amount CAD 9,750?
Tim
10. What are the locations affected by payroll expense related to this project?
Tim

Please also see attached preliminary analysis for additional information.

We would appreciate a timely response to comply with the close schedule – July 2025 journal entry submission deadline is this Friday, 08/08/2025.

Thank you so much for your help!

Kind regards,
Eve Malishevski
Assistant Manager, Audit & Financial Reporting | TheKey
Mobile: 305.528.8471

<image003.png><http://www.thekey.com/>