Dirtt Environmental Solutions (DRTTF) 10-K 26 Feb 20 2019 FY Annual report Financial data

Cover Page

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2019	Feb. 19, 2020	Jun. 28, 2019
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Entity Registrant Name	DIRTT ENVIRONMENTAL SOLUTIONS LTD
Entity Central Index Key	0001340476
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Address, State or Province	AB
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Trading Symbol	DRTT
Title of 12(b) Security	Common Shares
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		84,681,364
Entity Public Float			$ 409,123,019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 47,174	$ 53,412
Trade and other receivables, net of allowances for doubtful accounts of $0.1 million at both December 31, 2019 and 2018	24,941	43,873
Inventory	17,566	18,650
Prepaids and other current assets	3,340	2,217
Total Current Assets	93,021	118,152
Property, plant and equipment, net	41,365	36,728
Capitalized software, net	8,213	8,335
Operating lease right-of-use assets, net	20,661
Deferred tax assets, net	5,364	6,083
Goodwill	1,421	1,353
Other assets	5,518	5,260
Total Assets	175,563	175,911
Current Liabilities
Accounts payable and accrued liabilities	20,384	31,283
Other liabilities	5,187	6,823
Customer deposits and deferred revenue	3,567	7,701
Current portion of lease liability	5,287
Current portion of long-term debt		2,500
Total Current Liabilities	34,425	48,307
Deferred tax liabilities		965
Other long-term liabilities	35
Long-term lease liabilities	16,116
Long-term debt		3,125
Total Liabilities	50,576	52,397
SHAREHOLDERS' EQUITY
Common shares, unlimited authorized without par value, 84,681,364 issued and outstanding at December 31, 2019 and 84,660,319 issued and outstanding at December 31, 2018	180,639	180,562
Additional paid-in capital	8,343	6,615
Accumulated other comprehensive loss	(18,028)	(22,092)
Accumulated deficit	(45,967)	(41,571)
Total Shareholders' Equity	124,987	123,514
Total Liabilities and Shareholders' Equity	$ 175,563	$ 175,911

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Trade and other receivables, allowances for doubtful accounts	$ 0.1	$ 0.1
Common Stock,No Par Value	$ 0	$ 0
Common,Stock Shares Issued	84,681,364	84,660,319
Common Stock,Shares Outstanding	84,681,364	84,660,319

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues [Abstract]
Total revenue	$ 247,735	$ 274,681	$ 226,539
Total cost of sales	161,311	167,672	141,050
Gross profit	86,424	107,009	85,489
Expenses
Sales and marketing	33,939	40,627	46,192
General and administrative	27,645	28,722	28,370
Operations support	11,037	8,069	7,212
Technology and development	7,818	4,176	6,335
Stock-based compensation	3,876	3,661	2,738
Reorganization	4,560	7,380	1,143
Impairment		8,680
Total operating expenses	88,875	101,315	91,990
Operating income (loss)	(2,451)	5,694	(6,501)
Foreign exchange (gain) loss	1,324	(3,214)	665
Interest income	(529)	(425)	(399)
Interest expense	131	503	500
Non Operating (income) loss	926	(3,136)	766
Income (loss) before tax	(3,377)	8,830	(7,267)
Income taxes
Current tax expense	1,064	2,178	3,277
Deferred tax expense (recovery)	(45)	1,102	(2,819)
Income tax expense	1,019	3,280	458
Net income (loss) for the year	$ (4,396)	$ 5,550	$ (7,725)
Income (loss) per share
Basic and diluted income (loss) per share	$ (0.05)	$ 0.07	$ (0.09)
Weighted average number of shares outstanding
Basic	84,671	84,477	84,679
Diluted	84,671	85,009	84,679
Product [Member]
Revenues [Abstract]
Total revenue	$ 240,659	$ 266,434	$ 216,216
Total cost of sales	153,128	161,844	131,326
Service [Member]
Revenues [Abstract]
Total revenue	7,076	8,247	10,323
Total cost of sales	5,943	$ 5,828	$ 9,724
Under-utilized Capacity [Member]
Revenues [Abstract]
Total cost of sales	$ 2,240

Consolidated Statements of Op_2

Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue from related parties		$ 2.9	$ 6.7

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income (loss) for the year	$ (4,396)	$ 5,550	$ (7,725)
Exchange differences on translation of foreign operations, net of tax	4,064	(9,980)	7,417
Comprehensive income (loss) for the year	$ (332)	$ (4,430)	$ (308)

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common shares	Warrants	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit
Beginning Balance at Dec. 31, 2016	$ 129,377	$ 177,712	$ 217	$ 5,632	$ (19,529)	$ (34,655)
Beginning Balance (in shares) at Dec. 31, 2016		84,878,891
Shares repurchased	(7,730)	$ (2,989)				(4,741)
Shares repurchased (in shares)		(1,672,187)
Warrant fair value adjustment	34		34
Issued on exercise of warrants		$ 251	$ (251)
Issued on exercise of warrants (in shares)		50,325
Issued on exercise of stock options	2,408	$ 3,423		(1,015)
Issued on exercise of stock options (in shares)		967,498
Stock-based compensation	2,738			2,738
Foreign currency translation adjustment	7,417				7,417
Net income (loss) for the year	(7,725)					(7,725)
Ending Balance at Dec. 31, 2017	126,519	$ 178,397		7,355	(12,112)	(47,121)
Ending Balance (in shares) at Dec. 31, 2017		84,224,527
Issued on exercise of stock options	1,537	$ 2,165		(628)
Issued on exercise of stock options (in shares)		435,792
Stock-based compensation	2,190			2,190
Stock option conversion to cash-settled awards	(2,302)			(2,302)
Foreign currency translation adjustment	(9,980)				(9,980)
Net income (loss) for the year	5,550					5,550
Ending Balance at Dec. 31, 2018	123,514	$ 180,562		6,615	(22,092)	(41,571)
Ending Balance (in shares) at Dec. 31, 2018		84,660,319
Issued on exercise of stock options	76	$ 77		(1)
Issued on exercise of stock options (in shares)		21,045
Stock-based compensation	1,729			1,729
Foreign currency translation adjustment	4,064				4,064
Net income (loss) for the year	(4,396)					(4,396)
Ending Balance at Dec. 31, 2019	$ 124,987	$ 180,639		$ 8,343	$ (18,028)	$ (45,967)
Ending Balance (in shares) at Dec. 31, 2019		84,681,364

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income (loss) for the year	$ (4,396)	$ 5,550	$ (7,725)
Adjustments:
Depreciation and amortization	12,242	13,699	12,856
Stock-based compensation, net of cash settlements	202	1,870	2,738
Foreign exchange (gain) loss	345	(1,902)	(199)
Loss on disposal of property, plant and equipment	53	67	27
Deferred income tax expense (recovery)	(45)	1,102	(2,819)
Impairment expense		8,680
Warrant fair value adjustments			34
Changes in operating assets and liabilities:
Trade and other receivables	21,025	(26,613)	6,120
Inventory	1,667	(285)	(2,215)
Prepaid and other current assets	(1,035)	(319)	(378)
Other assets	162	181	(60)
Trade accounts payable and other liabilities	(12,183)	6,132	8,664
Lease liabilities	(402)
Customer deposits	(4,276)	1,903	2,389
Net cash flows provided by operating activities	13,359	10,065	19,432
Cash flows from financing activities:
Purchase of property, plant and equipment	(12,702)	(8,634)	(14,396)
Capitalized software development and other asset expenditures	(3,452)	(5,234)	(5,496)
Recovery of software development expenditures	511	178	203
Proceeds on sale of property, plant and equipment	55	60	109
Changes in accounts payable related to investing activities	399	168	81
Net cash flows used in investing activities	(15,189)	(13,462)	(19,499)
Cash flows from financing activities:
Cash received on exercise of stock options	77	1,537	2,408
Repayment of long-term debt	(5,561)	(4,606)	(3,787)
Shares repurchased			(7,730)
Net cash flows used in financing activities	(5,484)	(3,069)	(9,109)
Effect of foreign exchange on cash and cash equivalents	1,076	(3,606)	2,984
Net decrease in cash and cash equivalents	(6,238)	(10,072)	(6,192)
Cash and cash equivalents, beginning of year	53,412	63,484	69,676
Cash and cash equivalents, end of year	47,174	53,412	63,484
Supplemental disclosure of cash flow information:
Interest paid	(99)	(503)	(609)
Income taxes paid	$ 0	$ (3,816)	$ (2,760)

GENERAL INFORMATION

GENERAL INFORMATION	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL INFORMATION	1. GENERAL INFORMATION DIRTT Environmental Solutions Ltd. and its subsidiaries (“DIRTT” or the “Company”) is a leading technology-driven manufacturer of highly customized interiors. DIRTT combines its proprietary 3D design, configuration and manufacturing software (“ICE ® in-house

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
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. Reclassification Certain comparative figures have been reclassified to conform to the current year presentation (see Note 16). 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 accounts receivable; • Estimates of useful lives of depreciable assets and the fair value of long-term assets used for impairment calculations; • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets; • Tax interpretations, regulations and legislations 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, 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 “other comprehensive income (loss)”. Cash and cash equivalents 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. Trade and other receivables, net of allowance for doubtful accounts 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 by evaluating specific accounts where information indicates the Company’s customers may have an inability to meet financial obligations, such as bankruptcy and significantly aged receivables outstanding. 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 For the year-ended December 31, 2019, the Company’s leases policy was as follows: 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. 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. Prior Accounting Policy For the year-ended December 31, 2018, the Company’s leases policy was as follows: The Company categorizes leases at their inception as either operating or capital leases. Leases where the Company assumes substantially all the risks and rewards of ownership are classified as capital 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. Other leases that qualify as operating leases are not recognized in the Company’s balance sheet. In certain lease agreements, the Company may receive rent holidays or other incentives. The Company recognizes lease costs on a straight-line basis once control of the asset is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement. 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 are capitalized. Depreciation is charged to operations on a straight-line basis over the estimated useful lives of the assets. 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 amortization 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 include s 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. Capitaliz ed software costs are amortized on a straight-line basis over the estimated useful life of the developed asset, which is generally to 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 distribution 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. Impairment of long-lived assets Management evaluates the recoverability of the Company’s property, plant and equipment and capitalized software costs 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 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 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. Except as disclosed, the Company determined that there were no events or changes in circumstances that potentially indicated that the Company’s long-lived assets were impaired during the years ended December , , and . Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired and liabilities assumed in a business combination. Goodwill is tested for impairment at the reporting unit level at least annually or whenever changes in circumstances indicate that goodwill might be impaired. The Company early adopted ASU 2017-04, which simplified the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The carrying value of goodwill, which is not amortized, is assessed for impairment annually in the fourth quarter of each year, or more frequently as economic events dictate. The Company has the option of performing an assessment of certain qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value. If goodwill is determined to be impaired, the impairment charge that would be recognized is based on the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. Income taxes Income tax expense is d of 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 , Revenue from Contracts with Customers, (“ASC ”) and Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers. Under ASC , 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 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. Distribution partners typically sell DIRTT product to end clients and issue purchase orders to the Company to manufacture the product. Distribution partners utilize ICE licenses to sell DIRTT products, the ICE licenses sold to distribution 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 distribution 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 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) determin ing 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 distribution partners. The Company records these revenues gross when the Company is obligated to fulfill the services and has the risk associated with service delivery. The Company records these revenues net when the distribution partner has the obligation to fulfill the services and the associated risk of service delivery. Distribution partner rebates Rebates to distribution 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 distribution partners in accordance with their distribution partner agreements, being the difference between the price to the end customer and the distribution partners’ price. Other sales discounts, including early pay promotions, 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 distribution 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 Stock-based compensation The Company follows the fair value-based approach to account for stock options. Compensation expense and an increase in “Additional paid-in capital” are recognized for stock options over their vesting period based on their estimated fair values on the grant date, as determined using the Black- option pricing model for the majority of stock-options. Certain executive stock options have performance conditions and are valued using a Monte Carlo model. Any consideration paid by employees on exercise of stock options is credited to “Share capital” when the option is exercised, and the recorded fair value of the option is removed from “Additional paid-in During 2018 and 2019, the Company provided a cash settlement alternative for certain stock options. The fair value on grants attributable to those awards was reclassified on the balance sheet from shareholders’ equity to other liabilities, and at period end the liability is adjusted to fair value and the excess of fair value over previously recognized stock-based compensation is expensed. The fair value of the awards at the date of modification was greater than the grant date fair value of the previously vested equity awards, therefore the additional fair value was treated as an expense at the date of modification. Increases or decreases in fair value subsequent to the modification date will be recorded in earnings except that the Company shall not recognize a cumulative expense lower than the grant date fair value of the original equity awards. On October 9, 2019, following its listing on The Nasdaq Global Select Market, the Company ceased cash-settlement of stock options and the associated liability accounting for stock options and returned to equity settlement accounting for stock options, as described above. 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. 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. Fair value of financial instruments ASC , “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 their respective floating interest rates and limited change in 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; trade and other receivables; trade accounts payable and 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, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS	3. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS ASU 2016-02 The Company adopted ASU No. 2016-02, right-of-use This new guidance requires lessees to recognize a liability to make lease payments and a right-of-use In August 2018, the FASB issued ASU 2018-15, 350-40 Internal-Use In June 2016, the FASB issued ASU2016-13, No. No. 2019-05. Although there are several other new accounting standards issued or proposed by the FASB, 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.

IMPAIRMENT

IMPAIRMENT	12 Months Ended
	Dec. 31, 2019
Impairment Charges [Abstract]
IMPAIRMENT	4. IMPAIRMENT For the year ended December 31, 2019 2018 2017 DIRTT Timber — 6,098 — Leasehold and other assets — 2,582 — — 8,680 — DIRTT Timber During 2018, management decided to shift from the early stage development of its DIRTT Timber market to a commercialized approach focused on large, standalone timber projects and as a pull-through for other DIRTT solutions. Management concluded that this strategy required significantly less timber capacity than currently exists and therefore took steps to right-size To determine the impairment of the DIRTT Timber assets, the net book value of the assets was evaluated against the fair value of the assets. The fair value of the DIRTT Timber assets reflects current projected sales for timber projects on a standalone basis and the pull-through impact to other DIRTT solutions. In its evaluation, management determined it was unable to reliably quantify the pull-through impact of timber on other DIRTT solutions. The equipment related to the timber market was custom built for DIRTT and there is no active market for resale. Therefore, the fair value was determined to be management’s estimate of scrap value for the specialized assets and an estimated resale value for less specialized assets that cannot be redeployed for DIRTT’s other solutions. Management estimated the expected resale values based on the current market and on experience of management in the industry. The fair value of the DIRTT T Leasehold and other assets At December 31, 2018, the Company recognized a lease exit liability of $0.6 million related to certain contracts (December 31, 2017 – nil). During 2018, management reviewed its facilities used in operations and the corresponding leases in place. The outcome of this review was the consolidation of the Company’s production in Kelowna, British Columbia, into other plants, and discontinued use of other locations that were not considered necessary in the Company’s current operations. These leases were considered impaired as the costs of meeting lease obligations exceeded the economic benefits expected to be received. The lease exit liability represents the present value of the difference between the minimum future lease payments the Company is obligated to make under the non-cancellable In relation to the review noted in the paragraph above, certain assets were identified as no longer having future value to the Company. These assets related to leasehold improvements for locations where activity is being relocated, as well as projects in process that were curtailed. These leasehold and other assets represented assets with a carrying value of $2.0 million at December 31, 2018, of which the entire amount was expensed as there is no future value attributable to these assets or market for resale. At December 31, 2019, the Company reviewed the above impaired assets and determined that there were no indicators of impairment recovery.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
LEASES	5. 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 9 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For the year ended December 31, 2019, cash paid for amounts included in the measurement of operating lease liabilities was $5.6 million The weighted average remaining lease term and weighted average discount rate at December 31, 2019 were 6 years and 4.8%, respectively. The following table includes ROU assets included on the balance sheet at December 31, 2019: ROU Assets Cost Accumulated Net book At January 1, 2019 22,571 — 22,571 Additions 1,673 — 1,673 Depreciation expense — (4,061 ) (4,061 ) Exchange differences 534 (56 ) 478 At December 31, 2019 24,778 (4,117 ) 20,661 The following table includes lease liabilities included on the balance sheet at December 31, 2019: At January 1, 2019 23,912 Additions 1,673 Accretion 1,092 Repayment of lease liabilities (5,567 ) Lease cancellation (196 ) Exchange differences 489 At December 31, 2019 21,403 Current lease liabilities 5,287 Long-term lease liabilities 16,116 The following table includes maturities of operating lease liabilities at December 31, 2019: As at 2020 5,419 2021 5,420 2022 4,876 2023 3,013 2024 1,426 Thereafter 4,469 Total 24,623 Total lease liability 21,403 Difference between undiscounted cash flows and lease liability 3,220 During 2019, the Company entered into a lease agreement, expected to commence in the second half of 2020, associated with the construction of a new combined tile and millwork facility in Rock Hill, South Carolina. Rent obligations associated with this lease are estimated at $14.4 million using a discount rate of 5.2% ($26.6 million undiscounted).

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES	12 Months Ended
	Dec. 31, 2019
Schedule of notes and other receivables
TRADE AND OTHER RECEIVABLES	6. TRADE AND OTHER RECEIVABLES As at December 31, 2019 2018 Trade receivables 22,488 42,582 Sales tax receivable 402 482 Income 2,135 892 25,025 43,956 Allowance for doubtful accounts (84 ) (83 ) 24,941 43,873 Prior to October 1, 2019, the Company had a contract with a trade credit insurance provider, whereby a portion of its trade receivables were insured (December 31, 2018 – 70%). The trade credit insurance provider determined the coverage amount, if any, on a customer-by-customer The Company provides for balances determined to have risk of collection and had a provision of $0.1 million at both December 31, 2019 and 2018. The Company had no customers with receivables in excess of 10% of the total accounts receivable balance at December 31, 2019 and had one customer over this threshold at December 31, 2018 ( $4.8 million).

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
INVENTORY	7. INVENTORY As at December 31, 2019 2018 Raw material 17,339 17,212 Allowance for obsolescence (512 ) (365 ) Work in progress 739 1,803 17,566 18,650 During 2019, the Company experienced periods where it was operating below normal capacity levels. During those periods, overheads included in inventory were not increased and $2.2 million was recognized directly and separately in cost of sales. Production overheads capitalized in work in progress were $0.1 million at December 31, 2019 (December 31, 2018: $0.2 million). In 2019, the Company wrote-off

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	8. PROPERTY, PLANT AND EQUIPMENT, NET Office and Factory Leasehold Total Cost At December 31, 2017 19,556 43,248 36,182 98,986 Additions 2,008 4,140 2,486 8,634 Disposals (45 ) — (174 ) (219 ) Exchange differences (975 ) (2,966 ) (2,521 ) (6,462 ) At December 31, 2018 20,544 44,422 35,973 100,939 Additions 1,630 8,757 2,315 12,702 Disposals — (396 ) (298 ) (694 ) Exchange differences 569 1,857 1,241 3,667 At December 31, 2019 22,743 54,640 39,231 116,614 Accumulated depreciation and impairment At December 31, 2017 10,641 20,810 19,022 50,473 Depreciation expense 1,795 4,032 3,909 9,736 Disposals (32 ) — (59 ) (91 ) Impairments — 5,890 2,233 8,123 Exchange differences (656 ) (1,798 ) (1,576 ) (4,030 ) At December 31, 2018 11,748 28,934 23,529 64,211 Depreciation expense 1,643 2,297 4,929 8,869 Disposals — (293 ) (293 ) (586 ) Exchange differences 521 1,336 898 2,755 At December 31, 2019 13,912 32,274 29,063 75,249 Net book value At December 31, 2018 8,796 15,488 12,444 36,728 At December 31, 2019 8,831 22,366 10,168 41,365 As at December 31, 2019, the Company had $ 8.5 0.9

CAPITALIZED SOFTWARE, NET

CAPITALIZED SOFTWARE, NET	12 Months Ended
	Dec. 31, 2019
Capitalized Software [Abstract]
CAPITALIZED SOFTWARE, NET	9. CAPITALIZED SOFTWARE, NET For the year ended December 31, 2019 2018 Cost As at January 1 28,831 27,195 Additions 2,604 5,234 Recovery of software development expenditures (511 ) (178 ) Exchange differences 1,495 (3,420 ) As at December 31 32,419 28,831 Accumulated amortization As at January 1 20,496 18,873 Amortization expense 2,637 3,306 Exchange differences 1,073 (1,683 ) As at December 31 24,206 20,496 Net book value 8,213 8,335 Estimated amortization expense on capitalized software is $2.8 million in 2020, $2.3 million in 2021, $1.6 million in 2022, $0.7 million in 202 3, 4

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	10 2019 2018 As at January 1 1,353 1,471 Exchange differences 68 (118 ) As at December 31 1,421 1,353 The Company’s goodwill is assessed at the consolidated company level which represents the Company’s sole operating and reporting segment. The Company tests its goodwill for impairment annually during the fourth quarter of the calendar year. For 2019, and 2018, the Company used the quantitative approach to perform its annual goodwill impairment test. The Company’s fair value exceeded the carrying value of its net assets and, accordingly, goodwill was not impaired.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2019
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES	11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES As at December 31, 2019 2018 Trade accounts payable 7,620 10,272 Accrued liabilities 8,193 8,714 Wages and commissions payable 3,546 5,544 Rebates accrued (1) 1,025 6,305 Taxes payable — 448 20,384 31,283 (1) In 2019, $ 14.2 19.3 13.7 9.2 Other liabilities As at December 31, 2019 2018 Legal provisions (1) 745 1,995 Stock option liability — 1,649 Deferred share unit liability 434 116 Warranty and other 4,008 1,493 Lease exit liability — 820 Lease inducements — 750 5,187 6,823 (1) The Company has provided $0.7 million as the estimated amounts likely payable for various claims against the Company. The amount provided for is management’s best estimate of the potential payments for amounts claimed.

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
LONG-TERM DEBT	12. LONG-TERM DEBT In July 2019, the Company entered into a C$50.0 million senior secured revolving credit facility with the Royal Bank of Canada (the “RBC Facility”). The RBC Facility has a three-year term and can be extended for up to two additional years at the Company’s option. Interest is calculated at the Canadian or U.S. prime rate with no adjustment, or the bankers’ acceptance rate plus 125 basis points. The RBC Facility is subject to a minimum fixed charge coverage ratio of 1.15:1 and a maximum debt to earnings before interest, tax, depreciation and amortization, non-cash non-recurring ( “ Adjusted EBITDA ” ) to The Company had an $18.0 million revolving operating facility which expired on June 30, 2019. Advances of $5.6 million under the revolving operating facility were subject to interest at the lender’s prime rate minus 0.25% for Canadian dollar advances and the U.S. prime rate minus 0.25 for U.S. dollar advances and are repayable at any time. As at December 31, 2018, the Company was in compliance with all of its lender’s covenants. During the first quarter of 2019, the Company repaid the outstanding principal and interest amounts of its long-term debt, totaling $5.6 million.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	1 3 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 as Canada is the domicile of the parent entity of the Company. For the year ended December 31, 2019 2018 2017 Net income (loss) before tax (3,377 ) 8,830 (7,267 ) Canadian statutory rate 26.5 % 27.0 % 27.0 % Expected income tax (895 ) 2,384 (1,962 ) Effect on taxes resulting from: Non-deductible 550 447 264 Non-deductible 674 1,080 689 Tax rate impacts 999 (420 ) 487 U.S. Federal rate reduction from 35% to 21% — — 722 Adjustments related to prior year tax filings (205 ) (257 ) 212 Other (104 ) 46 46 Income tax expense 1,019 3,280 458 Current tax expense 1,064 2,178 3,277 Deferred tax expense (recovery) (45 ) 1,102 (2,819 ) Income tax expense 1,019 3,280 458 Deferred tax assets and liabilities Significant components of the Company’s deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows: At December 31, 2019 Assets Liabilities Net Operating losses 6,899 — 6,899 Research and development expenditures 353 — 353 Property and equipment — (1,916 ) (1,916 ) Capitalized software and other assets — (2,345 ) (2,345 ) Other 2,373 — 2,373 Net deferred taxes 9,625 (4,261 ) 5,364 At December 31, 2018 Assets Liabilities Net Operating losses 8,213 — 8,213 Research and development expenditures 389 — 389 Property and equipment — (2,408 ) (2,408 ) Capitalized software and other assets — (2,283 ) (2,283 ) Other 1,725 (518 ) 1,207 Net deferred taxes 10,327 (5,209 ) 5,118 Summary of temporary difference movements during the year: Balance Recognized Foreign Balance Operating losses 8,213 (1,772 ) 458 6,899 Research and development 389 (59 ) 23 353 Property and equipment (2,408 ) 652 (160 ) (1,916 ) Intangible assets (2,283 ) 425 (487 ) (2,345 ) Other 1,207 799 367 2,373 Net deferred taxes 5,118 45 201 5,364 Balance Recognized Foreign Balance Operating losses 9,968 (1,015 ) (740 ) 8,213 Research and development 423 — (34 ) 389 Property and equipment (2,397 ) (273 ) 262 (2,408 ) Intangible assets (2,301 ) (178 ) 196 (2,283 ) Other 904 364 (61 ) 1,207 Net deferred taxes 6,597 (1,102 ) (377 ) 5,118 The general provincial tax rate in Alberta, Canada was decreased on June 28, 2019 to 11 percent for the second half of 2019, 10 percent for 2020, 9 percent for 2021 and 8 percent thereafter. As a result of the enacted rate change, DIRTT reduced its deferred tax asset by $0.9 million with a corresponding deferred income tax expense recorded in the second quarter of 2019. The U.S. Tax Cuts and Jobs Act (the “Act”) became law on December 22, 2017. The Act includes significant changes to the U.S. corporate income tax system, including a federal corporate rate reduction from 35 percent to 21 percent beginning in 2018, changes to capital depreciation, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. As a result of the Act, the Company remeasured its U.S. deferred tax liability based upon the new statutory federal rate of 21 The amount shown on the balance sheet as deferred income tax assets and liabilities represent the net differences between the tax basis and book carrying values on the Company’s balance sheet at enacted tax rates. On an annual basis the Company and its subsidiaries file tax returns in Canada and various foreign jurisdictions. In Canada the Company’s federal and provincial tax returns for the years 2016 to 2018 remain subject to examination by taxation authorities. In the United States, both the federal and state tax returns filed for the years 2015 to 2018 remain subject to examination by the taxation authorities. Tax loss carryforwards and other tax pools The significant components of the Company’s net future income tax deductions in these consolidated financial statements are summarized as follows: For the year ended December 31, 2019 2018 2019 2018 C$ C$ $ $ Non-capital 38,084 43,616 — — Undepreciated capital costs 23,274 25,211 11,992 12,748 Share issuance costs — 519 — — Scientific research and experimental development tax incentives 1,971 1,971 — — Total future tax deductions 63,329 71,317 11,992 12,748

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	14. STOCK-BASED COMPENSATION Stock-based compensation expense For the year ended December 31, 2019 2018 2017 Stock options 1,729 2,076 2,738 PSUs 58 44 — DSUs 306 120 — Charge on stock option modification — 1,181 — Stock option fair value adjustment 1,783 240 — 3,876 3,661 2,738 Stock Options The Company has a stock option plan which was approved by the Board of Directors (the “Board”) and by its shareholders at the annual and special meeting of shareholders held on May 5, 2016, whereby the aggregate number of shares reserved for issuance shall not exceed 10% of the issued and outstanding common shares as at the time of grant of any stock options. Except as noted below, stock options granted under the plan generally have a term of five years and vest one third every year over a three-year period from the date of grant. In 2018 year-end, paid-in stock s t In 2019 , $1.8 million was expensed to adjust the liability to fair value, and an additional $0.4 million was charged back to paid-in capital as, for certain stock options, the cumulative expense calculated was lower that the grant date fair value of the original equity awards. During the year, $3.6 million of share options were surrendered for cash. On October 9 , 2019 , following its listing on The Nasdaq Global Select Market, the Company ceased cash-settlement of stock options and the associated liability accounting for stock options. The following summarizes options granted, exercised, forfeited and expired during the periods: Number of Weighted average Outstanding at December 31, 2017 5,553,393 5.31 Granted 3,327,525 6.40 Exercised (435,792 ) 4.78 Surrendered for cash (1,365,348 ) 5.17 Forfeited (203,516 ) 5.26 Expired (17,886 ) 6.02 Outstanding at December 31, 2018 6,858,376 5.88 Granted 1,382,311 7.45 Exercised (21,045 ) 4.81 Surrendered for cash (1,544,151 ) 5.02 Forfeited (298,508 ) 5.02 Expired (220,331 ) 6.01 Outstanding at December 31, 2019 6,156,652 6.49 Exercisable at December 31, 2019 2,454,910 6.05 Included in the 2018 s tock tock on original grant. These awards were accounted for at the fair value attributable to the vesting period until October 9, 2019 when these were reclassified to equity accounted and were re-valued at a weighted average fair value of C$0.83. Range of exercise prices outstanding at December 31, 2019: Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$ 4.01 5.00 22,537 4.89 4.12 — C$ 5.01 6.00 783,889 1.80 5.76 783,889 1.80 5.76 C$ 6.01 7.00 4,339,187 3.04 6.32 1,671,021 2.00 6.19 C$ 7.01 8.00 1,011,039 3.86 7.84 — Total 6,156,652 2,454,910 Range of exercise prices outstanding at December 31, 2018: Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$ 2.01 3.00 31,600 0.4 2.93 31,600 0.4 2.93 C$ 3.01 4.00 804,883 0.5 3.59 804,883 0.5 3.59 C$ 5.01 6.00 1,162,669 2.9 5.76 746,028 2.9 5.76 C$ 6.01 6.47 4,859,224 3.7 6.31 1,540,858 1.6 6.10 Total 6,858,376 3,123,369 The stock options granted had a weighted average grant date fair value of C$2.40 (2018 – C$2.13, 2017 – C$2.11) 3.5 year expected life for all periods, 1.6% risk-free interest rate (2018 – 2.2% and 2017 – 0.8%); a 4.2% expected forfeitures rate (2018- 3.8% and 2017 – ); and 39.2% expected volatility (2018 – 42% , 2017 ). Performance share units The Company has a PSU Plan for certain employees of the Company. Under the terms of the PSU Plan, PSUs granted vest at the end of a three-year term. At the end of a three-year term, employees will be awarded cash at the discretion of the Board, calculated based on certain Adjusted EBITDA, total shareholder return, or revenue growth related performance conditions. The fair value of the liability and the expense attributable to the vesting period is charged to profit or loss at the grant date. Subsequently, at each reporting date between grant date and settlement date, the fair value of the liability is remeasured with any changes in fair value recognized in profit or loss. As at December 31, 2019, there were 223,052 PSUs outstanding (2018 – 85,728) with a fair value of $0.2 million which is included in other long term liabilities on the balance sheet (2018 – $0.1 million). Deferred share units During 2018, the Company initiated a DSU plan for its non-employee 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 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. There were 132,597 DSUs outstanding at December 31, 2019 (2018 – 25,861) with a fair value of $0.4 million which is included in other liabilities on the balance sheet (2018 – $0.1 million). Dilutive instruments For the year-ended December 31, 2019, 0.5 million options (2018 – 6.3 million, 2017 – 5.6 million), respectively, were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive to the net income (loss) per share.

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	1 5 In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 17 For the year ended December 31, 2019 2018 2017 Product 215,109 240,482 195,676 Transportation 23,903 24,552 19,519 Licenses 1,647 1,400 1,021 Total product revenue 240,659 266,434 216,216 Installation and other services 7,076 8,247 10,323 247,735 274,681 226,539 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 is based upon agreed contractual terms with the customer and is not subject to variability. For the year ended December 31, 2019 2018 2017 At a point in time 239,012 265,034 215,195 Over time 8,723 9,647 11,344 247,735 274,681 226,539 Revenue recognized at a point in time represents the majority of the Company’s sales and revenue is recognized when a customer obtains legal title to the product, which is when ownership of products is transferred to, or services are delivered to the contract counterparty. 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 For the year ended December 31, 2019 2018 Customer deposits 2,436 6,746 Deferred revenue 1,131 955 Contract liabilities 3,567 7,701 Contract liabilities primarily relate to deposits received from customers and maintenance revenue from license subscriptions. The balance of contract liabilities was lower as at December 31, 2019 compared to the prior year period mainly due to lower 2018 fourth quarter orders and revenues. Contract liabilities as at December 31, 2018 and 2017, respectively, totaling $7.4 million and $5.9 million were recognized as revenue during 2019 and 2018, respectively. Sales by Industry The Company periodically reviews the growth or product and transportation revenue by industry vertical market to evaluate the success of industry specific sales initiatives. The nature of products sold to the various industries is consistent and therefore review is focused on sales performance. For the year ended December 31, 2019 2018 2017 Commercial 158,256 163,199 142,494 Healthcare 44,197 60,748 38,455 Government 14,879 21,477 18,927 Education 21,680 19,610 15,319 Licenses Total product and transportation revenue 240,659 266,434 216,216 Installation and other services 7,076 8,247 10,323 247,735 274,681 226,539

OPERATING EXPENSES

OPERATING EXPENSES	12 Months Ended
	Dec. 31, 2019
Operating Expenses [Abstract]
OPERATING EXPENSES	16. OPERATING EXPENSES The Company changed its presentation of 2018 and 2017 operating expenses to separate stock-based compensation from each function to provide financial statement readers with a better understanding of DIRTT’s operations. The following table provides a reconciliation from last year’s financial statement presentation to current year presentation: For the year ended December 31, 2018 Previously Adjustment Currently Sales and marketing 40,731 (104 ) 40,627 General and administrative 30,861 (2,139 ) 28,722 Operations support 8,960 (891 ) 8,069 Technology and development 4,703 (527 ) 4,176 Stock-based compensation — 3,661 3,661 Reorganization 7,380 — 7,380 Impairments 8,680 — 8,680 101,315 — 101,315 For the year ended December 31, 2017 Previously Adjustment Currently Sales and marketing 46,355 (163 ) 46,192 General and administrative 29,383 (1,013 ) 28,370 Operations support 8,234 (1,022 ) 7,212 Technology and development 6,875 (540 ) 6,335 Stock-based compensation — 2,738 2,738 Reorganization 1,143 — 1,143 Impairments — — — 91,990 — 91,990

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
SEGMENT REPORTING	1 7 The Company has one reportable and operating segment and operates in three principal geographic locations, Canada, the United States and International. Currently, the majority of revenue from international projects are included in the U.S. revenue amount as these projects are sold by U.S.-based distribution partners and are delivered to international locations. The Company’s revenue from operations from external customers, based on location of operations, and information about its non-current Revenue from external customers For the year ended December 31, 2019 2018 2017 Canada 34,085 41,153 35,035 U.S. 213,650 232,035 190,245 International — 1,493 1,259 247,735 274,681 226,539 Non-current As at December 31, 2019 1 2018 1 Canada 47,892 36,323 U.S. 29,286 15,353 77,178 51,676 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use

TRANSACTIONS AND BALANCES WITH

TRANSACTIONS AND BALANCES WITH RELATED PARTIES	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
TRANSACTIONS AND BALANCES WITH RELATED PARTIES	1 8 During the year ended December 31, 2017, the C ompany reported revenues of $0.9 million from a former director of the Company (2018 and 2019 – nil). The Company had no accounts receivable balance from this former director for the years ended December 31, 2019 and 2018 One of the Company’s distribution partners is owned by a former director of the Company. Effective June 26, 2018, this individual ceased to be a director of the Company. Up until June 26, 2018, the Company reported revenue of $2.9 million and rebates paid of $0.1 million from and to the distribution partner. For the year ended December 31, 2017, the Company reported revenue of $5.8 million and rebates of $0.1 million from and to the distribution partner, respectively. A director of the Company provided advisory and consulting services to the Company of $0.3 million during the year ended December 31, 2018.

COMMITMENTS

COMMITMENTS	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	19 As at December 31, 2019, the Company had outstanding purchase obligations of approximately $6.8 million related to inventory and property, plant and equipment purchases (December 31, 2018 – $2.7 million). Refer to Note 5 for lease commitments.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	20. LEGAL PROCEEDINGS On May 9, 2019, the Company commenced an action in the Court of Queen’s Bench of Alberta against two former executives, their company, Falkbuilt Ltd. (“Falkbuilt”), and other individuals, on the basis of, among other things, a breach of non-compete non-solicit On November 5, 2019, Falkbuilt commenced an action against the Company in the Court of Queen’s Bench of Alberta alleging that the Company has misappropriated and misused their alleged proprietary information in furtherance of the Company’s product development. Falkbuilt seeks monetary relief, including, among other things, damages of approximately C$30.0 million, disgorgement of profits, punitive damages, and attorneys’ fees, and an interim, interlocutory and permanent injunction of the Company’s use of the alleged proprietary information. The Company believes the Claim is without merit. The Company intends to defend itself vigorously and to continue to pursue its legal remedies against the former executives. On December 11, 2019, the Company commenced an action in U.S. District Court of Utah against Falkbuilt, Falk Mountain States, LLC, and two other individuals. This action seeks to restrain the defendants from misappropriating the Company’s confidential information, trade secrets, business intelligence and customer information, and using that information to advance Falkbuilt’s U.S. businesses to the detriment of the Company. Falkbuilt filed a response and counterclaim alleging, among other things, defamation and interference with economic relations, and is seeking damages of approximately $3.0 million. The Company believes the counterclaim is without merit. The Company intends to defend itself vigorously against these counterclaims.

UNAUDITED SUPPLEMENTARY INFORMA

UNAUDITED SUPPLEMENTARY INFORMATION	12 Months Ended
	Dec. 31, 2019
Supplementary Disclosures [Abstract]
UNAUDITED SUPPLEMENTARY INFORMATION	UNAUDITED SUPPLEMENTARY INFORMATION Summary of Quarterly Results Q4 2019 (1) Q3 2019 (1) Q2 2019 (1) Q1 2019 (1) Q4 2018 Q3 2018 Q2 2018 Q1 2018 ($ in thousands) Revenue 53,198 65,385 64,091 65,061 74,440 73,913 62,480 63,848 Gross Profit 13,465 24,934 24,421 23,604 27,619 30,085 23,331 25,974 Gross Profit Margin 25.3 % 38.1 % 38.1 % 36.3 % 37.1 % 40.7 % 37.3 % 40.7 % Adjusted Gross Profit Margin (3) 33.4 % 41.8 % 42.1 % 39.6 % 40.2 % 43.4 % 40.6 % 43.7 % Net income (loss) (1)(2) (7,544 ) 5,802 2,611 (5,265 ) 3,143 (1,433 ) 770 3,070 Net income (loss) per share – basic and diluted (1)(2) (0.09 ) 0.07 0.03 (0.06 ) 0.04 (0.02 ) 0.01 0.04 Adjusted EBITDA as previously presented (4) (3,971 ) 8,072 5,605 6,986 12,809 13,062 6,612 10,391 Other Foreign Exchange (Gains) Losses 562 (198 ) 441 730 (2,643 ) 501 (629 ) (989 ) Adjusted EBITDA (3) (3,409 ) 7,874 6,046 7,716 10,166 13,563 5,983 9,402 Adjusted EBITDA Margin (3) (6.4 %) 12.0 % 9.4 % 11.9 % 13.7 % 18.3 % 9.6 % 14.7 % (1) Q1 2019 net income includes impact of $6.4 million stock-based compensation charge and Q2 2019 includes a $1.7 million stock-based compensation recovery relating primarily to the impact of fair valuing cash settled stock (2) Impairment expenses included in Q3 2018 and Q4 2018 are $6.1 million and $2.6 million, respectively. (3) See “– Non-GAAP (4) Recalculated from prior periods to exclude the impact of foreign currency gains and losses, previously only foreign currency impacts on debt revaluation were included in the calculation of Adjusted EBITDA

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
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.
Reclassification	Reclassification Certain comparative figures have been reclassified to conform to the current year presentation (see Note 16).
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 accounts receivable; • Estimates of useful lives of depreciable assets and the fair value of long-term assets used for impairment calculations; • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets; • Tax interpretations, regulations and legislations 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, 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 “other comprehensive income (loss)”.
Cash and cash equivalents	Cash and cash equivalents 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.
Trade and other receivables, net of allowance for doubtful accounts	Trade and other receivables, net of allowance for doubtful accounts 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 by evaluating specific accounts where information indicates the Company’s customers may have an inability to meet financial obligations, such as bankruptcy and significantly aged receivables outstanding.
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 For the year-ended December 31, 2019, the Company’s leases policy was as follows: 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. 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. Prior Accounting Policy For the year-ended December 31, 2018, the Company’s leases policy was as follows: The Company categorizes leases at their inception as either operating or capital leases. Leases where the Company assumes substantially all the risks and rewards of ownership are classified as capital 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. Other leases that qualify as operating leases are not recognized in the Company’s balance sheet. In certain lease agreements, the Company may receive rent holidays or other incentives. The Company recognizes lease costs on a straight-line basis once control of the asset is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.
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 are capitalized. Depreciation is charged to operations on a straight-line basis over the estimated useful lives of the assets. 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 amortization 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 include s 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. Capitaliz ed software costs are amortized on a straight-line basis over the estimated useful life of the developed asset, which is generally to 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 distribution 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.
Impairment of long-lived assets	Impairment of long-lived assets Management evaluates the recoverability of the Company’s property, plant and equipment and capitalized software costs 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 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 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. Except as disclosed, the Company determined that there were no events or changes in circumstances that potentially indicated that the Company’s long-lived assets were impaired during the years ended December , , and .
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired and liabilities assumed in a business combination. Goodwill is tested for impairment at the reporting unit level at least annually or whenever changes in circumstances indicate that goodwill might be impaired. The Company early adopted ASU 2017-04, which simplified the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The carrying value of goodwill, which is not amortized, is assessed for impairment annually in the fourth quarter of each year, or more frequently as economic events dictate. The Company has the option of performing an assessment of certain qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value. If goodwill is determined to be impaired, the impairment charge that would be recognized is based on the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill.
Income taxes	Income taxes Income tax expense is d of 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 , Revenue from Contracts with Customers, (“ASC ”) and Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers. Under ASC , 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 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. Distribution partners typically sell DIRTT product to end clients and issue purchase orders to the Company to manufacture the product. Distribution partners utilize ICE licenses to sell DIRTT products, the ICE licenses sold to distribution 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 distribution 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 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) determin ing 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 distribution partners. The Company records these revenues gross when the Company is obligated to fulfill the services and has the risk associated with service delivery. The Company records these revenues net when the distribution partner has the obligation to fulfill the services and the associated risk of service delivery. Distribution partner rebates Rebates to distribution 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 distribution partners in accordance with their distribution partner agreements, being the difference between the price to the end customer and the distribution partners’ price. Other sales discounts, including early pay promotions, 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 distribution 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
Stock-based compensation	Stock-based compensation The Company follows the fair value-based approach to account for stock options. Compensation expense and an increase in “Additional paid-in capital” are recognized for stock options over their vesting period based on their estimated fair values on the grant date, as determined using the Black- option pricing model for the majority of stock-options. Certain executive stock options have performance conditions and are valued using a Monte Carlo model. Any consideration paid by employees on exercise of stock options is credited to “Share capital” when the option is exercised, and the recorded fair value of the option is removed from “Additional paid-in During 2018 and 2019, the Company provided a cash settlement alternative for certain stock options. The fair value on grants attributable to those awards was reclassified on the balance sheet from shareholders’ equity to other liabilities, and at period end the liability is adjusted to fair value and the excess of fair value over previously recognized stock-based compensation is expensed. The fair value of the awards at the date of modification was greater than the grant date fair value of the previously vested equity awards, therefore the additional fair value was treated as an expense at the date of modification. Increases or decreases in fair value subsequent to the modification date will be recorded in earnings except that the Company shall not recognize a cumulative expense lower than the grant date fair value of the original equity awards. On October 9, 2019, following its listing on The Nasdaq Global Select Market, the Company ceased cash-settlement of stock options and the associated liability accounting for stock options and returned to equity settlement accounting for stock options, as described above. 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.
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.
Fair value of financial instruments	Fair value of financial instruments ASC , “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 their respective floating interest rates and limited change in 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; trade and other receivables; trade accounts payable and 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, 2019
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

IMPAIRMENT (Tables)

IMPAIRMENT (Tables)	12 Months Ended
	Dec. 31, 2019
Impairment Charges [Abstract]
Schedule of Impairment of Property, plant and equipment	For the year ended December 31, 2019 2018 2017 DIRTT Timber — 6,098 — Leasehold and other assets — 2,582 — — 8,680 —

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Schedule of ROU assets	The following table includes ROU assets included on the balance sheet at December 31, 2019: ROU Assets Cost Accumulated Net book At January 1, 2019 22,571 — 22,571 Additions 1,673 — 1,673 Depreciation expense — (4,061 ) (4,061 ) Exchange differences 534 (56 ) 478 At December 31, 2019 24,778 (4,117 ) 20,661
Schedule of lease liabilities	The following table includes lease liabilities included on the balance sheet at December 31, 2019: At January 1, 2019 23,912 Additions 1,673 Accretion 1,092 Repayment of lease liabilities (5,567 ) Lease cancellation (196 ) Exchange differences 489 At December 31, 2019 21,403 Current lease liabilities 5,287 Long-term lease liabilities 16,116
Schedule of maturities of operating lease liabilities	The following table includes maturities of operating lease liabilities at December 31, 2019: As at 2020 5,419 2021 5,420 2022 4,876 2023 3,013 2024 1,426 Thereafter 4,469 Total 24,623 Total lease liability 21,403 Difference between undiscounted cash flows and lease liability 3,220

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of notes and other receivables
Schedule of accounts, notes, loans and financing receivable	As at December 31, 2019 2018 Trade receivables 22,488 42,582 Sales tax receivable 402 482 Income 2,135 892 25,025 43,956 Allowance for doubtful accounts (84 ) (83 ) 24,941 43,873

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventory, current	As at December 31, 2019 2018 Raw material 17,339 17,212 Allowance for obsolescence (512 ) (365 ) Work in progress 739 1,803 17,566 18,650

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property, plant and Equipment	Office and Factory Leasehold Total Cost At December 31, 2017 19,556 43,248 36,182 98,986 Additions 2,008 4,140 2,486 8,634 Disposals (45 ) — (174 ) (219 ) Exchange differences (975 ) (2,966 ) (2,521 ) (6,462 ) At December 31, 2018 20,544 44,422 35,973 100,939 Additions 1,630 8,757 2,315 12,702 Disposals — (396 ) (298 ) (694 ) Exchange differences 569 1,857 1,241 3,667 At December 31, 2019 22,743 54,640 39,231 116,614 Accumulated depreciation and impairment At December 31, 2017 10,641 20,810 19,022 50,473 Depreciation expense 1,795 4,032 3,909 9,736 Disposals (32 ) — (59 ) (91 ) Impairments — 5,890 2,233 8,123 Exchange differences (656 ) (1,798 ) (1,576 ) (4,030 ) At December 31, 2018 11,748 28,934 23,529 64,211 Depreciation expense 1,643 2,297 4,929 8,869 Disposals — (293 ) (293 ) (586 ) Exchange differences 521 1,336 898 2,755 At December 31, 2019 13,912 32,274 29,063 75,249 Net book value At December 31, 2018 8,796 15,488 12,444 36,728 At December 31, 2019 8,831 22,366 10,168 41,365

CAPITALIZED SOFTWARE, NET (Tabl

CAPITALIZED SOFTWARE, NET (Tables)	12 Months Ended
	Dec. 31, 2019
Capitalized Software [Abstract]
Schedule of capitalized software	For the year ended December 31, 2019 2018 Cost As at January 1 28,831 27,195 Additions 2,604 5,234 Recovery of software development expenditures (511 ) (178 ) Exchange differences 1,495 (3,420 ) As at December 31 32,419 28,831 Accumulated amortization As at January 1 20,496 18,873 Amortization expense 2,637 3,306 Exchange differences 1,073 (1,683 ) As at December 31 24,206 20,496 Net book value 8,213 8,335

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	2019 2018 As at January 1 1,353 1,471 Exchange differences 68 (118 ) As at December 31 1,421 1,353

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2019
Payables and Accruals [Abstract]
Schedule Of Trade Accounts Payable	As at December 31, 2019 2018 Trade accounts payable 7,620 10,272 Accrued liabilities 8,193 8,714 Wages and commissions payable 3,546 5,544 Rebates accrued (1) 1,025 6,305 Taxes payable — 448 20,384 31,283 (1) In 2019, $ 14.2 19.3 13.7 9.2
Schedule Of Other Liabilities	Other liabilities As at December 31, 2019 2018 Legal provisions (1) 745 1,995 Stock option liability — 1,649 Deferred share unit liability 434 116 Warranty and other 4,008 1,493 Lease exit liability — 820 Lease inducements — 750 5,187 6,823 (1) The Company has provided $0.7 million as the estimated amounts likely payable for various claims against the Company. The amount provided for is management’s best estimate of the potential payments for amounts claimed.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Reconciliation of 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 as Canada is the domicile of the parent entity of the Company. For the year ended December 31, 2019 2018 2017 Net income (loss) before tax (3,377 ) 8,830 (7,267 ) Canadian statutory rate 26.5 % 27.0 % 27.0 % Expected income tax (895 ) 2,384 (1,962 ) Effect on taxes resulting from: Non-deductible 550 447 264 Non-deductible 674 1,080 689 Tax rate impacts 999 (420 ) 487 U.S. Federal rate reduction from 35% to 21% — — 722 Adjustments related to prior year tax filings (205 ) (257 ) 212 Other (104 ) 46 46 Income tax expense 1,019 3,280 458 Current tax expense 1,064 2,178 3,277 Deferred tax expense (recovery) (45 ) 1,102 (2,819 ) Income tax expense 1,019 3,280 458
Deferred tax assets and liabilities	Deferred tax assets and liabilities Significant components of the Company’s deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows: At December 31, 2019 Assets Liabilities Net Operating losses 6,899 — 6,899 Research and development expenditures 353 — 353 Property and equipment — (1,916 ) (1,916 ) Capitalized software and other assets — (2,345 ) (2,345 ) Other 2,373 — 2,373 Net deferred taxes 9,625 (4,261 ) 5,364 At December 31, 2018 Assets Liabilities Net Operating losses 8,213 — 8,213 Research and development expenditures 389 — 389 Property and equipment — (2,408 ) (2,408 ) Capitalized software and other assets — (2,283 ) (2,283 ) Other 1,725 (518 ) 1,207 Net deferred taxes 10,327 (5,209 ) 5,118
Summary of temporary difference movements	Summary of temporary difference movements during the year: Balance Recognized Foreign Balance Operating losses 8,213 (1,772 ) 458 6,899 Research and development 389 (59 ) 23 353 Property and equipment (2,408 ) 652 (160 ) (1,916 ) Intangible assets (2,283 ) 425 (487 ) (2,345 ) Other 1,207 799 367 2,373 Net deferred taxes 5,118 45 201 5,364 Balance Recognized Foreign Balance Operating losses 9,968 (1,015 ) (740 ) 8,213 Research and development 423 — (34 ) 389 Property and equipment (2,397 ) (273 ) 262 (2,408 ) Intangible assets (2,301 ) (178 ) 196 (2,283 ) Other 904 364 (61 ) 1,207 Net deferred taxes 6,597 (1,102 ) (377 ) 5,118
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: For the year ended December 31, 2019 2018 2019 2018 C$ C$ $ $ Non-capital 38,084 43,616 — — Undepreciated capital costs 23,274 25,211 11,992 12,748 Share issuance costs — 519 — — Scientific research and experimental development tax incentives 1,971 1,971 — — Total future tax deductions 63,329 71,317 11,992 12,748

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Summary of stock-based compensation expense	Stock-based compensation expense For the year ended December 31, 2019 2018 2017 Stock options 1,729 2,076 2,738 PSUs 58 44 — DSUs 306 120 — Charge on stock option modification — 1,181 — Stock option fair value adjustment 1,783 240 — 3,876 3,661 2,738
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 Outstanding at December 31, 2017 5,553,393 5.31 Granted 3,327,525 6.40 Exercised (435,792 ) 4.78 Surrendered for cash (1,365,348 ) 5.17 Forfeited (203,516 ) 5.26 Expired (17,886 ) 6.02 Outstanding at December 31, 2018 6,858,376 5.88 Granted 1,382,311 7.45 Exercised (21,045 ) 4.81 Surrendered for cash (1,544,151 ) 5.02 Forfeited (298,508 ) 5.02 Expired (220,331 ) 6.01 Outstanding at December 31, 2019 6,156,652 6.49 Exercisable at December 31, 2019 2,454,910 6.05
Summary of options outstanding by range of exercise prices	Range of exercise prices outstanding at December 31, 2019: Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$ 4.01 5.00 22,537 4.89 4.12 — C$ 5.01 6.00 783,889 1.80 5.76 783,889 1.80 5.76 C$ 6.01 7.00 4,339,187 3.04 6.32 1,671,021 2.00 6.19 C$ 7.01 8.00 1,011,039 3.86 7.84 — Total 6,156,652 2,454,910 Range of exercise prices outstanding at December 31, 2018: Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$ 2.01 3.00 31,600 0.4 2.93 31,600 0.4 2.93 C$ 3.01 4.00 804,883 0.5 3.59 804,883 0.5 3.59 C$ 5.01 6.00 1,162,669 2.9 5.76 746,028 2.9 5.76 C$ 6.01 6.47 4,859,224 3.7 6.31 1,540,858 1.6 6.10 Total 6,858,376 3,123,369

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2019
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 17 For the year ended December 31, 2019 2018 2017 Product 215,109 240,482 195,676 Transportation 23,903 24,552 19,519 Licenses 1,647 1,400 1,021 Total product revenue 240,659 266,434 216,216 Installation and other services 7,076 8,247 10,323 247,735 274,681 226,539 For the year ended December 31, 2019 2018 2017 At a point in time 239,012 265,034 215,195 Over time 8,723 9,647 11,344 247,735 274,681 226,539
Summary of contract liabilities	Contract Liabilities For the year ended December 31, 2019 2018 Customer deposits 2,436 6,746 Deferred revenue 1,131 955 Contract liabilities 3,567 7,701
Schedule of sales by industry	For the year ended December 31, 2019 2018 2017 Commercial 158,256 163,199 142,494 Healthcare 44,197 60,748 38,455 Government 14,879 21,477 18,927 Education 21,680 19,610 15,319 Licenses Total product and transportation revenue 240,659 266,434 216,216 Installation and other services 7,076 8,247 10,323 247,735 274,681 226,539

OPERATING EXPENSES - (Tables)

OPERATING EXPENSES - (Tables)	12 Months Ended
	Dec. 31, 2019
Operating Expenses [Abstract]
Schedule of operating expenses	The following table provides a reconciliation from last year’s financial statement presentation to current year presentation: For the year ended December 31, 2018 Previously Adjustment Currently Sales and marketing 40,731 (104 ) 40,627 General and administrative 30,861 (2,139 ) 28,722 Operations support 8,960 (891 ) 8,069 Technology and development 4,703 (527 ) 4,176 Stock-based compensation — 3,661 3,661 Reorganization 7,380 — 7,380 Impairments 8,680 — 8,680 101,315 — 101,315 For the year ended December 31, 2017 Previously Adjustment Currently Sales and marketing 46,355 (163 ) 46,192 General and administrative 29,383 (1,013 ) 28,370 Operations support 8,234 (1,022 ) 7,212 Technology and development 6,875 (540 ) 6,335 Stock-based compensation — 2,738 2,738 Reorganization 1,143 — 1,143 Impairments — — — 91,990 — 91,990

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Schedule of revenue from external customers	Revenue from external customers For the year ended December 31, 2019 2018 2017 Canada 34,085 41,153 35,035 U.S. 213,650 232,035 190,245 International — 1,493 1,259 247,735 274,681 226,539
Schedule of non-current assets, excluding deferred tax assets	Non-current As at December 31, 2019 1 2018 1 Canada 47,892 36,323 U.S. 29,286 15,353 77,178 51,676 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use

UNAUDITED SUPPLEMENTARY INFOR_2

UNAUDITED SUPPLEMENTARY INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2019
Supplementary Disclosures [Abstract]
Summary of quarterly results	Summary of Quarterly Results Q4 2019 (1) Q3 2019 (1) Q2 2019 (1) Q1 2019 (1) Q4 2018 Q3 2018 Q2 2018 Q1 2018 ($ in thousands) Revenue 53,198 65,385 64,091 65,061 74,440 73,913 62,480 63,848 Gross Profit 13,465 24,934 24,421 23,604 27,619 30,085 23,331 25,974 Gross Profit Margin 25.3 % 38.1 % 38.1 % 36.3 % 37.1 % 40.7 % 37.3 % 40.7 % Adjusted Gross Profit Margin (3) 33.4 % 41.8 % 42.1 % 39.6 % 40.2 % 43.4 % 40.6 % 43.7 % Net income (loss) (1)(2) (7,544 ) 5,802 2,611 (5,265 ) 3,143 (1,433 ) 770 3,070 Net income (loss) per share – basic and diluted (1)(2) (0.09 ) 0.07 0.03 (0.06 ) 0.04 (0.02 ) 0.01 0.04 Adjusted EBITDA as previously presented (4) (3,971 ) 8,072 5,605 6,986 12,809 13,062 6,612 10,391 Other Foreign Exchange (Gains) Losses 562 (198 ) 441 730 (2,643 ) 501 (629 ) (989 ) Adjusted EBITDA (3) (3,409 ) 7,874 6,046 7,716 10,166 13,563 5,983 9,402 Adjusted EBITDA Margin (3) (6.4 %) 12.0 % 9.4 % 11.9 % 13.7 % 18.3 % 9.6 % 14.7 % (1) Q1 2019 net income includes impact of $6.4 million stock-based compensation charge and Q2 2019 includes a $1.7 million stock-based compensation recovery relating primarily to the impact of fair valuing cash settled stock (2) Impairment expenses included in Q3 2018 and Q4 2018 are $6.1 million and $2.6 million, respectively. (3) See “– Non-GAAP (4) Recalculated from prior periods to exclude the impact of foreign currency gains and losses, previously only foreign currency impacts on debt revaluation were included in the calculation of Adjusted EBITDA

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Detail)	12 Months Ended
	Dec. 31, 2019Segment
Operating segments	1
Percentage of amounts realized up on settlements measured as largest amounts	50.00%
Percentage of progress payment on receipt of certain orders	50.00%
Capitalized software costs [Member] | Maximum [Member]
Estimated useful live in years	5 years
Capitalized software costs [Member] | Minimum [Member]
Estimated useful live in years	3 years

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Live of Property Plant and Equipment (Detail)	12 Months Ended
	Dec. 31, 2019
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] | Maximum [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
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

IMPAIRMENT - Schedule of Impair

IMPAIRMENT - Schedule of Impairment of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2018
Asset impairment charges	$ 2,600	$ 6,100	$ 8,680
DIRTT Timber [Member]
Asset impairment charges			6,098
Leasehold and other assets [Member]
Asset impairment charges			$ 2,582

IMPAIRMENT (Additional Informat

IMPAIRMENT (Additional Information) (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2017
Impairment Charges	$ 2,600	$ 6,100	$ 8,680
Lease Liability	23,912		23,912	$ 21,403
Estimated recoveries from subleases			1,000
Carrying Value of assets	36,728		36,728	$ 41,365
Timber Properties [Member]
Fair Value of Asset	1,100		1,100
Impairment Charges			6,098
Leasehold And Other Assets [Member]
Impairment Charges			2,582
Lease Liability	600		600		$ 0
Carrying Value of assets	$ 2,000		$ 2,000

LEASES - Schedule of ROU assets

LEASES - Schedule of ROU assets (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Operating Lease Right Of Use Assets Net Book Value [Abstract]
Net Book Value, At December 31, 2019	$ 20,661
Operating Lease [Member]
Operating Lease Right Of Use Assets Original Cost [Abstract]
Cost, At January 1, 2019	22,571
Cost, Additions	1,673
Cost, Exchange differences	534
Cost, At December 31, 2019	24,778
Operating Lease Right Of Use Assets Accumulated Depreciation [Abstract]
Accumulated Depreciation, At January 1, 2019	0
Accumulated Depreciation, Depreciation expense	(4,061)
Accumulated Depreciation, Exchange differences	(56)
Accumulated Depreciation, At December 31, 2019	(4,117)
Operating Lease Right Of Use Assets Net Book Value [Abstract]
Net Book Value, At January 1, 2019	22,571
Net Book Value, Additions	1,673
Net Book Value, Depreciation expense	(4,061)
Net Book Value, Exchange differences	478
Net Book Value, At December 31, 2019	$ 20,661

LEASES - Schedule of Lease Liab

LEASES - Schedule of Lease Liabilities (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Opening balance	$ 23,912
Additions	1,673
Accretion	1,092
Repayment of lease liabilities	(5,567)
Lease cancellation	(196)
Exchange differences	489
Ending Balance	21,403
Current lease liabilities	5,287
Long-term lease liabilities	$ 16,116

LEASES - Schedule of Maturities

LEASES - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
2020	$ 5,419
2021	5,420
2022	4,876
2023	3,013
2024	1,426
Thereafter	4,469
Total	24,623
Total lease liability	21,403	$ 23,912
Difference between undiscounted cash flows and lease liability	$ 3,220

LEASES - (Additional Informatio

LEASES - (Additional Information) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2020	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	6 years
Weighted average discount rate	4.80%
Cash paid for operating lease	$ (5,567)
Operating lease rent obligations	21,403		$ 23,912
Undiscounted obligation	$ 24,623
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating leases remaining lease terms	9 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Operating leases remaining lease terms	1 year
Subsequent Event [Member]
Lessee, Lease, Description [Line Items]
Operating lease rent obligations		$ 14,400
Undiscounted obligation		$ 26,600
Discount rate		5.20%

TRADE AND OTHER RECEIVABLES - S

TRADE AND OTHER RECEIVABLES - Schedule of Accounts, Notes, Loans and Financing Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of notes and other receivables
Trade receivables	$ 22,488	$ 42,582
Sales tax receivable	402	482
Income tax receivable	2,135	892
Accounts and other receivables gross current	25,025	43,956
Allowance for doubtful accounts	(100)	(100)
Accounts and other receivables, net, current	$ 24,941	$ 43,873

TRADE AND OTHER RECEIVABLES (Ad

TRADE AND OTHER RECEIVABLES (Additional Information) (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)Customer	Dec. 31, 2018USD ($)
Provision for doubtful accounts	$ 100	$ 100
Accounts Receivable Due From customers	$ 24,941	$ 43,873
Number of customer | Customer	1
Percentage of Total Account Receivable	50.00%
Accounts Receivable [Member]
Percentage of Total Account Receivable	10.00%
Trade Accounts Receivable [Member]
Percentage of trade and other receivables insured		70.00%
One Customer [Member]
Accounts Receivable Due From customers	$ 0	$ 4,800

INVENTORY - Schedule of Invento

INVENTORY - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw material	$ 17,339	$ 17,212
Allowance for obsolescence	(512)	(365)
Work in progress	739	1,803
Inventory, net	$ 17,566	$ 18,650

INVENTORY (Additional Informati

INVENTORY (Additional Information) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cost recognized in cost of sales	$ 161,311	$ 167,672	$ 141,050
Underutilized Capacity [Member]
Cost recognized in cost of sales	2,240
Cost of Sales [Member]
Inventory write down	400
Work In Progress [Member]
Production overheads capitalized	$ 100	$ 200

PROPERTY, PLANT AND EQUIPMENT -

PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cost
Beginning Balance	$ 100,939	$ 98,986
Additions	12,702	8,634
Disposals	(694)	(219)
Exchange differences	3,667	(6,462)
Ending Balance	116,614	100,939
Accumulated depreciation and impairment
Beginning Balance	64,211	50,473
Depreciation expense	8,869	9,736
Disposals	(586)	(91)
Impairments		8,123
Exchange differences	2,755	(4,030)
Ending Balance	75,249	64,211
Net book value
Balance	41,365	36,728
Office And Computer Equipment
Cost
Beginning Balance	20,544	19,556
Additions	1,630	2,008
Disposals		(45)
Exchange differences	569	(975)
Ending Balance	22,743	20,544
Accumulated depreciation and impairment
Beginning Balance	11,748	10,641
Depreciation expense	1,643	1,795
Disposals		(32)
Exchange differences	521	(656)
Ending Balance	13,912	11,748
Net book value
Balance	8,831	8,796
Factory Equipment
Cost
Beginning Balance	44,422	43,248
Additions	8,757	4,140
Disposals	(396)
Exchange differences	1,857	(2,966)
Ending Balance	54,640	44,422
Accumulated depreciation and impairment
Beginning Balance	28,934	20,810
Depreciation expense	2,297	4,032
Disposals	(293)
Impairments		5,890
Exchange differences	1,336	(1,798)
Ending Balance	32,274	28,934
Net book value
Balance	22,366	15,488
Leasehold improvements
Cost
Beginning Balance	35,973	36,182
Additions	2,315	2,486
Disposals	(298)	(174)
Exchange differences	1,241	(2,521)
Ending Balance	39,231	35,973
Accumulated depreciation and impairment
Beginning Balance	23,529	19,022
Depreciation expense	4,929	3,909
Disposals	(293)	(59)
Impairments		2,233
Exchange differences	898	(1,576)
Ending Balance	29,063	23,529
Net book value
Balance	$ 10,168	$ 12,444

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT - Additional information (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Assets in progress	$ 8.5	$ 0.9

CAPITALIZED SOFTWARE - Schedule

CAPITALIZED SOFTWARE - Schedule of Capitalized Software (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cost
As at January 1	$ 28,831	$ 27,195
Additions	2,604	5,234
Recovery of software development expenditures	(511)	(178)
Exchange differences	1,495	(3,420)
As at December 31	32,419	28,831
Accumulated amortization
As at January 1	20,496	18,873
Amortization expense	2,637	3,306
Exchange differences	1,073	(1,683)
As at December 31	24,206	20,496
Net book value	$ 8,213	$ 8,335

CAPITALIZED SOFTWARE - Addition

CAPITALIZED SOFTWARE - Additional information (Detail) $ in Millions	Dec. 31, 2019USD ($)
Capitalized Software [Abstract]
2020	$ 2.8
2021	2.3
2022	1.6
2023	0.7
2024	$ 0.2

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
As at January 1	$ 1,353	$ 1,471
Exchange differences	68	(118)
As at December 31	$ 1,421	$ 1,353

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Trade accounts payable	$ 7,620	$ 10,272
Accrued liabilities	8,193	8,714
Wages and commissions payable	3,546	5,544
Rebates accrued	1,025	6,305
Taxes payable		448
Accounts Payable and Accrued Liabilities, Current	$ 20,384	$ 31,283

ACCOUNTS PAYABLE AND ACCRUED _4

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Rebates Earned	$ 14.2	$ 13.7
Rebates paid	$ 19.3	$ 9.2

ACCOUNTS PAYABLE AND ACCRUED _5

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule Of Other Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Legal provisions	$ 745	$ 1,995
Stock option liability		1,649
Deferred share unit liability	434	116
Warranty and other provision	4,008	1,493
Lease exit liability		820
Lease inducements		750
Other Liabilities, Current	$ 5,187	$ 6,823

ACCOUNTS PAYABLE AND ACCRUED _6

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule Of Other Liabilities (Parenthetical) (Detail) $ in Millions	Dec. 31, 2019USD ($)
Payables and Accruals [Abstract]
Estimated claims payable	$ 0.7

LONG-TERM DEBT - (Additional In

LONG-TERM DEBT - (Additional Information) (Detail) $ in Thousands, $ in Millions	Jul. 19, 2019CAD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Jun. 30, 2019USD ($)
Debt Instrument [Line Items]
Repayments of outstanding principal and interest amounts of long-term debt			$ 5,561	$ 4,606	$ 3,787
Revolving Operating Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity						$ 18,000
Repayments of outstanding principal and interest amounts of long-term debt		$ 5,600
Advance of revolving operating facility			$ 5,600
Revolving Operating Facility [Member] | Canadian Dollar Advances [Member]
Debt Instrument [Line Items]
Description Of Variable Rate Basis			prime rate minus 0.25%
Interest Rate			0.25%
Revolving credit facility, basis spread on variable rate			0.25%
Revolving Operating Facility [Member] | US Dollar Advances [Member]
Debt Instrument [Line Items]
Description Of Variable Rate Basis			prime rate minus 0.25​​​​​​​%
Interest Rate			0.25%
Revolving credit facility, basis spread on variable rate			0.25%
Senior Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest Rate	1.25%
Revolving credit facility, maximum borrowing capacity	$ 50
Revolving credit facility, term	3 years
Revolving credit facility, additional term	2 years
Revolving credit facility, interest rate terms	Interest is calculated at the Canadian or U.S. prime rate with no adjustment, or the bankers’ acceptance rate plus 125 basis points.
Revolving credit facility, basis spread on variable rate	1.25%
Debt instrument covenant terms	The RBC Facility is subject to a minimum fixed charge coverage ratio of 1.15:1 and a maximum debt to earnings before interest, tax, depreciation and amortization, non-cash stock-based compensation, plus or minus extraordinary or unusual non-recurring revenue or expenses (“Adjusted EBITDA”) ratio of 3.0 to 1.

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Net income (loss) before tax	$ (3,377)	$ 8,830	$ (7,267)
Canadian statutory rate	26.50%	27.00%	27.00%
Expected income tax	$ (895)	$ 2,384	$ (1,962)
Effect on taxes resulting from:
Non-deductible expenses	550	447	264
Non-deductible stock-based compensation	674	1,080	689
Tax rate impacts	999	(420)	487
U.S. Federal rate reduction from 35% to 21%			722
Adjustments related to prior year tax filings	(205)	(257)	212
Other	(104)	46	46
Income tax expense	1,019	3,280	458
Current tax expense	1,064	2,178	3,277
Deferred tax expense (recovery)	$ (45)	$ 1,102	$ (2,819)

INCOME TAXES - Reconciliation_2

INCOME TAXES - Reconciliation of Income Taxes (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal Statutory Tax Rate	21.00%	35.00%

INCOME TAXES - Deferred Tax Ass

INCOME TAXES - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Operating losses	$ 6,899	$ 8,213
Research and development expenditures	353	389
Other	2,373	1,725
Net deferred taxes	9,625	10,327
Liabilities
Property and equipment	(1,916)	(2,408)
Capitalized software and other assets	(2,345)	(2,283)
Other		(518)
Net deferred taxes	(4,261)	(5,209)
Net
Operating losses	6,899	8,213
Research and development expenditures	353	389
Property and equipment	(1,916)	(2,408)
Capitalized software and other assets	(2,345)	(2,283)
Other	2,373	1,207
Net deferred taxes	$ 5,364	$ 5,118	$ 6,597

INCOME TAXES - Summary of Tempo

INCOME TAXES - Summary of Temporary Difference Movements (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Opening Balance	$ 5,118	$ 6,597
Opening Balance	(5,209)
Recognized in Income	45	(1,102)
Foreign Exchange	201	(377)
Ending Balance	5,364	5,118
Ending Balance	(4,261)	(5,209)
Operating losses
Opening Balance	8,213	9,968
Recognized in Income	(1,772)	(1,015)
Foreign Exchange	458	(740)
Ending Balance	6,899	8,213
Research and development
Opening Balance	389	423
Recognized in Income	(59)
Foreign Exchange	23	(34)
Ending Balance	353	389
Property and equipment
Opening Balance	(2,408)	(2,397)
Recognized in Income	652	(273)
Foreign Exchange	(160)	262
Ending Balance	(1,916)	(2,408)
Intangible assets
Opening Balance	(2,283)	(2,301)
Recognized in Income	425	(178)
Foreign Exchange	(487)	196
Ending Balance	(2,345)	(2,283)
Other
Opening Balance	1,207	904
Recognized in Income	799	364
Foreign Exchange	367	(61)
Ending Balance	$ 2,373	$ 1,207

INCOME TAXES - Tax Loss Carry F

INCOME TAXES - Tax Loss Carry Forwards and Other Tax Pools (Detail) $ in Thousands, $ in Thousands	Dec. 31, 2019USD ($)	Dec. 31, 2019CAD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018CAD ($)
Tax Credit Carryforward, Amount	$ 11,992	$ 63,329	$ 12,748	$ 71,317
Non-capital loss carry-forwards
Tax Credit Carryforward, Amount		38,084		43,616
Undepreciated capital costs
Tax Credit Carryforward, Amount	$ 11,992	23,274	$ 12,748	25,211
Share issuance costs
Tax Credit Carryforward, Amount				519
Scientific research and experimental development tax incentives
Tax Credit Carryforward, Amount		$ 1,971		$ 1,971

INCOME TAXES - (Additional Info

INCOME TAXES - (Additional Information) (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of Income Tax [Line Items]
Federal Statutory Tax Rate						21.00%	35.00%
Reduction in deferred tax asset	$ 0.9
Canada [Member]
Schedule of Income Tax [Line Items]
Federal Statutory Tax Rate		11.00%
Canada [Member] | Forecast [Member]
Schedule of Income Tax [Line Items]
Federal Statutory Tax Rate			8.00%	9.00%	10.00%

STOCK-BASED COMPENSATION - (Add

STOCK-BASED COMPENSATION - (Additional Information) (Detail) $ in Thousands	Oct. 09, 2019$ / shares	Mar. 31, 2019USD ($)	Oct. 09, 2019$ / shares	Dec. 31, 2019USD ($)shares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)shares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)shares	Dec. 31, 2017$ / shares	Dec. 31, 2018$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (recovery)		$ 6,400		$ 3,876		$ 3,661		$ 2,738
Compensation expense charged to additional paid in capital				$ 1,729		$ 2,190		$ 2,738
Securities excluded from calculation of net income (loss) per share | shares				500,000		6,300,000		5,600,000
Options Granted Weighted Average grant Date Fair Value | $ / shares	$ 1.32				$ 2.40		$ 2.13		$ 2.11
Stock Options expected life	2 years 10 months 24 days			3 years 6 months		3 years 6 months
Stock Options Risk Free Interest Rate	1.40%			1.60%		2.20%		0.80%
Stock Options Forfeiture Rate				4.20%		3.80%		5.00%
Stock Options Expected Volatility Rate	39.20%			39.20%		42.00%		45.00%
Stock Options Granted | shares						1,725,000
Monte Carlo Valuation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Granted Weighted Average grant Date Fair Value | $ / shares			$ 0.83				$ 2.14
Share-based Payment Arrangement, Tranche One [Member] | Monte Carlo Valuation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options Granted | shares						825,000
Share Price | $ / shares										$ 13.26
Share-based Payment Arrangement, Tranche Two [Member] | Monte Carlo Valuation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options Granted | shares						900,000
Share Price | $ / shares										$ 19.89
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the liability of options eligible for cash surrender						$ 1,200	$ 1,200
Stock-based compensation expense (recovery)				$ 1,729		2,076		$ 2,738
Payments on surrender of cash settled stock options				3,600		1,800
Compensation expense charged to additional paid in capital				$ 400		$ 500
Stock Options Granted | shares				1,382,311		3,327,525
Employee Stock Option [Member] | Other Current Liabilities [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based arrangements, liability						$ 1,800	$ 1,800
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (recovery)				$ 58		$ 44
Share based compensation, share units outstanding | shares				223,052	223,052	85,728	85,728
Share-based arrangements, liability				$ 200	$ 200	$ 100	$ 100
Deferred Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (recovery)				$ 306		$ 120
Share based compensation, share units outstanding | shares				132,597	132,597	25,861	25,861
Share-based arrangements, liability				$ 400	$ 400	$ 100	$ 100
Equity Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance				10.00%

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Charge on stock option modification			$ 1,181
Stock option fair value adjustment		$ 1,783	240
Stock-based compensation expense	$ 6,400	3,876	3,661	2,738
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		1,729	2,076	2,738
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		58	44
Deferred Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 306	$ 120

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, Granted		1,725,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, Outstanding at the beginning	6,858,376	5,553,393
Number of options, Granted	1,382,311	3,327,525
Number of options, Exercised	(21,045)	(435,792)
Number of options, Surrendered for cash	(1,544,151)	(1,365,348)
Number of options, Forfeited	(298,508)	(203,516)
Number of options, Expired	(220,331)	(17,886)
Number of options, Outstanding at the end	6,156,652	6,858,376
Number of options, Exercisable	2,454,910
Weighted average exercise price, Outstanding at the beginning	$ 5.88	$ 5.31
Weighted average exercise price, Granted	7.45	6.40
Weighted average exercise price, Exercised	4.81	4.78
Weighted average exercise price, Surrendered for cash	5.02	5.17
Weighted average exercise price, Forfeited	5.02	5.26
Weighted average exercise price, Expired	6.01	6.02
Weighted average exercise price, Outstanding at the end	6.49	$ 5.88
Weighted average exercise price, Exercisable	$ 6.05

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding, Number	6,156,652	6,858,376
Options exercisable, Number	2,454,910	3,123,369
Exercise Price Range $2.01 to $3.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum		$ 2.01
Range of exercise prices, Maximum		$ 3
Options outstanding, Number		31,600
Options outstanding, Weighted average remaining contractual years		4 months 24 days
Options outstanding, Weighted average exercise price		$ 2.93
Options exercisable, Number		31,600
Options exercisable, Weighted average remaining contractual years		4 months 24 days
Options exercisable, Weighted average exercise price		$ 2.93
Exercise Price Range $3.01 to $4.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum		3.01
Range of exercise prices, Maximum		$ 4
Options outstanding, Number		804,883
Options outstanding, Weighted average remaining contractual years		6 months
Options outstanding, Weighted average exercise price		$ 3.59
Options exercisable, Number		804,883
Options exercisable, Weighted average remaining contractual years		6 months
Options exercisable, Weighted average exercise price		$ 3.59
Exercise Price Range $5.01 to $6.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum		5.01
Range of exercise prices, Maximum		$ 6
Options outstanding, Number		1,162,669
Options outstanding, Weighted average remaining contractual years		2 years 10 months 24 days
Options outstanding, Weighted average exercise price		$ 5.76
Options exercisable, Number		746,028
Options exercisable, Weighted average remaining contractual years		2 years 10 months 24 days
Options exercisable, Weighted average exercise price		$ 5.76
Exercise Price Range $6.01 to $6.47 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum		6.01
Range of exercise prices, Maximum		$ 6.47
Options outstanding, Number		4,859,224
Options outstanding, Weighted average remaining contractual years		3 years 8 months 12 days
Options outstanding, Weighted average exercise price		$ 6.31
Options exercisable, Number		1,540,858
Options exercisable, Weighted average remaining contractual years		1 year 7 months 6 days
Options exercisable, Weighted average exercise price		$ 6.10
Exercise Price Range $4.01 to $5.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum	$ 4.01
Range of exercise prices, Maximum	$ 5
Options outstanding, Number	22,537
Options outstanding, Weighted average remaining contractual years	4 years 10 months 20 days
Options outstanding, Weighted average exercise price	$ 4.12
Exercise Price Range $5.01 to $6.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum	5.01
Range of exercise prices, Maximum	$ 6
Options outstanding, Number	783,889
Options outstanding, Weighted average remaining contractual years	1 year 9 months 18 days
Options outstanding, Weighted average exercise price	$ 5.76
Options exercisable, Number	783,889
Options exercisable, Weighted average remaining contractual years	1 year 9 months 18 days
Options exercisable, Weighted average exercise price	$ 5.76
Exercise Price Range $6.01 to $7.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum	6.01
Range of exercise prices, Maximum	$ 7
Options outstanding, Number	4,339,187
Options outstanding, Weighted average remaining contractual years	3 years 14 days
Options outstanding, Weighted average exercise price	$ 6.32
Options exercisable, Number	1,671,021
Options exercisable, Weighted average remaining contractual years	2 years
Options exercisable, Weighted average exercise price	$ 6.19
Exercise Price Range $7.01 to $8.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, Minimum	7.01
Range of exercise prices, Maximum	$ 8
Options outstanding, Number	1,011,039
Options outstanding, Weighted average remaining contractual years	3 years 10 months 9 days
Options outstanding, Weighted average exercise price	$ 7.84

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue by Major Products and Services Lines (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 53,198	$ 65,385	$ 64,091	$ 65,061	$ 74,440	$ 73,913	$ 62,480	$ 63,848	$ 247,735	$ 274,681	$ 226,539
Product [Member]
Disaggregation of Revenue [Line Items]
Revenues									215,109	240,482	195,676
Transportation [Member]
Disaggregation of Revenue [Line Items]
Revenues									23,903	24,552	19,519
Licenses [Member]
Disaggregation of Revenue [Line Items]
Revenues									1,647	1,400	1,021
Total product revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues									240,659	266,434	216,216
Installation and other services [Member]
Disaggregation of Revenue [Line Items]
Revenues									$ 7,076	$ 8,247	$ 10,323

REVENUE - Disaggregation of R_2

REVENUE - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 53,198	$ 65,385	$ 64,091	$ 65,061	$ 74,440	$ 73,913	$ 62,480	$ 63,848	$ 247,735	$ 274,681	$ 226,539
At a point in time [Member]
Disaggregation of Revenue [Line Items]
Revenues									239,012	265,034	215,195
Over time [Member]
Disaggregation of Revenue [Line Items]
Revenues									$ 8,723	$ 9,647	$ 11,344

REVENUE - Summary of Contract L

REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Customer deposits	$ 2,436	$ 6,746
Deferred revenue	1,131	955
Contract liabilities	$ 3,567	$ 7,701

REVENUE - (Additional Informati

REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract liabilities recognized as revenue	$ 7.4	$ 5.9

REVENUE - Schedule of Sales by

REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 53,198	$ 65,385	$ 64,091	$ 65,061	$ 74,440	$ 73,913	$ 62,480	$ 63,848	$ 247,735	$ 274,681	$ 226,539
Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenues									158,256	163,199	142,494
Healthcare [Member]
Disaggregation of Revenue [Line Items]
Revenues									44,197	60,748	38,455
Government [Member]
Disaggregation of Revenue [Line Items]
Revenues									14,879	21,477	18,927
Education [Member]
Disaggregation of Revenue [Line Items]
Revenues									21,680	19,610	15,319
Licenses [Member]
Disaggregation of Revenue [Line Items]
Revenues									1,647	1,400	1,021
Total product and transportation revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues									240,659	266,434	216,216
Installation and other services [Member]
Disaggregation of Revenue [Line Items]
Revenues									$ 7,076	$ 8,247	$ 10,323

OPERATING EXPENSES - Schedule o

OPERATING EXPENSES - Schedule of reconciliation from last year's financial statement (Detail) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Sales and marketing				$ 33,939	$ 40,627	$ 46,192
General and administrative				27,645	28,722	28,370
Operations support				11,037	8,069	7,212
Technology and development				7,818	4,176	6,335
Stock-based compensation expense	$ 6,400			3,876	3,661	2,738
Reorganization				4,560	7,380	1,143
Impairment		$ 2,600	$ 6,100		8,680
Total operating expenses				$ 88,875	101,315	91,990
Previously Reported [Member]
Sales and marketing					40,731	46,355
General and administrative					30,861	29,383
Operations support					8,960	8,234
Technology and development					4,703	6,875
Reorganization					7,380	1,143
Impairment					8,680
Total operating expenses					101,315
Restatement Adjustment [Member]
Sales and marketing					(104)	(163)
General and administrative					(2,139)	(1,013)
Operations support					(891)	(1,022)
Technology and development					(527)	(540)
Stock-based compensation expense					$ 3,661	2,738
Total operating expenses						$ 91,990

SEGMENT REPORTING - (Additional

SEGMENT REPORTING - (Additional Information) (Detail)	12 Months Ended
	Dec. 31, 2019SegmentCountry
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1
Number of principal geographic locations | Country	3

SEGMENT REPORTING - Schedule of

SEGMENT REPORTING - Schedule of Revenue from External Customers (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	$ 53,198	$ 65,385	$ 64,091	$ 65,061	$ 74,440	$ 73,913	$ 62,480	$ 63,848	$ 247,735	$ 274,681	$ 226,539
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers									34,085	41,153	35,035
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers									$ 213,650	232,035	190,245
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers										$ 1,493	$ 1,259

SEGMENT REPORTING - Schedule _2

SEGMENT REPORTING - Schedule of Non-current Assets Excluding Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 77,178	$ 51,676
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	47,892	36,323
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 29,286	$ 15,353

TRANSACTIONS AND BALANCES WIT_2

TRANSACTIONS AND BALANCES WITH RELATED PARTIES - (Additional Information) (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jun. 26, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Revenue from related party transactions			$ 2.9	$ 6.7
Director [Member]
Related Party Transaction [Line Items]
Advisory and consulting services			0.3
Former Director [Member]
Related Party Transaction [Line Items]
Revenue from related party transactions		0	0	0.9
Accounts receivables from related parties		$ 0	$ 0
Distribution Partner [Member]
Related Party Transaction [Line Items]
Revenue from related party transactions	$ 2.9			5.8
Payment of rebates	$ 0.1
Rebate on sales from related parties				$ 0.1

COMMITMENTS - (Additional Infor

COMMITMENTS - (Additional Information) (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Inventory And Property Plant And Equipment [Member]
Long-term Purchase Commitment [Line Items]
Purchase obligation, outstanding	$ 6.8	$ 2.7

LEGAL PROCEEDINGS - (Additional

LEGAL PROCEEDINGS - (Additional Information) (Detail) $ in Millions, $ in Millions	Dec. 11, 2019USD ($)	Nov. 05, 2019CAD ($)	May 09, 2019CAD ($)
Falkbuilt [Member]
Loss contingency damages sought value	$ 3	$ 30	$ 2

UNAUDITED SUPPLEMENTARY INFOR_3

UNAUDITED SUPPLEMENTARY INFORMATION - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplementary Disclosures [Abstract]
Total revenue	$ 53,198	$ 65,385	$ 64,091	$ 65,061	$ 74,440	$ 73,913	$ 62,480	$ 63,848	$ 247,735	$ 274,681	$ 226,539
Gross Profit	$ 13,465	$ 24,934	$ 24,421	$ 23,604	$ 27,619	$ 30,085	$ 23,331	$ 25,974	86,424	107,009	85,489
Gross Profit Margin	25.30%	38.10%	38.10%	36.30%	37.10%	40.70%	37.30%	40.70%
Adjusted Gross Profit Margin	33.40%	41.80%	42.10%	39.60%	40.20%	43.40%	40.60%	43.70%
Net income (loss)	$ (7,544)	$ 5,802	$ 2,611	$ (5,265)	$ 3,143	$ (1,433)	$ 770	$ 3,070	$ (4,396)	$ 5,550	$ (7,725)
Net income (loss) per share – basic and diluted	$ (90)	$ 70	$ 30	$ (60)	$ 40	$ (20)	$ 10	$ 40	$ (0.05)	$ 0.07	$ (0.09)
Adjusted EBITDA as previously presented	$ (3,971)	$ 8,072	$ 5,605	$ 6,986	$ 12,809	$ 13,062	$ 6,612	$ 10,391
Other Foreign Exchange (Gains) Losses	562	(198)	441	730	(2,643)	501	(629)	(989)
Adjusted EBITDA	$ (3,409)	$ 7,874	$ 6,046	$ 7,716	$ 10,166	$ 13,563	$ 5,983	$ 9,402
Adjusted EBITDA Margin	(6.40%)	12.00%	9.40%	11.90%	13.70%	18.30%	9.60%	14.70%

UNAUDITED SUPPLEMENTARY INFOR_4

UNAUDITED SUPPLEMENTARY INFORMATION - Summary of Quarterly Results (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Unaudited Supplementary Information [Line Items]
Stock-based compensation expense		$ 6,400			$ 3,876	$ 3,661	$ 2,738
Stock based compensation expense recoveries	$ 1,700
Impairment			$ 2,600	$ 6,100		$ 8,680