Dirtt Environmental Solutions (DRTTF) 10-K 22 Feb 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Feb. 17, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Entity Registrant Name	DIRTT ENVIRONMENTAL SOLUTIONS LTD
Entity Central Index Key	0001340476
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity File Number	001-39061
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	7303 30th Street S.E.
Entity Address, City or Town	Calgary
Entity Address, State or Province	AB
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Address, Postal Zip Code	T2C 1N6
City Area Code	403
Local Phone Number	723-5000
Entity Incorporation, State or Country Code	Z4
Entity Common Stock, Shares Outstanding		97,961,655
Entity Public Float			$ 64,781,634
Title of 12(b) Security	Common Shares, without par value
Trading Symbol	DRTT
Security Exchange Name	NASDAQ
ICFR Auditor Attestation Flag	false
Auditor Name	PricewaterhouseCoopers LLP
Auditor Firm ID	271
Auditor Location	Calgary, Canada
Documents Incorporated by Reference	Portions of the registrant’s Proxy Statement relating to the Annual and Special Meeting of Shareholders, scheduled to be held on May 4, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K.

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 10,821	$ 60,313
Restricted cash	3,418	3,095
Trade and accrued receivables, net of expected credit losses of $0.1 million at December 31, 2022 and at December 31, 2021	13,930	14,063
Other receivables	7,880	3,477
Inventory	22,251	18,457
Prepaids and other current assets	3,825	4,399
Total Current Assets	62,125	103,804
Property, plant and equipment, net	41,522	51,697
Capitalized software, net	4,406	7,395
Operating lease right-of-use assets, net	30,490	30,880
Other assets	5,110	5,663
Total Assets	143,653	199,439
Current Liabilities
Accounts payable and accrued liabilities	19,881	22,751
Other liabilities	2,056	2,379
Customer deposits and deferred revenue	4,866	2,420
Current portion of long-term debt and accrued interest	3,306	3,323
Current portion of lease liabilities	5,889	6,214
Total Current Liabilities	35,998	37,087
Long-term debt	62,129	67,319
Long-term lease liabilities	27,534	27,267
Total Liabilities	125,661	131,673
SHAREHOLDERS’ EQUITY
Common shares, unlimited authorized without par value, 97,882,844 issued and outstanding at December 31, 2022 and 85,345,433 at December 31, 2021	191,347	181,782
Additional paid-in capital	9,023	13,200
Accumulated other comprehensive loss	(16,106)	(15,916)
Accumulated deficit	(166,272)	(111,300)
Total Shareholders’ Equity	17,992	67,766
Total Liabilities and Shareholders’ Equity	$ 143,653	$ 199,439

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Trade and other receivables, expected credit losses	$ 126	$ 130
Common shares, authorized	Unlimited	Unlimited
Common shares, no par value	$ 0	$ 0
Common shares, shares issued	97,882,844	85,345,433
Common shares, shares outstanding	97,882,844	85,345,433

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues [Abstract]
Total revenue	$ 172,161	$ 147,593	$ 171,507
Total cost of sales	144,001	124,133	118,224
Gross profit	28,160	23,460	53,283
Expenses
Sales and marketing	26,950	31,041	28,049
General and administrative	25,462	30,595	26,663
Operations support	9,498	9,372	9,381
Technology and development	7,555	8,234	8,111
Stock-based compensation	4,277	4,713	2,351
Reorganization	13,461	0	0
Goodwill impairment	0	1,443	0
Total operating expenses	87,203	85,398	74,555
Operating loss	(59,043)	(61,938)	(21,272)
Government subsidies	7,765	11,455	12,721
Foreign exchange loss	1,445	(335)	(576)
Interest income	51	77	238
Interest expense	(5,160)	(3,131)	(305)
Non Operating (income) loss	4,101	8,066	12,078
Loss before tax	(54,942)	(53,872)	(9,194)
Income taxes
Current tax expense (recovery)	21	210	(3,521)
Deferred tax expense	0	(414)	5,625
Income tax expense (recovery)	21	(204)	2,104
Net loss	$ (54,963)	$ (53,668)	$ (11,298)
Loss per share
Basic loss per share	$ (0.63)	$ (0.63)	$ (0.13)
Diluted loss per share	$ (0.63)	$ (0.63)	$ (0.13)
Weighted average number of shares outstanding (in thousands)
Basic	87,662	85,027	84,681
Diluted	87,662	85,027	84,681
Total product and transportation revenue [Member]
Revenues [Abstract]
Total revenue	$ 166,256	$ 143,000	$ 166,689
Total cost of sales	140,058	120,281	115,455
Service [Member]
Revenues [Abstract]
Total revenue	5,905	4,593	4,818
Total cost of sales	$ 3,943	$ 3,852	$ 2,769

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Loss for the year	$ (54,963)	$ (53,668)	$ (11,298)
Exchange differences on translation of foreign operations	(190)	1,102	1,010
Comprehensive loss for the year	$ (55,153)	$ (52,566)	$ (10,288)

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Shares	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit
Beginning Balance at Dec. 31, 2019	$ 124,987	$ 180,639	$ 8,343	$ (18,028)	$ (45,967)
Beginning Balance (in shares) at Dec. 31, 2019		84,681,364
Stock-based compensation	1,832		1,832
Foreign currency translation adjustment	1,010			1,010
Net loss for the year	(11,298)				(11,298)
Ending Balance at Dec. 31, 2020	116,531	$ 180,639	10,175	(17,018)	(57,265)
Ending Balance (in shares) at Dec. 31, 2020		84,681,364
Stock-based compensation	4,453		4,453
Issued on vesting of RSUs and Share Awards		$ 1,143	(1,143)
Issued on vesting of RSUs and Share Awards (in shares)		664,069
RSUs and Share Awards withheld to settle employee tax obligations	(652)		(285)		(367)
Foreign currency translation adjustment	1,102			1,102
Net loss for the year	(53,668)				(53,668)
Ending Balance at Dec. 31, 2021	67,766	$ 181,782	13,200	(15,916)	(111,300)
Ending Balance (in shares) at Dec. 31, 2021		85,345,433
Stock-based compensation	3,943		3,943
Issued on vesting of RSUs and Share Awards		$ 7,088	(7,088)
Issued on vesting of RSUs and Share Awards (in shares)		3,149,061
Issued for employee share purchase plan	296	$ 296
Issued for employee share purchase plan (in shares)		720,901
RSUs and Share Awards withheld to settle employee tax obligations	(1,041)		(1,032)		(9)
Issued on private placement	2,181	$ 2,181
Issued on private placement (in shares)		8,667,449
Foreign currency translation adjustment	(190)			(190)
Net loss for the year	(54,963)				(54,963)
Ending Balance at Dec. 31, 2022	$ 17,992	$ 191,347	$ 9,023	$ (16,106)	$ (166,272)
Ending Balance (in shares) at Dec. 31, 2022		97,882,844

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net loss for the period	$ (54,963)	$ (53,668)	$ (11,298)
Adjustments:
Depreciation and amortization	15,119	14,513	11,706
Stock-based compensation, net of settlements	3,342	4,248	2,351
Foreign exchange loss (gain)	(1,813)	112	746
Accretion of convertible debentures	676	352	0
Loss (gain) on disposal of equipment	(133)	12	(46)
Deferred income tax expense	0	(414)	5,625
Goodwill impairment	0	1,443	0
Changes in operating assets and liabilities:
Trade and accrued receivables	(179)	(2,118)	11,327
Other receivables	(4,432)	3,570	(5,260)
Inventory	(4,716)	(2,449)	1,638
Prepaid and other assets, current and long term	129	(1,132)	(241)
Accounts payable and accrued liabilities	260	2,702	752
Other liabilities	(109)	(213)	(3,971)
Customer deposits and deferred revenue	2,477	601	(1,754)
Current portion of long-term debt and accrued interest	(149)	948	0
Lease liabilities	231	283	910
Net cash flows (used in) provided by operating activities	(44,260)	(31,210)	12,485
Cash flows from investing activities:
Purchase of property, plant and equipment, net of accounts payable changes	(2,394)	(11,781)	(16,597)
Capitalized software development expenditures	(1,677)	(2,340)	(2,998)
Other asset expenditures	(443)	(496)	(517)
Proceeds on sale of equipment	227	18	46
Recovery of software development expenditures	263	461	674
Net cash flows used in investing activities	(4,024)	(14,138)	(19,392)
Cash flows from financing activities:
Proceeds received on long-term debt	647	64,912	6,130
Repayment of long-term debt	(2,470)	(1,808)	(406)
Proceeds received on private placement	1,990	0
Employee tax payments on vesting of RSUs	(1,041)	(652)	0
Net cash flows provided by financing activities	(874)	62,452	5,724
Effect of foreign exchange on cash, cash equivalents and restricted cash	(11)	458	(145)
Net (decrease) increase in cash, cash equivalents and restricted cash	(49,169)	17,562	(1,328)
Cash, cash equivalents and restricted cash, beginning of year	63,408	45,846	47,174
Cash, cash equivalents and restricted cash, end of year	14,239	63,408	45,846
Supplemental disclosure of cash flow information:
Interest paid	(4,423)	(1,543)	(103)
Income taxes received	$ 3,212	$ 433	$ 1,817

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 10,821	$ 60,313	$ 45,846
Restricted cash	3,418	3,095	0
Total cash, cash equivalents and restricted cash	$ 14,239	$ 63,408	$ 45,846

GENERAL INFORMATION

GENERAL INFORMATION	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL INFORMATION	1. GENERAL INFORMATION DIRTT Environmental Solutions Ltd. and its subsidiary (“DIRTT”, the “Company”, “we” or “our”) is a leader in industrialized construction. DIRTT's system of physical products and digital tools empowers organizations, together with construction and design leaders, to build high-performing, adaptable, interior environments. Operating in the workplace, healthcare, education, and public sector markets, DIRTT’s system provides total design freedom, and greater certainty in cost, schedule, and outcomes. DIRTT’s proprietary design integration software, ICE® (“ICE” or “ICE software”), translates the vision of architects and designers into a 3D model that also acts as manufacturing information. ICE is also licensed to unrelated companies and Construction Partners of the Company. DIRTT is incorporated under the laws of the province of Alberta, Canada, its headquarters is located at 7303 – 30th Street S.E., Calgary, AB, Canada T2C 1N6 and its registered office is located at 4500, 855 – 2nd Street S.W., Calgary, AB, Canada T2P 4K7. DIRTT’s common shares trade on the Toronto Stock Exchange under the symbol “DRT” and on The Nasdaq Global Select Market (“Nasdaq”) under the symbol “DRTT”.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These consolidated financial statements (“Financial Statements”), including comparative figures, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In these Financial Statements, unless otherwise indicated, all dollar amounts are expressed in United States (“U.S.”) dollars. DIRTT’s financial results are consolidated in Canadian dollars, the Company’s functional currency, and the Company has adopted the U.S. dollar as its reporting currency. All references to US$ or $ are to U.S. dollars and references to C$ are to Canadian dollars. Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated upon consolidation. Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and stock-based compensation that are measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. Use of estimates The preparation of the Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to unsettled transactions and events as of the date of the Financial Statements. Estimates are based on historical data and experience, as well as various other factors that management considers reasonable under the circumstances. Actual outcomes can differ from these estimates. Significant estimates and assumptions made by management include: • Estimates of ability and timeliness of customer payments of trade receivables; • Estimates of useful lives of depreciable assets as well as the fair value of long-term assets and future cash flows used for impairment calculations; • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets; • Tax interpretations, regulations and legislation in the various jurisdictions in which the Company and its subsidiaries operate; • Estimates of the fair value of stock awards, including whether the performance criteria will be met and measurement of the ultimate payout amount; and • Estimates of liabilities associated with the potential and amount of warranty, legal claims and other contingencies. Segments Management has determined that DIRTT has one operating segment. The Company’s chief executive officer, who is DIRTT’s chief operating decision maker, reviews financial information on a consolidated and aggregate basis, together with certain operating metrics principally to make decisions about how to allocate resources and to measure the Company’s performance. Foreign currency translation DIRTT Environmental Solutions Ltd. is a Canadian company and its functional currency is the Canadian dollar. DIRTT’s wholly owned subsidiary is domiciled in the United States and its functional currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies, other than those held through foreign subsidiaries, are translated into the transacting company’s functional currency at the year-end exchange rate for monetary items and at the historical exchange rates for non-monetary items. Foreign currency revenues and expenses are translated at the exchange rates in effect on the dates of the related transactions. Foreign exchange gains and losses, other than those arising from the translation of the Company’s net investments in foreign subsidiaries, are included in income. The accounts of the Company’s U.S. dollar subsidiary is translated into Canadian dollars, and the Financial Statements are translated into U.S. dollars for financial statement presentation. Assets and liabilities are translated using year-end exchange rates, and revenues, expenses, gains and losses are translated using average monthly exchange rates. Foreign exchange gains and losses arising from the translation of the Company’s assets and liabilities are included in “comprehensive loss for the year”. Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand held at banks and cash equivalents, which are defined as highly liquid investments with original maturities of three months or less. Restricted cash is a reserve account not available for immediate or general business use and is required when certain requirements are not met under the terms of the Company’s senior secured credit facility (as defined in Note 14). Trade and other receivables, net of expected credit losses Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates its allowance for doubtful accounts using the current expected credit loss (“CECL”) methodology, which is designed to capture the Company’s current estimate of all expected credit losses. Inventory Inventory is comprised of raw materials and work in progress. The Company does not typically carry a significant amount of finished goods inventory. Inventory is valued at the lower of weighted average cost and net realizable value. Net realizable value is based on an item’s usability in the manufacturing of the Company’s products. The Company records an allowance for obsolescence when the net realizable value of inventory items declines below weighted average cost, net realizable value is determined based on current market prices for inventory less the estimated cost to sell. Work in progress is valued at an estimate of cost, including attributable overheads, based on stage of completion. Fixed production overheads are allocated to inventory on the basis of normal capacity of the production facilities. In periods where production levels are abnormally low, unallocated overheads are separately recognized as an expense in the period in which they are incurred. Leases The Company categorizes leases at their inception as either operating or finance leases. Leases where the Company assumes substantially all of the rewards or ownership and leases where ownership is transferred at the end of the lease term, or by way of a bargain purchase option, are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability, so as to achieve a constant rate of interest on the balance of the liability. Finance charges are recognized in the statement of operations. The Company’s Leasing Facilities (as defined in Note 7) are accounted for as finance leases as ownership of the equipment is expected to return to the Company at the end of the lease term. These transactions are not accounted for as a sale of the underlying equipment as the Company continues to control the equipment. For leases categorized as operating, the Company determines if an arrangement is a lease or contains a lease element at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Operating leases are separately disclosed as operating lease right-of-use (“ROU”) assets, with a corresponding lease liability split between current and long-term components on the balance sheet. Operating leases with an initial term of 12 months or less are not included on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Property, plant and equipment Property, plant and equipment are recorded at cost, including direct costs, attributable indirect costs and carrying costs, less accumulated depreciation and any accumulated impairment losses. Expenditures for repairs and maintenance are expensed as incurred, while renewals and betterments are capitalized. Depreciation is charged to the consolidated statement of operations on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of the Company’s property, plant and equipment are as follows: Building 25 years Manufacturing equipment 10 years Leasehold improvements Over term of lease (1 to 10 years) Office equipment 5 years Tooling and prototypes 4 years Computer equipment 3 years Vehicles 3 years When assets are disposed of or retired, the cost and accumulated depreciation and impairment losses are removed from the respective accounts and any resulting loss is reflected in operating expenses. Capitalized software costs The Company capitalizes costs related to internally developed software during the application development stage when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project, and (iii) it is probable that the project will be completed and performed as intended. Capitalized costs includes costs of personnel and related expenses for employees and third parties directly attributable to the projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades and enhancements are also capitalized. Costs related to preliminary project activities and post implementation activities, including training, maintenance and minor modifications or enhancements are expensed as incurred. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the developed asset, which is generally three to five years . Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets. Software development is considered internal-use as it is used to design and sell the DIRTT products and is not included in the end client’s product. Revenues received from Construction Partners for ICE Software are recognized as revenues as they are considered an element of the product sale. Any incidental third-party revenues received for the ICE Software are credited against capitalized software costs. The Company follows this accounting policy for cloud computing arrangements that are considered a service contract, however, these projects are capitalized to prepaids and other assets on the balance sheet and are expensed as an operating cost, as opposed to amortization, over the expected term of the software service contract. The Company adopted this amendment on January 1, 2020 using the prospective transition approach and classified $ 0.7 million as other assets on the consolidated balance sheet for the year ended December 31, 2021. Impairment of long-lived assets Management evaluates the recoverability of the Company’s property, plant and equipment, capitalized software costs and ROU assets when events or changes in circumstances indicate a potential impairment exists. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable include, but are not limited to, significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Convertible Debentures The Company accounts for convertible debentures as liabilities. Embedded features included in the convertible debentures that require bifurcation are accounted for separately. Costs incurred directly related to the issuance of convertible debentures are presented as a direct deduction against the carrying amount of the convertible debentures and are amortized to interest expense using the effective interest method. Income taxes Income tax expense is comprised of current and deferred tax. Income tax is recognized in the consolidated statement of operations and comprehensive income (loss) except to the extent it relates to items recognized directly in equity. Current tax Current tax expense is based on the results for the year, adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that were enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax Deferred tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in income tax rates on deferred income tax assets and liabilities is recognized in income in the period during which the change occurs. When appropriate, the Company records a valuation allowance against deferred tax assets to reflect that these tax assets may not be realized. In determining whether a valuation allowance is appropriate, the Company considers whether it is more likely than not that all or some portion of the Company’s deferred tax assets will not be realized, based on management’s judgment using available evidence about future events. At times, tax benefits claims may be challenged by a tax authority. Tax benefits are recognized only for tax positions that are more likely than not sustainable upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 % likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. Revenue recognition The Company accounts for revenue in accordance with topic 606, Revenue from Contracts with Customers, (“ASC 606”) and Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers. Under ASC 606, an entity recognizes revenue in a manner that reflects the transfer of promised goods or services to customers in an amount which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue upon transfer of control of promised goods or services to customers at transaction price, an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Transaction price is calculated as selling price net of variable consideration which may include estimates for sales incentives related to current period product revenue. Revenue is measured at the fair value of the consideration received or receivable, after discounts, rebates and sales taxes or income taxes and duties. Product sales The Company recognizes revenue upon transfer of control of products to the customer, which typically occurs upon shipment. The Company’s main performance obligation to customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Construction Partners typically sell DIRTT product to end clients and issue purchase orders to the Company to manufacture the product. Construction Partners utilize ICE licenses to sell DIRTT products, the ICE licenses sold to Construction Partners are not considered a separate performance obligation as they are not distinct, and ICE license revenue is recognized in conjunction with product sales. The Construction Partner ICE Software revenue is recognized over the license period. The Company’s standard sales terms are Free On Board (“FOB”) shipping point, which comprise the majority of sales. The Company usually requires a 50 % progress payment on receipt of certain orders, excluding certain government orders or in some special contractual situations. Customer deposits received are recognized as a liability on the balance sheet until revenue recognition criteria is met. At the point of shipment, the customer is generally required to pay the balance of the sales price within 30 days. The Company’s sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets that are material to its consolidated financial statements. The Company provides sales commissions to internal and external sales representatives which are earned in the period in which revenue is recognized. The Company accounts for product transportation revenue and costs as fulfillment activities and present the associated costs in costs of goods sold in the period in which the Company sells its product. Contracts containing multiple performance obligations The Company offers certain arrangements whereby a customer can purchase products and installation together which are generally capable of being distinct and accounted for as separate performance obligations. Where multiple performance obligations exist, the Company determines revenue recognition by (1) identifying the contract with the customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations based on the relative standalone selling prices, typically based on cost plus a reasonable margin, and (5) recognizing revenue as the performance obligations are satisfied. Installation and other services The Company provides installation and other services for certain customers as a distinct performance obligation. Revenue from installation services is recognized over time as the service is performed. Principal vs Agent Considerations The Company evaluates the presentation of revenue on a gross vs. net basis based on whether it acts as a principal by controlling the product or service sales to customers. In certain instances, the Company facilitates contracting of certain sales on behalf of Construction Partners. The Company records these revenues on a gross basis when the Company is obligated to fulfill the service and has the risk associated with service delivery. The Company records these revenues on a net basis when the Construction Partner has the obligation to fulfill the services and has the risk associated with service delivery. Construction Partner rebates Rebates to Construction Partners (“Partner Rebates”) are accrued for and recognized as a reduction of revenue at the date of the sale to the customer. Partner Rebates include amounts collected directly by the Company owed to Construction Partners in accordance with their Construction Partner agreements, being the difference between the price to the end customer and the Construction Partners’ price. Other sales discounts are deducted immediately from sales invoices. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an unbilled receivable when revenue is recognized prior to invoicing. As the Company’s contracts are less than one year in duration, the Company has elected to apply the practical expedients to expense costs related to costs to obtain contracts and not disclose unfulfilled performance obligations. As deferred revenue and customer deposits are typically recognized during the year the Company does not account for financing elements. Warranties The Company provides a warranty on all products sold to its clients and Construction Partner’s clients. Warranties are not sold separately to customers. Provisions for the expected cost of warranty obligations are recognized based on an analysis of historical costs for warranty claims relative to current activity levels and adjusted for factors based on management’s assessment that increase or decrease the provision. Warranty provision is recognized in cost of goods sold. Warranty claims have historically not been material and do not constitute a separate performance obligation. Stock-based compensation The Company follows the fair value-based approach to account for options, share awards and restricted share units (“RSUs”). Compensation expense and an increase in “Additional paid-in capital” are recognized for options and RSUs over their vesting period based on their estimated fair values on the grant date, as determined using the Black-Scholes option pricing model for the majority of options and the market value of the Company’s common shares on the grant date for share awards and RSUs. Certain executive stock options and RSUs have performance conditions and are valued using a Monte Carlo model. On exercise of stock options and RSUs, the recorded fair value of the option or RSU is removed from “Additional paid-in capital” and credited to “Share capital”. For options, any consideration paid by employees is credited to “Share capital” when the option is exercised. The Company’s stock options and RSUs are not shares of the Company and have no rights to vote, receive dividends, or any other rights as a shareholder of the Company. Stock based compensation expense is also recognized for performance share units (“PSUs”) and deferred share units (“DSUs”) using the fair value method. Compensation expense is recognized over the vesting period and the corresponding amount is recorded as a liability on the balance sheet. Technology and development expenditures Technology and development expenses are comprised primarily of salaries and benefits associated with the Company’s product and software development personnel which do not qualify for capitalization. These costs are expensed as incurred and exclude certain information and technology costs used in operations which are classified as general and administrative costs. Government subsidies The Company accounts for government subsidies on an accrual basis when the conditions for eligibility are met. The Company has adopted an accounting policy to present government subsidies as other income. The nature, significant terms and conditions of government subsidies are disclosed in the financial statements. (Refer to Note 3 on adoption of Accounting Standards Update No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,) Earnings per share (“EPS”) Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive impact of stock options. The Company follows the “if converted” method for accounting for the impact of convertible debentures on earnings (loss) per share, whereby interest charges applicable to the convertible debentures are added to the numerator and the convertible debentures are assumed to have been converted at the beginning of the period (or time of issuance, if later), and the resulting common shares are added to the denominator. Fair value of financial instruments ASC 820, “Fair Value Measurements,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s fair value analysis is based on the degree to which the fair value is observable and grouped into categories accordingly: • Level 1 financial instruments are those which can be derived from quoted market prices (unadjusted) in active markets for similar financial assets or liabilities. • Level 2 financial instruments are those which can be derived from inputs that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 2 financial instruments include current and long-term debt. The carrying amounts of these instruments approximates fair value due to limited changes to interest rates and the Company’s credit rating since issuance. • Level 3 financial instruments are those derived from valuation techniques that include inputs for the financial asset or liability which are not based on observable market data (unobservable inputs). The Company does not have any Level 3 financial instruments. The carrying amounts of cash and cash equivalents and restricted cash; trade and accrued receivables, other receivables; accounts payable and accrued liabilities; other liabilities; and customer deposits approximate fair value due to their short-term nature.

ADOPTION OF NEW AND REVISED ACC

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS	12 Months Ended
	Dec. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS	3. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS In 2021, the Financial Accounting Standards Board issued Accounting Standards Update No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The ASU provides guidance on required disclosures with respect to government assistance in a company’s notes to the annual financial statements. The amendments in the ASU are effective for periods beginning after December 15, 2021. The Company has adopted this standard effective January 1, 2022 and notes there is no significant impact of this standard on our accounting or disclosures for government assistance. Although there are several other new accounting standards issued or proposed by the Financial Accounting Standards Board, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its Financial Statements.

LIQUIDITY

LIQUIDITY	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY	4. LIQUIDITY The Company has been negatively impacted by the effect of COVID-19 on the non-residential construction industry, costs incurred associated with the Company’s contested director elections, reorganization costs to reconstitute the executive team and align the Company’s cost structure with current sales activity, and significant inflation on raw materials costs, which have resulted in a significant usage of cash in recent periods which has been funded through Convertible Debentures and Leasing Facilities entered into in the prior year (refer to Note 14). As at December 31, 2022, the Company had $ 10.8 million of cash on hand and C$ 7.2 million ($ 5.3 million) of available borrowings (December 31, 2021 - $ 60.3 million and $ 10.4 million of available borrowings). We have implemented a number of restructuring initiatives to create a reduced cost structure moving forward (refer to Note 6) and have implemented multiple price increases during the year to mitigate the impact of inflation on raw material costs. While these actions and our project pipeline are promising, we continue to see unpredictability in our pace of orders. As a result, the Company has initiated certain actions to improve our balance sheet in the short term. First, we are evaluating initiatives related to the use of ICE software by third parties to supplement the relatively small revenues we have previously recognized from our licensing of ICE software to certain strategic partners for use in their businesses and our related licensing and developer software support for these counterparties. Second, we have certain properties that are currently owned that we are evaluating for potential sale and lease back arrangements. We do not intend to vacate these premises as they still serve a valuable aspect of our value proposition, but this type of arrangement would provide us with a one-time cash payment in the near term, in exchange for future rent payments. We expect these strategic initiatives to result in positive cash inflows in 2023. As these transactions are awaiting finalization, we completed a Private Placement (defined in Note 21) of common shares, supported by significant shareholders and directors and officers of the Company to bridge cash requirements between now and the completion and closing of the noted strategic transactions (refer to Note 21). We have assessed the Company’s liquidity position as at December 31, 2022 using multiple scenarios taking into account our sales outlook for the next year, our existing cash balances and available credit facilities and the probability of executing the strategic transactions noted above. Based on this analysis we believe the Company has sufficient liquidity to support ongoing operations for the next twelve months. However, should anticipated profitable growth and increased labor headcount and manufacturing capacity not occur or should there be a delayed recovery of the North American construction activities from the pandemic, a sustained economic depression and its adverse impacts on customer demand or significant inflationary pressure on raw materials and transportation cost that we are unable to recover through price increases, the Company will need to identify alternative sources of financing, further reduce its cost structure, delay capital expenditures, evaluate potential asset sales and potentially curtail or cease certain operations. While the Company is confident that it will be able to raise additional capital when needed or under acceptable terms, there can be no absolute assurance it will be able to do so.

COVID- 19

COVID- 19	12 Months Ended
	Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]
COVID-19	5. COVID-19 The impact of the COVID-19 pandemic on our future consolidated results of operations remains uncertain. The extent to which COVID-19 impacts our employees, operations, customers, suppliers and financial results depends on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic (and whether there is a resurgence or multiple resurgences in the future, including the impact of new variants); government actions taken in response to the pandemic, including required shutdowns or vaccine or testing mandates; the availability, acceptance, distribution and continued effectiveness of vaccines; the impact on construction activity, including the effect on our customers’ demand for our interior construction systems; supply chain disruptions; rising inflation; labor shortages; sustained remote or hybrid work models; our ability to manufacture and sell our products; and the ability of our customers to pay for our products. While many of our products support life-sustaining activities and essential construction, we and certain of our customers or suppliers may be impacted by national, federal, state and provincial actions, orders and policies regarding the COVID-19 pandemic, including: temporary closures of non-life-sustaining businesses, shelter-in-place orders, and travel, social distancing and quarantine policies, the implementation and enforcement of which vary in each of the jurisdictions in which we operate. We did not record any asset impairments, inventory charges or material bad debt reserves related to COVID-19 during the years ended December 31, 2022 and 2021, but future events may require such charges which could have a material adverse effect on our financial condition, liquidity or results of operations. Government subsidies In the United States, the Employee Retention Credit ("ERC") was established by Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") to provide an incentive for employers to keep their employees on their payroll during COVID-19 closures. The ERC is a refundable payroll tax credit based on qualified wages paid by an eligible employer between March 12, 2020, and October 1, 2021 for companies experiencing a significant decline in gross receipts during a calendar quarter or having operations fully or partially suspended during the quarter due to COVID-19. During the third quarter of 2022, the Company determined it was eligible for the ERC for the first three quarters of 2021 and has filed a claim for $ 7.3 million in payroll tax credits ($ 7.1 million net of expenses). As of December 31, 2022 these credits have not been received and are included in other receivables in the balance sheet. As part of the Canadian federal government’s COVID-19 Economic Response Plan, the Canadian government established the Canadian Emergency Wage Subsidy (“CEWS”). The CEWS provided the Company with a taxable subsidy in respect of a specific portion of wages paid to Canadian employees during qualifying periods extending from March 15, 2020 to October 23, 2021 based on the percentage decline of certain of the Company’s Canadian sourced revenues during each qualifying period. The Company’s eligibility for the CEWS was subject to change for each qualifying period and was reviewed by the Company for each qualifying period, with amounts being received by the Company for various, but not each, qualifying period. Pursuant to amendments enacted as part of the 2021 Canadian federal budget, the Company is required to repay a portion of the CEWS amounts received for any qualifying period commencing after June 5, 2021 where the aggregate compensation for “specified executives” (within the meaning of the CEWS) during the 2021 calendar year exceeds the aggregate compensation for “specified executives” during the 2019 calendar year. Upon finalization of 2021 compensation to specified executives, approximately C$ 0.5 million ($ 0.4 million) of subsidies was repaid to the Canadian authorities in the second quarter of 2022. The repayment amount was fully provided for in the third quarter of 2021 in accounts payable and accrued liabilities and in the first quarter of 2022 the Company reversed a $ 0.6 million incremental provision related to this that is no longer necessary. On November 19, 2020, the Canadian government also implemented the Canada Emergency Rent Subsidy (“CERS”). The CERS provided a taxable subsidy to cover eligible expenses for qualifying properties, subject to certain maximums, for qualifying periods extending from September 27, 2020 to October 23, 2021, with the amount of the subsidy available to the Company being based on the percentage decline of certain of the Company’s Canadian-sourced revenues in each qualifying period. The Company’s eligibility for the CERS was subject to change for each qualifying period and was reviewed by the Company for each qualifying period. The last claim period under the CEWS and CERS programs ended on October 23, 2021. The Company is not eligible and did not receive any new Canadian government subsidies in year ended December 31, 2022.

REORGANIZATION

REORGANIZATION	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
REORGANIZATION	6. REORGANIZATION During the year ended December 31, 2022, the Company undertook a number of reorganization initiatives: Closure of Phoenix Aluminum Manufacturing Facility (the “Phoenix Facility”) On February 22, 2022, we commenced the process of closing our Phoenix Facility, shifting related manufacturing to both our Savannah and Calgary aluminum manufacturing facilities. The closure of the Phoenix Facility was substantially completed in the second quarter of 2022. The Company entered into a sublease arrangement during the second quarter of 2022, commencing July 1, 2022, which exceeds the contractual lease commitments under the Right of Use assets. Workforce Reductions, Board and Management Changes In February and July of 2022, we announced our intention to eliminate a portion of our salaried workforce including manufacturing and office positions along with other cost reduction initiatives. The Company’s Board of Directors was reconstituted following a contested proxy contest in April 2022 which was deemed a change of control under the Company’s insurance policy resulting in additional insurance expenditures. Further, the Company made changes to several executive officer roles during the year ended December 31, 2022, which resulted in incurring certain termination benefits and recruitment costs. Temporary Suspension of Operations at Rock Hill, South Carolina (the "Rock Hill Facility") On August 23, 2022, we announced the temporary suspension of operations at our Rock Hill Facility, shifting related manufacturing to our Calgary manufacturing facility. Reorganization costs incurred: For the Year Ended December 31, 2022 2021 Termination benefits 7,042 - Insurance costs on change of control 3,691 - Phoenix Facility closure 756 - Professional services 1,021 - Relocation and other costs 951 - Total reorganization costs 13,461 - For the Year Ended December 31, 2022 2021 Opening reorganization costs in accounts payable and accrued liabilities - - Reorganization expense 13,461 - Reorganization costs paid ( 11,184 ) - Reorganization costs in accounts payable and accrued liabilities at December 31, 2022 2,277 - Of the $ 2.3 million payable, $ 2.1 million relates to termination benefits and $ 0.2 million relates to other reorganization costs. Discontinuation of Reflect Product Line and Other Charges Incurred In August 2022, the Company discontinued the Reflect and other product lines, resulting in a one time inventory write-down of $ 1.0 million, and an acceleration of amortization expense associated with ICE development for Reflect. Additionally, the Company accelerated the depreciation of certain items of property, plant and equipment associated with the closure of the Phoenix Facility resulting in additional depreciation incurred in the first quarter of 2022. These costs were included in cost of sales: For the Year Ended December 31, 2022 2021 Provision for inventory of discontinued product lines 1,035 - Accelerated amortization associated with product line discontinuation 1,019 - Accelerated depreciation and amortization associated with closure of the Phoenix Facility 1,054 - Incremental cost of sales 3,108 -

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
LEASES	7. LEASES The Company leases office and factory space under various operating leases. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to instruments with similar characteristics when calculating its incremental borrowing rate. The Company’s operating leases have remaining lease terms of 1 year to 23 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The weighted average remaining lease term and weighted average discount rate at December 31, 2022 were 13 years (2021 - 14 years) and 4.9 % (2021 – 5.2 %), respectively. The following table includes ROU assets included on the balance sheet at December 31, 2022 and 2021: ROU Assets Cost Accumulated depreciation Net book value At January 1, 2021 41,840 ( 8,197 ) 33,643 Additions 2,401 - 2,401 Depreciation expense - ( 4,989 ) ( 4,989 ) Exchange differences ( 186 ) 11 ( 175 ) At December 31, 2021 44,055 ( 13,175 ) 30,880 Additions 139 - 139 Modifications 4,809 50 4,859 Depreciation expense - ( 5,057 ) ( 5,057 ) Exchange differences ( 943 ) 611 ( 332 ) At December 31, 2022 48,061 ( 17,571 ) 30,490 The following table includes lease liabilities included on the balance sheet at December 31, 2022 and 2021: Lease Liability 2022 2021 At January 1, 33,481 35,284 Additions 139 2,401 Modifications 4,809 - Accretion 1,722 1,758 Repayment of lease liabilities ( 6,558 ) ( 6,509 ) Lease inducements 124 720 Exchange differences ( 295 ) ( 173 ) At December 31, 33,423 33,481 Current lease liabilities 5,889 6,214 Long-term lease liabilities 27,534 27,267 The following table includes maturities of operating lease liabilities at December 31, 2022: 2023 6,038 2024 4,630 2025 4,605 2026 4,013 2027 2,826 Thereafter 26,631 Total 48,743 Total lease liability 33,423 Difference between undiscounted cash flows and lease liability 15,320

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
TRADE AND OTHER RECEIVABLES	8. TRADE AND ACCRUED RECEIVABLES AND OTHER RECEIVABLES Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates an allowance for credit losses using the lifetime expected credit loss at each measurement date taking into account historical credit loss experience as well as forward-looking information in order to establish rates for each class of financial receivable with similar risk characteristics. Adjustments to this estimate are recognized in the statement of operations. In order to manage and assess our risk, management maintains credit policies that include regular review of credit limits of individual receivables and systematic monitoring of aging of trade receivables and the financial wellbeing of our customers. In addition, we acquired trade credit insurance effective April 1, 2020. At December 31, 2022, approximately 77% of our trade accounts receivable are insured, relating to accounts receivables from counterparties deemed creditworthy by the insurer and excluding accounts receivable from government entities. Our trade balances are spread over a broad Construction Partner base, which is geographically dispersed. For the years ended December 31, 2022 and 2021 no Construction Partner accounted for greater than 10 % of revenue. In addition, and where possible, we collect a 50 % deposit on sales, excluding government and certain other clients. As at December 31, December 31, 2022 2021 Current 12,381 13,572 Overdue 1,675 621 14,056 14,193 Less: expected credit losses ( 126 ) ( 130 ) 13,930 14,063 During 2021, $ 0.5 million of receivables for a specific customer balance was written off. No change to our expected credit loss was required at December 31, 2022. Receivables are generally considered to be past due when over 60 days old unless there is a separate payment arrangement in place for the collection of the receivable. As at December 31, 2022, the Company classified Other Receivables separately from Trade and Accrued Receivables on the balance sheet, as reconciled below: As at, December 31, December 31, 2022 2021 Trade receivables 14,056 14,193 Allowance for doubtful accounts ( 126 ) ( 130 ) Accounts receivable 13,930 14,063 Sales tax receivable 251 196 Income taxes receivable 40 3,194 Government subsidies 7,319 - Other receivables 270 87 Other receivables (reclassified on the balance sheet) 7,880 3,477 Total Trade and other receivables, as previously presented 21,810 17,540

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORY	9. INVENTORY As at December 31, 2022 2021 Raw material 22,218 18,388 Allowance for obsolescence ( 1,242 ) ( 646 ) Work in progress 1,275 715 22,251 18,457 In 2022, the Company provided $ 1.1 million (2021 - $ 0.6 million) for inventory that is not expected to be used in future production and the associated expense was recorded to cost of goods sold. During 2022, the Company wrote off $ 0.5 million of inventory against the provision (2021 - $ 0.4 million) and increased the allowance for obsolescence by $ 0.9 million (2021 - $ 0.1 million) mainly related to the discontinuation of Reflect product lines. In addition, the Company recorded direct write offs against inventory of $ 0.3 million. Production overheads capitalized in work in progress were $ 0.2 million at December 31, 2022 (December 31, 2021 - $ 0.1 million). Additional costs included in cost of goods sold During 2021 and 2020, the Company experienced periods where it was operating below normal capacity levels. During that period, overheads included in inventory were not increased and $ 1.8 million (2020: $ 2.0 million) was included in cost of sales. Previously this was presented as a separate part of cost of sales in the Consolidated Statement of Operations. In 2022, we have temporarily suspended operations at the Rock Hill Facility. Idle facility costs being incurred at the Rock Hill Facility are included in cost of sales. For the Year Ended December 31, 2022 2021 2020 Underutilized capacity - 1,756 2,010 Idle facility costs 506 - - 506 1,756 2,010 Change in presentation in Consolidated Statement of Operations For the Year Ended December 31, 2022 2021 2020 Product cost of sales, as previously presented 140,058 118,525 113,445 Cost of under utilized capacity, as previously presented - 1,756 2,010 Product cost of sales, per Statement of Operations 140,058 120,281 115,455

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	10. PROPERTY, PLANT AND EQUIPMENT, NET Office and computer equipment Factory equipment Leasehold improvements Total Cost At December 31, 2020 24,988 66,523 43,105 134,616 Additions 3,422 4,515 4,372 12,309 Disposals - ( 53 ) - ( 53 ) Exchange differences 236 499 90 825 At December 31, 2021 28,646 71,484 47,567 147,697 Additions 738 775 341 1,854 Disposals ( 1,347 ) ( 2,983 ) ( 6,688 ) ( 11,018 ) Exchange differences ( 581 ) ( 3,167 ) ( 1,457 ) ( 5,205 ) At December 31, 2022 27,456 66,109 39,763 133,328 Accumulated depreciation and impairment At December 31, 2020 16,362 35,524 32,883 84,769 Depreciation expense 3,589 3,670 3,817 11,076 Disposals - ( 23 ) - ( 23 ) Exchange differences 30 100 48 178 At December 31, 2021 19,981 39,271 36,748 96,000 Depreciation expense 2,355 4,425 3,680 10,460 Disposals ( 1,272 ) ( 2,831 ) ( 6,688 ) ( 10,791 ) Exchange differences ( 540 ) ( 2,044 ) ( 1,279 ) ( 3,863 ) At December 31, 2022 20,524 38,821 32,461 91,806 Net book value At December 31, 2021 8,665 32,213 10,819 51,697 At December 31, 2022 6,932 27,288 7,302 41,522 As at December 31, 2022, the Company had $ 0.1 million of assets in progress of completion which were excluded from assets subject to depreciation (December 31, 2021 – $ 2.2 million). During the year ended December 31, 2022, depreciation expense included $ 1.1 million of incremental depreciation on the acceleration of useful lives associated with the closing of the Phoenix Facility. Refer to Note 6, Reorganization. During the year ended December 31, 2022, the Company has incurred negative cash flows from operations and accordingly management determined that this was an indicator of property, plant and equipment assets. The Company estimated the undiscounted cash flows to be generated from the use and ultimate disposition of the property, plant and equipment assets. To estimate the undiscounted cashflows of the reporting unit, the Company applied the income approach. Sales and cost projections were based on assumptions driven by current economic conditions. The Company considered various scenarios and probability-weighted the likelihood of each scenario in determining the reporting unit’s fair value. The average compounded annual growth rate of revenues was 5 %- 10 %. Other key assumptions used in the quantitative assessment of the reporting unit’s undiscounted cashflows was terminal growth rate of 2 %. The Company estimated the undiscounted cash flows to be generated from the use and ultimate disposition of the property, plant and equipment assets. The results of the test indicated that the undiscounted cash flows exceeded the carrying values of property, plant and equipment, therefore, no impairment charge was required at December 31, 2022. During the year ended December 31, 2021, goodwill was impaired (see Note 12) and determined that this was an indicator of impairment for property, plant and equipment. The Company estimated the undiscounted cash flows to be generated from the use and ultimate disposition of the property, plant and equipment assets using the same methodology and assumptions included in the goodwill impairment test (see Note 12). The results of the test indicated that the fair value exceeded the carrying values of property, plant and equipment, therefore, no impairment charge was required at December 31, 2021.

CAPITALIZED SOFTWARE, NET

CAPITALIZED SOFTWARE, NET	12 Months Ended
	Dec. 31, 2022
Capitalized Software [Abstract]
CAPITALIZED SOFTWARE, NET	11. CAPITALIZED SOFTWARE, NET For the Year Ended December 31, 2022 2021 Cost As at January 1 37,492 35,480 Additions 1,677 2,340 Recovery of software development expenditures ( 263 ) ( 461 ) Disposals ( 1,990 ) - Exchange differences ( 2,370 ) 133 As at December 31 34,546 37,492 Accumulated amortization As at January 1 30,097 27,136 Amortization expense 3,887 2,878 Disposals ( 1,916 ) - Exchange differences ( 1,928 ) 83 As at December 31 30,140 30,097 Net book value 4,406 7,395 Estimated amortization expense on capitalized software is $ 1.6 million in 2023, $ 1.2 million in 2024, $ 1.0 million in 2025, $ 0.5 million in 2026, and $ 0.1 million in 2027. During the year ended December 31, 2022, amortization expense was impacted by $ 1.0 million of incremental amortization on the acceleration of useful lives associated with discontinued product lines. Refer to Note 6, Reorganization.

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	12. GOODWILL For the year ended December 31, 2022 2021 As at January 1 - 1,449 Impairment - ( 1,443 ) Exchange differences - ( 6 ) As at December 31 - - In 2021, the Company’s goodwill was assessed at the consolidated company level which represents the Company’s sole operating and reporting unit. The Company tested its goodwill for impairment annually during the fourth quarter of the calendar year. Due to the impact of the COVID-19 pandemic on its financial results in 2021, the Company determined it was necessary to use the quantitative approach to perform its goodwill impairment test. The quantitative impairment test requires estimates to determine the fair value of the reporting unit, as such, required the Company to make significant assumptions and judgments. To estimate the fair value of the reporting unit, the Company applied the income approach using discounted future cash flows. Sales and cost projections were based on assumptions driven by current economic conditions. Due to the uncertainty around the future impact of COVID-19 at that time, its projections considered various scenarios and the Company probability-weighted the likelihood of each scenario in determining the reporting unit’s fair value. The average compounded annual growth rate of revenues was 10 % and the Company assumed a 10 % - 15 % annualized reduction in operating costs in the model. Other key assumptions used in the quantitative assessment of the reporting unit’s goodwill were the application of a discount rate of 13 % and a terminal growth rate of 2 %. Based on its testing, the fair value of goodwill did not exceed the recoverable amount and, accordingly, the entire $ 1.4 million balance of goodwill was impaired as at December 31, 2021. The impairment charge on goodwill has been separately classified on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2021.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES	13. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES As at December 31, 2022 2021 Trade accounts payable 5,562 7,820 Accrued liabilities 8,776 9,649 Wages and commissions payable 3,410 4,275 Rebates accrued (1) 2,133 1,007 19,881 22,751 (1) In 2022 $ 4.8 million of rebates were earned (2021 - $ 4.1 million) and $ 3.7 million were paid (2021 - $ 4.7 million). Other liabilities As at, December 31, 2022 December 31, 2021 Warranty provisions (1) 1,278 1,451 DSU liability 594 785 Sublease deposits 139 - Other provisions 45 143 Other liabilities 2,056 2,379 (1) The following table presents a reconciliation of the warranty and other provisions balance: As at, December 31, 2022 December 31, 2021 As at January 1 1,451 1,763 Adjustments to timber provision - ( 500 ) Additions to warranty provision 1,134 1,019 Payments related to warranties ( 1,307 ) ( 831 ) 1,278 1,451

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
LONG-TERM DEBT	14. LONG-TERM DEBT Revolving Leasing Convertible Total Debt Balance on December 31, 2020 - 5,967 - 5,967 Issuances - 9,805 55,107 64,912 Accretion of issue costs - - 352 352 Accrued interest - 556 1,935 2,491 Interest payments - ( 556 ) ( 987 ) ( 1,543 ) Principal repayments - ( 1,808 ) - ( 1,808 ) Exchange differences - ( 55 ) 326 271 Balance at December 31, 2021 - 13,909 56,733 70,642 Current portion of long-term debt and accrued interest - 2,386 937 3,323 Long-term debt - 11,523 55,796 67,319 Balance on December 31, 2021 - 13,909 56,733 70,642 Issuances - 647 - 647 Accretion of issue costs - - 676 676 Accrued interest - 735 3,539 4,274 Interest payments - ( 735 ) ( 3,688 ) ( 4,423 ) Principal repayments - ( 2,470 ) - ( 2,470 ) Exchange differences - ( 274 ) ( 3,637 ) ( 3,911 ) Balance at December 31, 2022 - 11,812 53,623 65,435 Current portion of long-term debt and accrued interest - 2,561 745 3,306 Long-term debt - 9,251 52,878 62,129 Revolving Credit Facility On February 12, 2021, the Company entered into a C$ 25.0 million senior secured revolving credit facility with RBC (the “ RBC Facility”), replacing the Previous RBC Facility. Under the RBC Facility, the Company is able to borrow up to a maximum of 90% of investment grade or insured accounts receivable plus 85% of eligible accounts receivable plus the lesser of 75% of the book value of eligible inventory and 85% of the net orderly liquidation value of eligible inventory less any reserves for potential prior ranking claims (the “Borrowing Base”). At December 31, 2022, available borrowings are C$ 7.2 million ($ 5.3 million), of which no amounts have been drawn. Interest is calculated at the Canadian or U.S. prime rate plus 30 basis points or at the Canadian Dollar Offered Rate or LIBOR plus 155 basis points. Under the RBC Facility, if the Aggregate Excess Availability, defined as the Borrowing Base less any loan advances or letters of credit or guarantee and if undrawn including unrestricted cash, is less than C$ 5.0 million, the Company is subject to a FCCR covenant of 1.10:1 on a trailing twelve month basis. Additionally, if the FCCR has been above 1.10:1 for the 3 immediately preceding months, the Company is required to maintain a reserve account equal to the aggregate of one-year of payments on the Leasing Facilities (defined below). The Company did not meet the 3 month FCCR requirement during the fourth quarter of 2022 which would result in requiring the restriction of $ 3.4 million of cash at December 31, 2022. Should an event of default occur or the Aggregate Excess Availability be less than C$ 6.25 million for 5 consecutive business days, the Company would enter a cash dominion period whereby the Company’s bank accounts would be blocked by RBC and daily balances will set-off any borrowings and any remaining amounts made available to the Company. On February 9, 2023, the Company extended the RBC Facility (the “Extended RBC Facility”). The Extended RBC Facility has an borrowing base of C$ 15 million and a one year term. Interest is calculated as at the Canadian or U.S. prime rate plus 75 basis points or at the Canadian Dollar Offered Rate or LIBOR plus 200 basis points. Under the Extended RBC Facility, until such time that the trailing twelve month FCCR is above 1.25 for three consecutive months, a cash balance equivalent to 1-years worth of Leasing Facilities payments must be maintained. Leasing Facilities The Company has a C$ 5.0 million equipment leasing facility in Canada (the “Canada Leasing Facility”) and a $ 14.0 million equipment leasing facility in the United States (the “U.S. Leasing Facility” and, together with the Canada Leasing Facility, the “Leasing Facilities”) with RBC, and one of its affiliates, which are available for equipment expenditures and certain equipment expenditures already incurred. The Leasing Facilities, respectively, have seven and five-year terms and bear interest at 4.25 % and 5.59 %. The U.S. Leasing Facility is amortized over a six-year term and extendable at the Company’s option for an additional year. During 2022, the Company received $ nil (2021 - $ 9.8 million) of cash consideration under the U.S. leasing facility related to reimbursements for equipment purchases for its South Carolina Facility. During 2022, the Company received C$ 0.9 million ($ 0.7 million) (2021 - $ nil ) of cash consideration under the leasing facility in Canada. The associated financial liabilities are shown on the consolidated balance sheet in current other liabilities and long-term debt and other liabilities. Convertible Debentures On January 25, 2021, the Company completed a C$ 35 million ($ 27.5 million) bought-deal financing of convertible unsecured subordinated debentures with a syndicate of underwriters (the "January Debentures"). On January 29, 2021, the Company issued a further C$ 5.25 million ($ 4.1 million) of the January Debentures under the terms of an overallotment option granted to the underwriters. These January Debentures will mature and be repayable on January 31, 2026 (the “January Debentures Maturity Date”) and will accrue interest at the rate of 6.00 % per annum payable semi-annually in arrears on the last day of January and July of each year commencing on July 31, 2021 until the January Debentures Maturity Date, interest and principal are payable in cash or shares at the option of the Company. These January Debentures will be convertible into common shares of DIRTT, at the option of the holder, at any time prior to the close of business on the business day prior to the earlier of the January Debentures Maturity Date and the date specified by the Company for redemption of these January Debentures at a conversion price of C$ 4.65 per common share, being a ratio of approximately 215.0538 common shares per C$ 1,000 principal amount of the January Debentures. Costs of the transaction were approximately C$ 2.7 million, including the underwriters’ commission. On November 15, 2021, the Company completed a C$ 35 million ($ 27.4 million) bought-deal financing of convertible unsecured subordinated debentures with a syndicate of underwriters (the “December Debentures” and, together with the January Debentures, the “Debentures”). These convertible debentures will mature and be repayable on December 31, 2026 (the “December Debentures Maturity Date”) and will accrue interest at the rate of 6.25 % per annum payable semi-annually in arrears on the last day of June and December of each year commencing on June 30, 2022 until the December Debentures Maturity Date, interest and principal are payable in cash or shares at the option of the Company. These December Debentures will be convertible into common shares of DIRTT, at the option of the holder, at any time prior to the close of business on the business day prior to the earlier of the December Debentures Maturity Date and the date specified by the Company for redemption of the December Debentures at a conversion price of C$ 4.20 per common share, being a ratio of approximately 238.0952 common shares per C$ 1,000 principal amount of the December Debentures. Costs of the transaction were approximately C$ 2.3 million including the underwriters’ commission.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	15. INCOME TAXES Reconciliation of income taxes The following reconciles income taxes calculated at the Canadian statutory rate with the actual income tax expense. The Canadian statutory rate includes federal and provincial income taxes. This rate was used because Canada is the domicile of the parent entity of the Company. For the Year Ended December 31, 2022 2021 2020 Net loss before tax ( 54,942 ) ( 53,872 ) ( 9,194 ) Canadian statutory rate 24.4 % 23.3 % 24.2 % Expected income tax ( 13,406 ) ( 12,552 ) ( 2,225 ) Effect on taxes resulting from: Valuation allowance 13,590 12,046 5,241 Non-deductible expenses 422 542 261 Non-deductible stock-based compensation 23 189 269 Tax rate impacts ( 665 ) ( 488 ) ( 1,288 ) Adjustments related to prior year tax filings 57 59 ( 105 ) Other - - ( 49 ) Income tax expense (recovery) 21 ( 204 ) 2,104 Current tax expense (recovery) 21 210 ( 3,521 ) Deferred tax expense (recovery) - ( 414 ) 5,625 Income tax expense (recovery) 21 ( 204 ) 2,104 The provision for income taxes is comprised of federal, state, provincial and foreign taxes based on pre-tax income. In the United States, the CARES Act of 2020 allows, among other provisions, for the recovery of taxes paid over the preceding five years from current year losses. Deferred tax assets and liabilities Significant components of the Company’s deferred tax assets and liabilities at December 31, 2022 and 2021 were as follows: At December 31, 2022 Assets Liabilities Net Operating losses 33,740 - 33,740 Research and development expenditures 336 - 336 Property and equipment - ( 6,017 ) ( 6,017 ) Capitalized software and other assets - ( 1,599 ) ( 1,599 ) Valuation allowance - ( 29,812 ) ( 29,812 ) Other 3,352 - 3,352 Net deferred taxes 37,428 ( 37,428 ) - At December 31, 2021 Assets Liabilities Net Operating losses 24,032 - 24,032 Research and development expenditures 362 - 362 Property and equipment - ( 7,572 ) ( 7,572 ) Capitalized software and other assets - ( 2,023 ) ( 2,023 ) Valuation allowance ( 17,291 ) - ( 17,291 ) Other 2,492 2,492 Net deferred taxes 7,103 ( 7,103 ) - Summary of temporary difference movements during the year: Balance Recognized Foreign Balance January 1, 2022 in Income Exchange December 31, 2022 Operating losses 24,032 10,924 ( 1,216 ) 33,740 Research and development expenditures 362 ( 3 ) ( 23 ) 336 Property and equipment ( 7,572 ) 1,410 145 ( 6,017 ) Capitalized software and other assets ( 2,023 ) 311 113 ( 1,599 ) Valuation allowance ( 17,291 ) ( 13,590 ) 1,069 ( 29,812 ) Other 2,492 948 ( 88 ) 3,352 Net deferred taxes - - - - Balance Recognized Foreign Balance January 1, 2021 in Income Exchange December 31, 2021 Operating losses 9,528 14,542 ( 38 ) 24,032 Research and development expenditures 360 ( 87 ) 89 362 Property and equipment ( 4,588 ) ( 2,844 ) ( 140 ) ( 7,572 ) Capitalized software and other assets ( 2,218 ) 209 ( 14 ) ( 2,023 ) Valuation allowance ( 5,330 ) ( 12,046 ) 85 ( 17,291 ) Other 1,834 640 18 2,492 Net deferred taxes ( 414 ) 414 - - For the year ended December 31, 2022, the Company recorded valuation allowances of $ 13.6 million against deferred tax assets (“DTAs”) incurred during the year as the Company has experienced cumulative losses in recent years (December 31, 2021 –$ 12.0 million). Although earnings were positive in 2019, ongoing near-term uncertainties on the business caused by the COVID-19 pandemic and the related decline in business activity impacted the Company’s ability to generate earnings. Accordingly, it is not more likely than not that the Company’s DTAs will be utilized in the near term. The amount shown on the balance sheet as deferred income tax liabilities represent the net differences between the tax basis and book carrying values on the Company’s balance sheet at enacted tax rates. On an annual basis the Company and its subsidiaries file tax returns in Canada and various foreign jurisdictions. In Canada, the Company’s federal and provincial tax returns for the years 2019 to 2021 remain subject to examination by taxation authorities. In the United States, both the federal and state tax returns filed for the years 2018 to 2021 remain subject to examination by the taxation authorities. Tax loss carryforwards and other tax pools The significant components of the Company’s net future income tax deductions in these consolidated financial statements are summarized as follows: 2022 2021 2022 2021 C$ C$ $ $ Non-capital loss carry-forwards 106,730 64,961 55,654 42,220 Undepreciated capital costs 9,207 12,267 9,765 10,268 Share issuance costs 3,603 - - - Scientific research and experimental development 1,971 1,971 - - Total future tax deductions 121,511 79,199 65,419 52,488

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	16. STOCK-BASED COMPENSATION In May 2020, shareholders approved the DIRTT Environmental Solutions Ltd. Long-Term Incentive Plan (the “2020 LTIP”) at the annual and special meeting of shareholders. The 2020 LTIP gives the Company the ability to award options, share appreciation rights, restricted share units, restricted shares, dividend equivalent rights granted in connection with restricted share units, vested share awards, and other share-based awards and cash awards to eligible employees, officers, consultants and directors of the Company and its affiliates. In accordance with the 2020 LTIP, the sum of (i) 5,850,000 common shares plus (ii) the number of common shares subject to stock options previously granted under the Company’s Amended and Restated Incentive Stock Option Plan (the “Stock Option Plan”) that, following May 22, 2020, expire or are canceled or terminated without having been exercised in full have been reserved for issuance under the 2020 LTIP. Upon vesting of certain LTIP awards, the Company may withhold and sell shares as a means of meeting DIRTT’s tax withholding requirements in respect of the withholding tax remittances required in respect of award holders. To the extent the fair value of the withheld shares upon vesting exceeds the grant date fair value of the instrument, the excess amount is credited to retained earnings or deficit. The change of 100% of the Board of Directors combined with the prior Board declining to endorse the incoming board constituted a Change of a Control, under the terms of the 2020 LTIP, as of April 26, 2022. As a result, all outstanding and unvested LTIP awards granted under the 2020 LTIP plan for any holder terminated without Cause within twelve (12) months following the Change of Control vested immediately upon such termination. The Company also maintains the DIRTT Environmental Solutions Ltd. Deferred Share Unit Plan for Non-Employee Directors pursuant to which deferred share units ("DSUs") are granted to the Company’s non-employee directors. DSUs are settled solely in cash. Prior to the approval of the 2020 LTIP, the Company granted awards of options under the Stock Option Plan and awards of performance share units (“PSUs”) under the DIRTT Environmental Solutions Ltd. Performance Share Unit Plan (the “PSU Plan”). Following the approval of the 2020 LTIP, no further awards will be made under either the Stock Option Plan or the PSU Plan, but both remain in place to govern the terms of any awards that were granted pursuant to such plans and remain outstanding Stock-based compensation expense For the Year Ended December 31, 2022 2021 2020 Equity-settled awards 3,943 4,453 1,832 Cash-settled awards 334 260 519 4,277 4,713 2,351 The following summarizes RSUs (as defined below), Share awards, PSUs, and DSUs activity during the periods: RSU Time- RSU Performance- Share Based Based Awards PSU DSU Number of Number of Number of Number of Number of units units units units units Outstanding at December 31, 2020 2,414,063 200,000 - 197,471 363,664 Granted 1,976,697 878,601 - - 144,969 Vested ( 661,775 ) ( 2,294 ) - ( 34,635 ) ( 147,056 ) Withheld to settle employee tax obligations ( 174,103 ) ( 1,960 ) - - - Forfeited ( 338,346 ) ( 52,608 ) - ( 5,636 ) - Outstanding at December 31, 2021 3,216,536 1,021,739 - 157,200 361,577 Granted 2,157,149 863,279 222,170 - 1,305,658 Vested or settled ( 2,199,034 ) ( 796,011 ) ( 154,016 ) - ( 501,916 ) Withheld to settle employee tax obligations ( 526,346 ) ( 242,460 ) ( 68,154 ) - - Forfeited ( 762,968 ) ( 502,628 ) - - - Expired - - - ( 157,200 ) - Outstanding at December 31, 2022 1,885,337 343,919 - - 1,165,319 Restricted share units (time-based vesting) Restricted share units that vest based on time have an aggregate time-based vesting period of three years and generally one-third of the RSUs vest every year over a three-year period from the date of grant (the “RSU’s”). At the end of a three-year term, the associated RSUs will be settled by way of the provision of cash or shares to employees (or a combination thereof), at the discretion of the Company. The weighted average fair value of the RSUs granted in 2022 was C$ 2.37 (2021 – C$ 2.78 ) which was determined using the closing price of the Company’s common shares on their respective grant dates. Restricted share units (performance-based vesting) During 2022 and 2021, restricted share units were granted to executives with service and performance-based conditions for vesting (the “PRSUs”). If the Company’s share price increases to certain values for 20 consecutive trading days, as outlined below, a percentage of the PRSUs will vest at the end of the three-year service period. All PRSUs awarded in 2020 were awarded to a single executive who forfeited those awards in January 2022 upon departure from the Company. The grant date fair value of the 2022 and 2021 PRSUs were valued using the Monte Carlo valuation method and determined to have a weighted average grant date fair value of C$ 1.87 and C$ 3.27 , respectively. Based on share price performance since the date of grant, none of the 2022 PRSUs and 66.7 % of the 2021 PRSUs will vest upon completion of the three-year service period. % of PRSUs Vesting 33.3 % 66.7 % 100.0 % 150.0 % 2022 and 2021 PRSUs $ 3.00 $ 4.00 $ 5.00 $ 7.00 Share awards During the first quarter of 2022, certain executives were issued share awards in lieu of cash paid variable incentive compensation (“Share Awards”). These Share Awards vested upon grant. The fair value of the Share Awards granted was C$ 2.40 ($ 1.88 ), which was determined using the closing price of the Company’s common shares on the grant date. In the fourth quarter of 2022, 59,488 Share Awards were issued to employees as a component of their compensation. During the third quarter of 2022, certain executives were provided a variable compensation plan for the achievement of certain financial targets payable partially in cash and partially in share awards. Based on the Company's performance to date relative to the financial targets, no share awards have been recorded under this compensation plan for the year ended December 31, 2022. Under the plan, 1.3 million shares could have been awarded if the maximum targets were achieved based on the Company's share price at December 31, 2022. Deferred share units The fair value of the liability and the corresponding expense is charged to profit or loss at the grant date. Subsequently, at each reporting date between the grant date and settlement date, the fair value of the liability is remeasured with any changes in fair value recognized in profit or loss for the year. DSUs outstanding at December 31, 2022 had a fair value of $ 0.6 million which is included in other liabilities on the balance sheet (2021 – $ 0.8 million). Options The following summarizes options granted, exercised, forfeited and expired during the periods: Number of Weighted average options exercise price C$ Outstanding at December 31, 2020 4,774,328 6.52 Forfeited or expired ( 709,839 ) 7.07 Outstanding at December 31, 2021 4,064,489 6.64 Forfeited or expired ( 2,584,420 ) 6.41 Outstanding at December 31, 2022 1,480,069 7.03 Exercisable at December 31, 2022 1,480,069 7.03 Range of exercise prices outstanding at December 31, 2022: Options outstanding Options exercisable Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstanding life price C$ exercisable life price C$ C$ 4.01 – C$ 6.00 15,025 1.89 4.12 15,025 1.89 4.12 C$ 6.01 – C$ 7.00 758,142 1.07 6.33 758,142 1.07 6.33 C$ 7.01 – C$ 8.00 706,902 1.37 7.84 706,902 1.37 7.84 Total 1,480,069 1,480,069 Range of exercise prices outstanding at December 31, 2021: Options outstanding Options exercisable Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstanding life price C$ exercisable life price C$ C$ 4.01 – C$ 6.00 22,537 2.89 4.12 15,025 2.89 4.12 C$ 6.01 – C$ 7.00 3,281,199 1.79 6.38 1,549,301 1.87 6.36 C$ 7.01 – C$ 8.00 760,753 2.37 7.84 515,153 2.37 7.84 Total 4,064,489 2,079,479 Dilutive instruments For the year ended December 31, 2022, 1.5 million options (2021 – 4.1 million, 2020 – 4.8 million) and 2.2 million RSUs and PRSUs (2021 – 3.4 million, 2020 - 2.7 million) and 109.1 million shares which would be issued if the principal amount of the Debentures were settled in our common shares at the year end share price (2021- 27.4 million and 2020 - nil) were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive to the net loss per share.

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE	17. REVENUE In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 18 for the disaggregation of revenue by geographic region. For the Year Ended December 31, 2022 2021 2020 Product 147,448 129,031 150,004 Transportation 18,030 13,231 15,491 License fees from Construction Partners 778 738 1,194 Total product revenue 166,256 143,000 166,689 Installation and other services 5,905 4,593 4,818 172,161 147,593 171,507 DIRTT sells its products and services pursuant to fixed-price contracts which generally have a term of one year or less. The transaction price used in determining the amount of revenue to recognize from fixed-price contracts is based upon agreed contractual terms with each customer and is not subject to variability. For the Year Ended December 31, 2022 2021 2020 At a point in time 165,478 142,262 165,495 Over time 6,683 5,331 6,012 172,161 147,593 171,507 Revenue recognized at a point in time represents the majority of the Company’s sales. Revenue is recognized when a customer obtains legal title to the product, which is when ownership of the product is transferred to, or services are delivered to, the customer. Revenue recognized over time is limited to installation and ongoing maintenance contracts with customers and is recorded as performance obligations are satisfied over the term of the contract. Contract Liabilities As at December 31, 2022 2021 2020 Customer deposits 4,458 1,959 1,292 Deferred revenue 408 461 527 Contract liabilities 4,866 2,420 1,819 Contract liabilities primarily relate to deposits received from customers and maintenance revenue from license subscriptions. The balance of contract liabilities was higher as at December 31, 2022 compared to the prior year period mainly due to the timing of orders and payments. Contract liabilities as at December 31, 2021 and 2020, respectively, totaling $ 2.4 million and $ 1.8 million were recognized as revenue during 2022 and 2021, respectively. Sales by Industry The Company periodically reviews product revenue by industry vertical market to evaluate trends and the success of industry specific sales initiatives. The nature of products sold to the various industries is consistent and therefore the periodic review is focused on sales performance. For the Year Ended December 31, 2022 2021 2020 Commercial 115,102 84,488 102,245 Healthcare 19,739 30,130 35,400 Government 16,564 16,012 14,128 Education 14,073 11,632 13,722 License fees from Construction Partners 778 738 1,194 Total product and transportation revenue 166,256 143,000 166,689 Installation and other services 5,905 4,593 4,818 172,161 147,593 171,507

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
SEGMENT REPORTING	18. SEGMENT REPORTING The Company has one reportable and operating segment and operates in two principal geographic locations, Canada and the United States. Revenue continues to be derived almost exclusively from projects in North America and predominantly from the United States. The Company’s revenue from operations from external customers, based on location of operations, and information about its non-current assets, is detailed below. Revenue from external customers For the Year Ended December 31, 2022 2021 2020 Canada 25,477 17,299 18,848 U.S. 146,684 130,294 152,659 172,161 147,593 171,507 Non-current assets As at December 31, 2022 2021 Canada 28,251 34,912 U.S. 53,277 60,723 81,528 95,635

COMMITMENTS

COMMITMENTS	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	19. COMMITMENTS As at December 31, 2022, the Company had outstanding purchase obligations of approximately $ 2.2 million related to inventory and property, plant and equipment purchases (December 31, 2021 – $ 3.7 million). Refer to Note 7 for lease commitments.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	20. LEGAL PROCEEDINGS The Company is pursuing multiple lawsuits against its former founders, Mogens Smed and Barrie Loberg, their new company Falkbuilt Ltd. (“Falkbuilt”), and other related individual and corporate defendants for violations of fiduciary duties and non-competition and non-solicitation covenants contained in their executive employment agreements, and the misappropriation of DIRTT’s confidential and proprietary information in violation of numerous Canadian and U.S. state, and federal laws pertaining to the protection of DIRTT’s trade secrets and proprietary information and the prevention of false advertising and deceptive trade practices. As of December 31, 2022, the Company’s litigation against Falkbuilt, Messrs. Smed and Loberg, and their associates was comprised of four main lawsuits: (i) an action in the Alberta Court of Queen’s Bench instituted on May 9, 2019 against Falkbuilt, Messrs. Smed and Loberg, and several other former DIRTT employees alleging breaches of restrictive covenants, fiduciary duties, and duties of loyalty, fidelity and confidentiality, and the misappropriation of DIRTT’s confidential information (the “Canadian Non-Compete Case”); (ii) an action in the U.S. District Court for the Northern District of Utah instituted on December 11, 2019 against Falkbuilt, Smed, and other individual and corporate defendants alleging misappropriation of DIRTT’s confidential information, trade secrets, business intelligence and customer information (the “Utah Misappropriation Case”); and (iii) an action in the U.S. District Court for the Northern District of Texas instituted on June 24, 2021 alleging that Falkbuilt has unlawfully used DIRTT’s confidential information in the United States and intentionally caused confusion in the United States in an attempt to steal customers, opportunities, and business intelligence, with the aim of establishing a competing business in the United States market (the “Texas Unfair Competition Case”). DIRTT intends to pursue the cases vigorously. Falkbuilt also filed a lawsuit against the Company on November 5, 2019 in the Court of Queen’s Bench of Alberta, alleging that DIRTT has misappropriated and misused their alleged proprietary information in furtherance of DIRTT’s product development. Falkbuilt seeks monetary relief and an interim, interlocutory and permanent injunction of DIRTT’s alleged use of the alleged proprietary information. The Company believes that the suit is without merit and filed an application for summary judgment to dismiss Falkbuilt’s claim. No amounts are accrued for the above legal proceedings.

PRIVATE PLACEMENT AND RELATED P

PRIVATE PLACEMENT AND RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2022
PRIVATE PLACEMENT AND RELATED PARTY TRANSACTIONS Abstract
PRIVATE PLACEMENT AND RELATED PARTY TRANSACTIONS	21. PRIVATE PLACEMENT AND RELATED PARTY TRANSACTIONS On November 30, 2022, the Company closed a private placement of 8,667,449 common shares for aggregate gross consideration of $ 2.8 million (the “Private Placement”) with its two largest shareholders, 22 NW Fund, LP (“22NW”) and 726 BC LLC and 726 BF LLC (together “726”) and all the directors and officers, including 638,996 Common Shares issued at the deemed per share price equal to the Subscription Price, as reimbursement for the costs incurred by 726 in connection with the Company’s contested director elections in 2022. In addition, in connection with the Private Placement, the two shareholders, or their principals, have irrevocably committed to backstopping any rights offering occurring by the Company in the twelve months following the Private Placement in the aggregate amount of $ 2.0 million.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation These consolidated financial statements (“Financial Statements”), including comparative figures, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In these Financial Statements, unless otherwise indicated, all dollar amounts are expressed in United States (“U.S.”) dollars. DIRTT’s financial results are consolidated in Canadian dollars, the Company’s functional currency, and the Company has adopted the U.S. dollar as its reporting currency. All references to US$ or $ are to U.S. dollars and references to C$ are to Canadian dollars.
Principles of consolidation	Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated upon consolidation.
Basis of measurement	Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and stock-based compensation that are measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
Use of estimates	Use of estimates The preparation of the Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to unsettled transactions and events as of the date of the Financial Statements. Estimates are based on historical data and experience, as well as various other factors that management considers reasonable under the circumstances. Actual outcomes can differ from these estimates. Significant estimates and assumptions made by management include: • Estimates of ability and timeliness of customer payments of trade receivables; • Estimates of useful lives of depreciable assets as well as the fair value of long-term assets and future cash flows used for impairment calculations; • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets; • Tax interpretations, regulations and legislation in the various jurisdictions in which the Company and its subsidiaries operate; • Estimates of the fair value of stock awards, including whether the performance criteria will be met and measurement of the ultimate payout amount; and Estimates of liabilities associated with the potential and amount of warranty, legal claims and other contingencies.
Segments	Segments Management has determined that DIRTT has one operating segment. The Company’s chief executive officer, who is DIRTT’s chief operating decision maker, reviews financial information on a consolidated and aggregate basis, together with certain operating metrics principally to make decisions about how to allocate resources and to measure the Company’s performance.
Foreign currency translation	Foreign currency translation DIRTT Environmental Solutions Ltd. is a Canadian company and its functional currency is the Canadian dollar. DIRTT’s wholly owned subsidiary is domiciled in the United States and its functional currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies, other than those held through foreign subsidiaries, are translated into the transacting company’s functional currency at the year-end exchange rate for monetary items and at the historical exchange rates for non-monetary items. Foreign currency revenues and expenses are translated at the exchange rates in effect on the dates of the related transactions. Foreign exchange gains and losses, other than those arising from the translation of the Company’s net investments in foreign subsidiaries, are included in income. The accounts of the Company’s U.S. dollar subsidiary is translated into Canadian dollars, and the Financial Statements are translated into U.S. dollars for financial statement presentation. Assets and liabilities are translated using year-end exchange rates, and revenues, expenses, gains and losses are translated using average monthly exchange rates. Foreign exchange gains and losses arising from the translation of the Company’s assets and liabilities are included in “comprehensive loss for the year”.
Cash and cash equivalents and restricted cash	Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand held at banks and cash equivalents, which are defined as highly liquid investments with original maturities of three months or less. Restricted cash is a reserve account not available for immediate or general business use and is required when certain requirements are not met under the terms of the Company’s senior secured credit facility (as defined in Note 14).
Trade and other receivables, net of expected credit losses	Trade and other receivables, net of expected credit losses Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates its allowance for doubtful accounts using the current expected credit loss (“CECL”) methodology, which is designed to capture the Company’s current estimate of all expected credit losses.
Inventory	Inventory Inventory is comprised of raw materials and work in progress. The Company does not typically carry a significant amount of finished goods inventory. Inventory is valued at the lower of weighted average cost and net realizable value. Net realizable value is based on an item’s usability in the manufacturing of the Company’s products. The Company records an allowance for obsolescence when the net realizable value of inventory items declines below weighted average cost, net realizable value is determined based on current market prices for inventory less the estimated cost to sell. Work in progress is valued at an estimate of cost, including attributable overheads, based on stage of completion. Fixed production overheads are allocated to inventory on the basis of normal capacity of the production facilities. In periods where production levels are abnormally low, unallocated overheads are separately recognized as an expense in the period in which they are incurred.
Leases	Leases The Company categorizes leases at their inception as either operating or finance leases. Leases where the Company assumes substantially all of the rewards or ownership and leases where ownership is transferred at the end of the lease term, or by way of a bargain purchase option, are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability, so as to achieve a constant rate of interest on the balance of the liability. Finance charges are recognized in the statement of operations. The Company’s Leasing Facilities (as defined in Note 7) are accounted for as finance leases as ownership of the equipment is expected to return to the Company at the end of the lease term. These transactions are not accounted for as a sale of the underlying equipment as the Company continues to control the equipment. For leases categorized as operating, the Company determines if an arrangement is a lease or contains a lease element at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Operating leases are separately disclosed as operating lease right-of-use (“ROU”) assets, with a corresponding lease liability split between current and long-term components on the balance sheet. Operating leases with an initial term of 12 months or less are not included on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.
Property, plant and equipment	Property, plant and equipment Property, plant and equipment are recorded at cost, including direct costs, attributable indirect costs and carrying costs, less accumulated depreciation and any accumulated impairment losses. Expenditures for repairs and maintenance are expensed as incurred, while renewals and betterments are capitalized. Depreciation is charged to the consolidated statement of operations on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of the Company’s property, plant and equipment are as follows: Building 25 years Manufacturing equipment 10 years Leasehold improvements Over term of lease (1 to 10 years) Office equipment 5 years Tooling and prototypes 4 years Computer equipment 3 years Vehicles 3 years When assets are disposed of or retired, the cost and accumulated depreciation and impairment losses are removed from the respective accounts and any resulting loss is reflected in operating expenses.
Capitalized software costs	Capitalized software costs The Company capitalizes costs related to internally developed software during the application development stage when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project, and (iii) it is probable that the project will be completed and performed as intended. Capitalized costs includes costs of personnel and related expenses for employees and third parties directly attributable to the projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades and enhancements are also capitalized. Costs related to preliminary project activities and post implementation activities, including training, maintenance and minor modifications or enhancements are expensed as incurred. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the developed asset, which is generally three to five years . Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets. Software development is considered internal-use as it is used to design and sell the DIRTT products and is not included in the end client’s product. Revenues received from Construction Partners for ICE Software are recognized as revenues as they are considered an element of the product sale. Any incidental third-party revenues received for the ICE Software are credited against capitalized software costs. The Company follows this accounting policy for cloud computing arrangements that are considered a service contract, however, these projects are capitalized to prepaids and other assets on the balance sheet and are expensed as an operating cost, as opposed to amortization, over the expected term of the software service contract. The Company adopted this amendment on January 1, 2020 using the prospective transition approach and classified $ 0.7 million as other assets on the consolidated balance sheet for the year ended December 31, 2021.
Impairment of long-lived assets	Impairment of long-lived assets Management evaluates the recoverability of the Company’s property, plant and equipment, capitalized software costs and ROU assets when events or changes in circumstances indicate a potential impairment exists. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable include, but are not limited to, significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets.
Convertible Debentures	Convertible Debentures The Company accounts for convertible debentures as liabilities. Embedded features included in the convertible debentures that require bifurcation are accounted for separately. Costs incurred directly related to the issuance of convertible debentures are presented as a direct deduction against the carrying amount of the convertible debentures and are amortized to interest expense using the effective interest method.
Income taxes	Income taxes Income tax expense is comprised of current and deferred tax. Income tax is recognized in the consolidated statement of operations and comprehensive income (loss) except to the extent it relates to items recognized directly in equity. Current tax Current tax expense is based on the results for the year, adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that were enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax Deferred tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in income tax rates on deferred income tax assets and liabilities is recognized in income in the period during which the change occurs. When appropriate, the Company records a valuation allowance against deferred tax assets to reflect that these tax assets may not be realized. In determining whether a valuation allowance is appropriate, the Company considers whether it is more likely than not that all or some portion of the Company’s deferred tax assets will not be realized, based on management’s judgment using available evidence about future events. At times, tax benefits claims may be challenged by a tax authority. Tax benefits are recognized only for tax positions that are more likely than not sustainable upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 % likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.
Revenue recognition	Revenue recognition The Company accounts for revenue in accordance with topic 606, Revenue from Contracts with Customers, (“ASC 606”) and Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers. Under ASC 606, an entity recognizes revenue in a manner that reflects the transfer of promised goods or services to customers in an amount which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue upon transfer of control of promised goods or services to customers at transaction price, an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Transaction price is calculated as selling price net of variable consideration which may include estimates for sales incentives related to current period product revenue. Revenue is measured at the fair value of the consideration received or receivable, after discounts, rebates and sales taxes or income taxes and duties. Product sales The Company recognizes revenue upon transfer of control of products to the customer, which typically occurs upon shipment. The Company’s main performance obligation to customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Construction Partners typically sell DIRTT product to end clients and issue purchase orders to the Company to manufacture the product. Construction Partners utilize ICE licenses to sell DIRTT products, the ICE licenses sold to Construction Partners are not considered a separate performance obligation as they are not distinct, and ICE license revenue is recognized in conjunction with product sales. The Construction Partner ICE Software revenue is recognized over the license period. The Company’s standard sales terms are Free On Board (“FOB”) shipping point, which comprise the majority of sales. The Company usually requires a 50 % progress payment on receipt of certain orders, excluding certain government orders or in some special contractual situations. Customer deposits received are recognized as a liability on the balance sheet until revenue recognition criteria is met. At the point of shipment, the customer is generally required to pay the balance of the sales price within 30 days. The Company’s sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets that are material to its consolidated financial statements. The Company provides sales commissions to internal and external sales representatives which are earned in the period in which revenue is recognized. The Company accounts for product transportation revenue and costs as fulfillment activities and present the associated costs in costs of goods sold in the period in which the Company sells its product. Contracts containing multiple performance obligations The Company offers certain arrangements whereby a customer can purchase products and installation together which are generally capable of being distinct and accounted for as separate performance obligations. Where multiple performance obligations exist, the Company determines revenue recognition by (1) identifying the contract with the customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations based on the relative standalone selling prices, typically based on cost plus a reasonable margin, and (5) recognizing revenue as the performance obligations are satisfied. Installation and other services The Company provides installation and other services for certain customers as a distinct performance obligation. Revenue from installation services is recognized over time as the service is performed. Principal vs Agent Considerations The Company evaluates the presentation of revenue on a gross vs. net basis based on whether it acts as a principal by controlling the product or service sales to customers. In certain instances, the Company facilitates contracting of certain sales on behalf of Construction Partners. The Company records these revenues on a gross basis when the Company is obligated to fulfill the service and has the risk associated with service delivery. The Company records these revenues on a net basis when the Construction Partner has the obligation to fulfill the services and has the risk associated with service delivery. Construction Partner rebates Rebates to Construction Partners (“Partner Rebates”) are accrued for and recognized as a reduction of revenue at the date of the sale to the customer. Partner Rebates include amounts collected directly by the Company owed to Construction Partners in accordance with their Construction Partner agreements, being the difference between the price to the end customer and the Construction Partners’ price. Other sales discounts are deducted immediately from sales invoices. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an unbilled receivable when revenue is recognized prior to invoicing. As the Company’s contracts are less than one year in duration, the Company has elected to apply the practical expedients to expense costs related to costs to obtain contracts and not disclose unfulfilled performance obligations. As deferred revenue and customer deposits are typically recognized during the year the Company does not account for financing elements. Warranties The Company provides a warranty on all products sold to its clients and Construction Partner’s clients. Warranties are not sold separately to customers. Provisions for the expected cost of warranty obligations are recognized based on an analysis of historical costs for warranty claims relative to current activity levels and adjusted for factors based on management’s assessment that increase or decrease the provision. Warranty provision is recognized in cost of goods sold. Warranty claims have historically not been material and do not constitute a separate performance obligation.
Stock-based compensation	Stock-based compensation The Company follows the fair value-based approach to account for options, share awards and restricted share units (“RSUs”). Compensation expense and an increase in “Additional paid-in capital” are recognized for options and RSUs over their vesting period based on their estimated fair values on the grant date, as determined using the Black-Scholes option pricing model for the majority of options and the market value of the Company’s common shares on the grant date for share awards and RSUs. Certain executive stock options and RSUs have performance conditions and are valued using a Monte Carlo model. On exercise of stock options and RSUs, the recorded fair value of the option or RSU is removed from “Additional paid-in capital” and credited to “Share capital”. For options, any consideration paid by employees is credited to “Share capital” when the option is exercised. The Company’s stock options and RSUs are not shares of the Company and have no rights to vote, receive dividends, or any other rights as a shareholder of the Company. Stock based compensation expense is also recognized for performance share units (“PSUs”) and deferred share units (“DSUs”) using the fair value method. Compensation expense is recognized over the vesting period and the corresponding amount is recorded as a liability on the balance sheet.
Technology and development expenditures	Technology and development expenditures Technology and development expenses are comprised primarily of salaries and benefits associated with the Company’s product and software development personnel which do not qualify for capitalization. These costs are expensed as incurred and exclude certain information and technology costs used in operations which are classified as general and administrative costs.
Government Subsidies	Government subsidies The Company accounts for government subsidies on an accrual basis when the conditions for eligibility are met. The Company has adopted an accounting policy to present government subsidies as other income. The nature, significant terms and conditions of government subsidies are disclosed in the financial statements. (Refer to Note 3 on adoption of Accounting Standards Update No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,)
Earnings per share ("EPS")	Earnings per share (“EPS”) Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive impact of stock options. The Company follows the “if converted” method for accounting for the impact of convertible debentures on earnings (loss) per share, whereby interest charges applicable to the convertible debentures are added to the numerator and the convertible debentures are assumed to have been converted at the beginning of the period (or time of issuance, if later), and the resulting common shares are added to the denominator.
Fair value of financial instruments	Fair value of financial instruments ASC 820, “Fair Value Measurements,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s fair value analysis is based on the degree to which the fair value is observable and grouped into categories accordingly: • Level 1 financial instruments are those which can be derived from quoted market prices (unadjusted) in active markets for similar financial assets or liabilities. • Level 2 financial instruments are those which can be derived from inputs that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 2 financial instruments include current and long-term debt. The carrying amounts of these instruments approximates fair value due to limited changes to interest rates and the Company’s credit rating since issuance. • Level 3 financial instruments are those derived from valuation techniques that include inputs for the financial asset or liability which are not based on observable market data (unobservable inputs). The Company does not have any Level 3 financial instruments. The carrying amounts of cash and cash equivalents and restricted cash; trade and accrued receivables, other receivables; accounts payable and accrued liabilities; other liabilities; and customer deposits approximate fair value due to their short-term nature.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of estimated useful live of property plant and equipment	The estimated useful lives of the Company’s property, plant and equipment are as follows: Building 25 years Manufacturing equipment 10 years Leasehold improvements Over term of lease (1 to 10 years) Office equipment 5 years Tooling and prototypes 4 years Computer equipment 3 years Vehicles 3 years

REORGANIZATION (Tables)

REORGANIZATION (Tables)	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring Costs	For the Year Ended December 31, 2022 2021 Termination benefits 7,042 - Insurance costs on change of control 3,691 - Phoenix Facility closure 756 - Professional services 1,021 - Relocation and other costs 951 - Total reorganization costs 13,461 - For the Year Ended December 31, 2022 2021 Opening reorganization costs in accounts payable and accrued liabilities - - Reorganization expense 13,461 - Reorganization costs paid ( 11,184 ) - Reorganization costs in accounts payable and accrued liabilities at December 31, 2022 2,277 -
Phoenix Facility Restructuring Costs	These costs were included in cost of sales: For the Year Ended December 31, 2022 2021 Provision for inventory of discontinued product lines 1,035 - Accelerated amortization associated with product line discontinuation 1,019 - Accelerated depreciation and amortization associated with closure of the Phoenix Facility 1,054 - Incremental cost of sales 3,108 -

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Schedule of ROU assets	The following table includes ROU assets included on the balance sheet at December 31, 2022 and 2021: ROU Assets Cost Accumulated depreciation Net book value At January 1, 2021 41,840 ( 8,197 ) 33,643 Additions 2,401 - 2,401 Depreciation expense - ( 4,989 ) ( 4,989 ) Exchange differences ( 186 ) 11 ( 175 ) At December 31, 2021 44,055 ( 13,175 ) 30,880 Additions 139 - 139 Modifications 4,809 50 4,859 Depreciation expense - ( 5,057 ) ( 5,057 ) Exchange differences ( 943 ) 611 ( 332 ) At December 31, 2022 48,061 ( 17,571 ) 30,490
Schedule of lease liabilities	The following table includes lease liabilities included on the balance sheet at December 31, 2022 and 2021: Lease Liability 2022 2021 At January 1, 33,481 35,284 Additions 139 2,401 Modifications 4,809 - Accretion 1,722 1,758 Repayment of lease liabilities ( 6,558 ) ( 6,509 ) Lease inducements 124 720 Exchange differences ( 295 ) ( 173 ) At December 31, 33,423 33,481 Current lease liabilities 5,889 6,214 Long-term lease liabilities 27,534 27,267
Schedule of maturities of operating lease liabilities	The following table includes maturities of operating lease liabilities at December 31, 2022: 2023 6,038 2024 4,630 2025 4,605 2026 4,013 2027 2,826 Thereafter 26,631 Total 48,743 Total lease liability 33,423 Difference between undiscounted cash flows and lease liability 15,320

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Schedule of Accounts Receivable, Allowance for Credit Loss	As at December 31, December 31, 2022 2021 Current 12,381 13,572 Overdue 1,675 621 14,056 14,193 Less: expected credit losses ( 126 ) ( 130 ) 13,930 14,063
Schedule of accounts, notes, loans and financing receivable	December 31, 2022, the Company classified Other Receivables separately from Trade and Accrued Receivables on the balance sheet, as reconciled below: As at, December 31, December 31, 2022 2021 Trade receivables 14,056 14,193 Allowance for doubtful accounts ( 126 ) ( 130 ) Accounts receivable 13,930 14,063 Sales tax receivable 251 196 Income taxes receivable 40 3,194 Government subsidies 7,319 - Other receivables 270 87 Other receivables (reclassified on the balance sheet) 7,880 3,477 Total Trade and other receivables, as previously presented 21,810 17,540

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Schedule of inventory, current	As at December 31, 2022 2021 Raw material 22,218 18,388 Allowance for obsolescence ( 1,242 ) ( 646 ) Work in progress 1,275 715 22,251 18,457
Schedule of Idle facility costs	For the Year Ended December 31, 2022 2021 2020 Underutilized capacity - 1,756 2,010 Idle facility costs 506 - - 506 1,756 2,010
Schedule of Consolidated Statement of Operations	Change in presentation in Consolidated Statement of Operations For the Year Ended December 31, 2022 2021 2020 Product cost of sales, as previously presented 140,058 118,525 113,445 Cost of under utilized capacity, as previously presented - 1,756 2,010 Product cost of sales, per Statement of Operations 140,058 120,281 115,455

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, plant and Equipment	Office and computer equipment Factory equipment Leasehold improvements Total Cost At December 31, 2020 24,988 66,523 43,105 134,616 Additions 3,422 4,515 4,372 12,309 Disposals - ( 53 ) - ( 53 ) Exchange differences 236 499 90 825 At December 31, 2021 28,646 71,484 47,567 147,697 Additions 738 775 341 1,854 Disposals ( 1,347 ) ( 2,983 ) ( 6,688 ) ( 11,018 ) Exchange differences ( 581 ) ( 3,167 ) ( 1,457 ) ( 5,205 ) At December 31, 2022 27,456 66,109 39,763 133,328 Accumulated depreciation and impairment At December 31, 2020 16,362 35,524 32,883 84,769 Depreciation expense 3,589 3,670 3,817 11,076 Disposals - ( 23 ) - ( 23 ) Exchange differences 30 100 48 178 At December 31, 2021 19,981 39,271 36,748 96,000 Depreciation expense 2,355 4,425 3,680 10,460 Disposals ( 1,272 ) ( 2,831 ) ( 6,688 ) ( 10,791 ) Exchange differences ( 540 ) ( 2,044 ) ( 1,279 ) ( 3,863 ) At December 31, 2022 20,524 38,821 32,461 91,806 Net book value At December 31, 2021 8,665 32,213 10,819 51,697 At December 31, 2022 6,932 27,288 7,302 41,522

CAPITALIZED SOFTWARE, NET (Tabl

CAPITALIZED SOFTWARE, NET (Tables)	12 Months Ended
	Dec. 31, 2022
Capitalized Software [Abstract]
Schedule of capitalized software	For the Year Ended December 31, 2022 2021 Cost As at January 1 37,492 35,480 Additions 1,677 2,340 Recovery of software development expenditures ( 263 ) ( 461 ) Disposals ( 1,990 ) - Exchange differences ( 2,370 ) 133 As at December 31 34,546 37,492 Accumulated amortization As at January 1 30,097 27,136 Amortization expense 3,887 2,878 Disposals ( 1,916 ) - Exchange differences ( 1,928 ) 83 As at December 31 30,140 30,097 Net book value 4,406 7,395

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	12. GOODWILL For the year ended December 31, 2022 2021 As at January 1 - 1,449 Impairment - ( 1,443 ) Exchange differences - ( 6 ) As at December 31 - -

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	As at December 31, 2022 2021 Trade accounts payable 5,562 7,820 Accrued liabilities 8,776 9,649 Wages and commissions payable 3,410 4,275 Rebates accrued (1) 2,133 1,007 19,881 22,751 (1) In 2022 $ 4.8 million of rebates were earned (2021 - $ 4.1 million) and $ 3.7 million were paid (2021 - $ 4.7 million).
Schedule of Other Liabilities	Other liabilities As at, December 31, 2022 December 31, 2021 Warranty provisions (1) 1,278 1,451 DSU liability 594 785 Sublease deposits 139 - Other provisions 45 143 Other liabilities 2,056 2,379 (1) The following table presents a reconciliation of the warranty and other provisions balance: As at, December 31, 2022 December 31, 2021 As at January 1 1,451 1,763 Adjustments to timber provision - ( 500 ) Additions to warranty provision 1,134 1,019 Payments related to warranties ( 1,307 ) ( 831 ) 1,278 1,451

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Summary of Long Term Debt Reconciliation	Revolving Leasing Convertible Total Debt Balance on December 31, 2020 - 5,967 - 5,967 Issuances - 9,805 55,107 64,912 Accretion of issue costs - - 352 352 Accrued interest - 556 1,935 2,491 Interest payments - ( 556 ) ( 987 ) ( 1,543 ) Principal repayments - ( 1,808 ) - ( 1,808 ) Exchange differences - ( 55 ) 326 271 Balance at December 31, 2021 - 13,909 56,733 70,642 Current portion of long-term debt and accrued interest - 2,386 937 3,323 Long-term debt - 11,523 55,796 67,319 Balance on December 31, 2021 - 13,909 56,733 70,642 Issuances - 647 - 647 Accretion of issue costs - - 676 676 Accrued interest - 735 3,539 4,274 Interest payments - ( 735 ) ( 3,688 ) ( 4,423 ) Principal repayments - ( 2,470 ) - ( 2,470 ) Exchange differences - ( 274 ) ( 3,637 ) ( 3,911 ) Balance at December 31, 2022 - 11,812 53,623 65,435 Current portion of long-term debt and accrued interest - 2,561 745 3,306 Long-term debt - 9,251 52,878 62,129

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Reconciliation of income taxes	The following reconciles income taxes calculated at the Canadian statutory rate with the actual income tax expense. The Canadian statutory rate includes federal and provincial income taxes. This rate was used because Canada is the domicile of the parent entity of the Company. For the Year Ended December 31, 2022 2021 2020 Net loss before tax ( 54,942 ) ( 53,872 ) ( 9,194 ) Canadian statutory rate 24.4 % 23.3 % 24.2 % Expected income tax ( 13,406 ) ( 12,552 ) ( 2,225 ) Effect on taxes resulting from: Valuation allowance 13,590 12,046 5,241 Non-deductible expenses 422 542 261 Non-deductible stock-based compensation 23 189 269 Tax rate impacts ( 665 ) ( 488 ) ( 1,288 ) Adjustments related to prior year tax filings 57 59 ( 105 ) Other - - ( 49 ) Income tax expense (recovery) 21 ( 204 ) 2,104 Current tax expense (recovery) 21 210 ( 3,521 ) Deferred tax expense (recovery) - ( 414 ) 5,625 Income tax expense (recovery) 21 ( 204 ) 2,104
Deferred tax assets and liabilities	Significant components of the Company’s deferred tax assets and liabilities at December 31, 2022 and 2021 were as follows: At December 31, 2022 Assets Liabilities Net Operating losses 33,740 - 33,740 Research and development expenditures 336 - 336 Property and equipment - ( 6,017 ) ( 6,017 ) Capitalized software and other assets - ( 1,599 ) ( 1,599 ) Valuation allowance - ( 29,812 ) ( 29,812 ) Other 3,352 - 3,352 Net deferred taxes 37,428 ( 37,428 ) - At December 31, 2021 Assets Liabilities Net Operating losses 24,032 - 24,032 Research and development expenditures 362 - 362 Property and equipment - ( 7,572 ) ( 7,572 ) Capitalized software and other assets - ( 2,023 ) ( 2,023 ) Valuation allowance ( 17,291 ) - ( 17,291 ) Other 2,492 2,492 Net deferred taxes 7,103 ( 7,103 ) -
Summary of temporary difference movements	Summary of temporary difference movements during the year: Balance Recognized Foreign Balance January 1, 2022 in Income Exchange December 31, 2022 Operating losses 24,032 10,924 ( 1,216 ) 33,740 Research and development expenditures 362 ( 3 ) ( 23 ) 336 Property and equipment ( 7,572 ) 1,410 145 ( 6,017 ) Capitalized software and other assets ( 2,023 ) 311 113 ( 1,599 ) Valuation allowance ( 17,291 ) ( 13,590 ) 1,069 ( 29,812 ) Other 2,492 948 ( 88 ) 3,352 Net deferred taxes - - - - Balance Recognized Foreign Balance January 1, 2021 in Income Exchange December 31, 2021 Operating losses 9,528 14,542 ( 38 ) 24,032 Research and development expenditures 360 ( 87 ) 89 362 Property and equipment ( 4,588 ) ( 2,844 ) ( 140 ) ( 7,572 ) Capitalized software and other assets ( 2,218 ) 209 ( 14 ) ( 2,023 ) Valuation allowance ( 5,330 ) ( 12,046 ) 85 ( 17,291 ) Other 1,834 640 18 2,492 Net deferred taxes ( 414 ) 414 - -
Tax loss carryforwards and other tax pools	2022 2021 2022 2021 C$ C$ $ $ Non-capital loss carry-forwards 106,730 64,961 55,654 42,220 Undepreciated capital costs 9,207 12,267 9,765 10,268 Share issuance costs 3,603 - - - Scientific research and experimental development 1,971 1,971 - - Total future tax deductions 121,511 79,199 65,419 52,488

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Summary of stock-based compensation expense	Stock-based compensation expense For the Year Ended December 31, 2022 2021 2020 Equity-settled awards 3,943 4,453 1,832 Cash-settled awards 334 260 519 4,277 4,713 2,351
Summary of PSUs, DSUs and RSUs granted, exercised, forfeited and expired	The following summarizes RSUs (as defined below), Share awards, PSUs, and DSUs activity during the periods: RSU Time- RSU Performance- Share Based Based Awards PSU DSU Number of Number of Number of Number of Number of units units units units units Outstanding at December 31, 2020 2,414,063 200,000 - 197,471 363,664 Granted 1,976,697 878,601 - - 144,969 Vested ( 661,775 ) ( 2,294 ) - ( 34,635 ) ( 147,056 ) Withheld to settle employee tax obligations ( 174,103 ) ( 1,960 ) - - - Forfeited ( 338,346 ) ( 52,608 ) - ( 5,636 ) - Outstanding at December 31, 2021 3,216,536 1,021,739 - 157,200 361,577 Granted 2,157,149 863,279 222,170 - 1,305,658 Vested or settled ( 2,199,034 ) ( 796,011 ) ( 154,016 ) - ( 501,916 ) Withheld to settle employee tax obligations ( 526,346 ) ( 242,460 ) ( 68,154 ) - - Forfeited ( 762,968 ) ( 502,628 ) - - - Expired - - - ( 157,200 ) - Outstanding at December 31, 2022 1,885,337 343,919 - - 1,165,319
Schedule of Percentage of PRSUs Vest upon Increases of Share Price	Based on share price performance since the date of grant, none of the 2022 PRSUs and 66.7 % of the 2021 PRSUs will vest upon completion of the three-year service period. % of PRSUs Vesting 33.3 % 66.7 % 100.0 % 150.0 % 2022 and 2021 PRSUs $ 3.00 $ 4.00 $ 5.00 $ 7.00
Summary of options granted, exercised, surrendered, forfeited and expired	The following summarizes options granted, exercised, forfeited and expired during the periods: Number of Weighted average options exercise price C$ Outstanding at December 31, 2020 4,774,328 6.52 Forfeited or expired ( 709,839 ) 7.07 Outstanding at December 31, 2021 4,064,489 6.64 Forfeited or expired ( 2,584,420 ) 6.41 Outstanding at December 31, 2022 1,480,069 7.03 Exercisable at December 31, 2022 1,480,069 7.03
Summary of options outstanding by range of exercise prices	Range of exercise prices outstanding at December 31, 2022: Options outstanding Options exercisable Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstanding life price C$ exercisable life price C$ C$ 4.01 – C$ 6.00 15,025 1.89 4.12 15,025 1.89 4.12 C$ 6.01 – C$ 7.00 758,142 1.07 6.33 758,142 1.07 6.33 C$ 7.01 – C$ 8.00 706,902 1.37 7.84 706,902 1.37 7.84 Total 1,480,069 1,480,069 Range of exercise prices outstanding at December 31, 2021: Options outstanding Options exercisable Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstanding life price C$ exercisable life price C$ C$ 4.01 – C$ 6.00 22,537 2.89 4.12 15,025 2.89 4.12 C$ 6.01 – C$ 7.00 3,281,199 1.79 6.38 1,549,301 1.87 6.36 C$ 7.01 – C$ 8.00 760,753 2.37 7.84 515,153 2.37 7.84 Total 4,064,489 2,079,479

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue by major products and services lines and timing of revenue recognition	In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 18 for the disaggregation of revenue by geographic region. For the Year Ended December 31, 2022 2021 2020 Product 147,448 129,031 150,004 Transportation 18,030 13,231 15,491 License fees from Construction Partners 778 738 1,194 Total product revenue 166,256 143,000 166,689 Installation and other services 5,905 4,593 4,818 172,161 147,593 171,507 For the Year Ended December 31, 2022 2021 2020 At a point in time 165,478 142,262 165,495 Over time 6,683 5,331 6,012 172,161 147,593 171,507
Summary of contract liabilities	Contract Liabilities As at December 31, 2022 2021 2020 Customer deposits 4,458 1,959 1,292 Deferred revenue 408 461 527 Contract liabilities 4,866 2,420 1,819
Schedule of sales by industry	For the Year Ended December 31, 2022 2021 2020 Commercial 115,102 84,488 102,245 Healthcare 19,739 30,130 35,400 Government 16,564 16,012 14,128 Education 14,073 11,632 13,722 License fees from Construction Partners 778 738 1,194 Total product and transportation revenue 166,256 143,000 166,689 Installation and other services 5,905 4,593 4,818 172,161 147,593 171,507

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Schedule of revenue from external customers	Revenue from external customers For the Year Ended December 31, 2022 2021 2020 Canada 25,477 17,299 18,848 U.S. 146,684 130,294 152,659 172,161 147,593 171,507
Schedule of non-current assets, excluding deferred tax assets	Non-current assets As at December 31, 2022 2021 Canada 28,251 34,912 U.S. 53,277 60,723 81,528 95,635

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2022 Segment	Dec. 31, 2021 USD ($)
Operating segments | Segment	1
Classified as other assets | $		$ 0.7
Percentage of amounts realized up on settlements measured as largest amounts	50%
Percentage of progress payment on receipt of certain orders	50%
Capitalized software costs [Member] | Minimum [Member]
Estimated useful live in years		3 years
Capitalized software costs [Member] | Maximum [Member]
Estimated useful live in years	5 years

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Live of Property Plant and Equipment (Detail)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Building [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment	25 years
Manufacturing equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment	10 years
Leasehold improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment		1 year
Leasehold improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment	10 years
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment	5 years
Tooling and prototypes [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment	4 years
Computer equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment	3 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated useful live of property plant and equipment	3 years

ADOPTION OF NEW AND REVISED A_2

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS - (Additional Information) (Detail)	Dec. 31, 2022
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
ASU 2020-06
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, early adoption [true false]	true
Accounting standards adopted date	Jan. 01, 2022

LIQUIDITY (Additional Informati

LIQUIDITY (Additional Information) (Details) $ in Millions, $ in Millions	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CAD ($)	Dec. 31, 2021 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash	$ 10.8		$ 60.3
Facilities Cost	$ 5.3	$ 7.2	$ 10.4

COVID-19 - (Additional Informat

COVID-19 - (Additional Information) (Detail) $ in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CAD ($)
Unusual or Infrequent Items, or Both [Abstract]
Government subsidies receivable		$ 7.3
Subsidy Receivable Net of Expenses		$ 7.1
Subsidies expected to be repaid upon finalization of compensation to specified executives			$ 0.4	$ 0.5
Reversal of incremental provision	$ 0.6

REORGANIZATION - Reorganization

REORGANIZATION - Reorganization costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Reorganization costs payable, Beginning Balance		$ 0
Restructuring Charges	13,461	0	$ 0
Reorganization costs paid	11,184	0
Reorganization costs payable, Ending Balance	2,277		$ 0
Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	7,042	0
Reorganization costs payable, Ending Balance	2,300
Insurance costs on change of control
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,691	0
Phoenix Facility closure
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	756	0
Professional services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,021	0
Relocation and other costs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 951	$ 0

REORGANIZATION - Closure of the

REORGANIZATION - Closure of the Phoenix Facility (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Incremental Cost of Sales [Abstract]
Provision for inventory of discontinued product lines	$ 1,035	$ 0
Accelerated amortization associated with product line discontinuation	1,019	0
Accelerated depreciation and amortization associated with product line discontinuation and closure the Phoenix Facility	1,054	0
Incremental cost of sales	$ 3,108	$ 0

REORGANIZATION (Additional Info

REORGANIZATION (Additional Information) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Inventory write down	$ 1,000
Reorganization costs payable		$ 2,277		$ 0
Accelerated depreciation and amortization associated with product line discontinuation and closure the Phoenix Facility		1,054	$ 0
Termination Benefits Payable		2,100
Termination Benefits
Restructuring Cost and Reserve [Line Items]
Reorganization costs payable		2,300
Relocation and other costs
Restructuring Cost and Reserve [Line Items]
Further Anticipated Reorganization Costs		$ 200

LEASES - (Additional Informatio

LEASES - (Additional Information) (Detail)	Dec. 31, 2022	Dec. 31, 2021
Lessee Lease Description [Line Items]
Weighted average remaining lease term	13 years	14 years
Weighted average discount rate	4.90%	5.20%
Minimum [Member]
Lessee Lease Description [Line Items]
Operating leases remaining lease terms	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Operating leases remaining lease terms	23 years

LEASES - Schedule of ROU assets

LEASES - Schedule of ROU assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Lease Right Of Use Assets Original Cost [Abstract]
Cost, Beginning balance	$ 44,055	$ 41,840
Cost, Additions	139	2,401
Modifications	4,809
Cost, Exchange differences	(943)	(186)
Cost, Ending balance	48,061	44,055
Operating Lease Right Of Use Assets Accumulated Depreciation [Abstract]
Accumulated Depreciation, Beginning balance	(13,175)	(8,197)
Accumulated Depreciation, Depreciation expense	(5,057)	(4,989)
Accumulated Depreciation Modifications	50
Accumulated Depreciation, Exchange differences	611	11
Accumulated Depreciation, Ending balance	(17,571)	(13,175)
Operating Lease Right Of Use Assets Net Book Value [Abstract]
Net Book Value, Beginning balance	30,880	33,643
Net Book Value, Additions	139	2,401
Net Book Value, Modifications	4,859
Net Book Value, Depreciation expense	(5,057)	(4,989)
Net Book Value, Exchange differences	(332)	(175)
Net Book Value, Ending balance	$ 30,490	$ 30,880

LEASES - Schedule of Lease Liab

LEASES - Schedule of Lease Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Opening balance	$ 33,481	$ 35,284
Additions	139	2,401
Modifications	4,809
Accretion	1,722	1,758
Repayment of lease liabilities	(6,558)	(6,509)
Lease inducements	124	720
Exchange differences	(295)	(173)
Ending Balance	33,423	33,481
Current lease liabilities	5,889	6,214
Long-term lease liabilities	$ 27,534	$ 27,267

LEASES - Schedule of Maturities

LEASES - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
2023	$ 6,038
2024	4,630
2025	4,605
2026	4,013
2027	2,826
Thereafter	26,631
Total	48,743
Total lease liability	33,423	$ 33,481	$ 35,284
Difference between undiscounted cash flows and lease liability	$ 15,320

TRADE AND OTHER RECEIVABLES (Ad

TRADE AND OTHER RECEIVABLES (Additional Information) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Receivables, written off		$ 0.5
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Significant Customer [Member]
Percentage of Total Account Receivable	10%	10%
Customer Concentration Risk [Member] | Sales Revenue [Member] | Significant Customer [Member]
Percentage of Total Account Receivable	50%

TRADE AND OTHER RECEIVABLES - S

TRADE AND OTHER RECEIVABLES - Schedule of Accounts Receivable, Allowance for Credit Loss (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Current	$ 12,381	$ 13,572
Overdue	1,675	621
Gross accounts receivable	14,056	14,193
Allowance for doubtful accounts	(126)	(130)
Accounts receivable	$ 13,930	$ 14,063

TRADE AND OTHER RECEIVABLES -_2

TRADE AND OTHER RECEIVABLES - Schedule of accounts, notes, loans and financing receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Trade receivables	$ 14,056	$ 14,193
Allowance for doubtful accounts	(126)	(130)
Accounts receivable	13,930	14,063
Sales tax receivable	251	196
Income taxes receivable	40	3,194
Government subsidies	7,319	0
Other receivables	270	87
Other receivables (reclassified on the balance sheet)	7,880	3,477
Total Trade and other receivables, as previously presented	$ 21,810	$ 17,540

INVENTORY - Schedule of Invento

INVENTORY - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw material	$ 22,218	$ 18,388
Allowance for obsolescence	(1,242)	(646)
Work in progress	1,275	715
Inventory, net	$ 22,251	$ 18,457

Inventory - Schedule Of Idle fa

Inventory - Schedule Of Idle facility costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Inventory [Line Items]
Cost of Goods and Services Sold	$ 144,001	$ 124,133	$ 118,224
Cost of Sales [Member]
Inventory [Line Items]
Cost of Goods and Services Sold	506	1,756	2,010
Idle facility costs [Member]
Inventory [Line Items]
Cost of Goods and Services Sold	506	0	0
Underutilized Capacity [Member]
Inventory [Line Items]
Cost of Goods and Services Sold	$ 0	1,756	2,010
Underutilized Capacity [Member] | Cost of Sales [Member]
Inventory [Line Items]
Cost of Goods and Services Sold		$ 1,800	$ 2,000

Inventory - Schedule Of Consoli

Inventory - Schedule Of Consolidated Statement Of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Inventory [Line Items]
Cost of Goods and Services Sold	$ 144,001	$ 124,133	$ 118,224
Cost of Sales [Member]
Inventory [Line Items]
Cost of Goods and Services Sold	506	1,756	2,010
Product [Member]
Inventory [Line Items]
Cost of Goods and Services Sold	140,058	120,281	115,455
Product [Member] | Cost of Sales [Member]
Inventory [Line Items]
Cost of Goods and Services Sold	140,058	118,525	113,445
Underutilized Capacity [Member]
Inventory [Line Items]
Cost of Goods and Services Sold	$ 0	1,756	2,010
Underutilized Capacity [Member] | Cost of Sales [Member]
Inventory [Line Items]
Cost of Goods and Services Sold		$ 1,800	$ 2,000

INVENTORY - (Additional Informa

INVENTORY - (Additional Information) (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cost recognized in cost of sales		$ 144,001	$ 124,133	$ 118,224
Inventory write-off		300
Inventory write down	$ 1,000
Provisio for write off against inventory		500	400
Allowance increased for obsolescence discontinuation		900	100
Cost of Goods and Services Sold		144,001	124,133	118,224
Underutilized Capacity [Member]
Cost recognized in cost of sales		0	1,756	2,010
Cost of Goods and Services Sold		0	1,756	2,010
Cost of Sales [Member]
Cost recognized in cost of sales		506	1,756	2,010
Inventory write down		1,100	600
Cost of Goods and Services Sold		506	1,756	2,010
Cost of Sales [Member] | Underutilized Capacity [Member]
Cost recognized in cost of sales			1,800	2,000
Cost of Goods and Services Sold			1,800	$ 2,000
Work In Progress [Member]
Production overheads capitalized		$ 200	$ 100

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cost
Beginning Balance	$ 147,697	$ 134,616
Additions	1,854	12,309
Disposals	(10,791)	(53)
Exchange differences	(5,205)	825
Ending Balance	133,328	147,697
Accumulated depreciation and impairment
Beginning Balance	96,000	84,769
Depreciation expense	10,460	11,076
Disposals	(11,018)	(23)
Exchange differences	(3,863)	178
Ending Balance	91,806	96,000
Net book value
Carrying Value of assets	41,522	51,697
Office And Computer Equipment
Cost
Beginning Balance	28,646	24,988
Additions	738	3,422
Disposals	(1,272)
Exchange differences	(581)	236
Ending Balance	27,456	28,646
Accumulated depreciation and impairment
Beginning Balance	19,981	16,362
Depreciation expense	2,355	3,589
Disposals	(1,347)
Exchange differences	(540)	30
Ending Balance	20,524	19,981
Net book value
Carrying Value of assets	6,932	8,665
Factory Equipment
Cost
Beginning Balance	71,484	66,523
Additions	775	4,515
Disposals	(2,831)	(53)
Exchange differences	(3,167)	499
Ending Balance	66,109	71,484
Accumulated depreciation and impairment
Beginning Balance	39,271	35,524
Depreciation expense	4,425	3,670
Disposals	(2,983)	(23)
Exchange differences	(2,044)	100
Ending Balance	38,821	39,271
Net book value
Carrying Value of assets	27,288	32,213
Leasehold improvements
Cost
Beginning Balance	47,567	43,105
Additions	341	4,372
Disposals	(6,688)
Exchange differences	(1,457)	90
Ending Balance	39,763	47,567
Accumulated depreciation and impairment
Beginning Balance	36,748	32,883
Depreciation expense	3,680	3,817
Disposals	(6,688)
Exchange differences	(1,279)	48
Ending Balance	32,461	36,748
Net book value
Carrying Value of assets	$ 7,302	$ 10,819

PROPERTY, PLANT AND EQUIPMENT_4

PROPERTY, PLANT AND EQUIPMENT, NET - Additional information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Assets in progress	$ 100	$ 2,200
Percentage of terminal growth rate	2%
Depreciation expense	$ 10,460	11,076
Impairment charge on property, plant and equipment	$ 0	$ 0
Maximum [Member]
Property, Plant and Equipment [Line Items]
Percentage of average compounded annual growth rate of revenues	10%
Minimum [Member]
Property, Plant and Equipment [Line Items]
Percentage of average compounded annual growth rate of revenues	5%
Phoenix Facility closure
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 1,100

CAPITALIZED SOFTWARE, NET - Sch

CAPITALIZED SOFTWARE, NET - Schedule of Capitalized Software (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cost
As at January 1	$ 37,492	$ 35,480
Additions	1,677	2,340
Recovery of software development expenditures	(263)	(461)
Disposals	(1,990)	0
Exchange differences	(1,928)	83
As at December 31	34,546	37,492
Accumulated amortization
As at January 1	30,097	27,136
Amortization expense	3,887	2,878
Disposals	(1,916)	0
Exchange differences	(2,370)	133
As at December 31	30,140	30,097
Net book value	$ 4,406	$ 7,395

CAPITALIZED SOFTWARE, NET - Add

CAPITALIZED SOFTWARE, NET - Additional information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Capitalized Software [Abstract]
2023	$ 1,600
2024	1,200
2025	1,000
2026	500
2027	100
Incremental Amortization on the Acceleration of Useful Lives Associated With Discontinued Product Lines	$ 1,019	$ 0

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
As at January 1	$ 0	$ 1,449
Impairment	0	(1,443)	$ 0
Exchange differences	0	(6)
As at December 31	$ 0	$ 0	$ 1,449

GOODWILL - (Additional Informat

GOODWILL - (Additional Information) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Line Items]
Average compounded annual growth rate of revenues	10%
Percentage of progress payment on receipt of certain orders	50%
Reporting units goodwill discount rate	13%
Reporting units goodwill terminal growth rate	2%
Goodwill impairment	$ 0	$ 1,443	$ 0
Minimum [Member]
Goodwill [Line Items]
Annualized reduction in operating costs in model	10%
Maximum [Member]
Goodwill [Line Items]
Annualized reduction in operating costs in model	15%

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Trade accounts payable		$ 5,562	$ 7,820
Accrued liabilities		8,776	9,649
Wages and commissions payable		3,410	4,275
Rebates accrued	[1]	2,133	1,007
Accounts Payable and Accrued Liabilities, Current		$ 19,881	$ 22,751
[1] In 2022 $ 4.8 million of rebates were earned (2021 - $ 4.1 million) and $ 3.7 million were paid (2021 - $ 4.7 million).

ACCOUNTS PAYABLE AND ACCRUED _4

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule of Accounts Payable and Accrued Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Rebates Earned	$ 4.8	$ 4.1
Rebates paid	$ 3.7	$ 4.7

ACCOUNTS PAYABLE AND ACCRUED _5

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule Of Other Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2020
Payables and Accruals [Abstract]
Warranty and other provisions	$ 1,278	[1]	$ 1,451	[1]	$ 1,763
Deferred and performance share unit liability	594		785
Sublease deposits	139		0
Other provisions	45		143
Other liabilities	$ 2,056		$ 2,379
[1] The following table presents a reconciliation of the warranty and other provisions balance:

ACCOUNTS PAYABLE AND ACCRUED _6

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Reconciliation of Warranty and Other Provisions Balance (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2022		Dec. 31, 2021
Payables and Accruals [Abstract]
Balance		$ 1,451	[1]	$ 1,763
Adjustments to timber provision				(500)
Additions to warranty provision		1,134		1,019
Payments related to warranties		(1,307)		(831)
Balance	[1]	$ 1,278		$ 1,451
[1] The following table presents a reconciliation of the warranty and other provisions balance:

LONG-TERM DEBT - Summary of Lon

LONG-TERM DEBT - Summary of Long Term Debt Reconciliation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Long term debt	$ 70,642	$ 5,967
Issuances	647	64,912	$ 6,130
Accretion of issue costs	676	352
Accrued interest	4,274	2,491
Interest payments	(4,423)	(1,543)
Repayment of long-term debt	(2,470)	(1,808)	(406)
Exchange differences	(3,911)	271
Long term debt	65,435	70,642	5,967
Current portion of long-term debt and accrued interest	3,306	3,323
Long-term debt	62,129	67,319
Leasing Facilities [Member]
Debt Instrument [Line Items]
Long term debt	13,909	5,967
Issuances	647	9,805
Accretion of issue costs	0	0
Accrued interest	735	556
Interest payments	(735)	(556)
Repayment of long-term debt	(2,470)	(1,808)
Exchange differences	(274)	(55)
Long term debt	11,812	13,909	5,967
Current portion of long-term debt and accrued interest	2,561	2,386
Long-term debt	9,251	11,523
Convertible Debentures [Member]
Debt Instrument [Line Items]
Long term debt	56,733	0
Issuances	0	55,107
Accretion of issue costs	676	352
Accrued interest	3,539	1,935
Interest payments	(3,688)	(987)
Repayment of long-term debt	0	0
Exchange differences	(3,637)	326
Long term debt	53,623	56,733	$ 0
Current portion of long-term debt and accrued interest	745	937
Long-term debt	$ 52,878	$ 55,796

LONG-TERM DEBT - (Additional In

LONG-TERM DEBT - (Additional Information) (Detail)

12 Months Ended

Feb. 09, 2023 CAD ($)

Nov. 15, 2021 USD ($) shares

Nov. 15, 2021 CAD ($) $ / shares shares

Jan. 29, 2021 USD ($)

Jan. 25, 2021 USD ($) shares

Jan. 25, 2021 CAD ($) $ / shares shares

Jan. 29, 2020 CAD ($)

Jul. 19, 2019

Dec. 31, 2022 USD ($) Days

Dec. 31, 2022 CAD ($)

Dec. 31, 2021 USD ($)

Dec. 31, 2022 CAD ($) Days

Feb. 12, 2021 CAD ($)

Debt Instrument [Line Items]

Revolving credit facility, additional term

2 years

Cash balance

$ 10,800,000

$ 60,300,000

Convertible Debentures [Member]

Debt Instrument [Line Items]

Issuance of convertible debentures

$ 27,400,000

$ 35,000,000

$ 4,100,000

$ 27,500,000

$ 35,000,000

$ 5,250,000

Convertible debentures, maturity date

Dec. 31, 2026

Dec. 31, 2026

Jan. 31, 2026

Jan. 31, 2026

Convertible debentures, interest rate

6.25%

6.25%

6%

6%

Convertible debentures, frequency of interest payment

semi-annually

semi-annually

semi-annually

semi-annually

Convertible debentures, conversion price | $ / shares

$ 4.20

$ 4.65

Convertible debentures, common shares issued | shares

238.0952

238.0952

215.0538

215.0538

Convertible debentures, principal amount

$ 1,000

$ 1,000

Convertible debentures, transaction cost

$ 2,300,000

$ 2,700,000

Canadian Dollar Advances [Member]

Debt Instrument [Line Items]

Revolving credit facility, maximum borrowing capacity

$ 5,000,000

Revolving credit facility, term

7 years

Cash consideration received under leasing facility

700,000

$ 900,000

$ 0

US Dollar Advances [Member]

Debt Instrument [Line Items]

Revolving credit facility, maximum borrowing capacity

14,000

Cash consideration received under leasing facility

$ 0

$ 9,800,000

RBC Facility [Member]

Debt Instrument [Line Items]

Revolving credit facility, maximum borrowing capacity

$ 25,000,000

Debt instrument covenant terms

the Company is subject to a FCCR covenant of 1.10:1 on a trailing twelve month basis. Additionally, if the FCCR has been above 1.10:1 for the 3 immediately preceding months, the Company is required to maintain a reserve account equal to the aggregate of one-year of payments on the Leasing Facilities

the Company is subject to a FCCR covenant of 1.10:1 on a trailing twelve month basis. Additionally, if the FCCR has been above 1.10:1 for the 3 immediately preceding months, the Company is required to maintain a reserve account equal to the aggregate of one-year of payments on the Leasing Facilities

Cash balance

$ 3,400,000

Revolving credit facility, maximum borrowing capacity, description

Under the RBC Facility, the Company is able to borrow up to a maximum of 90% of investment grade or insured accounts receivable plus 85% of eligible accounts receivable plus the lesser of 75% of the book value of eligible inventory and 85% of the net orderly liquidation value of eligible inventory less any reserves for potential prior ranking claims (the “Borrowing Base”).

Under the RBC Facility, the Company is able to borrow up to a maximum of 90% of investment grade or insured accounts receivable plus 85% of eligible accounts receivable plus the lesser of 75% of the book value of eligible inventory and 85% of the net orderly liquidation value of eligible inventory less any reserves for potential prior ranking claims (the “Borrowing Base”).

Revolving credit facility, aggregate excess availability

$ 5,000,000

Number of consecutive business days | Days

5

5

Prime Rate [Member] | RBC Facility [Member]

Debt Instrument [Line Items]

Debt Instrument, Description of Variable Rate Basis

30

30

LIBOR [Member] | RBC Facility [Member]

Debt Instrument [Line Items]

Debt Instrument, Description of Variable Rate Basis

155

155

Subsequent Event [Member] | RBC Facility [Member]

Debt Instrument [Line Items]

Line of credit available borrowing capacity

$ 15,000,000

Subsequent Event [Member] | Prime Rate [Member] | RBC Facility [Member]

Debt Instrument [Line Items]

Debt Instrument, Description of Variable Rate Basis

75

Subsequent Event [Member] | LIBOR [Member] | RBC Facility [Member]

Debt Instrument [Line Items]

Debt Instrument, Description of Variable Rate Basis

200

Minimum [Member]

Debt Instrument [Line Items]

Revolving credit facility, term

5 years

5 years

Revolving credit facility, basis spread on variable rate

4.25%

4.25%

5.59%

Maximum [Member]

Debt Instrument [Line Items]

Revolving credit facility, term

7 years

7 years

Maximum [Member] | RBC Facility [Member]

Debt Instrument [Line Items]

Revolving credit facility, aggregate excess availability

$ 6,250,000

Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Line of credit available borrowing capacity

$ 5,300

$ 7,200,000

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Net income (loss) before tax	$ (54,942)	$ (53,872)	$ (9,194)
Canadian statutory rate	24.40%	23.30%	24.20%
Expected income tax	$ (13,406)	$ (12,552)	$ (2,225)
Effect on taxes resulting from:
Valuation allowance	13,590	12,046	5,241
Non-deductible expenses	422	542	261
Non-deductible stock-based compensation	23	189	269
Tax rate impacts	(665)	(488)	(1,288)
Adjustments related to prior year tax filings	57	59	(105)
Other	0		(49)
Income tax expense (recovery)	21	(204)	2,104
Current tax expense	21	210	(3,521)
Deferred income tax expense	0	(414)	5,625
Income tax expense (recovery)	$ 21	$ (204)	$ 2,104

INCOME TAXES - Deferred Tax Ass

INCOME TAXES - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Operating losses	$ 33,740	$ 24,032
Research and development expenditures	336	362
Valuation allowance		(17,291)
Other	3,352
Net deferred taxes	37,428	7,103
Valuation allowance		17,291
Liabilities
Property and equipment	(6,017)	(7,572)
Capitalized software and other assets	(1,599)	(2,023)
Valuation allowance	(29,812)	0
Other		(2,492)
Net deferred taxes	(37,428)	(7,103)
Assets
Operating losses	33,740	24,032
Research and development expenditures	336	362
Property and equipment	(6,017)	(7,572)
Capitalized software and other assets	(1,599)	(2,023)
Valuation allowance	(29,812)	(17,291)
Other	3,352	2,492
Net deferred taxes	$ 0	$ 0

INCOME TAXES - Summary of Tempo

INCOME TAXES - Summary of Temporary Difference Movements (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Opening Balance	$ 414
Opening Balance	0
Opening Balance	(7,103)
Recognized in Income	0	$ 414
Foreign Exchange		0
Ending Balance		414
Ending Balance	0	0
Ending Balance	(37,428)	(7,103)
Operating losses [Member]
Opening Balance	24,032	9,528
Recognized in Income	10,924	14,542
Foreign Exchange	(1,216)	(38)
Ending Balance	33,740	24,032
Research and development expenditures [Member]
Opening Balance	362	360
Recognized in Income	(3)	(87)
Foreign Exchange	(23)	89
Ending Balance	336	362
Property and equipment [Member]
Opening Balance	(7,572)	(4,588)
Recognized in Income	1,410	(2,844)
Foreign Exchange	145	(140)
Ending Balance	(6,017)	(7,572)
Capitalized software and other assets [Member]
Opening Balance	(2,023)	(2,218)
Recognized in Income	311	209
Foreign Exchange	113	(14)
Ending Balance	(1,599)	(2,023)
Valuation allowance [Member]
Opening Balance	(17,291)	(5,330)
Recognized in Income	(13,590)	(12,046)
Foreign Exchange	1,069	85
Ending Balance	(29,812)	(17,291)
Other [Member]
Opening Balance	2,492	1,834
Recognized in Income	948	640
Foreign Exchange	(88)	18
Ending Balance	$ 3,352	$ 2,492

INCOME TAXES - (Additional Info

INCOME TAXES - (Additional Information) (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Schedule Of Income Tax [Line Items]
Valuation allowance against deferred tax assets		$ 17,291
Canada [Member]
Schedule Of Income Tax [Line Items]
Valuation allowance against deferred tax assets	$ 13,600	$ 12,000

INCOME TAXES - Tax Loss Carry F

INCOME TAXES - Tax Loss Carry Forwards and Other Tax Pools (Detail) $ in Thousands, $ in Thousands	Dec. 31, 2022 CAD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CAD ($)	Dec. 31, 2021 USD ($)
Tax Credit Carryforward, Amount	$ 121,511	$ 65,419	$ 79,199	$ 52,488
Non-capital loss carry-forwards [Member]
Tax Credit Carryforward, Amount	106,730	55,654	64,961	42,220
Undepreciated Capital Costs [Member]
Tax Credit Carryforward, Amount	9,207	$ 9,765	12,267	$ 10,268
Share Issuance Costs [Member]
Tax Credit Carryforward, Amount	3,603
Scientific research and experimental development tax incentives [Member]
Tax Credit Carryforward, Amount	$ 1,971		$ 1,971

STOCK-BASED COMPENSATION - (Add

STOCK-BASED COMPENSATION - (Additional Information) (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 $ / shares	May 31, 2020 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance								5,850,000
Share-Based Payment Arrangement, Expense | $	$ 4,277		$ 4,713		$ 2,351
Compensation expense charged to additional paid in capital | $	$ 3,943		$ 4,453		$ 1,832
Securities excluded from calculation of net income (loss) per share	1,500,000		4,100,000		4,800,000
Restricted Stock Units Time Based
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award requisite service period	3 years
Weighted average fair value of the RSUs granted | $ / shares						$ 2.37	$ 2.78
Performance-Based Restricted Share Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award requisite service period	3 years
Performance-Based Restricted Share Units | 2022 PRSUs [ Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
% of PRSUs vesting	0%
Performance-Based Restricted Share Units | 2021 PRSUs [ Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
% of PRSUs vesting			66.70%
Performance-Based Restricted Share Units | Monte Carlo Valuation Method [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation other than option grant date fair value | $ / shares		$ 1.87		$ 3.27
Deferred Share Units ("DSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Deferred Compensation Liability, Current and Noncurrent | $	$ 600	$ 600	$ 800	$ 800
Restricted Share Units ("RSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Securities excluded from calculation of net income (loss) per share	2,200,000
Restricted Stock Units And Performance Vested Share Units Member
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Securities excluded from calculation of net income (loss) per share			3,400,000		2,700,000
Shares Issuable on Principal Amount Settled in Common Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Securities excluded from calculation of net income (loss) per share	109,100,000		27,400,000
Share Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation other than option grant date fair value | (per share)	$ 1.88	$ 2.40
Share Awards were issued to employees	59,488
Based Compensation Arrangement by Share-Based Payment Award, Maximum Number of Shares Per Employee	1,300,000

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 4,277	$ 4,713	$ 2,351
Equity-settled Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	3,943	4,453	1,832
Cash-settled Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 334	$ 260	$ 519

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of PSUs, DSUs and RSUs Granted, Exercised, Forfeited and Expired (Detail) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Restricted Stock Units Time Based
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, Outstanding at the beginning	3,216,536	2,414,063
Granted	2,157,149	1,976,697
Vested	(2,199,034)	(661,775)
Withheld to settle employee tax obligations	(526,346)	(174,103)
Forfeited	(762,968)	(338,346)
Number of units, Outstanding at the end	1,885,337	3,216,536
Restricted Share Units ("RSUs") Performance-Based [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, Outstanding at the beginning	1,021,739	200,000
Granted	863,279	878,601
Vested	(796,011)	(2,294)
Withheld to settle employee tax obligations	(242,460)	(1,960)
Forfeited	(502,628)	(52,608)
Number of units, Outstanding at the end	343,919	1,021,739
Deferred Share Units ("DSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, Outstanding at the beginning	361,577	363,664
Granted	1,305,658	144,969
Vested	(501,916)	(147,056)
Number of units, Outstanding at the end	1,165,319	361,577
Performance Share Units ("PSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, Outstanding at the beginning	157,200	197,471
Vested		(34,635)
Forfeited		(5,636)
Expired	(157,200)
Number of units, Outstanding at the end		157,200
Share Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted	222,170
Vested	(154,016)
Withheld to settle employee tax obligations	(68,154)

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Percentage of PRSUs Vest upon Increases of Share Price (Detail) - Performance-Based Restricted Share Units - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
2021 PRSUs [ Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
% of PRSUs vesting		66.70%
Share-based Payment Arrangement, Tranche One [Member] | 2022 and 2021 PRSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
% of PRSUs vesting	33.30%
Weighted average fair value of the RSUs granted	$ 3
Share-based Payment Arrangement, Tranche Two [Member] | 2022 and 2021 PRSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
% of PRSUs vesting	66.70%
Weighted average fair value of the RSUs granted	$ 4
Share-based Payment Arrangement, Tranche Three | 2022 and 2021 PRSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
% of PRSUs vesting	100%
Weighted average fair value of the RSUs granted	$ 5
Share Based Compensation Award Tranche Four | 2022 and 2021 PRSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
% of PRSUs vesting	150%
Weighted average fair value of the RSUs granted	$ 7

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2022 $ / shares $ / shares shares	Dec. 31, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options, Outstanding at the beginning | shares	4,064,489	4,774,328
Number of options, Forfeited | shares	(2,584,420)	(709,839)
Number of options, Outstanding at the end | shares	1,480,069	4,064,489
Number of options, Exercisable | shares	1,480,069
Weighted average exercise price, Outstanding at the beginning | $ / shares	$ 6.64	$ 6.52
Weighted average exercise price, Forfeited | $ / shares	6.41	7.07
Weighted average exercise price, Outstanding at the end | $ / shares	$ 7.03	$ 6.64
Weighted average exercise price, Exercisable | $ / shares	$ 7.03

STOCK-BASED COMPENSATION - Su_4

STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Options outstanding, Number	1,480,069	4,064,489
Options exercisable, Number	1,480,069	2,079,479
Exercise Price Range $4.01 to $5.00 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Range of exercise prices, Minimum	$ 4.01	$ 4.01
Range of exercise prices, Maximum	$ 6	$ 6
Options outstanding, Number	15,025	22,537
Options outstanding, Weighted average remaining life	1 year 10 months 20 days	2 years 10 months 20 days
Options outstanding, Weighted average exercise price	$ 4.12	$ 4.12
Options exercisable, Number	15,025	15,025
Options exercisable, Weighted average remaining life	1 year 10 months 20 days	2 years 10 months 20 days
Options exercisable, Weighted average exercise price	$ 4.12	$ 4.12
Exercise Price Range $6.01 to $7.00 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Range of exercise prices, Minimum	6.01	6.01
Range of exercise prices, Maximum	$ 7	$ 7
Options outstanding, Number	758,142	3,281,199
Options outstanding, Weighted average remaining life	1 year 25 days	1 year 9 months 14 days
Options outstanding, Weighted average exercise price	$ 6.33	$ 6.38
Options exercisable, Number	758,142	1,549,301
Options exercisable, Weighted average remaining life	1 year 25 days	1 year 10 months 13 days
Options exercisable, Weighted average exercise price	$ 6.33	$ 6.36
Exercise Price Range $7.01 to $8.00 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Range of exercise prices, Minimum	7.01	7.01
Range of exercise prices, Maximum	$ 8	$ 8
Options outstanding, Number	706,902	760,753
Options outstanding, Weighted average remaining life	1 year 4 months 13 days	2 years 4 months 13 days
Options outstanding, Weighted average exercise price	$ 7.84	$ 7.84
Options exercisable, Number	706,902	515,153
Options exercisable, Weighted average remaining life	1 year 4 months 13 days	2 years 4 months 13 days
Options exercisable, Weighted average exercise price	$ 7.84	$ 7.84

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue by Major Products and Services Lines (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenues	$ 172,161	$ 147,593	$ 171,507
Product [Member]
Disaggregation Of Revenue [Line Items]
Revenues	147,448	129,031	150,004
Transportation [Member]
Disaggregation Of Revenue [Line Items]
Revenues	18,030	13,231	15,491
License fees from Construction Partners [Member]
Disaggregation Of Revenue [Line Items]
Revenues	778	738	1,194
Total product revenue [Member]
Disaggregation Of Revenue [Line Items]
Revenues	166,256	143,000	166,689
Installation and other services [Member]
Disaggregation Of Revenue [Line Items]
Revenues	$ 5,905	$ 4,593	$ 4,818

REVENUE - Disaggregation of R_2

REVENUE - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenues	$ 172,161	$ 147,593	$ 171,507
At a point in time [Member]
Disaggregation Of Revenue [Line Items]
Revenues	165,478	142,262	165,495
Over time [Member]
Disaggregation Of Revenue [Line Items]
Revenues	$ 6,683	$ 5,331	$ 6,012

REVENUE - Summary of Contract L

REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Customer deposits	$ 4,458	$ 1,959	$ 1,292
Deferred revenue	408	461	527
Contract liabilities	$ 4,866	$ 2,420	$ 1,819

REVENUE - (Additional Informati

REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract liabilities recognized as revenue	$ 2.4	$ 1.8

REVENUE - Schedule of Sales by

REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenues	$ 172,161	$ 147,593	$ 171,507
Commercial [Member]
Disaggregation Of Revenue [Line Items]
Revenues	115,102	84,488	102,245
Healthcare [Member]
Disaggregation Of Revenue [Line Items]
Revenues	19,739	30,130	35,400
Government [Member]
Disaggregation Of Revenue [Line Items]
Revenues	16,564	16,012	14,128
Education [Member]
Disaggregation Of Revenue [Line Items]
Revenues	14,073	11,632	13,722
License fees from Construction Partners [Member]
Disaggregation Of Revenue [Line Items]
Revenues	778	738	1,194
Total product and transportation revenue [Member]
Disaggregation Of Revenue [Line Items]
Revenues	166,256	143,000	166,689
Installation and other services [Member]
Disaggregation Of Revenue [Line Items]
Revenues	$ 5,905	$ 4,593	$ 4,818

SEGMENT REPORTING - (Additional

SEGMENT REPORTING - (Additional Information) (Detail)	12 Months Ended
	Dec. 31, 2022 Segment Country
Segment Reporting [Abstract]
Number of reportable segments	1
Number of Operating Segments	1
Number of principal geographic locations | Country	2

SEGMENT REPORTING - Schedule of

SEGMENT REPORTING - Schedule of Revenue from External Customers (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 172,161	$ 147,593	$ 171,507
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	25,477	17,299	18,848
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 146,684	$ 130,294	$ 152,659

SEGMENT REPORTING - Schedule _2

SEGMENT REPORTING - Schedule of Non-current Assets Excluding Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 81,528	$ 95,635
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	28,251	34,912
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 53,277	$ 60,723

COMMITMENTS - (Additional Infor

COMMITMENTS - (Additional Information) (Detail) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Inventory And Property Plant And Equipment [Member]
Long Term Purchase Commitment [Line Items]
Purchase obligation, outstanding	$ 2.2	$ 3.7

LEGAL PROCEEDINGS - (Additional

LEGAL PROCEEDINGS - (Additional Information) (Detail)	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrued for legal proceedings	$ 0

PRIVATE PLACEMENT AND RELATED_2

PRIVATE PLACEMENT AND RELATED PARTY TRANSACTIONS (Additional Information) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Nov. 30, 2022	Dec. 31, 2021	May 31, 2020
Related Party Transaction [Line Items]
Common stock reserved for future issuance				5,850,000
Common shares, shares issued	97,882,844		85,345,433
22 NW Fund, LP [Member] | 726 BC LLC and 726 BF [Member]
Related Party Transaction [Line Items]
Common stock reserved for future issuance		8,667,449
Common share Aggregate value		$ 2.8
Common shares, shares issued		638,996
Offering Aggregate Amount		$ 2