Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
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 | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity File Number | 001-39061 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 7303 30th Street S.E. | |
Entity Address, City or Town | Calgary | |
Entity Address, State or Province | AB | |
Entity Interactive Data Current | Yes | |
Entity 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 | 85,334,555 | |
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, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 43,288 | $ 45,846 |
Restricted cash | 2,794 | |
Trade and other receivables, net of expected credit losses of $0.6 million at September 30, 2021 and December 31, 2020 | 17,683 | 18,953 |
Inventory | 17,381 | 15,978 |
Prepaids and other current assets | 5,892 | 4,068 |
Total Current Assets | 87,038 | 84,845 |
Property, plant and equipment, net | 52,457 | 49,847 |
Capitalized software, net | 7,877 | 8,344 |
Operating lease right-of-use assets, net | 32,044 | 33,643 |
Goodwill | 1,448 | 1,449 |
Other assets | 4,900 | 5,016 |
Total Assets | 185,764 | 183,144 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 18,006 | 20,350 |
Other liabilities | 3,273 | 2,779 |
Customer deposits and deferred revenue | 4,249 | 1,819 |
Current portion of long-term debt and accrued interest | 2,479 | 898 |
Current portion of lease liabilities | 6,211 | 5,503 |
Total Current Liabilities | 34,218 | 31,349 |
Deferred tax liabilities, net | 552 | 414 |
Long-term debt | 40,659 | 5,069 |
Long-term lease liabilities | 28,393 | 29,781 |
Total Liabilities | 103,822 | 66,613 |
SHAREHOLDERS’ EQUITY | ||
Common shares, unlimited authorized without par value, 85,334,555 issued and outstanding at September 30, 2021 and 84,681,364 at December 31, 2020 | 181,762 | 180,639 |
Additional paid-in capital | 12,023 | 10,175 |
Accumulated other comprehensive loss | (16,552) | (17,018) |
Accumulated deficit | (95,291) | (57,265) |
Total Shareholders’ Equity | 81,942 | 116,531 |
Total Liabilities and Shareholders’ Equity | $ 185,764 | $ 183,144 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Statement Of Financial Position [Abstract] | ||
Trade and other receivables, expected credit losses | $ 588 | $ 588 |
Common shares, authorized | Unlimited | Unlimited |
Common shares, no par value | $ 0 | $ 0 |
Common shares, shares issued | 85,334,555 | 84,681,364 |
Common shares, shares outstanding | 85,334,555 | 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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues [Abstract] | ||||
Total revenue | $ 34,098 | $ 46,179 | $ 104,665 | $ 129,315 |
Total cost of sales | 31,648 | 29,967 | 89,621 | 87,572 |
Gross profit | 2,450 | 16,212 | 15,044 | 41,743 |
Expenses | ||||
Sales and marketing | 7,536 | 6,933 | 21,770 | 20,518 |
General and administrative | 7,546 | 6,903 | 22,567 | 20,922 |
Operations support | 2,374 | 2,347 | 6,884 | 7,130 |
Technology and development | 2,146 | 1,959 | 6,005 | 6,206 |
Stock-based compensation | 837 | 714 | 3,792 | 1,600 |
Total operating expenses | 20,439 | 18,856 | 61,018 | 56,376 |
Operating loss | (17,989) | (2,644) | (45,974) | (14,633) |
Government subsidies | 2,935 | 4,519 | 10,434 | 8,803 |
Foreign exchange gain (loss) | 526 | (485) | 286 | 874 |
Interest income | 20 | 27 | 62 | 222 |
Interest expense | (823) | (100) | (2,117) | (196) |
Non Operating (income) loss | 2,658 | 3,961 | 8,665 | 9,703 |
Income (loss) before tax | (15,331) | 1,317 | (37,309) | (4,930) |
Income taxes | ||||
Current tax expense (recovery) | (953) | 210 | (1,168) | |
Deferred tax expense | 88 | 4,345 | 137 | 3,358 |
Income tax expense | 88 | 3,392 | 347 | 2,190 |
Net loss | $ (15,419) | $ (2,075) | $ (37,656) | $ (7,120) |
Loss per share | ||||
Basic and diluted loss per share | $ (0.18) | $ (0.02) | $ (0.44) | $ (0.08) |
Weighted average number of shares outstanding (in thousands) | ||||
Basic and Diluted | 85,325 | 84,681 | 84,922 | 84,681 |
Interim Condensed Consolidated Statement of Comprehensive Loss | ||||
Loss for the period | $ (15,419) | $ (2,075) | $ (37,656) | $ (7,120) |
Exchange differences on translation of foreign operations | (855) | 1,668 | 466 | (2,218) |
Comprehensive loss for the period | (16,274) | (407) | (37,190) | (9,338) |
Product [Member] | ||||
Revenues [Abstract] | ||||
Total revenue | 33,054 | 44,721 | 101,683 | 125,785 |
Total cost of sales | 30,717 | 29,361 | 85,359 | 83,402 |
Service [Member] | ||||
Revenues [Abstract] | ||||
Total revenue | 1,044 | 1,458 | 2,982 | 3,530 |
Total cost of sales | $ 931 | $ 606 | 2,506 | 2,160 |
Under-utilized Capacity [Member] | ||||
Revenues [Abstract] | ||||
Total cost of sales | $ 1,756 | $ 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, 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 | ||||
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 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 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 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 | ||||
Beginning Balance at Dec. 31, 2020 | 116,531 | $ 180,639 | 10,175 | (17,018) | (57,265) |
Beginning Balance (in shares) at Dec. 31, 2020 | 84,681,364 | ||||
Stock-based compensation | 796 | 796 | |||
Foreign currency translation adjustment | 605 | 605 | |||
Net loss for the period | (12,499) | (12,499) | |||
Ending Balance at Mar. 31, 2021 | 105,433 | $ 180,639 | 10,971 | (16,413) | (69,764) |
Ending Balance (in shares) at Mar. 31, 2021 | 84,681,364 | ||||
Beginning Balance at Dec. 31, 2020 | 116,531 | $ 180,639 | 10,175 | (17,018) | (57,265) |
Beginning Balance (in shares) at Dec. 31, 2020 | 84,681,364 | ||||
Foreign currency translation adjustment | 466 | ||||
Net loss for the period | (37,656) | ||||
Ending Balance at Sep. 30, 2021 | 81,942 | $ 181,762 | 12,023 | (16,552) | (95,291) |
Ending Balance (in shares) at Sep. 30, 2021 | 85,334,555 | ||||
Beginning Balance at Mar. 31, 2021 | 105,433 | $ 180,639 | 10,971 | (16,413) | (69,764) |
Beginning Balance (in shares) at Mar. 31, 2021 | 84,681,364 | ||||
Stock-based compensation | 1,285 | 1,285 | |||
Issued on vesting of RSUs | $ 1,074 | (1,074) | |||
Issued on vesting of RSUs (in shares) | 630,211 | ||||
RSUs withheld to settle employee tax obligations | (594) | (252) | (342) | ||
Foreign currency translation adjustment | 716 | 716 | |||
Net loss for the period | (9,738) | (9,738) | |||
Ending Balance at Jun. 30, 2021 | 97,102 | $ 181,713 | 10,930 | (15,697) | (79,844) |
Ending Balance (in shares) at Jun. 30, 2021 | 85,311,575 | ||||
Stock-based compensation | 1,177 | 1,177 | |||
Issued on vesting of RSUs | $ 49 | (49) | |||
Issued on vesting of RSUs (in shares) | 22,980 | ||||
RSUs withheld to settle employee tax obligations | (63) | (35) | (28) | ||
Foreign currency translation adjustment | (855) | (855) | |||
Net loss for the period | (15,419) | (15,419) | |||
Ending Balance at Sep. 30, 2021 | $ 81,942 | $ 181,762 | $ 12,023 | $ (16,552) | $ (95,291) |
Ending Balance (in shares) at Sep. 30, 2021 | 85,334,555 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||||
Net loss for the period | $ (15,419) | $ (2,075) | $ (37,656) | $ (7,120) |
Adjustments: | ||||
Depreciation and amortization | 3,815 | 2,780 | 10,638 | 8,673 |
Stock-based compensation, net of settlements | 837 | 714 | 3,580 | 1,600 |
Foreign exchange (gain) loss | (735) | 552 | (495) | (704) |
Accretion of convertible debentures | 89 | 236 | ||
Loss (gain) on disposal of property, plant and equipment | 15 | 15 | (46) | |
Deferred income tax expense (recovery) | 88 | 4,345 | 137 | 3,358 |
Changes in operating assets and liabilities: | ||||
Trade and other receivables | 4,104 | 608 | 1,273 | 4,054 |
Inventory | (944) | 1,028 | (1,444) | 392 |
Prepaid and other current assets | (1,918) | (417) | (2,096) | (532) |
Accounts payable and accrued liabilities | (2,330) | (1,458) | (3,587) | (717) |
Customer deposits and deferred revenue | 1,112 | 600 | 2,429 | 2,308 |
Other liabilities | (1,581) | (1,526) | 186 | (4,437) |
Current portion of long-term debt and accrued interest | 601 | 537 | 1,607 | 537 |
Lease liabilities | 15 | 90 | 918 | 29 |
Net cash flows provided by (used in) operating activities | (12,251) | 5,778 | (24,259) | 7,395 |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment, net of accounts payable changes | (1,755) | (2,634) | (10,462) | (7,397) |
Capitalized software development expenditures and other asset expenditures | (516) | (885) | (1,852) | (2,800) |
Recovery of software development expenditures | 121 | 257 | 145 | 472 |
Proceeds on sale of property, plant and equipment | 46 | |||
Net cash flows used in investing activities | (2,150) | (3,262) | (12,169) | (9,679) |
Cash flows from financing activities: | ||||
Proceeds received on long-term debt | 3,539 | 37,952 | 6,130 | |
Repayment of long-term debt | (457) | (84) | (1,217) | (148) |
Employee tax payments on vesting of RSUs | (63) | (652) | ||
Net cash flows provided by (used in) financing activities | (520) | 3,455 | 36,083 | 5,982 |
Effect of foreign exchange on cash, cash equivalents and restricted cash | (130) | 103 | 581 | (172) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (15,051) | 6,074 | 236 | 3,526 |
Cash, cash equivalents and restricted cash, beginning of period | 61,133 | 44,626 | 45,846 | 47,174 |
Cash, cash equivalents and restricted cash, end of period | 46,082 | 50,700 | 46,082 | 50,700 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (1,231) | $ (100) | (1,360) | (196) |
Income taxes received (paid) | $ 369 | $ 321 | $ (58) |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | Sep. 30, 2021USD ($) |
Statement Of Cash Flows [Abstract] | |
Cash and cash equivalents | $ 43,288 |
Restricted cash | 2,794 |
Total cash, cash equivalents and restricted cash | $ 46,082 |
GENERAL INFORMATION
GENERAL INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
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 ICE® software (“ICE” or “ICE Software”) with integrated in-house manufacturing of its innovative prefabricated interior construction solutions and an extensive network of distribution partners (“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 under the symbol “DRTT”. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
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 (“GAAP”) 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, 2021, and its results of operations and cash flows for the three and nine months ended September 30, 2021 and 2020. The condensed balance sheet at December 31, 2020, 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, 2020 and 2019 and for each of the three years in the period ended December 31, 2020 included in the Annual Report on Form 10-K of the Company as filed with the U.S. Securities and Exchange Commission and applicable securities commissions or similar regulatory authorities in Canada. As described in Note 4, the Company adopted a new accounting standard relating to convertible debentures effective January 1, 2021. Further information on this standard and the impact on the Company of this standard is described in Note 4. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Extraordinary And Unusual Items [Abstract] | |
COVID-19 | 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 resulting adverse economic conditions have negatively impacted construction activity and consequently DIRTT’s business, with significant negative impacts extending through the first nine months of 2021 and potentially beyond. While many construction sites remain open and re-opening strategies have been implemented across North America, certain projects have experienced 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. It is not possible to predict the timing and pace of economic recovery, or the resumption of delayed construction activity and related demand, nor is it possible to predict the impact of such developments on the Company’s ability to achieve its business objectives. COVID-19 has increased the complexity of estimates and assumptions used to prepare the Company’s consolidated financial statements and 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 has continued to reassess the impact of COVID-19 on our Distribution Partners. 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 as a result of COVID-19. To address this risk and the uncertainty around the timing of a recovery from COVID-19, the Company issued convertible unsecured subordinated debentures in January 2021, for net proceeds of $29.5 million, and has credit facilities available as described 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”). The CEWS provides the Company with a taxable subsidy in respect of a specific portion of wages paid to Canadian employees during qualifying periods extending from March 15, 2020 to October 23, 2021 based on the percentage decline of certain of the Company’s Canadian-sourced revenues during each qualifying period. Pursuant to changes enacted as part of the 2021 Canadian federal budget, the Company may be required to repay all or a portion of the CEWS amounts received for any qualifying period commencing after June 5, 2021 where the aggregate compensation for specified executives during the 2021 calendar year exceeds the aggregate compensation for specified executives during the 2019 calendar year. The Company’s eligibility for the CEWS may change for each qualifying period and is reviewed by the Company for each qualifying period. On November 19, 2020, the Canadian government also implemented the Canada Emergency Rent Subsidy (“CERS”). The CERS provides a taxable subsidy to cover eligible expenses for qualifying properties, subject to certain maximums, for qualifying periods extending from September 27, 2020 to October 23, 2021, with the amount of the subsidy based on the percentage decline of certain of the Company’s Canadian-sourced revenues in each qualifying period. The Company’s eligibility for the CERS may change for each qualifying period and is reviewed by the Company for each qualifying period. Impairment At September 30, 2021, management determined an impairment provision of non-current assets was not required as our long-term outlook is consistent with the assumptions used in our impairment test undertaken at December 31, 2020. In future periods, if our results are less than our forecast, this conclusion may need to be revisited. |
ADOPTION OF NEW AND REVISED ACC
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2021 | |
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 August 5, 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-06, “Debt – Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)” The Company early adopted this standard on January 1, 2021. The Company had no convertible debt instruments outstanding at December 31, 2020 and the convertible unsecured subordinated debentures issued in January 2021 have been evaluated under this new guidance and there were no other transitional impacts to consider. Although there are several other new accounting standards issued or proposed by the Financial Accounting Standards Board, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its financial statements. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
TRADE AND OTHER RECEIVABLES | 5. TRADE AND OTHER RECEIVABLES Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates an allowance for credit losses using the lifetime expected credit loss at each measurement date taking into account historical credit loss experience as well as forward-looking information in order to establish rates for each class of financial receivable with similar risk characteristics. Adjustments to this estimate are recognized in the statement of operations. In order to manage and assess our risk, management maintains credit policies that include regular review of credit limits of individual receivables and systematic monitoring of aging of trade receivables and the financial wellbeing of our customers. At September 30, 2021, 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 when the trade credit insurance became effective. Our trade balances are spread over a broad Distribution Partner base, which is geographically dispersed. For the three months ended September 30, 2021 no Distribution Partner accounted for greater than 10% of revenue and one Distribution Partner accounted for $13.5 million of revenue for the nine months ended September 30, 2021, which is greater than 10% of total revenue. No Distribution Partners accounted for more than 10% of total revenue for the three and nine months ended September 30, 2020. 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, December 31, 2021 2020 Current 12,121 12,500 Overdue 937 1,211 13,058 13,711 Less: expected credit losses (588 ) (588 ) 12,470 13,123 Sales tax receivable 373 242 Government subsidies receivable 1,513 1,743 Income tax receivable 3,327 3,845 17,683 18,953 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 adjustments to our expected credit losses were required at September 30, 2021. During the nine months ended September 30,2021, no receivables were written off (2020: $0.1 million). Receivables are generally considered to be past due when over 60 days old unless there is a separate payment arrangement in place for the collection of the receivable. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 6. LONG-TERM DEBT Revolving Credit Facility Leasing Facilities Convertible Debentures Total Debt Balance on December 31, 2019 - - - - Issuances - 6,165 - 6,165 Repayments - (420 ) - (420 ) Exchange differences - 222 - 222 Balance at December 31, 2020 - 5,967 - 5,967 Current portion of long-term debt and accrued interest - 898 - 898 Long-term debt - 5,069 - 5,069 Balance on December 31, 2020 - 5,967 - 5,967 Issuances - 8,407 29,545 37,952 Accretion of issue costs - - 236 236 Accrued interest - 372 1,313 1,685 Interest payments - (372 ) (988 ) (1,360 ) Principal repayments - (1,217 ) - (1,217 ) Exchange differences - (71 ) (54 ) (125 ) Balance at September 30, 2021 - 13,086 30,052 43,138 Current portion of long-term debt and accrued interest - 2,163 316 2,479 Long-term debt - 10,923 29,736 40,659 Revolving Credit Facility On February 12, 2021, the Company entered into a loan agreement governing a C$25.0 million senior secured revolving credit facility with the Royal Bank of Canada (“RBC”), as lender (the “RBC Facility”). Under the RBC Facility, the Company is able to borrow up to a maximum of 90% of investment grade or insured accounts receivable plus 85% of eligible accounts receivable plus the lesser of 75% of the book value of eligible inventory and 85% of the net orderly liquidation value of eligible inventory less any reserves for potential prior ranking claims (the “Borrowing Base”). At September 30, 2021, available borrowings are C$8.3 million ($6.5 million), of which no amounts have been drawn. Interest is calculated at the Canadian or U.S. prime rate plus 30 basis points or at the Canadian Dollar Offered Rate or LIBOR plus 155 basis points. Under the RBC Facility, if the Borrowing Base less any loan advances or letters of credit or guarantee and if undrawn including unrestricted cash (the Aggregate Excess Availability) , is less than C $ 5.0 million , the Company is subject to a fixed charge coverage ratio (“ FCCR ”) covenant of 1.10:1 on a trailing twelve month basis. Additionally, if the FCCR has been below 1.10:1 for the three immediately preceding months, the Company is required to maintain a reserve account equal to the aggregate of one year of payments on outstanding loans on the Leasing Facilities (defined below). The Company did not me e t the three month FCCR requirement during the quarter ended September 30, 2021 which result ed in requiring the restriction of $ million of cash at September 30 , 202 1 . Should an event of default occur or the Aggregate Excess Availability be less than C $ 6.25 million for five consecutive business days, the Company would enter a cash dominion period whereby the Company’s bank accounts would be blocked by RBC and daily balances would set-off any borrowings and any remaining amounts made available to the Company. Leasing Facilities The Company has a C$5.0 million equipment leasing facility in Canada (the “Canada Leasing Facility”) and a $14.0 million equipment leasing facility in the United States (the “U.S. Leasing Facility” and, together with the Canada Leasing Facility, the “Leasing Facilities”) with RBC, and one of its affiliates, which are available for equipment expenditures and certain equipment expenditures already incurred. The Leasing Facilities, respectively, have seven and five-year six-year During the nine months ended September 30, 2021, the Company received $8.4 million (twelve months ended December 31, 2020: $3.5 million) of cash consideration under the U.S. Leasing Facility Convertible Debentures On January 25, 2021, the Company completed a C$35.0 million bought-deal financing of convertible unsecured subordinated debentures (the “Debentures”) with a syndicate of underwriters. On January 29, 2021, the Company issued a further C$5.25 million of Debentures under the terms of an overallotment option granted to the underwriters. The Debentures will mature and be repayable on January 31, 2026 (the “Maturity Date”), unless earlier redeemed, repurchased or converted. The Debentures accrue interest at the rate of 6.00% per annum payable semi-annually in arrears on the last day of January and July of each year commencing on July 31, 2021. The Debentures are convertible into common shares of DIRTT, at the option of the holder, at any time prior to the close of business on the business day prior to the earlier of the Maturity Date and the date specified by the Company for redemption of the Debentures at a conversion price of C$4.65 per common share, being a ratio of approximately 215.0538 common shares per C$1,000 principal amount of Debentures. The conversion rate is subject to adjustment if certain corporate events occur prior to the Maturity Date. The net proceeds from the sale of the Debentures were C$37.6 million ($29.5 million), after deducting C$2.7 million of transaction costs which includes the underwriters’ commission and directly attributable professional fees. The Company accounted for the Debentures as a liability as the Debentures meet the definition of traditional convertible debt and there are no embedded derivatives requiring bifurcation. The Debentures are shown on the consolidated balance sheet in long-term debt. Interest expense was determined using the effective interest rate method with an effective interest rate of 7.5%. The contractual interest expense for the Debentures during the three and nine months ended September 30, 2021 The Debentures are not redeemable by the Company before January 31, 2024 , except in certain limited circumstances following a change of control. On and after January 31, 2024 and prior to January 31, 2025, provided that the current market price of our common shares at the time at which notice of redemption is given is at least 125 % of the conversion price, the Debentures may be redeemed by the Company, in whole or in part from time to time, at our option on not more than 60 days ’ and not less than 30 days ’ prior written notice, for an amount equal to the principal amount thereof plus accrued and unpaid interest thereon . On and after January 31, 2025 and prior to the Maturity Date, the Debentures may be redeemed by the Company, in whole or in part from time to time, at our option on not more than 60 days ’ and not less than 30 days ’ prior written notice, for an amount equal to the principal amount thereof plus accrued and unpaid interest thereon . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK-BASED COMPENSATION | 7. STOCK-BASED COMPENSATION In May 2020, our 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. Upon vesting of certain LTIP awards, the Company may withhold shares as a means of meeting DIRTT’s tax withholding requirements in respect of the tax payable by award holders. To the extent the fair value of the withheld shares upon vesting exceeds the grant date fair value of the instrument, the excess amount is credited to retained earnings or deficit. The Company also maintains the DIRTT Environmental Solutions Ltd. Deferred Share Unit Plan for Non-Employee Directors pursuant to which deferred share units (“DSUs”) are granted to the Company’s non-employee directors. DSUs are settled solely in cash. Prior to the approval of the 2020 LTIP, the Company granted awards of options under the Stock Option Plan and awards of performance share units (“PSUs”) under the DIRTT Environmental Solutions Ltd. Performance Share Unit Plan (the “PSU Plan”). Following the approval of the 2020 LTIP, no further awards will be made under either the Stock Option Plan or the PSU Plan, but both remain in place to govern the terms of any awards that were granted pursuant to such plans and remain outstanding. Stock-based compensation expense For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Equity-settled awards 1,177 522 3,258 1,453 Cash-settled awards (340 ) 192 534 147 837 714 3,792 1,600 The following summarizes PSUs, DSUs and RSUs (as defined below) granted, exercised, forfeited and expired during the periods: RSU Time- RSU Performance- Based Based DSU PSU Number of Number of Number of Number of units units units units Outstanding at December 31, 2019 - - 132,597 223,052 Granted 2,404,537 200,000 215,250 - Forfeited (3,879 ) - - (25,581 ) Outstanding at September 30, 2020 2,400,658 200,000 347,847 197,471 Outstanding at December 31, 2020 2,414,066 200,000 363,664 197,471 Granted 1,919,102 878,601 88,880 - Vested (650,898 ) (2,294 ) (55,802 ) (34,635 ) Withheld to settle employee tax obligations (174,103 ) (1,960 ) - - Forfeited (237,910 ) (42,314 ) - (5,636 ) Outstanding at September 30, 2021 3,270,257 1,032,033 396,742 157,200 Restricted share units (time-based vesting) Restricted share units that vest based on time have an aggregate time-based vesting period of three years and generally one-third of the RSUs vest every year over a three-year Restricted share units (performance-based vesting) The Company granted to certain executives and senior employees restricted share units with service and performance-based conditions for vesting (the “PRSUs”). If the Company’s share price increases to certain values for 20 consecutive trading days, as outlined below, a percentage of the PRSUs will vest at the end of the three-year service period. The grant date fair value of the PRSUs were valued using the Monte Carlo valuation method and determined to have a weighted average grant date fair value of C$3.27 (2020 – C$1.70). Based on share price performance since the date of grant, 66.7% of the 2021 PRSUs and 100% of the 2020 PRSUs will vest upon completion of the three-year service period. % of PRSUs vesting 33.3% 50.0% 66.7% 100.0% 150.0% 2021 PRSUs $3.00 - $4.00 $5.00 $7.00 2020 PRSUs - C$3.00 - C$4.00 C$6.00 Deferred share units The fair value of the liability and the corresponding expense is charged to profit or loss at the grant date. Subsequently, at each reporting date between the grant date and settlement date, the fair value of the liability is remeasured with any changes in fair value recognized in profit or loss for the year. DSUs outstanding at September 30, 2021 had a fair value of $1.3 million which is included in other liabilities on the balance sheet (December 31, 2020 – Performance share units Under the terms of the PSU Plan, PSUs granted vest at the end of a three-year The fair value of the liability and the expense attributable to the vesting period is charged to profit or loss at the grant date. Subsequently, at each reporting date between the grant date and settlement date, the fair value of the liability is remeasured with any changes in fair value recognized in profit or loss. As at September 30, 2021, outstanding PSUs had a fair value of $0.1 million which is included in other liabilities on the balance sheet (December 31, 2020 – $0.1 million). Options The following summarizes options granted, exercised, forfeited and expired during the periods: Number of Weighted average option s exercise price C $ 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 Outstanding at December 31, 2020 4,774,328 6.52 Forfeited (39,094 ) 7.07 Outstanding at September 30, 2021 4,735,234 6.51 Exercisable at September 30, 2021 2,741,846 6.49 In 2018, 1,725,000 stock options were granted to an executive with performance conditions for vesting. For 825,000 stock options, vesting is upon an increase in the Company’s share price to C$13.26, and for 900,000 stock options, vesting is upon an increase in the Company’s share price to C$19.89. These options were valued using the Monte Carlo valuation method and determined to have a weighted average grant fair value of C$2.14 on original grant. These awards were accounted for at the fair value attributable to the vesting period until October 9, 2019 when these were reclassified to equity accounting and were re-valued at a weighted average fair value of C$0.83. Range of exercise prices outstanding at September 30, 2021: 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 life price C $ C$4.01 – C$5.00 22,537 3.14 4.12 7,513 3.14 4.12 C$5.01 – C$6.00 666,237 0.14 5.76 666,237 0.14 5.76 C$6.01 – C$7.00 3,283,774 2.04 6.38 1,551,876 2.13 6.36 C$7.01 – C$8.00 762,686 2.63 7.84 516,220 2.63 7.84 Total 4,735,234 2,741,846 Dilutive Instruments For the three and nine months ended September 30, 2021, 4.7 million options (2020 – 4.8 million), 4.4 million and 4.0 million RSUs and PRSUs (2020 – 2.7 million), respectively and 10.3 million shares which would be issued if the principal amount of the Debentures were settled in our common shares at the quarter end share price (2020 – nil) were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive to the net loss per share. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Product 29,569 40,212 91,867 113,131 Transportation 3,294 4,179 9,277 11,719 License fees from Distribution Partners 191 330 539 935 Total product revenue 33,054 44,721 101,683 125,785 Installation and other services 1,044 1,458 2,982 3,530 34,098 46,179 104,665 129,315 The Company 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, 2021 2020 2021 2020 At a point in time 32,863 44,391 101,144 124,850 Over time 1,235 1,788 3,521 4,465 34,098 46,179 104,665 129,315 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, 2021 December 31, 2020 December 31, 2019 Customer deposits 3,786 1,292 2,436 Deferred revenue 463 527 1,131 Contract liabilities 4,249 1,819 3,567 Contract liabilities primarily relate to deposits received from customers and deferred revenue from license subscriptions. The balance of contract liabilities was 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, 2021 2020 2021 2020 Commercial 20,805 22,617 55,981 75,987 Healthcare 5,017 15,880 25,680 28,360 Government 3,149 2,762 11,579 9,849 Education 3,892 3,132 7,904 10,654 License fees from Distribution Partners 191 330 539 935 Total product and transportation revenue 33,054 44,721 101,683 125,785 Installation and other services 1,044 1,458 2,982 3,530 34,098 46,179 104,665 129,315 |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 9. SEGMENT REPORTING The Company has one reportable and operating segment and operates in two principal geographic locations - Canada and the United States. Revenue continues to be derived almost exclusively from projects in North America and predominantly from the United States, 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, is detailed below. Revenue from external customers For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Canada 4,405 4,340 11,860 14,667 U.S. 29,693 41,839 92,805 114,648 34,098 46,179 104,665 129,315 Non-current assets As at September 30, 2021 December 31, 2020 Canada 37,326 42,947 U.S. 61,400 55,352 98,726 98,299 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use assets, goodwill and other assets. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES For the three and nine month periods ended September 30, 2021, the Company recorded valuation allowances of C$4.5 million and C$10.8 million, respectively ($3.5 million and $8.5 million) against deferred tax assets (“DTAs”) incurred during the periods in its Canadian entity as the Company’s Canadian entity has experienced cumulative losses in recent years (December 31, 2020 – C$6.6 million or $5.2 million). Although earnings were positive in 2019, ongoing near-term uncertainties on the business caused by the COVID-19 pandemic and the related decline in business activity impacted the Canadian entity’s ability to generate earnings. Accordingly, it is not more likely than not that the Canadian e ntity’s DTAs will be utilized in the near term. |
OTHER LIABILITIES
OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | 11. OTHER LIABILITIES For the period ended September 30, 2021, the Company separately classified the current portion of long-term debt and accrued interest on the balance sheet, as reconciled below: As at, September 30, 2021 December 31, 2020 Legal provision 45 45 Deferred share unit liability 1,279 971 Warranty and other provisions (1) 1,949 1,763 Interest accrued on Debentures 316 - Current portion of long-term debt and accrued interest 2,163 898 Other liabilities, as previously presented 5,752 3,677 Reclassified to “Current portion of long-term debt and accrued interest” (2,479 ) (898 ) Other liabilities 3,273 2,779 (1) The following table presents a reconciliation of the warranty and other provisions balance: As at, September 30, 2021 December 31, 2020 As at January 1 1,763 4,008 Adjustments to timber provision - (1,750 ) Additions to warranty provision 932 1,301 Payments related to warranties (746 ) (1,796 ) 1,949 1,763 |
COMMITMENTS
COMMITMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS | 12. COMMITMENTS As at September 30, 2021, the Company had outstanding purchase obligations of approximately $4.7 million related to inventory and property, plant and equipment purchases (December 31, 2020 – $3.2 million). As at September 30, 2021, the Company had undiscounted operating lease liabilities of $48.8 million (December 31, 2020 – $44.3 million). |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of accounts, notes, loans and financing receivable | The Company’s aged receivables were as follows : As at September 30, December 31, 2021 2020 Current 12,121 12,500 Overdue 937 1,211 13,058 13,711 Less: expected credit losses (588 ) (588 ) 12,470 13,123 Sales tax receivable 373 242 Government subsidies receivable 1,513 1,743 Income tax receivable 3,327 3,845 17,683 18,953 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt Reconciliation | Revolving Credit Facility Leasing Facilities Convertible Debentures Total Debt Balance on December 31, 2019 - - - - Issuances - 6,165 - 6,165 Repayments - (420 ) - (420 ) Exchange differences - 222 - 222 Balance at December 31, 2020 - 5,967 - 5,967 Current portion of long-term debt and accrued interest - 898 - 898 Long-term debt - 5,069 - 5,069 Balance on December 31, 2020 - 5,967 - 5,967 Issuances - 8,407 29,545 37,952 Accretion of issue costs - - 236 236 Accrued interest - 372 1,313 1,685 Interest payments - (372 ) (988 ) (1,360 ) Principal repayments - (1,217 ) - (1,217 ) Exchange differences - (71 ) (54 ) (125 ) Balance at September 30, 2021 - 13,086 30,052 43,138 Current portion of long-term debt and accrued interest - 2,163 316 2,479 Long-term debt - 10,923 29,736 40,659 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Equity-settled awards 1,177 522 3,258 1,453 Cash-settled awards (340 ) 192 534 147 837 714 3,792 1,600 |
Summary of PSUs, DSUs and RSUs granted, exercised, forfeited and expired | The following summarizes PSUs, DSUs and RSUs (as defined below) granted, exercised, forfeited and expired during the periods: RSU Time- RSU Performance- Based Based DSU PSU Number of Number of Number of Number of units units units units Outstanding at December 31, 2019 - - 132,597 223,052 Granted 2,404,537 200,000 215,250 - Forfeited (3,879 ) - - (25,581 ) Outstanding at September 30, 2020 2,400,658 200,000 347,847 197,471 Outstanding at December 31, 2020 2,414,066 200,000 363,664 197,471 Granted 1,919,102 878,601 88,880 - Vested (650,898 ) (2,294 ) (55,802 ) (34,635 ) Withheld to settle employee tax obligations (174,103 ) (1,960 ) - - Forfeited (237,910 ) (42,314 ) - (5,636 ) Outstanding at September 30, 2021 3,270,257 1,032,033 396,742 157,200 |
Schedule of Percentage of PRSUs Vest upon Increases of Share Price | The Company granted to certain executives and senior employees restricted share units with service and performance-based conditions for vesting (the “PRSUs”). If the Company’s share price increases to certain values for 20 consecutive trading days, as outlined below, a percentage of the PRSUs will vest at the end of the three-year service period. The grant date fair value of the PRSUs were valued using the Monte Carlo valuation method and determined to have a weighted average grant date fair value of C$3.27 (2020 – C$1.70). Based on share price performance since the date of grant, 66.7% of the 2021 PRSUs and 100% of the 2020 PRSUs will vest upon completion of the three-year service period. % of PRSUs vesting 33.3% 50.0% 66.7% 100.0% 150.0% 2021 PRSUs $3.00 - $4.00 $5.00 $7.00 2020 PRSUs - C$3.00 - C$4.00 C$6.00 |
Summary of options granted, exercised, surrendered, forfeited and expired | The following summarizes options granted, exercised, forfeited and expired during the periods: Number of Weighted average option s exercise price C $ 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 Outstanding at December 31, 2020 4,774,328 6.52 Forfeited (39,094 ) 7.07 Outstanding at September 30, 2021 4,735,234 6.51 Exercisable at September 30, 2021 2,741,846 6.49 |
Summary of options outstanding by range of exercise prices | Range of exercise prices outstanding at September 30, 2021: 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 life price C $ C$4.01 – C$5.00 22,537 3.14 4.12 7,513 3.14 4.12 C$5.01 – C$6.00 666,237 0.14 5.76 666,237 0.14 5.76 C$6.01 – C$7.00 3,283,774 2.04 6.38 1,551,876 2.13 6.36 C$7.01 – C$8.00 762,686 2.63 7.84 516,220 2.63 7.84 Total 4,735,234 2,741,846 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Product 29,569 40,212 91,867 113,131 Transportation 3,294 4,179 9,277 11,719 License fees from Distribution Partners 191 330 539 935 Total product revenue 33,054 44,721 101,683 125,785 Installation and other services 1,044 1,458 2,982 3,530 34,098 46,179 104,665 129,315 For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 At a point in time 32,863 44,391 101,144 124,850 Over time 1,235 1,788 3,521 4,465 34,098 46,179 104,665 129,315 |
Summary of contract liabilities | Contract Liabilities As at September 30, 2021 December 31, 2020 December 31, 2019 Customer deposits 3,786 1,292 2,436 Deferred revenue 463 527 1,131 Contract liabilities 4,249 1,819 3,567 |
Schedule of sales by industry | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Commercial 20,805 22,617 55,981 75,987 Healthcare 5,017 15,880 25,680 28,360 Government 3,149 2,762 11,579 9,849 Education 3,892 3,132 7,904 10,654 License fees from Distribution Partners 191 330 539 935 Total product and transportation revenue 33,054 44,721 101,683 125,785 Installation and other services 1,044 1,458 2,982 3,530 34,098 46,179 104,665 129,315 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenue from external customers | Revenue from external customers |
Schedule of non-current assets | Non-current assets As at September 30, 2021 December 31, 2020 Canada 37,326 42,947 U.S. 61,400 55,352 98,726 98,299 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use assets, goodwill and other assets. |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | For the period ended September 30, 2021, the Company separately classified the current portion of long-term debt and accrued interest on the balance sheet, as reconciled below: As at, September 30, 2021 December 31, 2020 Legal provision 45 45 Deferred share unit liability 1,279 971 Warranty and other provisions (1) 1,949 1,763 Interest accrued on Debentures 316 - Current portion of long-term debt and accrued interest 2,163 898 Other liabilities, as previously presented 5,752 3,677 Reclassified to “Current portion of long-term debt and accrued interest” (2,479 ) (898 ) Other liabilities 3,273 2,779 (1) The following table presents a reconciliation of the warranty and other provisions balance: As at, September 30, 2021 December 31, 2020 As at January 1 1,763 4,008 Adjustments to timber provision - (1,750 ) Additions to warranty provision 932 1,301 Payments related to warranties (746 ) (1,796 ) 1,949 1,763 |
COVID-19 - (Additional Informat
COVID-19 - (Additional Information) (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2021 | Mar. 31, 2020 | |
Extraordinary And Unusual Items [Abstract] | ||
Increase in credit losses | $ 0.6 | |
Net proceeds from sale of convertible unsecured subordinated debentures | $ 29.5 |
ADOPTION OF NEW AND REVISED A_2
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS - (Additional Information) (Detail) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Convertible debt instrument outstanding | $ 0 | |
ASU 2020-06 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Change in accounting principle, accounting standards update, early adoption [true false] | true | |
Accounting standards adopted date | Jan. 1, 2021 |
TRADE AND OTHER RECEIVABLES (Ad
TRADE AND OTHER RECEIVABLES (Additional Information) (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)DistributionPartner | Sep. 30, 2020USD ($) | |
Percent of trade accounts receivable insured | 80.00% | 80.00% | |||
Total revenue | $ 34,098,000 | $ 46,179,000 | $ 104,665,000 | $ 129,315,000 | |
Increase in credit losses | $ 600,000 | ||||
Receivables, written off | $ 0 | $ 100,000 | |||
Accounts Receivable [Member] | |||||
Number of distribution partner | DistributionPartner | 1 | ||||
Total revenue | $ 13,500,000 | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Significant Customer [Member] | |||||
Percentage of Total Account Receivable | 10.00% | 10.00% | 10.00% | 10.00% | |
Sales Revenue [Member] | Customer Concentration Risk [Member] | Significant Customer [Member] | |||||
Percentage of Total Account Receivable | 50.00% |
TRADE AND OTHER RECEIVABLES - S
TRADE AND OTHER RECEIVABLES - Schedule of accounts, notes, loans and financing receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Current | $ 12,121 | $ 12,500 |
Overdue | 937 | 1,211 |
Total accounts receivable | 13,058 | 13,711 |
Less: expected credit losses | (588) | (588) |
Net accounts receivable | 12,470 | 13,123 |
Sales tax receivable | 373 | 242 |
Government subsidies receivable | 1,513 | 1,743 |
Income tax receivable | 3,327 | 3,845 |
Accounts and other receivables, net, current | $ 17,683 | $ 18,953 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long Term Debt Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Long term debt | $ 5,967 | ||||
Issuances | $ 3,539 | 37,952 | $ 6,130 | $ 6,165 | |
Accretion of issue costs | 236 | ||||
Accrued interest | 1,685 | ||||
Interest payments | (1,360) | ||||
Repayments | $ (457) | $ (84) | (1,217) | $ (148) | (420) |
Exchange differences | (125) | 222 | |||
Long term debt | 43,138 | 43,138 | 5,967 | ||
Current portion of long-term debt and accrued interest | 2,479 | 2,479 | 898 | ||
Long-term debt | 40,659 | 40,659 | 5,069 | ||
Leasing Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt | 5,967 | ||||
Issuances | 8,407 | 6,165 | |||
Accrued interest | 372 | ||||
Interest payments | (372) | ||||
Repayments | (1,217) | (420) | |||
Exchange differences | (71) | 222 | |||
Long term debt | 13,086 | 13,086 | 5,967 | ||
Current portion of long-term debt and accrued interest | 2,163 | 2,163 | 898 | ||
Long-term debt | 10,923 | 10,923 | $ 5,069 | ||
Convertible Debentures [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuances | 29,545 | ||||
Accretion of issue costs | 236 | ||||
Accrued interest | 1,313 | ||||
Interest payments | (988) | ||||
Exchange differences | (54) | ||||
Long term debt | 30,052 | 30,052 | |||
Current portion of long-term debt and accrued interest | 316 | 316 | |||
Long-term debt | $ 29,736 | $ 29,736 |
LONG-TERM DEBT - (Additional In
LONG-TERM DEBT - (Additional Information) (Detail) $ / shares in Units, $ in Thousands | Jan. 29, 2021CAD ($) | Jan. 25, 2021USD ($)shares | Jan. 25, 2021CAD ($)$ / sharesshares | Jan. 31, 2021USD ($) | Sep. 30, 2021USD ($)Day | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Day | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Sep. 30, 2021CAD ($)Day | Feb. 12, 2021CAD ($) |
Debt Instrument [Line Items] | ||||||||||||
Amortized term | 6 years | |||||||||||
Net proceeds from sale of convertible unsecured subordinated debentures | $ 29,500 | |||||||||||
Interest expense | $ 823 | $ 100 | $ 2,117 | $ 196 | ||||||||
Current portion of long-term debt and accrued interest | 2,479 | 2,479 | $ 898 | |||||||||
Convertible Debentures [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Issuance of convertible debentures | $ 5,250,000 | $ 35,000,000 | ||||||||||
Convertible debentures, maturity date | Jan. 31, 2026 | Jan. 31, 2026 | ||||||||||
Convertible debentures, interest rate | 6.00% | 6.00% | ||||||||||
Convertible debentures, frequency of interest payment | semi-annually | semi-annually | ||||||||||
Convertible debentures, conversion price | $ / shares | $ 4.65 | |||||||||||
Convertible debentures, common shares issued | shares | 215.0538 | 215.0538 | ||||||||||
Convertible debentures, principal amount | $ 1,000 | |||||||||||
Net proceeds from sale of convertible unsecured subordinated debentures | $ 29,500 | 37,600,000 | ||||||||||
Convertible debentures, transaction cost | $ 2,700,000 | |||||||||||
Effective interest rate | 7.50% | |||||||||||
Interest expense | 500 | 1,300 | ||||||||||
Current portion of long-term debt and accrued interest | 316 | $ 316 | ||||||||||
Debt instrument, redemption date | Jan. 31, 2024 | Jan. 31, 2024 | ||||||||||
Canadian Dollar Advances [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 5,000,000 | |||||||||||
Revolving credit facility, term | 7 years | |||||||||||
Cash consideration received under leasing facility | 2,600 | $ 3,600,000 | ||||||||||
US Dollar Advances [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 14,000 | $ 14,000 | ||||||||||
Revolving credit facility, term | 5 years | |||||||||||
Cash consideration received under leasing facility | $ 8,400 | $ 3,500 | ||||||||||
Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 5.27% | |||||||||||
Maximum [Member] | Convertible Debentures [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debenture instrument redemption period | 60 days | 60 days | ||||||||||
Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 4.25% | |||||||||||
Minimum [Member] | Convertible Debentures [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 125.00% | 125.00% | ||||||||||
Debenture instrument redemption period | 30 days | 30 days | ||||||||||
Revolving Credit Facility [Member] | New RBC Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | |||||||||||
Revolving credit facility, maximum borrowing capacity, description | Under the RBC Facility, the Company is able to borrow up to a maximum of 90% of investment grade or insured accounts receivable plus 85% of eligible accounts receivable plus the lesser of 75% of the book value of eligible inventory and 85% of the net orderly liquidation value of eligible inventory less any reserves for potential prior ranking claims (the “Borrowing Base”). | |||||||||||
Line of credit available borrowing capacity | 6,500 | $ 6,500 | 8,300,000 | |||||||||
Debt instrument covenant terms | the Company is subject to a fixed charge coverage ratio (“FCCR”) covenant of 1.10:1 on a trailing twelve month basis. Additionally, if the FCCR has been below 1.10:1 for the three immediately preceding months, the Company is required to maintain a reserve account equal to the aggregate of one year of payments on outstanding loans on the Leasing Facilities | |||||||||||
Revolving credit facility, aggregate excess availability | $ 5,000,000 | |||||||||||
Cash balance | $ 2,800 | $ 2,800 | ||||||||||
Number of consecutive business days | Day | 5 | 5 | 5 | |||||||||
Revolving Credit Facility [Member] | New RBC Facility [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, aggregate excess availability | $ 6,250,000 | |||||||||||
Revolving Credit Facility [Member] | New RBC Facility [Member] | Prime Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 30.00% | |||||||||||
Revolving Credit Facility [Member] | New RBC Facility [Member] | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 155.00% |
STOCK-BASED COMPENSATION - (Add
STOCK-BASED COMPENSATION - (Additional Information) (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020shares | Sep. 30, 2021USD ($)$ / shares$ / sharesshares | Sep. 30, 2020shares | Oct. 09, 2019$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2018$ / sharesshares | Sep. 30, 2021$ / shares | Dec. 31, 2020$ / shares | May 31, 2020shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common stock reserved for future issuance | shares | 5,850,000 | |||||||||
Stock options granted | shares | 1,725,000 | |||||||||
Securities excluded from calculation of net income (loss) per share | shares | 4,700,000 | 4,800,000 | 4,700,000 | 4,800,000 | ||||||
Shares Issuable on Principal Amount Settled in Common Shares [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Securities excluded from calculation of net income (loss) per share | shares | 10,300,000 | 10,300,000 | ||||||||
Monte Carlo Valuation [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Options granted weighted average grant date fair value | $ / shares | $ 0.83 | $ 2.14 | ||||||||
Monte Carlo Valuation [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Weighted average fair value of the RSUs granted | $ / shares | $ 13.26 | |||||||||
Stock options granted | shares | 825,000 | |||||||||
Monte Carlo Valuation [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Weighted average fair value of the RSUs granted | $ / shares | $ 19.89 | |||||||||
Stock options granted | shares | 900,000 | |||||||||
2021 PRSUs [ Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Weighted average fair value of the RSUs granted | $ / shares | $ 3 | $ 3 | ||||||||
2020 PRSUs [ Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Weighted average fair value of the RSUs granted | $ / shares | $ 3 | |||||||||
Restricted Stock Units Time Based | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | |||||||||
Weighted average fair value of the RSUs granted | $ / shares | $ 3.14 | $ 1.89 | ||||||||
Performance-Based Restricted Share Units | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | three-year | |||||||||
Performance-Based Restricted Share Units | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
% of PRSUs vesting | 33.30% | |||||||||
Performance-Based Restricted Share Units | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
% of PRSUs vesting | 50.00% | |||||||||
Performance-Based Restricted Share Units | Monte Carlo Valuation Method [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share based compensation other than option grant date fair value | $ / shares | $ 3.27 | $ 1.70 | ||||||||
Performance-Based Restricted Share Units | 2021 PRSUs [ Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
% of PRSUs vesting | 66.70% | |||||||||
Performance-Based Restricted Share Units | 2020 PRSUs [ Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
% of PRSUs vesting | 100.00% | |||||||||
Deferred Share Units ("DSUs") [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based arrangements, liability | $ | $ 1.3 | $ 1.3 | $ 0.9 | |||||||
Performance Share Units ("PSUs") [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | |||||||||
Share-based arrangements, liability | $ | $ 0.1 | $ 0.1 | $ 0.1 | |||||||
RSUs and PRSUs [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Securities excluded from calculation of net income (loss) per share | shares | 4,400,000 | 2,700,000 | 4,000,000 | 2,700,000 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 837 | $ 714 | $ 3,792 | $ 1,600 |
Equity-settled Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,177 | 522 | 3,258 | 1,453 |
Cash-settled Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ (340) | $ 192 | $ 534 | $ 147 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of PSUs, DSUs and RSUs Granted, Exercised, Forfeited and Expired (Detail) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted Stock Units Time Based | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Outstanding at the beginning | 2,414,066 | |
Granted | 1,919,102 | 2,404,537 |
Vested | (650,898) | |
Withheld to settle employee tax obligations | (174,103) | |
Forfeited | (237,910) | (3,879) |
Number of units, Outstanding at the end | 3,270,257 | 2,400,658 |
Restricted Share Units ("RSUs") Performance-Based [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Outstanding at the beginning | 200,000 | |
Granted | 878,601 | 200,000 |
Vested | (2,294) | |
Withheld to settle employee tax obligations | (1,960) | |
Forfeited | (42,314) | |
Number of units, Outstanding at the end | 1,032,033 | 200,000 |
Deferred Share Units ("DSUs") [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Outstanding at the beginning | 363,664 | 132,597 |
Granted | 88,880 | 215,250 |
Vested | (55,802) | |
Number of units, Outstanding at the end | 396,742 | 347,847 |
Performance Share Units ("PSUs") [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Outstanding at the beginning | 197,471 | 223,052 |
Vested | (34,635) | |
Forfeited | (5,636) | (25,581) |
Number of units, Outstanding at the end | 157,200 | 197,471 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Percentage of PRSUs Vest upon Increases of Share Price (Detail) - 9 months ended Sep. 30, 2021 | $ / shares | $ / shares |
PRSUs [Member] | 2021 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 66.70% | |
PRSUs [Member] | 2020 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 100.00% | |
Share-based Payment Arrangement, Tranche One [Member] | 2021 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the RSUs granted | $ 3 | |
Share-based Payment Arrangement, Tranche One [Member] | PRSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 33.30% | |
Share-based Payment Arrangement, Tranche Two [Member] | 2020 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the RSUs granted | $ 3 | |
Share-based Payment Arrangement, Tranche Two [Member] | PRSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 50.00% | |
Share-based Payment Arrangement, Tranche Three | 2021 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the RSUs granted | $ 4 | |
Share-based Payment Arrangement, Tranche Three | PRSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 66.70% | |
Share Based Compensation Award Tranche Four | 2021 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the RSUs granted | $ 5 | |
Share Based Compensation Award Tranche Four | 2020 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the RSUs granted | 4 | |
Share Based Compensation Award Tranche Four | PRSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 100.00% | |
Share Based Compensation Award Tranche Five | 2021 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the RSUs granted | $ 7 | |
Share Based Compensation Award Tranche Five | 2020 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of the RSUs granted | $ 6 | |
Share Based Compensation Award Tranche Five | PRSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 150.00% |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - Employee Stock Option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options, Outstanding at the beginning | 4,774,328 | 6,156,652 |
Number of options, Forfeited | (39,094) | (1,154,956) |
Number of options, Expired | (220,330) | |
Number of options, Outstanding at the end | 4,735,234 | 4,781,366 |
Number of options, Exercisable | 2,741,846 | |
Weighted average exercise price, Outstanding at the beginning | $ 6.52 | $ 6.49 |
Weighted average exercise price, Forfeited | 7.07 | 6.29 |
Weighted average exercise price, Expired | 6.81 | |
Weighted average exercise price, Outstanding at the end | 6.51 | $ 6.52 |
Weighted average exercise price, Exercisable | $ 6.49 |
STOCK-BASED COMPENSATION - Su_4
STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options outstanding, Number | shares | 4,735,234 |
Options exercisable, Number | shares | 2,741,846 |
Exercise Price Range $4.01 to $5.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | $ 4.01 |
Range of exercise prices, Maximum | $ 5 |
Options outstanding, Number | shares | 22,537 |
Options outstanding, Weighted average remaining life | 3 years 1 month 20 days |
Options outstanding, Weighted average exercise price | $ 4.12 |
Options exercisable, Number | shares | 7,513 |
Options exercisable, Weighted average remaining life | 3 years 1 month 20 days |
Options exercisable, Weighted average exercise price | $ 4.12 |
Exercise Price Range $5.01 to $6.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 5.01 |
Range of exercise prices, Maximum | $ 6 |
Options outstanding, Number | shares | 666,237 |
Options outstanding, Weighted average remaining life | 1 month 20 days |
Options outstanding, Weighted average exercise price | $ 5.76 |
Options exercisable, Number | shares | 666,237 |
Options exercisable, Weighted average remaining life | 1 month 20 days |
Options exercisable, Weighted average exercise price | $ 5.76 |
Exercise Price Range $6.01 to $7.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 6.01 |
Range of exercise prices, Maximum | $ 7 |
Options outstanding, Number | shares | 3,283,774 |
Options outstanding, Weighted average remaining life | 2 years 14 days |
Options outstanding, Weighted average exercise price | $ 6.38 |
Options exercisable, Number | shares | 1,551,876 |
Options exercisable, Weighted average remaining life | 2 years 1 month 17 days |
Options exercisable, Weighted average exercise price | $ 6.36 |
Exercise Price Range $7.01 to $8.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 7.01 |
Range of exercise prices, Maximum | $ 8 |
Options outstanding, Number | shares | 762,686 |
Options outstanding, Weighted average remaining life | 2 years 7 months 17 days |
Options outstanding, Weighted average exercise price | $ 7.84 |
Options exercisable, Number | shares | 516,220 |
Options exercisable, Weighted average remaining life | 2 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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 34,098 | $ 46,179 | $ 104,665 | $ 129,315 |
Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 29,569 | 40,212 | 91,867 | 113,131 |
Transportation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 3,294 | 4,179 | 9,277 | 11,719 |
License fees from Distribution Partners [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 191 | 330 | 539 | 935 |
Total product revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 33,054 | 44,721 | 101,683 | 125,785 |
Installation and other services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 1,044 | $ 1,458 | $ 2,982 | $ 3,530 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 34,098 | $ 46,179 | $ 104,665 | $ 129,315 |
At a point in time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 32,863 | 44,391 | 101,144 | 124,850 |
Over time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 1,235 | $ 1,788 | $ 3,521 | $ 4,465 |
REVENUE - Summary of Contract L
REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | |||
Customer deposits | $ 3,786 | $ 1,292 | $ 2,436 |
Deferred revenue | 463 | 527 | 1,131 |
Contract liabilities | $ 4,249 | $ 1,819 | $ 3,567 |
REVENUE - (Additional Informati
REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Contract liabilities recognized as revenue | $ 1.7 | $ 3.1 |
REVENUE - Schedule of Sales by
REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 34,098 | $ 46,179 | $ 104,665 | $ 129,315 |
Commercial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 20,805 | 22,617 | 55,981 | 75,987 |
Healthcare [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 5,017 | 15,880 | 25,680 | 28,360 |
Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 3,149 | 2,762 | 11,579 | 9,849 |
Education [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 3,892 | 3,132 | 7,904 | 10,654 |
License Fees from Distribution Partners [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 191 | 330 | 539 | 935 |
Total product and transportation revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 33,054 | 44,721 | 101,683 | 125,785 |
Installation and other services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 1,044 | $ 1,458 | $ 2,982 | $ 3,530 |
SEGMENT REPORTING - (Additional
SEGMENT REPORTING - (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2021SegmentCountry | |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from external customers | $ 34,098 | $ 46,179 | $ 104,665 | $ 129,315 |
Canada [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from external customers | 4,405 | 4,340 | 11,860 | 14,667 |
U.S. [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from external customers | $ 29,693 | $ 41,839 | $ 92,805 | $ 114,648 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of Non-current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets | $ 98,726 | $ 98,299 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets | 37,326 | 42,947 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets | $ 61,400 | $ 55,352 |
INCOME TAXES - (Additional Info
INCOME TAXES - (Additional Information) (Detail) - Canada [Member] $ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | |
Schedule Of Income Tax [Line Items] | ||||||
Income statement impact of valuation allowance | $ 3.5 | $ 4.5 | $ 8.5 | $ 10.8 | ||
Valuation allowances against Deferred Tax Assets | $ 5.2 | $ 6.6 |
OTHER LIABILITIES - Summary of
OTHER LIABILITIES - Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Current [Abstract] | |||
Legal provision | $ 45 | $ 45 | |
Deferred share unit liability | 1,279 | 971 | |
Warranty and other provisions | 1,949 | 1,763 | $ 4,008 |
Interest accrued on Debentures | 316 | ||
Current portion of long-term debt and accrued interest | 2,163 | 898 | |
Other liabilities, as previously presented | 5,752 | 3,677 | |
Reclassified to “Current portion of long-term debt and accrued interest” | (2,479) | (898) | |
Other liabilities | $ 3,273 | $ 2,779 |
OTHER LIABILITIES - Reconciliat
OTHER LIABILITIES - Reconciliation of Warranty and Other Provisions Balance (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Other Liabilities Current [Abstract] | ||
Balance | $ 1,763 | $ 4,008 |
Adjustments to timber provision | (1,750) | |
Additions to warranty provision | 932 | 1,301 |
Payments related to warranties | (746) | (1,796) |
Balance | $ 1,949 | $ 1,763 |
COMMITMENTS - (Additional Infor
COMMITMENTS - (Additional Information) (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Long Term Purchase Commitment [Line Items] | ||
Purchase obligation, outstanding | $ 4.7 | $ 3.2 |
Undiscounted operating lease liabilities | $ 48.8 | $ 44.3 |