Dirtt Environmental Solutions (DRTTF) 10-Q 6 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
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
Trading Symbol	DRTT
Title of 12(b) Security	Common Shares
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		84,681,364

Interim Condensed Consolidated

Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 43,460	$ 47,174
Trade and other receivables, net of expected credit losses of $0.7 million at March 31, 2020 and $0.1 million at December 31, 2019	23,165	24,941
Inventory	16,526	17,566
Prepaids and other current assets	4,033	3,340
Total Current Assets	87,184	93,021
Property, plant and equipment, net	38,772	41,365
Capitalized software, net	7,801	8,213
Operating lease right-of-use assets, net	18,802	20,661
Deferred tax assets, net	5,638	5,364
Goodwill	1,301	1,421
Other assets	4,766	5,518
Total Assets	164,264	175,563
Current Liabilities
Accounts payable and accrued liabilities	21,744	20,384
Other liabilities	4,850	5,187
Customer deposits and deferred revenue	4,609	3,567
Current portion of lease liability	5,014	5,287
Total Current Liabilities	36,217	34,425
Other long-term liabilities	13	35
Long-term lease liabilities	14,480	16,116
Total Liabilities	50,710	50,576
SHAREHOLDERS' EQUITY
Common shares, unlimited authorized without par value, 84,681,364 issued and outstanding at March 31, 2020 and December 31, 2019	180,639	180,639
Additional paid-in capital	9,006	8,343
Accumulated other comprehensive loss	(24,796)	(18,028)
Accumulated deficit	(51,295)	(45,967)
Total Shareholders' Equity	113,554	124,987
Total Liabilities and Shareholders' Equity	$ 164,264	$ 175,563

Interim Condensed Consolidate_2

Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Trade and other receivables, expected credit losses	$ 741	$ 84
Common shares, no par value	$ 0	$ 0
Common shares, shares issued	84,681,364	84,681,364
Common shares, shares outstanding	84,681,364	84,681,364

Interim Condensed Consolidate_3

Interim Condensed Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues [Abstract]
Total revenue	$ 40,981	$ 65,061
Total cost of sales	29,666	41,457
Gross profit	11,315	23,604
Expenses
Sales and marketing	7,408	7,787
General and administrative	7,825	6,897
Operations support	2,532	2,482
Technology and development	2,165	2,117
Stock-based compensation	461	6,447
Reorganization		2,639
Total operating expenses	20,391	28,369
Operating income (loss)	(9,076)	(4,765)
Foreign exchange (gain) loss	(2,319)	519
Interest income	(138)	(54)
Interest expense	35	49
Non Operating (income) loss	(2,422)	514
Income (loss) before tax	(6,654)	(5,279)
Income taxes
Current tax expense (recovery)	(581)	152
Deferred tax recovery	(745)	(166)
Income tax expense	(1,326)	(14)
Net income (loss) for the year	$ (5,328)	$ (5,265)
Income (loss) per share
Basic and diluted income (loss) per share	$ (0.06)	$ (0.06)
Basic and diluted weighted average number of shares outstanding	84,681	84,661
Interim Condensed Consolidated Statement of Comprehensive Income (loss)
Loss for the period	$ (5,328)	$ (5,265)
Exchange differences on translation of foreign operations	(6,768)	2,096
Comprehensive loss for the period	(12,096)	(3,169)
Product [Member]
Revenues [Abstract]
Total revenue	40,299	63,840
Total cost of sales	27,290	40,068
Service [Member]
Revenues [Abstract]
Total revenue	682	1,221
Total cost of sales	366	$ 1,389
Under-utilized Capacity [Member]
Revenues [Abstract]
Total cost of sales	$ 2,010

Interim Condensed Consolidate_4

Interim Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common shares	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit
Beginning Balance at Dec. 31, 2018	$ 123,514	$ 180,562	$ 6,615	$ (22,092)	$ (41,571)
Beginning Balance (in shares) at Dec. 31, 2018		84,660,319
Issued on exercise of stock options	3	$ 4	(1)
Issued on exercise of stock options (in shares)		1,053
Stock-based compensation	(429)		(429)
Foreign currency translation adjustment	2,096			2,096
Net loss for the period	(5,265)				(5,265)
Ending Balance at Mar. 31, 2019	119,919	$ 180,566	6,185	(19,996)	(46,836)
Ending Balance (in shares) at Mar. 31, 2019		84,661,372
Beginning Balance at Dec. 31, 2019	124,987	$ 180,639	8,343	(18,028)	(45,967)
Beginning Balance (in shares) at Dec. 31, 2019		84,681,364
Stock-based compensation	663		663
Foreign currency translation adjustment	(6,768)			(6,768)
Net loss for the period	(5,328)				(5,328)
Ending Balance at Mar. 31, 2020	$ 113,554	$ 180,639	$ 9,006	$ (24,796)	$ (51,295)
Ending Balance (in shares) at Mar. 31, 2020		84,681,364

Interim Condensed Consolidate_5

Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss for the period	$ (5,328)	$ (5,265)
Adjustments:
Depreciation and amortization	3,132	3,395
Stock-based compensation, net of cash settlements	461	5,681
Foreign exchange gain	(2,214)	(2)
Loss on disposal of property, plant and equipment		62
Deferred income tax recovery	(745)	(166)
Changes in operating assets and liabilities:
Trade and other receivables	1,436	6,918
Inventory	35	439
Prepaid and other current assets	(897)	(301)
Other assets	173	112
Trade accounts payable and other liabilities	2,130	(1,626)
Lease liabilities	(27)	(146)
Customer deposits	1,084	(1,701)
Net cash flows (used in) provided by operating activities	(760)	7,400
Cash flows from investing activities:
Purchase of property, plant and equipment	(1,678)	(1,384)
Capitalized software development expenditures and other asset expenditures	(970)	(503)
Recovery of software development expenditures	75	75
Proceeds on sale of property, plant and equipment		44
Changes in accounts payable related to investing activities	118	(336)
Net cash flows used in investing activities	(2,455)	(2,104)
Cash flows from financing activities:
Cash received on exercise of stock options		5
Repayment of long-term debt		(5,561)
Net cash flows used in financing activities		(5,556)
Effect of foreign exchange on cash and cash equivalents	(499)	907
Net increase (decrease) in cash and cash equivalents	(3,714)	647
Cash and cash equivalents, beginning of period	47,174	53,412
Cash and cash equivalents, end of period	43,460	54,059
Supplemental disclosure of cash flow information:
Interest paid	(35)	(49)
Income taxes paid	$ 0	$ (48)

GENERAL INFORMATION

GENERAL INFORMATION	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL INFORMATION	1. GENERAL INFORMATION DIRTT Environmental Solutions Ltd. and its subsidiaries (“DIRTT,” the “Company,” “we” or “our”) is a leading technology-driven manufacturer of highly customized interiors. DIRTT combines its proprietary 3D design, configuration and manufacturing software (“ICE ® in-house

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	2. BASIS OF PRESENTATION The accompanying unaudited interim condensed consolidated financial statements (the “Financial Statements”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q S-X 10-K In these Financial Statements, unless otherwise indicated, all dollar amounts are expressed in United States (“U.S.”) dollars. DIRTT’s financial results are consolidated in Canadian dollars, the Company’s functional currency, and the Company has adopted the U.S. dollar as its reporting currency. All references to US$ or $ are to U.S. dollars and references to C$ are to Canadian dollars. Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated on consolidation. Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and certain components of stock-based compensation that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Company’s quarterly tax provision is based upon an estimated annual effective tax rate. Seasonality Sales of the Company’s products are driven by consumer and industrial demand for interior construction solutions. The timing of customer’s construction projects can be influenced by a number of factors including the prevailing economic climate and weather.

COVID-19

COVID-19	3 Months Ended
	Mar. 31, 2020
COVID-19
Unusual Risk or Uncertainty [Line Items]
Accounting Changes and Error Corrections [Text Block]	3. COVID-19 On March 11, 2020, the coronavirus (“COVID-19”) COVID-19 mid-term Key sources of estimation uncertainty can be found in the Company’s a c f s COVID-19 Credit risk COVID-19 COVID-19 Liquidity risk The Company may have lower cash flows from operating activities available to service debts due to lower sales or collections. Information about our credit facilities is presented in Note 6. Impairment At March 31, 2020, our market capitalization was less than the book value of our equity which is an indicator of impairment. Management compared forecasted undiscounted cash flows to the book values of non-current COVID-19 COVID-19 Deferred tax assets (“DTA”) The Company’s ability to generate future taxable income may be impacted by COVID-19

ADOPTION OF NEW AND REVISED ACC

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS	3 Months Ended
	Mar. 31, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS	4. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS On January 1, 2020, the Company adopted ASU No. 2016-13, Measurement of Credit Losses in Financial Instruments No. 2019-04, No. 2019-05 No. 2020-02 held-to-maturity off-balance available-for-sale The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable accounting principles generally accepted in the United States of America (“GAAP”). The adoption of this standard did not have a significant impact on the Company, and no adjustment was required to retained earnings as of January 1, 2020 for the cumulative effect of adopting ASC 326. On January 1, 2020, the Company adopted ASU 2018-15, 350-40, Intangibles – Goodwill and Other – Internal-Use 2018-15”). 2018-15 2018-15. 2018-15 350-40 of The Company adopted this amendment using the prospective transition approach, and no adjustments were required as a result of adoption.

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES	3 Months Ended
	Mar. 31, 2020
Schedule of notes and other receivables
TRADE AND OTHER RECEIVABLES	5 Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates an allowance for credit losses using the lifetime expected credit loss at each measurement date taking into account historical credit loss experience as well as forward-looking information in order to establish rates for each class of financial receivable with similar risk characteristics. Adjustments to this estimate are recognized in the statement of operations. In order to manage and assess our risk, management maintains credit policies that include regular review of credit limits of individual receivables and systematic monitoring of aging of trade receivables and the financial wellbeing of our customers. The majority of our trade balances are spread over a broad Distribution Partner base, which is geographically dispersed. No Distribution Partner accounts for greater than 10% of revenue. In addition, and where possible, we collect a 50% deposit on sales, excluding government and certain other clients. The Company’s aged receivables were as follows: As at March 31, December 31, Current 18,729 20,087 Overdue 2,018 2,401 20,747 22,488 Less: expected credit losses (741 ) (84 ) 20,006 22,404 Sales tax receivable 444 402 Income tax receivable 2,715 2,135 23,165 24,941 Due to the uncertainties associated with the COVID 19 pandemic as well as the disruption to businesses in North America, the overall credit quality of certain receivables has declined at March 31, 2020 compared to January 1, 2020. As a result of this consideration and the Company’s ongoing review of credit quality of receivables, expected credit losses were increased by $0.6 million during the quarter ended March 31, 2020.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
LONG-TERM DEBT	6 On July 19, 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 Adjusted EBITDA ratio of 3.0:1 (earnings before interest, tax, depreciation and amortization, non-cash non-recurring , $30.0 million . Subsequent to March 31, 2020, the Company entered into a C$5.0 million equipment leasing facility in Canada and a $16.0 million equipment leasing facility in the United States (the “Leasing Facilities”), which are available for certain expenditures already incurred. The Leasing Facilities, respectively, have seven and five-year terms and bear interest at 4.25% and 3.5%. The U.S. leasing facility is extendible for an additional year.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	7 Stock-based compensation expense For the three months ended March 31, 2020 2019 Stock options 663 6,275 PSUs (8 ) 18 DSUs (194 ) 154 461 6,447 Stock Options For the three months ended March 31, 2020, stock-based compensation expense related to stock options was $0.7 million (2019 – $6.3 million expense). During the three months ended March 31, 2019, the Company accounted for the fair value of outstanding stock options at the end of the reporting period as a liability, with changes in the liability recorded through net income as a stock-based compensation fair value adjustment (“cash-settlement”). On October 9, 2019, following its listing on N a sdaq Number of Weighted average Outstanding at December 31, 2018 6,858,376 5.88 Surrendered for cash (819,765 ) 5.21 Exercised (1,053 ) 3.72 Forfeited (108,191 ) 5.32 Expired (2,084 ) 5.97 Outstanding at March 31, 2019 5,927,283 5.88 Outstanding at December 31, 2019 6,156,652 6.49 Forfeited (523,549 ) 6.80 Outstanding at March 31, 2020 5,633,103 6.46 Exercisable at March 31, 2020 2,188,745 6.06 Range of exercise prices of op tions Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$4.01 – C$5.00 22,537 4.64 4.12 — C$5.01 – C$6.00 686,811 1.64 5.76 686,811 1.64 5.76 C$6.01 – C$7.00 4,131,512 2.92 6.32 1,501,934 1.94 6.19 C$7.01 – C$8.00 792,243 4.13 7.84 — Total 5,633,103 2,188,745 Performance share units (“PSUs”) As at March 31, 2020, there were 197,471 P Deferred share units (“DSUs”) As at h 31, 2020, ther e , which is Dilutive instruments For the three months ended March 31, 2020, 5.6

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
REVENUE	8 In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 9 For the three months ended March 31, 2020 2019 Product 35,998 56,949 Transportation 3,995 6,359 Licenses 306 532 Total product revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061 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 three months ended March 31, 2020 2019 At a point in time 39,993 63,308 Over time 988 1,753 40,981 65,061 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 other services provided to customers and is recorded as performance obligations which are satisfied over the term of the contract. Contract Liabilities As at March 31, 2020 December 31, 2019 December 31, 2018 Customer deposits 3,590 2,436 6,746 Deferred revenue 1,019 1,131 955 Contract liabilities 4,609 3,567 7,701 Contract liabilities primarily relate to deposits received from customers and deferred revenue from license subscriptions. The balance of contract liabilities was year-to-date Sales by Industry The Company periodically reviews the growth of product and transportation revenue by 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. The three months ended March 31, 2020 2019 Commercial 28,274 42,149 Healthcare 5,063 12,914 Government 3,127 4,099 Education 3,529 4,146 License fees from Distribution Partners 306 532 Total product and transportation revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
SEGMENT REPORTING	9 The non-current Revenue from external customers For the three months ended March 31, 2020 2019 Canada 5,986 7,068 U.S. 34,995 57,993 40,981 65,061 Non-current As at March 31, 2020 1 December 31, 2019 1 Canada 42,645 47,892 U.S. 28,797 29,286 71,442 77,178 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	10. INCOME TAXES Stock based compensation expense is not deductible in the calculation of income taxes in Canada. Accordingly, the fair value adjustment recorded during the period ended March 31, 2019 impacted our effective tax rate during that period.

COMMITMENTS

COMMITMENTS	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	11. COMMITMENTS As at March 31, 2020, the Company had outstanding purchase obligations of approximately $9.8 million related to inventory and property, plant and equipment purchases. As at March 31, 2020, the Company had undiscounted operating lease liabilities of $22.4 million. During 2019, the Company entered into a lease agreement with a term of 25 years, 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 (“South Carolina Plant”). Undiscounted rent obligations associated with this lease are $26.6 million. During the first quarter of 2020, the Company entered into a lease agreement with a term of 12 years, expected to commence in the second half of 2020, associated with a new DIRTT Experience Center (“DXC”) in Plano, Texas. Undiscounted rent obligations associated with this lease are $6.3 million.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 on consolidation.
Basis of measurement	Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and certain components of stock-based compensation that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Company’s quarterly tax provision is based upon an estimated annual effective tax rate.
Seasonality	Seasonality Sales of the Company’s products are driven by consumer and industrial demand for interior construction solutions. The timing of customer’s construction projects can be influenced by a number of factors including the prevailing economic climate and weather.

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	3 Months Ended
	Mar. 31, 2020
Schedule of notes and other receivables
Schedule of accounts, notes, loans and financing receivable	The Company’s aged receivables were as follows: As at March 31, December 31, Current 18,729 20,087 Overdue 2,018 2,401 20,747 22,488 Less: expected credit losses (741 ) (84 ) 20,006 22,404 Sales tax receivable 444 402 Income tax receivable 2,715 2,135 23,165 24,941

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Summary of stock-based compensation expense	Stock-based compensation expense For the three months ended March 31, 2020 2019 Stock options 663 6,275 PSUs (8 ) 18 DSUs (194 ) 154 461 6,447 Stock Options
Summary of options granted, exercised, surrendered, forfeited and expired	The following summarizes options granted, exercised, surrendered, forfeited and expired during the periods: Number of Weighted average Outstanding at December 31, 2018 6,858,376 5.88 Surrendered for cash (819,765 ) 5.21 Exercised (1,053 ) 3.72 Forfeited (108,191 ) 5.32 Expired (2,084 ) 5.97 Outstanding at March 31, 2019 5,927,283 5.88 Outstanding at December 31, 2019 6,156,652 6.49 Forfeited (523,549 ) 6.80 Outstanding at March 31, 2020 5,633,103 6.46 Exercisable at March 31, 2020 2,188,745 6.06
Summary of options outstanding by range of exercise prices	Range of exercise prices of op tions Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$4.01 – C$5.00 22,537 4.64 4.12 — C$5.01 – C$6.00 686,811 1.64 5.76 686,811 1.64 5.76 C$6.01 – C$7.00 4,131,512 2.92 6.32 1,501,934 1.94 6.19 C$7.01 – C$8.00 792,243 4.13 7.84 — Total 5,633,103 2,188,745

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2020
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 9 For the three months ended March 31, 2020 2019 Product 35,998 56,949 Transportation 3,995 6,359 Licenses 306 532 Total product revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061 For the three months ended March 31, 2020 2019 At a point in time 39,993 63,308 Over time 988 1,753 40,981 65,061
Summary of contract liabilities	Contract Liabilities As at March 31, 2020 December 31, 2019 December 31, 2018 Customer deposits 3,590 2,436 6,746 Deferred revenue 1,019 1,131 955 Contract liabilities 4,609 3,567 7,701
Schedule of sales by industry	The three months ended March 31, 2020 2019 Commercial 28,274 42,149 Healthcare 5,063 12,914 Government 3,127 4,099 Education 3,529 4,146 License fees from Distribution Partners 306 532 Total product and transportation revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of revenue from external customers	Revenue from external customers For the three months ended March 31, 2020 2019 Canada 5,986 7,068 U.S. 34,995 57,993 40,981 65,061
Schedule of non-current assets, excluding deferred tax assets	Non-current As at March 31, 2020 1 December 31, 2019 1 Canada 42,645 47,892 U.S. 28,797 29,286 71,442 77,178 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use

TRADE AND OTHER RECEIVABLES - S

TRADE AND OTHER RECEIVABLES - Schedule of accounts, notes, loans and financing receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Schedule of notes and other receivables
Current	$ 18,729	$ 20,087
Overdue	2,018	2,401
Total accounts receivable	20,747	22,488
Less: expected credit losses	(741)	(84)
Net accounts receivable	20,006	22,404
Sales tax receivable	444	402
Income tax receivable	2,715	2,135
Accounts and other receivables, net, current	$ 23,165	$ 24,941

TRADE AND OTHER RECEIVABLES (Ad

TRADE AND OTHER RECEIVABLES (Additional Information) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Provision for doubtful accounts	$ 741	$ 84
Percentage of Total Account Receivable	50.00%
Increase in credit losses	$ 600
Accounts Receivable [Member]
Percentage of Total Account Receivable	10.00%

LONG-TERM DEBT - (Additional In

LONG-TERM DEBT - (Additional Information) (Detail) - CAD ($) $ in Millions	Jul. 19, 2019	Mar. 31, 2020
Debt Instrument [Line Items]
Available Borrowing	$ 30
Maximum [Member]
Debt Instrument [Line Items]
Interest Rate		4.25%
Revolving credit facility, basis spread on variable rate		4.25%
Minimum [Member]
Debt Instrument [Line Items]
Interest Rate		3.50%
Revolving credit facility, basis spread on variable rate		3.50%
Canadian Dollar Advances [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity		$ 5
US Dollar Advances [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity		$ 16
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 Adjusted EBITDA ratio of 3.0:1

STOCK-BASED COMPENSATION - (Add

STOCK-BASED COMPENSATION - (Additional Information) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 461	$ 6,447
Securities excluded from calculation of net income (loss) per share	5,600,000	5,900,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 663	$ 6,275
Payments on surrender of cash settled stock options	800
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ (8)	18
Share based compensation, share units outstanding	197,471		223,052
Share-based arrangements, liability	$ 10		$ 20
Deferred Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ (194)	$ 154
Share based compensation, share units outstanding	216,512		132,597
Share-based arrangements, liability	$ 200		$ 400

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 461	$ 6,447
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	663	6,275
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	(8)	18
Deferred Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ (194)	$ 154

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - Employee Stock Option [Member] - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, Outstanding at the beginning	6,156,652	6,858,376
Number of options, Exercised		(1,053)
Number of options, Surrendered for cash		(819,765)
Number of options, Forfeited	(523,549)	(108,191)
Number of options, Expired		(2,084)
Number of options, Outstanding at the end	5,633,103	5,927,283
Number of options, Exercisable	2,188,745
Weighted average exercise price, Outstanding at the beginning	$ 6.49	$ 5.88
Weighted average exercise price, Exercised		3.72
Weighted average exercise price, Surrendered for cash		5.21
Weighted average exercise price, Forfeited	6.80	5.32
Weighted average exercise price, Expired		5.97
Weighted average exercise price, Outstanding at the end	6.46	$ 5.88
Weighted average exercise price, Exercisable	$ 6.06

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding, Number | shares	5,633,103
Options exercisable, Number | shares	2,188,745
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 | shares	22,537
Options outstanding, Weighted average remaining	4 years 7 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 | shares	686,811
Options outstanding, Weighted average remaining	1 year 7 months 20 days
Options outstanding, Weighted average exercise price	$ 5.76
Options exercisable, Number | shares	686,811
Options exercisable, Weighted average remaining	1 year 7 months 20 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 | shares	4,131,512
Options outstanding, Weighted average remaining	2 years 11 months 1 day
Options outstanding, Weighted average exercise price	$ 6.32
Options exercisable, Number | shares	1,501,934
Options exercisable, Weighted average remaining	1 year 11 months 8 days
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 | shares	792,243
Options outstanding, Weighted average remaining	4 years 1 month 17 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
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 40,981	$ 65,061
Product [Member]
Disaggregation of Revenue [Line Items]
Revenues	35,998	56,949
Transportation [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,995	6,359
Licenses [Member]
Disaggregation of Revenue [Line Items]
Revenues	306	532
Total product revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	40,299	63,840
Installation and other services [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 682	$ 1,221

REVENUE - Disaggregation of R_2

REVENUE - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 40,981	$ 65,061
At a point in time [Member]
Disaggregation of Revenue [Line Items]
Revenues	39,993	63,308
Over time [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 988	$ 1,753

REVENUE - Summary of Contract L

REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Customer deposits	$ 3,590	$ 2,436	$ 6,746
Deferred revenue	1,019	1,131	955
Contract liabilities	$ 4,609	$ 3,567	$ 7,701

REVENUE - (Additional Informati

REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract liabilities recognized as revenue	$ 2.7	$ 6.8

REVENUE - Schedule of Sales by

REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 40,981	$ 65,061
Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenues	28,274	42,149
Healthcare [Member]
Disaggregation of Revenue [Line Items]
Revenues	5,063	12,914
Government [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,127	4,099
Education [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,529	4,146
License Fees from Distribution Partners [Member]
Disaggregation of Revenue [Line Items]
Revenues	306	532
Total product and transportation revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	40,299	63,840
Installation and other services [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 682	$ 1,221

SEGMENT REPORTING - (Additional

SEGMENT REPORTING - (Additional Information) (Detail)	3 Months Ended
	Mar. 31, 2020SegmentCountry
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1
Number of principal geographic locations | Country	2

SEGMENT REPORTING - Schedule of

SEGMENT REPORTING - Schedule of Revenue from External Customers (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	$ 40,981	$ 65,061
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	5,986	7,068
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	$ 34,995	$ 57,993

SEGMENT REPORTING - Schedule _2

SEGMENT REPORTING - Schedule of Non-current Assets Excluding Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 71,442	$ 77,178
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	42,645	47,892
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 28,797	$ 29,286

COMMITMENTS - (Additional Infor

COMMITMENTS - (Additional Information) (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Long-term Purchase Commitment [Line Items]
Operating lease term	12 years	25 years
Undiscounted obligation	$ 6.3	$ 26.6
Undiscounted operating lease liabilities	22.4
Inventory And Property Plant And Equipment [Member]
Long-term Purchase Commitment [Line Items]
Purchase obligation, outstanding	$ 9.8