Dirtt Environmental Solutions (DRTTF) 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Nov. 04, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
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 File Number	001-39061
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	7303 30th Street S.E.
Entity Address, City or Town	Calgary
Entity Address, State or Province	AB
Entity Interactive Data Current	Yes
Entity Address, Postal Zip Code	T2C 1N6
City Area Code	403
Local Phone Number	723-5000
Entity Incorporation, State or Country Code	Z4
Entity Common Stock, Shares Outstanding		84,681,364
Title of 12(b) Security	Common Shares, without par value
Trading Symbol	DRTT
Security Exchange Name	NASDAQ

Interim Condensed Consolidated

Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 50,700	$ 47,174
Trade and other receivables, net of expected credit losses of $0.7 million at September 30, 2020 and $0.1 million December 31, 2019	20,788	24,941
Inventory	16,867	17,566
Prepaids and other current assets	4,208	3,340
Total Current Assets	92,563	93,021
Property, plant and equipment, net	44,962	41,365
Capitalized software, net	8,102	8,213
Operating lease right-of-use assets, net	29,721	20,661
Deferred tax assets, net	1,853	5,364
Goodwill	1,383	1,421
Other assets	4,908	5,518
Total Assets	183,492	175,563
Current Liabilities
Accounts payable and accrued liabilities	21,181	20,384
Other liabilities	3,618	5,187
Customer deposits and deferred revenue	5,862	3,567
Current portion of lease liabilities	5,234	5,287
Total Current Liabilities	35,895	34,425
Long-term debt and other liabilities	5,254	35
Long-term lease liabilities	25,241	16,116
Total Liabilities	66,390	50,576
SHAREHOLDERS’ EQUITY
Common shares, unlimited authorized without par value, 84,681,364 issued and outstanding at September 30, 2020 and December 31, 2019	180,639	180,639
Additional paid-in capital	9,796	8,343
Accumulated other comprehensive loss	(20,246)	(18,028)
Accumulated deficit	(53,087)	(45,967)
Total Shareholders’ Equity	117,102	124,987
Total Liabilities and Shareholders’ Equity	$ 183,492	$ 175,563

Interim Condensed Consolidate_2

Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Trade and other receivables, expected credit losses	$ 664	$ 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues [Abstract]
Total revenue	$ 46,179	$ 65,385	$ 129,315	$ 194,537
Total cost of sales	29,967	40,451	87,572	121,578
Gross profit	16,212	24,934	41,743	72,959
Expenses
Sales and marketing	6,933	8,568	20,518	25,898
General and administrative	6,903	7,280	20,922	21,033
Operations support	2,347	2,419	7,130	7,771
Technology and development	1,959	1,718	6,206	5,881
Stock-based compensation	714	(2,389)	1,600	2,403
Reorganization				2,639
Total operating expenses	18,856	17,596	56,376	65,625
Operating income (loss)	(2,644)	7,338	(14,633)	7,334
Government subsidies	(4,519)		(8,803)
Foreign exchange (gain) loss	485	(198)	(874)	762
Interest income	(27)	(228)	(222)	(320)
Interest expense	100	3	196	77
Non Operating (income) loss	(3,961)	(423)	(9,703)	519
Income (loss) before tax	1,317	7,761	(4,930)	6,815
Income taxes
Current tax expense (recovery)	(953)	818	(1,168)	1,906
Deferred tax expense	4,345	1,141	3,358	1,761
Income tax expense	3,392	1,959	2,190	3,667
Net income (loss)	$ (2,075)	$ 5,802	$ (7,120)	$ 3,148
Income (loss) per share
Basic and diluted income (loss) per share	$ (0.02)	$ 0.07	$ (0.08)	$ 0.04
Weighted average number of shares outstanding (in thousands)
Basic	84,681	84,681	84,681	84,668
Diluted	84,681	85,257	84,681	84,888
Interim Condensed Consolidated Statement of Comprehensive Income (Loss)
Income (loss) for the period	$ (2,075)	$ 5,802	$ (7,120)	$ 3,148
Exchange differences on translation of foreign operations	1,668	(838)	(2,218)	2,534
Comprehensive income (loss) for the period	(407)	4,964	(9,338)	5,682
Product [Member]
Revenues [Abstract]
Total revenue	44,721	63,324	125,785	188,437
Total cost of sales	29,361	38,947	83,402	116,117
Service [Member]
Revenues [Abstract]
Total revenue	1,458	2,061	3,530	6,100
Total cost of sales	$ 606	$ 1,504	2,160	$ 5,461
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 options	3	$ 4	(1)
Issued on exercise of options (in shares)		1,053
Stock-based compensation	(429)		(429)
Foreign currency translation adjustment	2,096			2,096
Net income (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, 2018	123,514	$ 180,562	6,615	(22,092)	(41,571)
Beginning Balance (in shares) at Dec. 31, 2018		84,660,319
Foreign currency translation adjustment	2,534
Net income (loss) for the period	3,148
Ending Balance at Sep. 30, 2019	129,249	$ 180,639	6,591	(19,558)	(38,423)
Ending Balance (in shares) at Sep. 30, 2019		84,681,364
Beginning Balance at Mar. 31, 2019	119,919	$ 180,566	6,185	(19,996)	(46,836)
Beginning Balance (in shares) at Mar. 31, 2019		84,661,372
Issued on exercise of options	13	$ 13
Issued on exercise of options (in shares)		3,825
Foreign currency translation adjustment	1,276			1,276
Net income (loss) for the period	2,611				2,611
Ending Balance at Jun. 30, 2019	123,819	$ 180,579	6,185	(18,720)	(44,225)
Ending Balance (in shares) at Jun. 30, 2019		84,665,197
Issued on exercise of options	60	$ 60
Issued on exercise of options (in shares)		16,167
Stock-based compensation	406		406
Foreign currency translation adjustment	(838)			(838)
Net income (loss) for the period	5,802				5,802
Ending Balance at Sep. 30, 2019	129,249	$ 180,639	6,591	(19,558)	(38,423)
Ending Balance (in shares) at Sep. 30, 2019		84,681,364
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 income (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
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
Foreign currency translation adjustment	(2,218)
Net income (loss) for the period	(7,120)
Ending Balance at Sep. 30, 2020	117,102	$ 180,639	9,796	(20,246)	(53,087)
Ending Balance (in shares) at Sep. 30, 2020		84,681,364
Beginning Balance at Mar. 31, 2020	113,554	$ 180,639	9,006	(24,796)	(51,295)
Beginning Balance (in shares) at Mar. 31, 2020		84,681,364
Stock-based compensation	268		268
Foreign currency translation adjustment	2,882			2,882
Net income (loss) for the period	283				283
Ending Balance at Jun. 30, 2020	116,987	$ 180,639	9,274	(21,914)	(51,012)
Ending Balance (in shares) at Jun. 30, 2020		84,681,364
Stock-based compensation	522		522
Foreign currency translation adjustment	1,668			1,668
Net income (loss) for the period	(2,075)				(2,075)
Ending Balance at Sep. 30, 2020	$ 117,102	$ 180,639	$ 9,796	$ (20,246)	$ (53,087)
Ending Balance (in shares) at Sep. 30, 2020		84,681,364

Interim Condensed Consolidate_5

Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss) for the period	$ (2,075)	$ 5,802	$ (7,120)	$ 3,148
Adjustments:
Depreciation and amortization	2,780	2,925	8,673	9,260
Stock-based compensation, net of settlements	714	(2,646)	1,600	(1,217)
Foreign exchange (gain) loss	552	23	(704)	305
(Gain) loss on disposal of property, plant and equipment			(46)	53
Deferred income tax expense (recovery)	4,345	1,141	3,358	1,761
Changes in operating assets and liabilities:
Trade and other receivables	608	661	4,054	15,970
Inventory	1,028	(436)	392	4
Prepaid and other current assets	(594)	(2,043)	(926)	(2,001)
Other assets	177	76	394	80
Trade accounts payable and other liabilities	(2,447)	(2,160)	(4,617)	(8,615)
Lease liabilities	90	(127)	29	(375)
Customer deposits and deferred revenue	600	(216)	2,308	(492)
Net cash flows provided by operating activities	5,778	3,000	7,395	17,881
Cash flows from investing activities:
Purchase of property, plant and equipment	(2,634)	(4,245)	(7,397)	(7,880)
Capitalized software development expenditures and other asset expenditures	(885)	(918)	(2,800)	(2,513)
Recovery of software development expenditures	257	89	472	194
Proceeds on sale of property, plant and equipment			46	55
Net cash flows used in investing activities	(3,262)	(5,074)	(9,679)	(10,144)
Cash flows from financing activities:
Cash received on exercise of options		61		77
Proceeds received on leasing facilities	3,539		6,130
Repayment on leasing facilities	(84)		(148)
Repayment of long-term debt				(5,561)
Net cash flows provided by (used in) financing activities	3,455	61	5,982	(5,484)
Effect of foreign exchange on cash and cash equivalents	103	(81)	(172)	977
Net increase (decrease) in cash and cash equivalents	6,074	(2,094)	3,526	3,230
Cash and cash equivalents, beginning of period	44,626	58,736	47,174	53,412
Cash and cash equivalents, end of period	50,700	56,642	50,700	56,642
Supplemental disclosure of cash flow information:
Interest paid	$ 100	3	196	77
Income taxes paid		$ 953	$ 58	$ 1,403

GENERAL INFORMATION

GENERAL INFORMATION	9 Months Ended
	Sep. 30, 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®” or “ICE Software”) with integrated in-house manufacturing of its innovative prefabricated interior construction solutions and an extensive distribution partners network (“Distribution Partners”). ICE provides accurate design, drawing, specification, pricing and manufacturing process information, allowing rapid production of high-quality custom solutions using fewer resources than traditional manufacturing methods. ICE is also licensed to unrelated companies and Distribution Partners of the Company. DIRTT is incorporated under the laws of the province of Alberta, Canada, its headquarters is located at 7303 – 30th Street S.E., Calgary, AB, Canada T2C 1N6 and its registered office is located at 4500, 855 – 2nd Street S.W., Calgary, AB, Canada T2P 4K7. DIRTT’s common shares trade on the Toronto Stock Exchange under the symbol “DRT” and on The Nasdaq Global Select Market (“Nasdaq”) under the symbol “DRTT”.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
BASIS OF PRESENTATION	2. BASIS OF 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 and Article 10 of Regulation S-X and, accordingly, the Financial Statements do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of the Company, the Financial Statements contain all adjustments necessary, consisting of only normal recurring adjustments, for a fair statement of its financial position as of September 30, 2020, and its results of operations and cash flows for the three and nine months ended September 30, 2020 and 2019. The condensed balance sheet at December 31, 2019, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. These Financial Statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 included in the Company’s Annual Report on Form 10-K. The Company adopted new accounting standards relating to credit losses and cloud computing effective January 1, 2020. Further information on these standards and the impact on the Company of these standards is described in Note 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 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	9 Months Ended
	Sep. 30, 2020
Accounting Changes And Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	3. COVID-19 On March 11, 2020, COVID-19 was declared a global pandemic by the World Health Organization and has had extraordinary and rapid negative impacts on global societies, workplaces, economies and health systems. The impact of COVID-19 on DIRTT’s business in the near and mid-term remains uncertain. The resulting adverse economic conditions are expected to negatively impact construction activity in the near term at the very least, with potential significant negative impacts extending to the first half of 2021 and beyond. While many construction sites remain open and re-opening strategies have been implemented across North America, certain projects currently underway are experiencing delays, impacted by both the implementation of social distancing and other safety related measures and the re-emergence of COVID-19 in certain geographic areas. The timing and pace of economic recovery, or the resumption of construction activity and related demand, is not possible to predict nor its impact on achievement of DIRTT’s business objectives. Key sources of estimation uncertainty can be found in the Company’s annual consolidated financial statements for the year ended December 31, 2019. COVID-19 has increased the complexity of estimates and assumptions used to prepare the interim condensed consolidated financial statements, particularly related to the following key sources of estimation uncertainty: Credit risk COVID-19 may cause DIRTT’s Distribution Partners and customers to experience liquidity issues and this may result in higher expected credit losses or slower collections. Management estimated the impact of expected credit losses and increased the provision by $0.6 million in the first quarter of 2020 (see Note 5). Management will continue to reassess the impact of COVID-19 on Distribution Partners in subsequent periods and the estimation of such credit losses is complex because of limited historical precedent for the current economic situation. In addition, the Company acquired trade credit insurance effective April 1, 2020. 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. Government subsidies As part of the Canadian federal government’s COVID-19 Economic Response Plan, the Canadian government established the Canadian Emergency Wage Subsidy (“CEWS”). As originally implemented, the CEWS provides the Company with a taxable subsidy of up to 75% of wages paid to Canadian employees during the periods extending from March 15, 2020 to June 6, 2020 (subsequently extended to December 2020 and gradually reducing the maximum subsidy, The Company reviews its eligibility for the CEWS for each qualifying period. The Company accounts for such government subsidies on an accrual basis when the conditions for eligibility are met. The Company has adopted an accounting policy to present government subsidies as other income. Impairment For the first and second quarter of 2020, our market capitalization was less than our book value of our equity which was a potential indicator of impairment. Management compared forecasted undiscounted cash flows to the book values of non-current assets and determined an impairment provision was not required for such periods. At September 30, 2020, management determined an impairment provision was not required as our outlook remains unchanged from the second quarter of 2020 and our share price has increased. The impact of COVID-19 on DIRTT’s Distribution Partners or the Company’s operations may change cash flows and impact the recoverability of our assets in the future. Furthermore, COVID-19 and its related economic and social impacts are rapidly evolving and may affect our ability to accurately use historical sales trends and cash flows to forecast future results leading to additional estimation uncertainty with respect to impairment testing. Deferred tax assets (“DTA”) The Company’s ability to generate future taxable income may be impacted by COVID-19 which creates additional uncertainty regarding the recoverability of DTAs. To the extent additional taxable losses are generated, this may present significant unfavorable evidence of recoverability of DTAs and require the Company to recognize valuation allowance against DTA. During the third quarter, the Company recorded a valuation allowance against DTAs in its Canadian entity, see Note 10.

ADOPTION OF NEW AND REVISED ACC

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS	4. ADOPTION OF NEW AND REVISED ACCOUNTING On January 1, 2020, the Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses in Financial Instruments 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, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” which amends ASC 350-40, “ Intangibles – Goodwill and Other – Internal-Use Software 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	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
TRADE AND OTHER RECEIVABLES	5. TRADE AND OTHER Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates an allowance for credit losses using the lifetime expected credit loss at each measurement date taking into account historical credit loss experience as well as forward- looking information in order to establish rates for each class of financial receivable with similar risk characteristics. Adjustments to this estimate are recognized in the statement of operations. In order to manage and assess our risk, management maintains credit policies that include regular review of credit limits of individual receivables and systematic monitoring of aging of trade receivables and the financial wellbeing of our customers. In addition, we acquired trade credit insurance effective April 1, 2020. At September 30, 2020, approximately 80% of our trade accounts receivable are insured, relating to accounts receivables from counterparties deemed creditworthy by the insurer and excluding accounts receivable from government entities, that have arisen since April 1, 2020. 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 September 30, 2020 December 31, 2019 Current 14,448 20,087 Overdue 1,111 2,401 15,559 22,488 Less: expected credit losses (664 ) (84 ) 14,895 22,404 Other receivables 193 402 Government subsidies receivable 2,747 - Income tax receivable 2,953 2,135 20,788 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 declined at March 31, 2020 compared to January 1, 2020. As a result of this consideration and the Company’s ongoing review of the credit quality of receivables, expected credit losses were increased by $0.6 million during the quarter ended March 31, 2020. No further adjustments to our expected credit losses were required at September 30, 2020.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
LONG-TERM DEBT	6. LONG-TERM DEBT On July 19, 2019, the Company entered into a C$50.0 million senior secured revolving credit facility (the “RBC Facility”) with the Royal Bank of Canada (“RBC”). 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 stock-based compensation, plus or minus extraordinary or unusual non-recurring revenue or expenses) calculated on a trailing four quarter basis (the “Covenants”). During the second quarter of 2020, the Company entered into a letter agreement with RBC (the “Letter Agreement”). Under the Letter Agreement, the Covenants are waived for the June 30 and September 30, 2020 quarterly measurement dates (the “Covenant Holiday Period”). During the Covenant Holiday Period, the Company is able to borrow to a maximum of 75% of eligible accounts receivable and 25% of eligible inventory, less priority payables, subject to an aggregate limit of C$50.0 million including amounts borrowed under Leasing Facilities (as defined herein). During the Covenant Holiday Period the Company is required to maintain a cash balance of $10.0 million if no loans are drawn under the facility, have Adjusted EBITDA of not less than a loss of $7.0 and $16.5 million for the twelve month periods ended June 30 and September 30, 2020, and make capital expenditures of no more than $10.7 million during the Covenant Holiday Period. As at September 30, 2020, the RBC Facility was undrawn and the available borrowing base was $11.6 million. The Company was in compliance with the covenants of the RBC Facility as at September 30, 2020. During the second quarter of 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 equipment expenditures and certain equipment expenditures already incurred. The Leasing Facilities, respectively, have seven and five-year terms and bear interest at 4.25% and 4.50%. The U.S. leasing facility is amortized over a six-year term and extendible at the Company’s option for an additional year. During the third quarter of 2020, the Company received $3.5 million of cash consideration under the U.S. leasing facility and commenced the lease term for the U.S. equipment lease expenditures. The Company received C$3.6 million ($2.6 million) of cash consideration under the leasing facility in Canada and commenced the lease term for the Canadian equipment expenditures during the second quarter of 2020. The associated financial liabilities are shown on the consolidated balance sheet in other current and long-term debt and other liabilities. The Leasing Facilities are accounted for as finance leases as ownership of the equipment is expected to return to the Company at the end of the lease term. These transactions are not accounted for as a sale of the underlying equipment as the Company continues to control the equipment.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
STOCK-BASED COMPENSATION	7. STOCK-BASED In May 2020, shareholders approved the DIRTT Environmental Solutions Ltd. Long-Term Incentive Plan (the “2020 LTIP”) at the annual and special meeting of shareholders. The 2020 LTIP gives the Company the ability to award options, share appreciation rights, restricted share units, restricted shares, dividend equivalent rights granted in connection with restricted share units, vested share awards, and other share-based awards and cash awards to eligible employees, officers, consultants and directors of the Company and its affiliates. In accordance with the 2020 LTIP, the sum of (i) 5,850,000 common shares plus (ii) the number of common shares subject to stock options previously granted under the Company’s Amended and Restated Incentive Stock Option Plan (the “Stock Option Plan”) that, following May 22, 2020, expire or are cancelled or terminated without having been exercised in full have been reserved for issuance under the 2020 LTIP. As at September 30, 2020, 4,091,462 common shares were available for issuance under the 2020 The Company also maintains the DIRTT Environmental Solutions Ltd. Deferred Share Unit Plan for Non-Employee Directors pursuant to which deferred share units (“DSUs”) are granted to the Company’s non-employee directors. Prior to the approval of the 2020 LTIP, the Company granted awards of options under the Stock Option Plan and awards of performance share units (“PSUs”) under the DIRTT Environmental Solutions Ltd. Performance Share Unit Plan (the “PSU Plan”). Following the approval of the 2020 LTIP, no further awards will be made under either the Stock Option Plan or the PSU Plan, but both remain in place to govern the terms of any awards that were granted pursuant to such plans and remain outstanding. Stock-based compensation expense For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Options 216 (2,573 ) 1,105 1,890 Performance share units ("PSUs") 10 110 8 189 Deferred share units ("DSUs") 182 74 139 324 Restricted share units ("RSUs") 306 - 348 - 714 (2,389 ) 1,600 2,403 Options During the three and nine months ended September 30, 2019, the Company accounted for the fair value of outstanding 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 Nasdaq, the Company ceased optional cash-settlement of options and the associated liability accounting for options. For the three and nine months ended September 30, 2019, the Company paid $0.3 million and $3.6 million respectively on the surrender and cash settlement of options. The following summarizes options granted, exercised, surrendered, forfeited and expired during the Number of Weighted average option s exercise price C $ Outstanding at December 31, 2018 6,858,376 5.88 Granted 1,359,824 7.51 Surrendered for cash (1,544,151 ) 4.95 Exercised (21,045 ) 4.81 Forfeited (243,761 ) 6.22 Expired (119,336 ) 5.63 Outstanding at September 30, 2019 6,289,907 6.51 Outstanding at December 31, 2019 6,156,652 6.49 Forfeited (1,154,956 ) 6.29 Expired (220,330) 6.81 Outstanding at September 30, 2020 4,781,366 6.52 Exercisable at September 30, 2020 2,060,626 6.35 Range of exercise prices of options outstanding at September 30, 2020: Options outstandin g Options exercisabl e Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstandin g lif e price C $ exercisabl e lif e price C $ C$4.01 – C$5.00 22,537 4.14 4.12 - C$5.01 – C$6.00 670,986 1.39 5.76 670,986 1.39 5.76 C$6.01 – C$7.00 3,301,982 3.04 6.38 1,127,089 3.18 6.45 C$7.01 – C$8.00 785,861 3.63 7.84 262,551 3.63 7.84 Total 4,781,366 2,060,626 PSUs As at September 30, 2020, there were 197,471 PSUs outstanding (December 31, 2019 – 223,052) accounted for at a value of $0.03 million (December 31, 2019 – $0.2 million) which is included in long-term debt and other liabilities on the balance sheet. DSUs As at September 30, 2020, there were 327,444 DSUs outstanding (December 31, 2019 – 132,597) accounted for at a value of $0.5 million, which is included in current portion of other liabilities on the balance sheet (December 31, 2019 – $0.4 million). RSUs On June 17, 2020, the Company granted 2,578,971 RSUs and an additional 25,566 RSUs were granted on August 3, 2020. Of the RSUs granted, 2,404,537 RSUs have an aggregate time-based vesting period of three years and vest one third every year over a three-year period from the date of grant. At the end of a three-year term, the RSUs will be settled by way of the provision of cash or shares to employees (or a combination thereof), at the discretion of the Company. The fair values of the June 17, 2020 and August 3, 2020 RSU grants were determined to be C$1.89 and C$2.16, respectively, which was the volume weighted average price of the Company’s common shares on the respective grant date. During the third quarter of 2020, 3,879 RSUs were forfeited. Of the RSUs granted, 200,000 RSUs were granted to an executive with service and performance-based conditions for vesting (the “Performance RSUs”). If the Company’s share price increases to C$3.00 for 20 consecutive trading days within three years of the grant date, then 50% (100,000) of the Performance RSUs will vest at the end of the three-year service period. If the Company’s share price increases to C$4.00 for 20 consecutive trading days within three years of the grant date, 100% (200,000) of the Performance RSUs will vest at the end of the three-year service period. If the Company’s share price increases to C$6.00 for 20 consecutive trading days within three years of the grant date, then 150% (300,000) of the Performance RSUs will vest at the end of the three-year service period. The grant date fair value of the Performance RSUs were valued using the Monte Carlo valuation method and determined to have a weighted average grant date fair value of C$1.70. Dilutive instruments For the three and nine months ended September 30, 2020, 4.8 million options (2019 – 4.3 million) and 4.8 million options (2019 – 3.4 million) and 2.7 million RSUs (2019 – nil) 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	9 Months Ended
	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
REVENUE	8. REVENUE In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 9 for the disaggregation of revenue by geographic region. For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Product 40,212 56,486 113,131 168,321 Transportation 4,179 6,429 11,719 18,644 License fees from Distribution Partners 330 409 935 1,472 Total product revenue 44,721 63,324 125,785 188,437 Installation and other services 1,458 2,061 3,530 6,100 46,179 65,385 129,315 194,537 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 September 30, For the nine months ended September 30, 2020 2019 2020 2019 At a point in time 44,391 62,915 124,850 186,965 Over time 1,788 2,470 4,465 7,572 46,179 65,385 129,315 194,537 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 September 30, 2020 December 31, 2019 December 31, 2018 Customer deposits 5,234 2,436 6,746 Deferred revenue 628 1,131 955 Contract liabilities 5,862 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 higher as at September 30, 2020 compared to December 31, 2019 mainly due to the timing of orders and payments. Contract liabilities as at December 31, 2019 and 2018, respectively, totaling $3.1 million and $7.5 million were recognized as revenue during the year-to-date periods ended September 30, 2020 and 2019, respectively. 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. For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Commercial 22,617 42,910 75,987 124,248 Healthcare 15,880 9,192 28,360 32,452 Government 2,762 3,855 9,849 12,267 Education 3,132 6,958 10,654 17,998 License fees from Distribution Partners 330 409 935 1,472 Total product and transportation revenue 44,721 63,324 125,785 188,437 Installation and other services 1,458 2,061 3,530 6,100 46,179 65,385 129,315 194,537

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
SEGMENT REPORTING	9. SEGMENT The Company has one reportable and operating segment and operates in two principal geographic locations – Canada and the United States. Revenue continues to be derived almost exclusively from projects in North America and predominantly from the United States, with periodic international projects from North American Distribution Partners. The Company’s revenue from operations from external customers, based on location of operations, and information about its non-current assets, are detailed below. Revenue from external customers For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Canada 4,340 8,956 14,667 24,795 U.S. 41,839 56,429 114,648 169,742 46,179 65,385 129,315 194,537 Non-current assets, excluding deferred tax assets As at September 30, 2020 1 December 31, 2019 1 Canada 42,511 47,892 U.S. 46,565 29,286 89,076 77,178 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use assets, goodwill and other

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	10. INCOME In the third quarter of 2020, the Company recorded a full valuation allowance (C$4.2 million or $3.1 million) against DTAs in its Canadian entity as the Company’s Canadian entity has experienced cumulative losses in recent years. Although earnings were positive in 2019, ongoing near term uncertainties on the business caused by the COVID-19 pandemic and the related decline in business activity impacted the Canadian entity’s ability to generate earnings. Accordingly, it is not more likely than not that the Canadian Entity’s DTAs will be utilized in the near term. The Company has maintained DTAs in the U.S. subsidiary as the U.S. entity has cumulative earnings in recent years and it is more likely than not that the DTAs will be utilized. Certain stock-based compensation expense is not deductible in the calculation of the Company’s income taxes in Canada. Accordingly, the fair value adjustment recorded during the period ended September 30, 2019 impacted our effective tax rate during that period.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS	11. COMMITMENTS As at September 30, 2020, the Company had outstanding purchase obligations of approximately $7.1 million related to inventory and property, plant and equipment purchases (December 31, 2019 - $6.8 million). As at September 30, 2020, the Company had undiscounted operating lease liabilities of $52.0 million. In September 2020, the Company commenced the 25 year lease associated with the construction of a new combined tile and millwork facility in Rock Hill, South Carolina (“South Carolina Plant”). Rent obligations associated with this lease of $28.1 million which includes the initial 15 year term and two 5 year extensions, discounted at a rate of 5.5%, increased operating lease right-of-use assets and liabilities by $12.5 million During the first quarter of 2020, the Company entered into a lease agreement with a term of 12 years, with rent expected to commence in the fourth quarter of 2020, associated with a new DIRTT Experience Center (“DXC”) in Plano, Texas. Undiscounted rent obligations associated with this lease are $6.7 million.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 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 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)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Schedule of accounts, notes, loans and financing receivable	The Company’s aged receivables were as follows: As at September 30, 2020 December 31, 2019 Current 14,448 20,087 Overdue 1,111 2,401 15,559 22,488 Less: expected credit losses (664 ) (84 ) 14,895 22,404 Other receivables 193 402 Government subsidies receivable 2,747 - Income tax receivable 2,953 2,135 20,788 24,941

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of stock-based compensation expense	Stock-based compensation expense For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Options 216 (2,573 ) 1,105 1,890 Performance share units ("PSUs") 10 110 8 189 Deferred share units ("DSUs") 182 74 139 324 Restricted share units ("RSUs") 306 - 348 - 714 (2,389 ) 1,600 2,403
Summary of options granted, exercised, surrendered, forfeited and expired	The following summarizes options granted, exercised, surrendered, forfeited and expired during the Number of Weighted average option s exercise price C $ Outstanding at December 31, 2018 6,858,376 5.88 Granted 1,359,824 7.51 Surrendered for cash (1,544,151 ) 4.95 Exercised (21,045 ) 4.81 Forfeited (243,761 ) 6.22 Expired (119,336 ) 5.63 Outstanding at September 30, 2019 6,289,907 6.51 Outstanding at December 31, 2019 6,156,652 6.49 Forfeited (1,154,956 ) 6.29 Expired (220,330) 6.81 Outstanding at September 30, 2020 4,781,366 6.52 Exercisable at September 30, 2020 2,060,626 6.35
Summary of options outstanding by range of exercise prices	Range of exercise prices of options outstanding at September 30, 2020: Options outstandin g Options exercisabl e Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstandin g lif e price C $ exercisabl e lif e price C $ C$4.01 – C$5.00 22,537 4.14 4.12 - C$5.01 – C$6.00 670,986 1.39 5.76 670,986 1.39 5.76 C$6.01 – C$7.00 3,301,982 3.04 6.38 1,127,089 3.18 6.45 C$7.01 – C$8.00 785,861 3.63 7.84 262,551 3.63 7.84 Total 4,781,366 2,060,626

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 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 disaggregation of revenue by geographic region. For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Product 40,212 56,486 113,131 168,321 Transportation 4,179 6,429 11,719 18,644 License fees from Distribution Partners 330 409 935 1,472 Total product revenue 44,721 63,324 125,785 188,437 Installation and other services 1,458 2,061 3,530 6,100 46,179 65,385 129,315 194,537 For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 At a point in time 44,391 62,915 124,850 186,965 Over time 1,788 2,470 4,465 7,572 46,179 65,385 129,315 194,537
Summary of contract liabilities	Contract Liabilities As at September 30, 2020 December 31, 2019 December 31, 2018 Customer deposits 5,234 2,436 6,746 Deferred revenue 628 1,131 955 Contract liabilities 5,862 3,567 7,701
Schedule of sales by industry	For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Commercial 22,617 42,910 75,987 124,248 Healthcare 15,880 9,192 28,360 32,452 Government 2,762 3,855 9,849 12,267 Education 3,132 6,958 10,654 17,998 License fees from Distribution Partners 330 409 935 1,472 Total product and transportation revenue 44,721 63,324 125,785 188,437 Installation and other services 1,458 2,061 3,530 6,100 46,179 65,385 129,315 194,537

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Schedule of revenue from external customers	Revenue from external customers For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Canada 4,340 8,956 14,667 24,795 U.S. 41,839 56,429 114,648 169,742 46,179 65,385 129,315 194,537
Schedule of non-current assets, excluding deferred tax assets	Non-current assets, excluding deferred tax assets As at September 30, 2020 1 December 31, 2019 1 Canada 42,511 47,892 U.S. 46,565 29,286 89,076 77,178 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use assets, goodwill and other

COVID-19 - (Additional Informat

COVID-19 - (Additional Information) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Sep. 30, 2020
Accounting Changes And Error Corrections [Abstract]
Increase in credit losses	$ 0.6
Percent of reimbursement of employee wages		75.00%

TRADE AND OTHER RECEIVABLES (Ad

TRADE AND OTHER RECEIVABLES (Additional Information) (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2020
Percent of trade accounts receivable insured		80.00%
Percentage of Total Account Receivable		50.00%
Increase in credit losses	$ 0.6
Accounts Receivable [Member]
Percentage of Total Account Receivable		10.00%

TRADE AND OTHER RECEIVABLES - S

TRADE AND OTHER RECEIVABLES - Schedule of accounts, notes, loans and financing receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Current	$ 14,448	$ 20,087
Overdue	1,111	2,401
Total accounts receivable	15,559	22,488
Less: expected credit losses	(664)	(84)
Net accounts receivable	14,895	22,404
Other receivables	193	402
Government subsidies receivable	2,747	0
Income tax receivable	2,953	2,135
Accounts and other receivables, net, current	$ 20,788	$ 24,941

LONG-TERM DEBT - (Additional In

LONG-TERM DEBT - (Additional Information) (Detail) $ in Thousands, $ in Millions	Jul. 19, 2019CAD ($)	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2020CAD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Sep. 30, 2020CAD ($)	Jun. 30, 2020CAD ($)
Debt Instrument [Line Items]
Cash consideration received under leasing facility		$ 3,539				$ 6,130
Canadian Dollar Advances [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity										$ 5
Cash consideration received under leasing facility				$ 3.6
US Dollar Advances [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity			$ 16,000					$ 16,000
Cash consideration received under leasing facility		3,500	$ 2,600
Minimum [Member]
Debt Instrument [Line Items]
Revolving credit facility, basis spread on variable rate			4.50%	4.50%
Maximum [Member]
Debt Instrument [Line Items]
Revolving credit facility, basis spread on variable rate			4.25%	4.25%
Covenant Holiday Period [Member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity									$ 50
Cash balance		10,000			$ 10,000	10,000	$ 10,000
Line of credit available borrowing capacity		11,600			11,600	11,600	11,600
Covenant Holiday Period [Member] | Minimum [Member]
Debt Instrument [Line Items]
Adjusted EBITDA							16,500	$ 7,000
Covenant Holiday Period [Member] | Maximum [Member]
Debt Instrument [Line Items]
Cash balance		$ 10,700			$ 10,700	$ 10,700	$ 10,700
Accounts Receivable [Member] | Covenant Holiday Period [Member]
Debt Instrument [Line Items]
Percent of maximum eligible amount to borrow					75.00%
Inventory [Member] | Covenant Holiday Period [Member]
Debt Instrument [Line Items]
Percent of maximum eligible amount to borrow					25.00%
Senior Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
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) $ in Thousands	Aug. 03, 2020$ / sharesshares	Jun. 17, 2020$ / sharesshares	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)shares	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2019USD ($)shares	May 31, 2020shares	Dec. 31, 2019USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance							5,850,000
Number of shares available for issuance			4,091,462		4,091,462
Securities excluded from calculation of net income (loss) per share			4,800,000	4,300,000	4,800,000	3,400,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payments on surrender and cash settlement of stock options | $				$ 300		$ 3,600
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, share units outstanding			197,471		197,471			223,052
Share-based arrangements, liability | $			$ 30		$ 30			$ 200
Deferred Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, share units outstanding			327,444		327,444			132,597
Share-based arrangements, liability | $			$ 500		$ 500			$ 400
Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation other than options grants in the period	25,566	2,578,971
Share based compensation other than options having service period		2,404,537
Share-based compensation arrangement by share-based payment award, award requisite service period		3 years
Share based compensation other than options forfeited in the period			3,879
Stock granted for service					200,000
Share-based compensation arrangement by share-based payment award, award vesting rights					If the Company’s share price increases to C$3.00 for 20 consecutive trading days within three years of the grant date, then 50% (100,000) of the Performance RSUs will vest at the end of the three-year service period. If the Company’s share price increases to C$4.00 for 20 consecutive trading days within three years of the grant date, 100% (200,000) of the Performance RSUs will vest at the end of the three-year service period. If the Company’s share price increases to C$6.00 for 20 consecutive trading days within three years of the grant date, then 150% (300,000) of the Performance RSUs will vest at the end of the three-year service period.
Securities excluded from calculation of net income (loss) per share			2,700,000	0	2,700,000	0
Restricted Share Units [Member] | Volume Weighted Average Price Method [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the RSUs | $ / shares	$ 2.16	$ 1.89
Restricted Share Units [Member] | Monte Carlo Valuation Method [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation other than option grant date fair value | $ / shares					$ 1.70

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 714	$ (2,389)	$ 1,600	$ 2,403
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	216	(2,573)	1,105	1,890
Performance Share Units ("PSUs") [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	10	110	8	189
Deferred Share Units ("DSUs") [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	182	$ 74	139	$ 324
Restricted Share Units ("RSUs") [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 306		$ 348

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - Employee Stock Option [Member] - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 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, Granted		1,359,824
Number of options, Surrendered for cash		(1,544,151)
Number of options, Exercised		(21,045)
Number of options, Forfeited	(1,154,956)	(243,761)
Number of options, Expired	(220,330)	(119,336)
Number of options, Outstanding at the end	4,781,366	6,289,907
Number of options, Exercisable	2,060,626
Weighted average exercise price, Outstanding at the beginning	$ 6.49	$ 5.88
Weighted average exercise price, Granted		7.51
Weighted average exercise price, Surrendered for cash		4.95
Weighted average exercise price, Exercised		4.81
Weighted average exercise price, Forfeited	6.29	6.22
Weighted average exercise price, Expired	6.81	5.63
Weighted average exercise price, Outstanding at the end	6.52	$ 6.51
Weighted average exercise price, Exercisable	$ 6.35

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding, Number | shares	4,781,366
Options exercisable, Number | shares	2,060,626
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 1 month 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	670,986
Options outstanding, Weighted average remaining	1 year 4 months 20 days
Options outstanding, Weighted average exercise price	$ 5.76
Options exercisable, Number | shares	670,986
Options exercisable, Weighted average remaining	1 year 4 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	3,301,982
Options outstanding, Weighted average remaining	3 years 14 days
Options outstanding, Weighted average exercise price	$ 6.38
Options exercisable, Number | shares	1,127,089
Options exercisable, Weighted average remaining	3 years 2 months 4 days
Options exercisable, Weighted average exercise price	$ 6.45
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	785,861
Options outstanding, Weighted average remaining	3 years 7 months 17 days
Options outstanding, Weighted average exercise price	$ 7.84
Options exercisable, Number | shares	262,551
Options exercisable, Weighted average remaining	3 years 7 months 17 days
Options exercisable, 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 46,179	$ 65,385	$ 129,315	$ 194,537
Product [Member]
Disaggregation of Revenue [Line Items]
Revenues	40,212	56,486	113,131	168,321
Transportation [Member]
Disaggregation of Revenue [Line Items]
Revenues	4,179	6,429	11,719	18,644
License fees from Distribution Partners [Member]
Disaggregation of Revenue [Line Items]
Revenues	330	409	935	1,472
Total product revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	44,721	63,324	125,785	188,437
Installation and other services [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 1,458	$ 2,061	$ 3,530	$ 6,100

REVENUE - Disaggregation of R_2

REVENUE - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 46,179	$ 65,385	$ 129,315	$ 194,537
At a point in time [Member]
Disaggregation of Revenue [Line Items]
Revenues	44,391	62,915	124,850	186,965
Over time [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 1,788	$ 2,470	$ 4,465	$ 7,572

REVENUE - Summary of Contract L

REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue From Contract With Customer [Abstract]
Customer deposits	$ 5,234	$ 2,436	$ 6,746
Deferred revenue	628	1,131	955
Contract liabilities	$ 5,862	$ 3,567	$ 7,701

REVENUE - (Additional Informati

REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenue From Contract With Customer [Abstract]
Contract liabilities recognized as revenue	$ 3.1	$ 7.5

REVENUE - Schedule of Sales by

REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 46,179	$ 65,385	$ 129,315	$ 194,537
Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenues	22,617	42,910	75,987	124,248
Healthcare [Member]
Disaggregation of Revenue [Line Items]
Revenues	15,880	9,192	28,360	32,452
Government [Member]
Disaggregation of Revenue [Line Items]
Revenues	2,762	3,855	9,849	12,267
Education [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,132	6,958	10,654	17,998
License Fees from Distribution Partners [Member]
Disaggregation of Revenue [Line Items]
Revenues	330	409	935	1,472
Total product and transportation revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	44,721	63,324	125,785	188,437
Installation and other services [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 1,458	$ 2,061	$ 3,530	$ 6,100

SEGMENT REPORTING - (Additional

SEGMENT REPORTING - (Additional Information) (Detail)	9 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	$ 46,179	$ 65,385	$ 129,315	$ 194,537
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	4,340	8,956	14,667	24,795
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	$ 41,839	$ 56,429	$ 114,648	$ 169,742

SEGMENT REPORTING - Schedule _2

SEGMENT REPORTING - Schedule of Non-current Assets Excluding Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 89,076	$ 77,178
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	42,511	47,892
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets, excluding deferred tax assets	$ 46,565	$ 29,286

INCOME TAXES - (Additional Info

INCOME TAXES - (Additional Information) (Detail) - Sep. 30, 2020 $ in Millions, $ in Millions	USD ($)	CAD ($)
Canadian Entity [Member]
Schedule Of Income Tax [Line Items]
Valuation allowance against DTAs	$ 3.1	$ 4.2

COMMITMENTS - (Additional Infor

COMMITMENTS - (Additional Information) (Detail) $ in Millions	1 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)LeaseExtension	Sep. 30, 2020USD ($)LeaseExtension	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Long-term Purchase Commitment [Line Items]
Undiscounted operating lease liabilities	$ 52	$ 52
Operating lease term	25 years	25 years	12 years
Rent obligations	$ 28.1	$ 28.1
Initial lease term	15 years
Lease extension period		two 5 year extensions
Extension lease term	5 years	5 years
Number of lease extensions | LeaseExtension	2	2
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Discount rate	5.50%	5.50%
Increase in operating lease right-of-use assets	$ 12.5
Increase in operating lease liabilities	12.5
Undiscounted obligation			$ 6.7
Inventory And Property Plant And Equipment [Member]
Long-term Purchase Commitment [Line Items]
Purchase obligation, outstanding	$ 7.1	$ 7.1		$ 6.8