Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
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 | 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Address, Postal Zip Code | T2C 1N6 | ||
City Area Code | 403 | ||
Local Phone Number | 723-5000 | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Common Stock, Shares Outstanding | 85,351,261 | ||
Entity Public Float | $ 364,706,983 | ||
Title of 12(b) Security | Common Shares, without par value | ||
Trading Symbol | DRTT | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 271 | ||
Auditor Location | Calgary, Canada | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement relating to the Annual and Special Meeting of Shareholders, scheduled to be held on April 26, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 60,313 | $ 45,846 |
Restricted cash | 3,095 | |
Trade and other receivables, net of expected credit losses of $0.1 million at December 31, 2021 and $0.6 million at December 31, 2020 | 17,540 | 18,953 |
Inventory | 18,457 | 15,978 |
Prepaids and other current assets | 4,399 | 4,068 |
Total Current Assets | 103,804 | 84,845 |
Property, plant and equipment, net | 51,697 | 49,847 |
Capitalized software, net | 7,395 | 8,344 |
Operating lease right-of-use assets, net | 30,880 | 33,643 |
Goodwill | 1,449 | |
Other assets | 5,663 | 5,016 |
Total Assets | 199,439 | 183,144 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 22,751 | 20,350 |
Other liabilities | 2,379 | 2,779 |
Customer deposits and deferred revenue | 2,420 | 1,819 |
Current portion of long-term debt and accrued interest | 3,323 | 898 |
Current portion of lease liabilities | 6,214 | 5,503 |
Total Current Liabilities | 37,087 | 31,349 |
Deferred tax liabilities, net | 414 | |
Long-term debt | 67,319 | 5,069 |
Long-term lease liabilities | 27,267 | 29,781 |
Total Liabilities | 131,673 | 66,613 |
SHAREHOLDERS’ EQUITY | ||
Common shares, unlimited authorized without par value, 85,345,433 issued and outstanding at December 31, 2021 and 84,681,364 at December 31, 2020 | 181,782 | 180,639 |
Additional paid-in capital | 13,200 | 10,175 |
Accumulated other comprehensive loss | (15,916) | (17,018) |
Accumulated deficit | (111,300) | (57,265) |
Total Shareholders’ Equity | 67,766 | 116,531 |
Total Liabilities and Shareholders’ Equity | $ 199,439 | $ 183,144 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Financial Position [Abstract] | ||
Trade and other receivables, expected credit losses | $ 130 | $ 588 |
Common shares, authorized | Unlimited | Unlimited |
Common shares, no par value | $ 0 | $ 0 |
Common shares, shares issued | 85,345,433 | 84,681,364 |
Common shares, shares outstanding | 85,345,433 | 84,681,364 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues [Abstract] | |||
Total revenue | $ 147,593 | $ 171,507 | $ 247,735 |
Total cost of sales | 124,133 | 118,224 | 161,311 |
Gross profit | 23,460 | 53,283 | 86,424 |
Expenses | |||
Sales and marketing | 31,041 | 28,049 | 33,939 |
General and administrative | 30,595 | 26,663 | 27,645 |
Operations support | 9,372 | 9,381 | 11,037 |
Technology and development | 8,234 | 8,111 | 7,818 |
Stock-based compensation | 4,713 | 2,351 | 3,876 |
Goodwill impairment | 1,443 | ||
Reorganization | 4,560 | ||
Total operating expenses | 85,398 | 74,555 | 88,875 |
Operating loss | (61,938) | (21,272) | (2,451) |
Government subsidies | 11,455 | 12,721 | |
Foreign exchange loss | (335) | (576) | (1,324) |
Interest income | 77 | 238 | 529 |
Interest expense | (3,131) | (305) | (131) |
Non Operating (income) loss | 8,066 | 12,078 | (926) |
Loss before tax | (53,872) | (9,194) | (3,377) |
Income taxes | |||
Current tax expense (recovery) | 210 | (3,521) | 1,064 |
Deferred tax expense (recovery) | (414) | 5,625 | (45) |
Income tax expense | (204) | 2,104 | 1,019 |
Net loss | $ (53,668) | $ (11,298) | $ (4,396) |
Loss per share | |||
Basic and diluted loss per share | $ (0.63) | $ (0.13) | $ (0.05) |
Weighted average number of shares outstanding (in thousands) | |||
Basic and Diluted | 85,027 | 84,681 | 84,671 |
Product [Member] | |||
Revenues [Abstract] | |||
Total revenue | $ 143,000 | $ 166,689 | $ 240,659 |
Total cost of sales | 118,525 | 113,445 | 153,128 |
Service [Member] | |||
Revenues [Abstract] | |||
Total revenue | 4,593 | 4,818 | 7,076 |
Total cost of sales | 3,852 | 2,769 | 5,943 |
Under-utilized Capacity [Member] | |||
Revenues [Abstract] | |||
Total cost of sales | $ 1,756 | $ 2,010 | $ 2,240 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Comprehensive Income Net Of Tax [Abstract] | |||
Loss for the year | $ (53,668) | $ (11,298) | $ (4,396) |
Exchange differences on translation of foreign operations | 1,102 | 1,010 | 4,064 |
Comprehensive loss for the year | $ (52,566) | $ (10,288) | $ (332) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Beginning Balance at Dec. 31, 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 | 76 | $ 77 | (1) | ||
Issued on exercise of options (in shares) | 21,045 | ||||
Stock-based compensation | 1,729 | 1,729 | |||
Foreign currency translation adjustment | 4,064 | 4,064 | |||
Net loss for the year | (4,396) | (4,396) | |||
Ending Balance at Dec. 31, 2019 | 124,987 | $ 180,639 | 8,343 | (18,028) | (45,967) |
Ending Balance (in shares) at Dec. 31, 2019 | 84,681,364 | ||||
Stock-based compensation | 1,832 | 1,832 | |||
Foreign currency translation adjustment | 1,010 | 1,010 | |||
Net loss for the year | (11,298) | (11,298) | |||
Ending Balance at Dec. 31, 2020 | 116,531 | $ 180,639 | 10,175 | (17,018) | (57,265) |
Ending Balance (in shares) at Dec. 31, 2020 | 84,681,364 | ||||
Stock-based compensation | 4,453 | 4,453 | |||
Issued on vesting of RSUs | $ 1,143 | (1,143) | |||
Issued on vesting of RSUs (in shares) | 664,069 | ||||
RSUs withheld to settle employee tax obligations | (652) | (285) | (367) | ||
Foreign currency translation adjustment | 1,102 | 1,102 | |||
Net loss for the year | (53,668) | (53,668) | |||
Ending Balance at Dec. 31, 2021 | $ 67,766 | $ 181,782 | $ 13,200 | $ (15,916) | $ (111,300) |
Ending Balance (in shares) at Dec. 31, 2021 | 85,345,433 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss for the period | $ (53,668) | $ (11,298) | $ (4,396) |
Adjustments: | |||
Depreciation and amortization | 14,513 | 11,706 | 12,242 |
Stock-based compensation, net of settlements | 4,248 | 2,351 | 202 |
Foreign exchange (gain) loss | 112 | 746 | 345 |
Accretion of convertible debentures | 352 | ||
Loss (gain) on disposal of property, plant and equipment | 12 | (46) | 53 |
Deferred income tax expense (recovery) | (414) | 5,625 | (45) |
Goodwill impairment | 1,443 | ||
Changes in operating assets and liabilities: | |||
Trade and other receivables | 1,452 | 6,067 | 21,025 |
Inventory | (2,449) | 1,638 | 1,667 |
Prepaid and other assets, current and long term | (1,132) | (241) | (873) |
Accounts payable and accrued liabilities | 2,702 | 752 | (17,379) |
Customer deposits and deferred revenue | 601 | (1,754) | (4,276) |
Other liabilities | (213) | (3,971) | 5,196 |
Accrued interest | 948 | ||
Lease liabilities | 283 | 910 | (402) |
Net cash flows provided by (used in) operating activities | (31,210) | 12,485 | 13,359 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment, net of accounts payable changes | (11,781) | (16,597) | (12,303) |
Capitalized software development expenditures | (2,340) | (2,998) | (2,604) |
Other asset expenditures | (496) | (517) | (848) |
Recovery of software development expenditures | 461 | 674 | 511 |
Proceeds on sale of property, plant and equipment | 18 | 46 | 55 |
Net cash flows used in investing activities | (14,138) | (19,392) | (15,189) |
Cash flows from financing activities: | |||
Proceeds received on long-term debt | 64,912 | 6,130 | |
Repayment of long-term debt | (1,808) | (406) | (5,561) |
Employee tax payments on vesting of RSUs | (652) | ||
Cash received on exercise of options | 77 | ||
Net cash flows provided by (used in) financing activities | 62,452 | 5,724 | (5,484) |
Effect of foreign exchange on cash, cash equivalents and restricted cash | 458 | (145) | 1,076 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 17,562 | (1,328) | (6,238) |
Cash, cash equivalents and restricted cash, beginning of period | 45,846 | 47,174 | 53,412 |
Cash, cash equivalents and restricted cash, end of period | 63,408 | 45,846 | 47,174 |
Supplemental disclosure of cash flow information: | |||
Interest paid | (1,543) | (103) | (99) |
Income taxes (paid) received | $ 433 | $ 1,817 | $ (2,518) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | Dec. 31, 2021USD ($) |
Statement Of Cash Flows [Abstract] | |
Cash and cash equivalents | $ 60,313 |
Restricted cash | 3,095 |
Total cash, cash equivalents and restricted cash | $ 63,408 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 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 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”. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These consolidated financial statements (“Financial Statements”), including comparative figures, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In these Financial Statements, unless otherwise indicated, all dollar amounts are expressed in United States (“U.S.”) dollars. DIRTT’s financial results are consolidated in Canadian dollars, the Company’s functional currency, and the Company has adopted the U.S. dollar as its reporting currency. All references to US$ or $ are to U.S. dollars and references to C$ are to Canadian dollars. Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated upon consolidation. Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and stock-based compensation that are measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. Use of estimates The preparation of the Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to unsettled transactions and events as of the date of the Financial Statements. Estimates are based on historical data and experience, as well as various other factors that management considers reasonable under the circumstances. Actual outcomes can differ from these estimates. Significant estimates and assumptions made by management include: • Estimates of ability and timeliness of customer payments of accounts receivable; • Estimates of useful lives of depreciable assets as well as the fair value of long-term assets and future cash flows used for impairment calculations; • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets; • Tax interpretations, regulations and legislation in the various jurisdictions in which the Company and its subsidiaries operate; • Estimates of the fair value of stock awards, including whether the performance criteria will be met and measurement of the ultimate payout amount; and • Estimates of liabilities associated with the potential and amount of warranty, legal claims and other contingencies. Segments Management has determined that DIRTT has one operating segment. The Company’s chief executive officer, who is DIRTT’s chief operating decision maker, reviews financial information on a consolidated and aggregate basis, together with certain operating metrics principally to make decisions about how to allocate resources and to measure the Company’s performance. Foreign currency translation DIRTT Environmental Solutions Ltd. is a Canadian company and its functional currency is the Canadian dollar. DIRTT’s wholly owned subsidiary is domiciled in the United States and its functional currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies, other than those held through foreign subsidiaries, are translated into the transacting company’s functional currency at the year-end exchange rate for monetary items and at the historical exchange rates for non-monetary items. Foreign currency revenues and expenses are translated at the exchange rates in effect on the dates of the related transactions. Foreign exchange gains and losses, other than those arising from the translation of the Company’s net investments in foreign subsidiaries, are included in income. The accounts of the Company’s U.S. dollar subsidiary is translated into Canadian dollars, and the Financial Statements are translated into U.S. dollars for financial statement presentation. Assets and liabilities are translated using year-end exchange rates, and revenues, expenses, gains and losses are translated using average monthly exchange rates. Foreign exchange gains and losses arising from the translation of the Company’s assets and liabilities are included in “comprehensive loss for the year”. Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand held at banks and cash equivalents, which are defined as highly liquid investments with original maturities of three months or less. Restricted cash is a reserve account not available for immediate or general business use and is required when certain requirements are not met under the terms of the Company’s senior secured credit facility (as defined in Note 12). Trade and other receivables, net of expected credit losses Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates its allowance for doubtful accounts using the current expected credit loss (“CECL”) methodology, which is designed to capture the Company’s current estimate of all expected credit losses. Inventory Inventory is comprised of raw materials and work in progress. The Company does not typically carry a significant amount of finished goods inventory. Inventory is valued at the lower of weighted average cost and net realizable value. Net realizable value is based on an item’s usability in the manufacturing of the Company’s products. The Company records an allowance for obsolescence when the net realizable value of inventory items declines below weighted average cost, net realizable value is determined based on current market prices for inventory less the estimated cost to sell. Work in progress is valued at an estimate of cost, including attributable overheads, based on stage of completion. Fixed production overheads are allocated to inventory on the basis of normal capacity of the production facilities. In periods where production levels are abnormally low, unallocated overheads are separately recognized as an expense in the period in which they are incurred. Leases The Company categorizes leases at their inception as either operating or finance leases. Leases where the Company assumes substantially all of the rewards or ownership and leases where ownership is transferred at the end of the lease term, or by way of a bargain purchase option, are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability, so as to achieve a constant rate of interest on the balance of the liability. Finance charges are recognized in the statement of operations. The Company’s Leasing Facilities (as defined in Note 5) are accounted for as finance leases as ownership of the equipment is expected to return to the Company at the end of the lease term. These transactions are not accounted for as a sale of the underlying equipment as the Company continues to control the equipment. For leases categorized as operating, the Company determines if an arrangement is a lease or contains a lease element at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Operating leases are separately disclosed as operating lease right-of-use (“ROU”) assets, with a corresponding lease liability split between current and long-term components on the balance sheet. Operating leases with an initial term of 12 months or less are not included on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Property, plant and equipment Property, plant and equipment are recorded at cost, including direct costs, attributable indirect costs and carrying costs, less accumulated depreciation and any accumulated impairment losses. Expenditures for repairs and maintenance are expensed as incurred, while renewals and betterments are capitalized. Depreciation is charged to the consolidated statement of operations on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of the Company’s property, plant and equipment are as follows: Building 25 years Manufacturing equipment 10 years Leasehold improvements Over term of lease (1 to 10 years) Office equipment 5 years Tooling and prototypes 4 years Computer equipment 3 years Vehicles 3 years When assets are disposed of or retired, the cost and accumulated depreciation and impairment losses are removed from the respective accounts and any resulting loss is reflected in operating expenses. Capitalized software costs The Company capitalizes costs related to internally developed software during the application development stage when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project, and (iii) it is probable that the project will be completed and performed as intended. Capitalized costs includes costs of personnel and related expenses for employees and third parties directly attributable to the projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades and enhancements are also capitalized. Costs related to preliminary project activities and post implementation activities, including training, maintenance and minor modifications or enhancements are expensed as incurred. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the developed asset, which is generally three to five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets. Software development is considered internal-use as it is used to design and sell the DIRTT products and is not included in the end client’s product. Revenues received from Distribution Partners for ICE Software are recognized as revenues as they are considered an element of the product sale. Any incidental third-party revenues received for the ICE Software are credited against capitalized software costs. The Company follows this accounting policy for cloud computing arrangements that are considered a service contract, however, these projects are capitalized to prepaids and other assets on the balance sheet and are expensed as an operating cost, as opposed to amortization, over the expected term of the software service contract. The Company adopted this amendment on January 1, 2020 using the prospective transition approach and classified $0.7 million as other assets on the consolidated balance sheet for the year ended December 31, 2021. Impairment of long-lived assets Management evaluates the recoverability of the Company’s property, plant and equipment, capitalized software costs and ROU assets when events or changes in circumstances indicate a potential impairment exists. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable include, but are not limited to, significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired and liabilities assumed in a business combination. Goodwill is tested for impairment at the reporting unit level at least annually or whenever changes in circumstances indicate that goodwill might be impaired. The Company early adopted ASU 2017-04 in 2019, which simplified the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The carrying value of goodwill, which is not amortized, is assessed for impairment annually in the fourth quarter of each year, or more frequently as economic events dictate. The Company has the option of performing an assessment of certain qualitative Convertible Debentures The Company accounts for convertible debentures as liabilities. Embedded features included in the convertible debentures that require bifurcation are accounted for separately. Costs incurred directly related to the issuance of convertible debentures are presented as a direct deduction against the carrying amount of the convertible debentures and are amortized to interest expense using the effective interest method. Income taxes Income tax expense is comprised of current and deferred tax. Income tax is recognized in the consolidated statement of operations and comprehensive income (loss) except to the extent it relates to items recognized directly in equity. Current tax Current tax expense is based on the results for the year, adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that were enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax Deferred tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in income tax rates on deferred income tax assets and liabilities is recognized in income in the period during which the change occurs. When appropriate, the Company records a valuation allowance against deferred tax assets to reflect that these tax assets may not be realized. In determining whether a valuation allowance is appropriate, the Company considers whether it is more likely than not that all or some portion of the Company’s deferred tax assets will not be realized, based on management’s judgment using available evidence about future events. At times, tax benefits claims may be challenged by a tax authority. Tax benefits are recognized only for tax positions that are more likely than not sustainable upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. Revenue recognition The Company accounts for revenue in accordance with topic 606, Revenue from Contracts with Customers, (“ASC 606”) and Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers. Under ASC 606, an entity recognizes revenue in a manner that reflects the transfer of promised goods or services to customers in an amount which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue upon transfer of control of promised goods or services to customers at transaction price, an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Transaction price is calculated as selling price net of variable consideration which may include estimates for sales incentives related to current period product revenue. Revenue is measured at the fair value of the consideration received or receivable, after discounts, rebates and sales taxes or income taxes and duties. Product sales The Company recognizes revenue upon transfer of control of products to the customer, which typically occurs upon shipment. The Company’s main performance obligation to customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Distribution Partners typically sell DIRTT product to end clients and issue purchase orders to the Company to manufacture the product. Distribution Partners utilize ICE licenses to sell DIRTT products, the ICE licenses sold to Distribution Partners are not considered a separate performance obligation as they are not distinct, and ICE license revenue is recognized in conjunction with product sales. The Distribution Partner ICE Software revenue is recognized over the license period. The Company’s standard sales terms are Free On Board (“FOB”) shipping point, which comprise the majority of sales. The Company usually requires a 50% progress payment on receipt of certain orders, excluding certain government orders or in some special contractual situations. Customer deposits received are recognized as a liability on the balance sheet until revenue recognition criteria is met. At the point of shipment, the customer is generally required to pay the balance of the sales price within 30 days. The Company’s sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets that are material to its consolidated financial statements. The Company provides sales commissions to internal and external sales representatives which are earned in the period in which revenue is recognized. The Company accounts for product transportation revenue and costs as fulfillment activities and present the associated costs in costs of goods sold in the period in which the Company sells its product. Contracts containing multiple performance obligations The Company offers certain arrangements whereby a customer can purchase products and installation together which are generally capable of being distinct and accounted for as separate performance obligations. Where multiple performance obligations exist, the Company determines revenue recognition by (1) identifying the contract with the customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations based on the relative standalone selling prices, typically based on cost plus a reasonable margin, and (5) recognizing revenue as the performance obligations are satisfied. Installation and other services The Company provides installation and other services for certain customers as a distinct performance obligation. Revenue from installation services is recognized over time as the service is performed. Principal vs Agent Considerations The Company evaluates the presentation of revenue on a gross vs. net basis based on whether it acts as a principal by controlling the product or service sales to customers. In certain instances, the Company facilitates contracting of certain sales on behalf of Distribution Partners. The Company records these revenues on a gross basis when the Company is obligated to fulfill the service and has the risk associated with service delivery. The Company records these revenues on a net basis when the Distribution Partner has the obligation to fulfill the services and has the risk associated with service delivery. Distribution Partner rebates Rebates to Distribution Partners (“Partner Rebates”) are accrued for and recognized as a reduction of revenue at the date of the sale to the customer. Partner Rebates include amounts collected directly by the Company owed to Distribution Partners in accordance with their Distribution Partner agreements, being the difference between the price to the end customer and the Distribution Partners’ price. Other sales discounts are deducted immediately from sales invoices. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an unbilled receivable when revenue is recognized prior to invoicing. As the Company’s contracts are less than one year in duration, the Company has elected to apply the practical expedients to expense costs related to costs to obtain contracts and not disclose unfulfilled performance obligations. As deferred revenue and customer deposits are typically recognized during the year the Company does not account for financing elements. Warranties The Company provides a warranty on all products sold to its clients and Distribution Partner’s clients. Warranties are not sold separately to customers. Provisions for the expected cost of warranty obligations are recognized based on an analysis of historical costs for warranty claims relative to current activity levels and adjusted for factors based on management’s assessment that increase or decrease the provision. Warranty provision is recognized in cost of goods sold. Warranty claims have historically not been material and do not constitute a separate performance obligation. Stock-based compensation The Company follows the fair value-based approach to account for options and restricted share units (“RSUs”). Compensation expense and an increase in “Additional paid-in capital” are recognized for options and RSUs over their vesting period based on their estimated fair values on the grant date, as determined using the Black-Scholes option pricing model for the majority of options and the market value of the Company’s common shares on the grant date for RSUs. Certain executive stock options and RSUs have performance conditions and are valued using a Monte Carlo model. On exercise of stock options and RSUs, the recorded fair value of the option or RSU is removed from “Additional paid-in capital” and credited to “Share capital”. For options, any consideration paid by employees is credited to “Share capital” when the option is exercised. The Company’s stock options and RSUs are not shares of the Company and have no rights to vote, receive dividends, or any other rights as a shareholder of the Company. During 2018 and 2019, the Company provided a cash settlement alternative for certain stock options. The fair value on grants attributable to those awards was reclassified on the balance sheet from shareholders’ equity to other liabilities, and at period end the liability is adjusted to fair value and the excess of fair value over previously recognized stock-based compensation is expensed. The fair value of the awards at the date of modification was greater than the grant date fair value of the previously vested equity awards, therefore the additional fair value was treated as an expense at the date of modification. Increases or decreases in fair value subsequent to the modification date will be recorded in earnings except that the Company shall not recognize a cumulative expense lower than the grant date fair value of the original equity awards. On October 9, 2019, following the listing of its common shares on Nasdaq, the Company ceased cash-settlement of stock options and the associated liability accounting for stock options and returned to equity settlement accounting for stock options, as described above. Stock based compensation expense is also recognized for performance share units (“PSUs”) and deferred share units (“DSUs”) using the fair value method. Compensation expense is recognized over the vesting period and the corresponding amount is recorded as a liability on the balance sheet. Technology and development expenditures Technology and development expenses are comprised primarily of salaries and benefits associated with the Company’s product and software development personnel which do not qualify for capitalization. These costs are expensed as incurred and exclude certain information and technology costs used in operations which are classified as general and administrative costs. Government subsidies The Company accounts for government subsidies on an accrual basis when the conditions for eligibility are met. The Company has adopted an accounting policy to present government subsidies as other income. Earnings per share (“EPS”) Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive impact of stock options. The Company follows the “if converted” method for accounting for the impact of convertible debentures on earnings (loss) per share, whereby interest charges applicable to the convertible debentures are added to the numerator and the convertible debentures are assumed to have been converted at the beginning of the period (or time of issuance, if later), and the resulting common shares are added to the denominator. Fair value of financial instruments ASC 820, “Fair Value Measurements,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s fair value analysis is based on the degree to which the fair value is observable and grouped into categories accordingly: • Level 1 financial instruments are those which can be derived from quoted market prices (unadjusted) in active markets for similar financial assets or liabilities. • Level 2 financial instruments are those which can be derived from inputs that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 2 financial instruments include current and long-term debt. The carrying amounts of these instruments approximates fair value due to limited changes to interest rates and the Company’s credit rating since issuance. • Level 3 financial instruments are those derived from valuation techniques that include inputs for the financial asset or liability which are not based on observable market data (unobservable inputs). The Company does not have any Level 3 financial instruments. The carrying amounts of cash and cash equivalents and restricted cash; trade and other receivables; accounts payable and accrued liabilities; other liabilities; and customer deposits approximate fair value due to their short-term nature. |
ADOPTION OF NEW AND REVISED ACC
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2021 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS | 3. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS On January 1, 2021, the Company adopted 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 “ASU”). The ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. The amendments in the ASU are effective for fiscal years beginning after March 15, 2021 and early adoption is permitted, but no earlier than fiscal years beginning after March 15, 2020, including interim periods within those fiscal years. 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 and November 2021 (see Note 12) 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. |
COVID-19
COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
COVID-19 | 4. 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 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 6) and during 2021 reduced the Company’s provision for an uncollectible amount that was related to a specific customer. Management has continued to reassess the impact of COVID-19 on the Company’s 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 which remained in place during 2021 (see Note 6). 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 and December of 2021, for net proceeds of $29.5 million and $25.6 million, respectively, and has credit facilities available. See Note 12 for information about our credit facilities. 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 provided the Company with a taxable subsidy in respect of a specific portion of wages paid to Canadian employees during qualifying periods extending from March 15, 2020 to October 23, 2021 based on the percentage decline of certain of the Company’s Canadian sourced revenues during each qualifying period. The Company’s eligibility for the CEWS was subject to change for each qualifying period and was reviewed by the Company for each qualifying period, with amounts being received by the Company for various, but not each, qualifying period. Pursuant to amendments enacted as part of the 2021 Canadian federal budget, the Company 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” (within the meaning of the CEWS) during the 2021 calendar year exceeds the aggregate compensation for “specified executives” during the 2019 calendar year. On November 19, 2020, the Canadian government also implemented the Canada Emergency Rent Subsidy (“CERS”). The CERS provided a taxable subsidy to cover eligible expenses for qualifying properties, subject to certain maximums, for qualifying periods extending from September 27, 2020 to October 23, 2021, with the amount of the subsidy available to the Company being based on the percentage decline of certain of the Company’s Canadian-sourced revenues in each qualifying period. The Company’s eligibility for the CERS was subject to change for each qualifying period and was reviewed by the Company for each qualifying period. The CEWS and CERS programs ended on October 23, 2021. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | 5. LEASES The Company leases office and factory space under various operating leases. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to instruments with similar characteristics when calculating its incremental borrowing rate. The Company’s operating leases have remaining lease terms of 1 year to 24 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The weighted average remaining lease term and weighted average discount rate at December 31, 2021 were 14 years (2020 - 14 years) and 5.2% (2020 – 5.1%), respectively. The following table includes ROU assets included on the balance sheet at December 31, 2021 and 2020: ROU Assets Cost Accumulated depreciation Net book value At January 1, 2020 24,778 (4,117 ) 20,661 Additions 16,805 - 16,805 Depreciation expense - (3,884 ) (3,884 ) Exchange differences 257 (196 ) 61 At December 31, 2020 41,840 (8,197 ) 33,643 Additions 2,401 - 2,401 Depreciation expense - (4,989 ) (4,989 ) Exchange differences (186 ) 11 (175 ) At December 31, 2021 44,055 (13,175 ) 30,880 The following table includes lease liabilities included on the balance sheet at December 31, 2021 and 2020: Lease Liability 2021 2020 At January 1, 35,284 21,403 Additions 2,401 17,255 Accretion 1,758 1,175 Repayment of lease liabilities (6,509 ) (5,358 ) Lease inducements 720 750 Exchange differences (173 ) 59 At December 31, 33,481 35,284 Current lease liabilities 6,214 5,503 Long-term lease liabilities 27,267 29,781 The following table includes maturities of operating lease liabilities at December 31, 2021: 2022 6,406 2023 4,751 2024 3,150 2025 3,184 2026 3,267 Thereafter 28,963 Total 49,721 Total lease liability 33,481 Difference between undiscounted cash flows and lease liability 16,240 In September 2020, the Company commenced the 15 year lease associated with the construction of the South Carolina Facility. The lease may be extended for up to two 5 year periods. Undiscounted rent obligations associated with this lease are $28.1 million which includes the initial 15 year term and two 5 year extensions. The rent obligations have been discounted at a rate of 5.5% to determine the lease liability. In December 2020, the Company entered into a lease agreement with a n initial term of 8 years and one 5 year extension associated with a new DXC in Dallas , Texas. Undiscounted r ent obligations associated with this lease are $ 6.7 million . The rent obligations have been discounted at a rate of % to determine the lease liability . |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
TRADE AND OTHER RECEIVABLES | 6. 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. In addition, we acquired trade credit insurance effective April 1, 2020. At December 31, 2021, approximately 90% 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 years ended December 31, 2021 and 2020 no Distribution Partner accounted for greater than 10% of revenue. In addition, and where possible, we collect a 50% deposit on sales, excluding government and certain other clients. As at December 31, 2021 2020 Current 13,659 12,500 Overdue 621 1,211 14,280 13,711 Less: expected credit losses (130 ) (588 ) 14,150 13,123 Sales tax receivable 196 242 Government subsidies receivable - 1,743 Income tax receivable 3,194 3,845 17,540 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. During 2021, $0.5 million of receivables for a specific customer balance was written off (2020 - $0.1 million). No significant increase to our expected credit losses was required at December 31, 2021. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 7. INVENTORY As at December 31, 2021 2020 Raw material 18,388 16,730 Allowance for obsolescence (646 ) (1,073 ) Work in progress 715 321 18,457 15,978 In 2021, the Company provided $0.6 million (2020 - $1.1 million) for inventory that is not expected to be used in future production and the associated expense was recorded to cost of goods sold. During 2021 and 2020, the Company experienced periods where it was operating below normal capacity levels. During those periods, overheads included in inventory were not increased and $ 1.8 million (20 20 - $ million ) was recognized directly and separately in cost of sales. Production overheads capitalized in work in progress were $ million at December 31, 202 1 (December 31, 20 20 - $ million). |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 8. PROPERTY, PLANT AND EQUIPMENT, NET Office and computer equipment Factory equipment Leasehold improvements Total Cost At December 31, 2019 22,743 54,640 39,231 116,614 Additions 1,139 11,719 3,777 16,635 Disposals (28 ) (120 ) (138 ) (286 ) Exchange differences 1,134 284 235 1,653 At December 31, 2020 24,988 66,523 43,105 134,616 Additions 3,422 4,515 4,372 12,309 Disposals - (53 ) - (53 ) Exchange differences 236 499 90 825 At December 31, 2021 28,646 71,484 47,567 147,697 Accumulated depreciation and impairment At December 31, 2019 13,912 32,274 29,063 75,249 Depreciation expense 1,723 3,059 3,656 8,438 Disposals (28 ) (120 ) (138 ) (286 ) Exchange differences 755 311 302 1,368 At December 31, 2020 16,362 35,524 32,883 84,769 Depreciation expense 3,589 3,670 3,817 11,076 Disposals - (23 ) - (23 ) Exchange differences 30 100 48 178 At December 31, 2021 19,981 39,271 36,748 96,000 Net book value At December 31, 2020 8,626 30,999 10,222 49,847 At December 31, 2021 8,665 32,213 10,819 51,697 As at December 31, 2021, the Company had $2.2 million of assets in progress of completion which were excluded from assets subject to depreciation (December 31, 2020 – $16.2 million, primarily related to equipment procured for the South Carolina Facility). |
CAPITALIZED SOFTWARE, NET
CAPITALIZED SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2021 | |
Capitalized Software [Abstract] | |
CAPITALIZED SOFTWARE, NET | 9. CAPITALIZED SOFTWARE, NET For the Year Ended December 31, 2021 2020 Cost As at January 1 35,480 32,419 Additions 2,340 2,998 Recovery of software development expenditures (461 ) (674 ) Exchange differences 133 737 As at December 31 37,492 35,480 Accumulated amortization As at January 1 27,136 24,206 Amortization expense 2,878 2,428 Exchange differences 83 502 As at December 31 30,097 27,136 Net book value 7,395 8,344 Estimated amortization expense on capitalized software is $2.4 million in 2022, $1.5 million in 2023, $0.9 million in 2024, $0.7 million in 2025, and $0.1 million in 2026. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL | 10. GOODWILL For the Year Ended December 31, 2021 2020 As at January 1 1,449 1,421 Goodwill impairment (1,443 ) - Exchange differences (6 ) 28 - 1,449 The Company’s goodwill is assessed at the consolidated company level which represents the Company’s sole operating and reporting unit. The Company tests its goodwill for impairment annually during the fourth quarter of the calendar year. Due to the ongoing impact of the COVID-19 pandemic on its financial results in 2021, the Company determined it was necessary to use the quantitative approach to perform its goodwill impairment test. The quantitative impairment test requires estimates to determine the fair value of the reporting unit, as such, requires the Company to make significant assumptions and judgements. To estimate the fair value of the reporting unit, the Company applied the income approach using discounted future cash flows. Sales and cost projections were based on assumptions driven by current economic conditions. Due to the uncertainty around the future impact of COVID-19, its projections considered various scenarios and the Company probability-weighted the likelihood of each scenario in determining the reporting unit’s fair value. The average compounded annual growth rate of revenues was 10% and the Company assumed a 10% - 15% annualized reduction in operating costs in the model. Other key assumptions used in the quantitative assessment of the reporting unit’s goodwill were applying a discount rate of 13% Based on its testing, the fair value of goodwill did not exceed the recoverable amount and, accordingly, the entire $1.4 million balance of goodwill was impaired as at December 31, 2021. The impairment charge on goodwill has been separately classified on the consolidated statement of operations and comprehensive loss. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES | 11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES As at December 31, 2021 2020 Trade accounts payable 7,820 4,921 Accrued liabilities 9,649 9,266 Wages and commissions payable 4,275 4,577 Rebates accrued (1) 1,007 1,586 22,751 20,350 (1) Other liabilities During the year December 31, 2021, the Company separately classified the current portion of long-term debt and accrued interest on the balance sheet, prior year figures have been reclassified to conform with the current year’s presentation: As at December 31, 2021 2020 Legal provisions (1) 143 45 Deferred and performance share unit liability 785 971 Warranty and other provisions (2) 1,451 1,763 Current portion of long-term debt and accrued interest 3,323 898 Other liabilities, as previously presented 5,702 3,677 Reclassified to "Current portion of long-term debt and accrued interest" (3,323 ) (898 ) Other liabilities 2,379 2,779 (1) The Company has provided $0.1 million (2020 - $0.05 million) as the estimated amount likely payable for various claims against the Company. The amount provided for is management’s best estimate of the potential payments for amounts claimed (2) The following table presents a reconciliation of the warranty and other provisions balance: As at December 31, 2021 2020 As at January 1 1,763 4,008 Adjustments to timber provision (500 ) (1,750 ) Additions to warranty provision 1,019 1,301 Payments related to warranties (831 ) (1,796 ) 1,451 1,763 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 12. LONG-TERM DEBT Revolving Credit Facility Leasing Facilities Convertible Debentures Total Debt Balance on January 1, 2020 - - - - Issuances - 6,130 - 6,130 Accrued interest - 103 - 103 Interest payments - (103 ) - (103 ) Principal repayments - (406 ) - (406 ) Exchange differences - 243 - 243 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 - 9,805 55,107 64,912 Accretion of issue costs - - 352 352 Accrued interest - 556 1,935 2,491 Interest payments - (556 ) (987 ) (1,543 ) Principal repayments - (1,808 ) - (1,808 ) Exchange differences - (55 ) 326 271 Balance at December 31, 2021 - 13,909 56,733 70,642 Current portion of long-term debt and accrued interest - 2,386 937 3,323 Long-term debt - 11,523 55,796 67,319 Revolving Credit Facility On July 19, 2019, the Company entered into a C$50.0 million senior secured revolving credit facility (the “Previous RBC Facility”) with the Royal Bank of Canada (“RBC”). The Previous RBC Facility had a three-year During the second quarter of 2020, the Company entered into a letter agreement with RBC pursuant to which the Covenants were waived for the June 30, 2020 and September 30, 2020 quarterly measurement dates (the “Covenant Holiday Period”). In the fourth quarter of 2020, the Company entered into a letter agreement with RBC pursuant to which the Covenants were waived for the December 31, 2020 quarterly measurement date (the “Covenant Holiday Period Extension”). During the Covenant Holiday Period and the Covenant Holiday Period Extension, the Company was 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 $50.0 million including amounts borrowed under the Leasing Facilities. During the Covenant Holiday Period and the Covenant Holiday Period Extension, the Company was required to maintain a cash balance of C$10.0 million if no loans were drawn under the facility, have Adjusted EBITDA of not less than a loss of $7.0, $16.5 million and $3.0 million for the twelve month periods ended June 30, September 30, 2020 and December 31, 2020, and make capital expenditures of no more than $10.7 million during the Covenant Holiday Period and $8.8 million during the Covenant Holiday Period Extension. As at December 31, 2020, the Previous RBC Facility was undrawn and the available borrowing base was $10.6 million. The Company was in compliance with the requirements of the covenant holiday as at December 31, 2020. On February 12, 2021, the Company entered into a C$25.0 million senior secured revolving credit facility with RBC (the “ RBC Facility”), replacing the Previous RBC Facility. Under the RBC Facility, the Company is able to borrow up to a maximum of 90% of investment grade or insured accounts receivable plus 85% of eligible accounts receivable plus the lesser of 75% of the book value of eligible inventory and 85% of the net orderly liquidation value of eligible inventory less any reserves for potential prior ranking claims (the “Borrowing Base”). At December 31, 2021, available borrowings are C$13.2 million ($10.4 million), of which no amounts have been drawn. Interest is calculated at the Canadian or U.S. prime rate plus 30 basis points or at the Canadian Dollar Offered Rate or LIBOR plus 155 basis points. Under the RBC Facility, if the Aggregate Excess Availability, defined as the Borrowing Base less any loan advances or letters of credit or guarantee and if undrawn including unrestricted cash, is less than C$5.0 million, the Company is subject to a FCCR covenant of 1.10:1 on a trailing twelve month basis. Additionally, if the FCCR has been above 1.10:1 for the 3 immediately preceding months, the Company is required to maintain a reserve account equal to the aggregate of one-year of payments on the Leasing Facilities (defined below). The Company did not meet the 3 month FCCR requirement during the fourth quarter of 2021 which would result in requiring the restriction of $3.1 million of cash at December 31, 2021. Should an event of default occur or the Aggregate Excess Availability be less than C$6.25 million for 5 consecutive business days, the Company would enter a cash dominion period whereby the Company’s bank accounts would be blocked by RBC and daily balances will set-off any borrowings and any remaining amounts made available to the Company. Leasing Facilities During 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”) with RBC, and one of its affiliates, which are available for equipment expenditures and certain equipment expenditures already incurred. Pursuant to the Covenant Holiday Period Extension, the equipment leasing facility in the United States was reduced from US$16 million to US$14 million and the revolving Lease Facilities were amended to be amortizing facilities. The Leasing Facilities, respectively, have seven and five-year six-year During 2021, the Company received $9.8 million (2020 - $3.5 million) of cash consideration under the U.S. leasing facility related to reimbursements for equipment purchases for its South Carolina Facility. During 2021, the Company received $ nil Convertible Debentures On January 25, 2021, the Company completed a C$35 million ($27.5 million) bought-deal financing of convertible unsecured subordinated debentures with a syndicate of underwriters. On January 29, 2020, the Company issued a further C$5.25 million ($4.1 million) of convertible d ebentures under the terms of an overallotment option granted to the underwriters. The se convertible d ebentures will mature and be repayable on January 31, 2026 (the “ January Notes Maturity Date”) and will accrue interest at the rate of 6.00% per annum payable semi-annually in arrears on the last day of January and July of each year commencing on July 31, 2021 until the January Notes Maturity Date , interest and principal are payable in cash or shares at the option of the Company . The se convertible d ebentures will be convertible into common shares of DIRTT, at the option of the holder, at any time prior to the close of business on the business day prior to the earlier of the January Notes Maturity Date and the date specified by the Company for redemption of the se convertible d ebentures at a conversion price of C$ 4.65 per c ommon s hare, being a ratio of approximately 215.0538 c ommon s hares per C$ 1,000 principal amount of convertible d ebentures. Costs of the transaction were approximately C $ million , including the underwriters’ commission. On November 15, 2021, the Company completed a C$35 million ($27.4 million) bought-deal financing of convertible unsecured subordinated debentures with a syndicate of underwriters. These convertible debentures will mature and be repayable on December 31, 2026 (the “November Notes Maturity Date”) and will accrue interest at the rate of 6.25% per annum payable semi-annually in arrears on the last day of June and December of each year commencing on June 30, 2022 until the November Notes Maturity Date, interest and principal are payable in cash or shares at the option of the Company. These convertible debentures will be convertible into common shares of DIRTT, at the option of the holder, at any time prior to the close of business on the business day prior to the earlier of the November Notes Maturity Date and the date specified by the Company for redemption of the convertible debentures at a conversion price of C$4.20 per common share, being a ratio of approximately 238.0952 common shares per C$1,000 principal amount of convertible debentures. Costs of the transaction were approximately C$2.3 million including the underwriters’ commission. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES Reconciliation of income taxes The following reconciles income taxes calculated at the Canadian statutory rate with the actual income tax expense. The Canadian statutory rate includes federal and provincial income taxes. This rate was used because Canada is the domicile of the parent entity of the Company. For the Year Ended December 31, 2021 2020 2019 Net loss before tax (53,872 ) (9,194 ) (3,377 ) Canadian statutory rate 23.3 % 24.2 % 26.5 % Expected income tax (12,552 ) (2,225 ) (895 ) Effect on taxes resulting from: Valuation allowance 12,046 5,241 - Non-deductible expenses 542 261 550 Non-deductible stock-based compensation 189 269 674 Tax rate impacts (488 ) (1,288 ) 999 Adjustments related to prior year tax filings 59 (105 ) (205 ) Other - (49 ) (104 ) Income tax expense (recovery) (204 ) 2,104 1,019 Current tax expense (recovery) 210 (3,521 ) 1,064 Deferred tax expense (recovery) (414 ) 5,625 (45 ) Income tax expense (204 ) 2,104 1,019 The provision for income taxes is comprised of federal, state, provincial and foreign taxes based on pre-tax income. In the United States, the CARES Act of 2020 allows, among other provisions, for the recovery of taxes paid over the preceding five years from current year losses. Deferred tax assets and liabilities Significant components of the Company’s deferred tax assets and liabilities at December 31, 2021 and 2020 were as follows: At December 31, 2021 Assets Liabilities Net Operating losses 24,032 - 24,032 Research and development expenditures 362 - 362 Property and equipment - (7,572 ) (7,572 ) Capitalized software and other assets - (2,023 ) (2,023 ) Valuation allowance (17,291 ) - (17,291 ) Other - 2,492 2,492 Net deferred taxes 7,103 (7,103 ) - At December 31, 2020 Assets Liabilities Net Operating losses 9,528 - 9,528 Research and development expenditures 360 - 360 Property and equipment - (2,218 ) (2,218 ) Capitalized software and other assets - (4,588 ) (4,588 ) Valuation allowance - (5,330 ) (5,330 ) Other 1,834 - 1,834 Net deferred taxes 11,722 (12,136 ) (414 ) Summary of temporary difference movements during the year: Balance Recognized Foreign Balance January 1, 2021 in Income Exchange December 31, 2021 Operating losses 9,528 14,542 (38 ) 24,032 Research and development expenditures 360 (87 ) 89 362 Property and equipment (4,588 ) (2,844 ) (140 ) (7,572 ) Capitalized software and other assets (2,218 ) 209 (14 ) (2,023 ) Valuation allowance (5,330 ) (12,046 ) 85 (17,291 ) Other 1,834 640 18 2,492 Net deferred taxes (414 ) 414 - - Balance Recognized Foreign Balance January 1, 2020 in Income Exchange December 31, 2020 Operating losses 6,899 2,451 178 9,528 Research and development expenditures 353 594 (587 ) 360 Property and equipment (1,916 ) (3,600 ) 928 (4,588 ) Capitalized software and other assets (2,345 ) 251 (124 ) (2,218 ) Valuation allowance - (5,241 ) (89 ) (5,330 ) Other 2,373 (80 ) (459 ) 1,834 Net deferred taxes 5,364 (5,625 ) (153 ) (414 ) For the year ended December 31, 2021, the Company recorded valuation allowances of $12.0 million against deferred tax assets (“DTAs”) incurred during the year as the Company has experienced cumulative losses in recent years (December 31, 2020 –$5.2 million recorded in the Company’s Canadian entity). Although earnings were positive in 2019, ongoing near-term uncertainties on the business caused by the COVID-19 pandemic and the related decline in business activity impacted the Company’s ability to generate earnings. Accordingly, it is not more likely than not that the Company’s DTAs will be utilized in the near term. The provincial corporate tax rate in Alberta, Canada was decreased on June 28, 2019 from 11.5% to 11% for the second half of 2019, and was scheduled to further reduce to 10% for 2020, 9% for 2021 and 8% thereafter. As part of Alberta’s Recovery Plan, the decrease in provincial tax rates was accelerated such that the provincial corporate tax rate is 8% effective July 1, 2020. As a result of this rate change, DIRTT reduced its DTAs by $0.9 million with a corresponding deferred income tax expense recorded in the second quarter of 2019. The amount shown on the balance sheet as deferred income tax liabilities represent the net differences between the tax basis and book carrying values on the Company’s balance sheet at enacted tax rates. On an annual basis the Company and its subsidiaries file tax returns in Canada and various foreign jurisdictions. In Canada the Company’s federal and provincial tax returns for the years 2018 to 2020 remain subject to examination by taxation authorities. In the United States, both the federal and state tax returns filed for the years 2017 to 2020 remain subject to examination by the taxation authorities. Tax loss carryforwards and other tax pools The significant components of the Company’s net future income tax deductions in these consolidated financial statements are summarized as follows: As at December 31, 2021 2020 2021 2020 Canadian Entity C$ US Entity $ Non-capital loss carry-forwards 64,961 45,299 42,220 - Undepreciated capital costs 12,267 13,225 10,268 3,944 Scientific research and experimental development tax incentives 1,971 1,971 - - Total future tax deductions 79,199 60,495 52,488 3,944 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK-BASED COMPENSATION | 14. STOCK-BASED COMPENSATION In May 2020, shareholders approved the DIRTT Environmental Solutions Ltd. Long-Term Incentive Plan (the “2020 LTIP”) at the annual and special meeting of shareholders. The 2020 LTIP gives the Company the ability to award options, share appreciation rights, restricted share units, restricted shares, dividend equivalent rights granted in connection with restricted share units, vested share awards, and other share-based awards and cash awards to eligible employees, officers, consultants and directors of the Company and its affiliates. In accordance with the 2020 LTIP, the sum of (i) 5,850,000 common shares plus (ii) the number of common shares subject to stock options previously granted under the Company’s Amended and Restated Incentive Stock Option Plan (the “Stock Option Plan”) that, following May 22, 2020, expire or are 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 and sell shares as a means of meeting DIRTT’s tax withholding requirements in respect of the withholding tax remittances required in respect of award holders. To the extent the fair value of the withheld shares upon vesting exceeds the grant date fair value of the instrument, the excess amount is credited to retained earnings or deficit. The Company also maintains the DIRTT Environmental Solutions Ltd. Deferred Share Unit Plan for Non-Employee Directors pursuant to which DSUs are granted to the Company’s non-employee directors. DSUs are settled solely in cash. Prior to the approval of the 2020 LTIP, the Company granted awards of options under the Stock Option Plan and awards of performance share units (“PSUs”) under the DIRTT Environmental Solutions Ltd. Performance Share Unit Plan (the “PSU Plan”). Following the approval of the 2020 LTIP, no further awards will be made under either the Stock Option Plan or the PSU Plan, but both remain in place to govern the terms of any awards that were granted pursuant to such plans and remain outstanding Stock-based compensation expense For the Year Ended December 31, 2021 2020 2019 Equity-settled awards 4,453 1,832 3,512 Cash-settled awards 260 519 364 4,713 2,351 3,876 The following summarizes PSUs, DSUs and RSUs 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 2,419,609 200,000 251,470 - Exercised - - (20,403 ) - Forfeited (5,546 ) - - (25,581 ) Outstanding at December 31, 2020 2,414,063 200,000 363,664 197,471 Granted 1,976,697 878,601 144,969 - Vested (661,775 ) (2,294 ) (147,056 ) (34,635 ) Withheld to settle employee tax obligations (174,103 ) (1,960 ) - - Forfeited (338,346 ) (52,608 ) - (5,636 ) Outstanding at December 31, 2021 3,216,536 1,021,739 361,577 157,200 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 period from the date of grant (the “RSU’s”). At the end of a three-year term, the associated RSUs will be settled by way of the provision of cash or shares to employees (or a combination thereof), at the discretion of the Company. The weighted average fair value of the RSUs granted in 2021 was C$2.78 (2020 – C$2.05) which was determined using the closing price of the Company’s common shares on their respective grant dates. Restricted share units (performance-based vesting) During 2021, restricted share units were granted to executives with service and performance-based conditions for vesting (the “Performance RSUs” or “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 The 2020 grant was for one executive, 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. On January 18, 2022, these awards were forfeited upon the departure of the executive from the Company. The grant date fair value of the 2021 and 2020 Performance RSUs were valued using the Monte Carlo valuation method and determined to have a weighted average grant date fair value of C$3.27 and C$1.70, respectively. 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 December 31, 2021 had a fair value of $0.8 million which is included in other liabilities on the balance sheet (2020 – $0.9 million). 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 December 31, 2021, outstanding PSUs had a fair value of $nil Options In 2018, the Company allowed certain vested stock options to be surrendered by their holders for cash. On October 9, 2019, following the listing of its common shares on Nasdaq, the Company ceased permitting the cash-settlement of stock options and the associated liability accounting for stock options. In 2019, $1.8 million was expensed to adjust the liability to fair value, and an additional $0.4 million was charged back to paid-in capital as, for certain stock options, the cumulative expense calculated was lower that the grant date fair value of the original equity awards. During 2019, $3.6 million of stock options were surrendered by their holders for cash. 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 (227,368 ) 6.81 Expired (1,154,956 ) 6.29 Outstanding at December 31, 2020 4,774,328 6.52 Forfeited (44,102 ) 7.05 Expired (665,737 ) 5.76 Outstanding at December 31, 2021 4,064,489 6.64 Exercisable at December 31, 2021 2,079,479 6.71 In 2018, 1,725,000 stock options were granted to an executive with performance conditions for vesting. For 825,000 stock options, vesting is conditioned upon an increase in the Company’s share price to C$13.26, and for 900,000 stock options, vesting is conditioned 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. On January 18, 2022, these awards were forfeited upon the departure of the executive from the Company. Range of exercise prices outstanding at December 31, 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 lif e price C $ C$4.01 – C$5.00 22,537 2.89 4.12 15,025 2.89 4.12 C$5.01 – C$6.00 - - - - - - C$6.01 – C$7.00 3,281,199 1.79 6.38 1,549,301 1.87 6.36 C$7.01 – C$8.00 760,753 2.37 7.84 515,153 2.37 7.84 Total 4,064,489 2,079,479 Range of exercise prices outstanding at December 31, 2020: Options outstanding Options exercisable Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstanding life price C$ exercisable life price C$ C$4.01 – C$5.00 22,537 3.89 4.12 7,513 3.89 4.12 C$5.01 – C$6.00 669,236 0.89 5.76 669,236 0.89 5.76 C$6.01 – C$7.00 3,299,993 2.79 6.38 1,126,772 2.93 6.34 C$7.01 – C$8.00 782,562 3.37 7.84 262,417 3.37 7.84 Total 4,774,328 2,065,938 The stock options granted had a weighted average grant date fair value of Dilutive instruments For the year ended December 31, 2021, 4.1 million options (2020 – 4.8 million, 2019 – 0.5 million) and 3.4 million RSUs and PRSUs (2020 – 2.7 million, 2019 - nil) and 27.4 million shares which would be issued if the principal amount of the Debentures were settled in our common shares at the year end share price (2020 and 2019 - nil) were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive to the net loss per share. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE | 15. 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 16 for the disaggregation of revenue by geographic region. For the Year Ended December 31, 2021 2020 2019 Product 129,031 150,004 215,109 Transportation 13,231 15,491 23,903 License fees from Distribution Partners 738 1,194 1,647 Total product revenue 143,000 166,689 240,659 Installation and other services 4,593 4,818 7,076 147,593 171,507 247,735 DIRTT sells its products and services pursuant to fixed-price contracts which generally have a term of one year or less. The transaction price used in determining the amount of revenue to recognize from fixed-price contracts is based upon agreed contractual terms with each customer and is not subject to variability. For the Year Ended December 31, 2021 2020 2019 At a point in time 142,262 165,495 239,012 Over time 5,331 6,012 8,723 147,593 171,507 247,735 Revenue recognized at a point in time represents the majority of the Company’s sales. Revenue is recognized when a customer obtains legal title to the product, which is when ownership of the product is transferred to, or services are delivered to, the customer. Revenue recognized over time is limited to installation and ongoing maintenance contracts with customers and is recorded as performance obligations are satisfied over the term of the contract. Contract Liabilities As at December 31, 2021 2020 2019 Customer deposits 1,959 1,292 2,436 Deferred revenue 461 527 1,131 Contract liabilities 2,420 1,819 3,567 Contract liabilities primarily relate to deposits received from customers and maintenance revenue from license subscriptions. The balance of contract liabilities was higher as at December 31, 2021 compared to the prior year period mainly due to the timing of orders and payments. Contract liabilities as at December 31, 2020 and 2019, respectively, totaling $1.8 million and $3.6 million were recognized as revenue during 2021 and 2020, respectively. Sales by Industry The Company periodically reviews product revenue by industry vertical market to evaluate trends and the success of industry specific sales initiatives. The nature of products sold to the various industries is consistent and therefore the periodic review is focused on sales performance. For the Year Ended December 31, 2021 2020 2019 Commercial 84,488 102,245 158,256 Healthcare 30,130 35,400 44,197 Government 16,012 14,128 14,879 Education 11,632 13,722 21,680 License fees from Distribution Partners 738 1,194 1,647 Total product revenue 143,000 166,689 240,659 Service revenue 4,593 4,818 7,076 147,593 171,507 247,735 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 16. SEGMENT REPORTING The Company has one reportable and operating segment and operates in two principal geographic locations, Canada and the United States. Revenue continues to be derived almost exclusively from projects in North America and predominantly from the United States. The Company’s revenue from operations from external customers, based on location of operations, and information about its non-current assets, is detailed below. Revenue from external customers For the Year Ended December 31, 2021 2020 2019 Canada 17,299 18,848 34,085 U.S. 130,294 152,659 213,650 147,593 171,507 247,735 Non-current assets, excluding deferred tax assets As at December 31, 2021 2020 Canada 34,912 42,947 U.S. 60,723 55,352 95,635 98,299 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use assets, goodwill and other assets. Goodwill was included in the Canadian segment. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS | 17. COMMITMENTS As at December 31, 2021, the Company had outstanding purchase obligations of approximately $3.7 million related to inventory and property, plant and equipment purchases (December 31, 2020 – $3.2 million). Refer to Note 5 for lease commitments. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | 18. LEGAL PROCEEDINGS The Company is pursuing multiple lawsuits against its former founders, Mogens Smed and Barrie Loberg, their new company Falkbuilt Ltd. (“Falkbuilt”), and other related individual and corporate defendants for violations of fiduciary duties and non-competition and non-solicitation covenants contained in their executive employment agreements, and the misappropriation of DIRTT’s confidential and proprietary information in violation of numerous Canadian and U.S. state, As of December 31, 2021, the Company’s litigation against Falkbuilt, Messrs. Smed and Loberg, and their associates was comprised of four main lawsuits: (i) an action in the Alberta Court of Queen’s Bench instituted on May 9, 2019 against Falkbuilt, Messrs. Smed and Loberg, and several other former DIRTT employees alleging breaches of restrictive covenants, fiduciary duties, and duties of loyalty, fidelity and confidentiality, and the misappropriation of DIRTT’s confidential information (the “Canadian Non-Compete Case”); (ii) an action in the U.S. District Court for the Northern District of Utah instituted on December 11, 2019 against Falkbuilt, Smed, and other individual and corporate defendants alleging misappropriation of DIRTT’s confidential information, trade secrets, business intelligence and customer information (the “Utah Misappropriation Case”); (iii) an action for federal patent infringement in the U.S. District Court for the Northern District of Illinois instituted on August 6, 2020 against Falkbuilt, alleging that Falkbuilt is infringing certain of DIRTT’s patents relating to our proprietary ICE® software (the “Patent Infringement Case”); and (iv) an action in the U.S. District Court for the Northern District of Texas instituted on June 24, 2021 alleging that Falkbuilt has unlawfully used DIRTT’s confidential information in the United States and intentionally caused confusion in the United States in an attempt to steal customers, opportunities, and business intelligence, with the aim of establishing a competing business in the United States market (the “Texas Unfair Competition Case”). DIRTT intends to pursue the cases vigorously. Falkbuilt also filed a lawsuit against the Company on November 5, 2019 in the Court of Queen’s Bench of Alberta, alleging that DIRTT has misappropriated and misused their alleged proprietary information in furtherance of DIRTT’s product development. Falkbuilt seeks monetary relief and an interim, interlocutory and permanent injunction of DIRTT’s alleged use of the alleged proprietary information. The Company believes that the suit is without merit and filed an application for summary judgement to dismiss Falkbuilt’s claim. No amounts are accrued for the above legal proceedings. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS On February 22, 2022, the Company announced the intention to close its Phoenix facility, as well as an 18% reduction in the Company’s salaried workforce. One-time costs associated with these reductions, to be incurred in the first half of 2022, are expected to be approximately $5.0 million. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These consolidated financial statements (“Financial Statements”), including comparative figures, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In these Financial Statements, unless otherwise indicated, all dollar amounts are expressed in United States (“U.S.”) dollars. DIRTT’s financial results are consolidated in Canadian dollars, the Company’s functional currency, and the Company has adopted the U.S. dollar as its reporting currency. All references to US$ or $ are to U.S. dollars and references to C$ are to Canadian dollars. |
Principles of consolidation | Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated upon consolidation. |
Basis of measurement | Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and stock-based compensation that are measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. |
Use of estimates | Use of estimates The preparation of the Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to unsettled transactions and events as of the date of the Financial Statements. Estimates are based on historical data and experience, as well as various other factors that management considers reasonable under the circumstances. Actual outcomes can differ from these estimates. Significant estimates and assumptions made by management include: • Estimates of ability and timeliness of customer payments of accounts receivable; • Estimates of useful lives of depreciable assets as well as the fair value of long-term assets and future cash flows used for impairment calculations; • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets; • Tax interpretations, regulations and legislation in the various jurisdictions in which the Company and its subsidiaries operate; • Estimates of the fair value of stock awards, including whether the performance criteria will be met and measurement of the ultimate payout amount; and • Estimates of liabilities associated with the potential and amount of warranty, legal claims and other contingencies. |
Segments | Segments Management has determined that DIRTT has one operating segment. The Company’s chief executive officer, who is DIRTT’s chief operating decision maker, reviews financial information on a consolidated and aggregate basis, together with certain operating metrics principally to make decisions about how to allocate resources and to measure the Company’s performance. |
Foreign currency translation | Foreign currency translation DIRTT Environmental Solutions Ltd. is a Canadian company and its functional currency is the Canadian dollar. DIRTT’s wholly owned subsidiary is domiciled in the United States and its functional currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies, other than those held through foreign subsidiaries, are translated into the transacting company’s functional currency at the year-end exchange rate for monetary items and at the historical exchange rates for non-monetary items. Foreign currency revenues and expenses are translated at the exchange rates in effect on the dates of the related transactions. Foreign exchange gains and losses, other than those arising from the translation of the Company’s net investments in foreign subsidiaries, are included in income. The accounts of the Company’s U.S. dollar subsidiary is translated into Canadian dollars, and the Financial Statements are translated into U.S. dollars for financial statement presentation. Assets and liabilities are translated using year-end exchange rates, and revenues, expenses, gains and losses are translated using average monthly exchange rates. Foreign exchange gains and losses arising from the translation of the Company’s assets and liabilities are included in “comprehensive loss for the year”. |
Cash and cash equivalents and restricted cash | Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand held at banks and cash equivalents, which are defined as highly liquid investments with original maturities of three months or less. Restricted cash is a reserve account not available for immediate or general business use and is required when certain requirements are not met under the terms of the Company’s senior secured credit facility (as defined in Note 12). |
Trade and other receivables, net of expected credit losses | Trade and other receivables, net of expected credit losses Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates its allowance for doubtful accounts using the current expected credit loss (“CECL”) methodology, which is designed to capture the Company’s current estimate of all expected credit losses. |
Inventory | Inventory Inventory is comprised of raw materials and work in progress. The Company does not typically carry a significant amount of finished goods inventory. Inventory is valued at the lower of weighted average cost and net realizable value. Net realizable value is based on an item’s usability in the manufacturing of the Company’s products. The Company records an allowance for obsolescence when the net realizable value of inventory items declines below weighted average cost, net realizable value is determined based on current market prices for inventory less the estimated cost to sell. Work in progress is valued at an estimate of cost, including attributable overheads, based on stage of completion. Fixed production overheads are allocated to inventory on the basis of normal capacity of the production facilities. In periods where production levels are abnormally low, unallocated overheads are separately recognized as an expense in the period in which they are incurred. |
Leases | Leases The Company categorizes leases at their inception as either operating or finance leases. Leases where the Company assumes substantially all of the rewards or ownership and leases where ownership is transferred at the end of the lease term, or by way of a bargain purchase option, are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability, so as to achieve a constant rate of interest on the balance of the liability. Finance charges are recognized in the statement of operations. The Company’s Leasing Facilities (as defined in Note 5) are accounted for as finance leases as ownership of the equipment is expected to return to the Company at the end of the lease term. These transactions are not accounted for as a sale of the underlying equipment as the Company continues to control the equipment. For leases categorized as operating, the Company determines if an arrangement is a lease or contains a lease element at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Operating leases are separately disclosed as operating lease right-of-use (“ROU”) assets, with a corresponding lease liability split between current and long-term components on the balance sheet. Operating leases with an initial term of 12 months or less are not included on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost, including direct costs, attributable indirect costs and carrying costs, less accumulated depreciation and any accumulated impairment losses. Expenditures for repairs and maintenance are expensed as incurred, while renewals and betterments are capitalized. Depreciation is charged to the consolidated statement of operations on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of the Company’s property, plant and equipment are as follows: Building 25 years Manufacturing equipment 10 years Leasehold improvements Over term of lease (1 to 10 years) Office equipment 5 years Tooling and prototypes 4 years Computer equipment 3 years Vehicles 3 years When assets are disposed of or retired, the cost and accumulated depreciation and impairment losses are removed from the respective accounts and any resulting loss is reflected in operating expenses. |
Capitalized software costs | Capitalized software costs The Company capitalizes costs related to internally developed software during the application development stage when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project, and (iii) it is probable that the project will be completed and performed as intended. Capitalized costs includes costs of personnel and related expenses for employees and third parties directly attributable to the projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades and enhancements are also capitalized. Costs related to preliminary project activities and post implementation activities, including training, maintenance and minor modifications or enhancements are expensed as incurred. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the developed asset, which is generally three to five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets. Software development is considered internal-use as it is used to design and sell the DIRTT products and is not included in the end client’s product. Revenues received from Distribution Partners for ICE Software are recognized as revenues as they are considered an element of the product sale. Any incidental third-party revenues received for the ICE Software are credited against capitalized software costs. The Company follows this accounting policy for cloud computing arrangements that are considered a service contract, however, these projects are capitalized to prepaids and other assets on the balance sheet and are expensed as an operating cost, as opposed to amortization, over the expected term of the software service contract. The Company adopted this amendment on January 1, 2020 using the prospective transition approach and classified $0.7 million as other assets on the consolidated balance sheet for the year ended December 31, 2021. |
Impairment of long-lived assets | Impairment of long-lived assets Management evaluates the recoverability of the Company’s property, plant and equipment, capitalized software costs and ROU assets when events or changes in circumstances indicate a potential impairment exists. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable include, but are not limited to, significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired and liabilities assumed in a business combination. Goodwill is tested for impairment at the reporting unit level at least annually or whenever changes in circumstances indicate that goodwill might be impaired. The Company early adopted ASU 2017-04 in 2019, which simplified the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The carrying value of goodwill, which is not amortized, is assessed for impairment annually in the fourth quarter of each year, or more frequently as economic events dictate. The Company has the option of performing an assessment of certain qualitative |
Convertible Debentures | Convertible Debentures The Company accounts for convertible debentures as liabilities. Embedded features included in the convertible debentures that require bifurcation are accounted for separately. Costs incurred directly related to the issuance of convertible debentures are presented as a direct deduction against the carrying amount of the convertible debentures and are amortized to interest expense using the effective interest method. |
Income taxes | Income taxes Income tax expense is comprised of current and deferred tax. Income tax is recognized in the consolidated statement of operations and comprehensive income (loss) except to the extent it relates to items recognized directly in equity. Current tax Current tax expense is based on the results for the year, adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that were enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax Deferred tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in income tax rates on deferred income tax assets and liabilities is recognized in income in the period during which the change occurs. When appropriate, the Company records a valuation allowance against deferred tax assets to reflect that these tax assets may not be realized. In determining whether a valuation allowance is appropriate, the Company considers whether it is more likely than not that all or some portion of the Company’s deferred tax assets will not be realized, based on management’s judgment using available evidence about future events. At times, tax benefits claims may be challenged by a tax authority. Tax benefits are recognized only for tax positions that are more likely than not sustainable upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. |
Revenue recognition | Revenue recognition The Company accounts for revenue in accordance with topic 606, Revenue from Contracts with Customers, (“ASC 606”) and Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers. Under ASC 606, an entity recognizes revenue in a manner that reflects the transfer of promised goods or services to customers in an amount which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue upon transfer of control of promised goods or services to customers at transaction price, an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Transaction price is calculated as selling price net of variable consideration which may include estimates for sales incentives related to current period product revenue. Revenue is measured at the fair value of the consideration received or receivable, after discounts, rebates and sales taxes or income taxes and duties. Product sales The Company recognizes revenue upon transfer of control of products to the customer, which typically occurs upon shipment. The Company’s main performance obligation to customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Distribution Partners typically sell DIRTT product to end clients and issue purchase orders to the Company to manufacture the product. Distribution Partners utilize ICE licenses to sell DIRTT products, the ICE licenses sold to Distribution Partners are not considered a separate performance obligation as they are not distinct, and ICE license revenue is recognized in conjunction with product sales. The Distribution Partner ICE Software revenue is recognized over the license period. The Company’s standard sales terms are Free On Board (“FOB”) shipping point, which comprise the majority of sales. The Company usually requires a 50% progress payment on receipt of certain orders, excluding certain government orders or in some special contractual situations. Customer deposits received are recognized as a liability on the balance sheet until revenue recognition criteria is met. At the point of shipment, the customer is generally required to pay the balance of the sales price within 30 days. The Company’s sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets that are material to its consolidated financial statements. The Company provides sales commissions to internal and external sales representatives which are earned in the period in which revenue is recognized. The Company accounts for product transportation revenue and costs as fulfillment activities and present the associated costs in costs of goods sold in the period in which the Company sells its product. Contracts containing multiple performance obligations The Company offers certain arrangements whereby a customer can purchase products and installation together which are generally capable of being distinct and accounted for as separate performance obligations. Where multiple performance obligations exist, the Company determines revenue recognition by (1) identifying the contract with the customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations based on the relative standalone selling prices, typically based on cost plus a reasonable margin, and (5) recognizing revenue as the performance obligations are satisfied. Installation and other services The Company provides installation and other services for certain customers as a distinct performance obligation. Revenue from installation services is recognized over time as the service is performed. Principal vs Agent Considerations The Company evaluates the presentation of revenue on a gross vs. net basis based on whether it acts as a principal by controlling the product or service sales to customers. In certain instances, the Company facilitates contracting of certain sales on behalf of Distribution Partners. The Company records these revenues on a gross basis when the Company is obligated to fulfill the service and has the risk associated with service delivery. The Company records these revenues on a net basis when the Distribution Partner has the obligation to fulfill the services and has the risk associated with service delivery. Distribution Partner rebates Rebates to Distribution Partners (“Partner Rebates”) are accrued for and recognized as a reduction of revenue at the date of the sale to the customer. Partner Rebates include amounts collected directly by the Company owed to Distribution Partners in accordance with their Distribution Partner agreements, being the difference between the price to the end customer and the Distribution Partners’ price. Other sales discounts are deducted immediately from sales invoices. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an unbilled receivable when revenue is recognized prior to invoicing. As the Company’s contracts are less than one year in duration, the Company has elected to apply the practical expedients to expense costs related to costs to obtain contracts and not disclose unfulfilled performance obligations. As deferred revenue and customer deposits are typically recognized during the year the Company does not account for financing elements. Warranties The Company provides a warranty on all products sold to its clients and Distribution Partner’s clients. Warranties are not sold separately to customers. Provisions for the expected cost of warranty obligations are recognized based on an analysis of historical costs for warranty claims relative to current activity levels and adjusted for factors based on management’s assessment that increase or decrease the provision. Warranty provision is recognized in cost of goods sold. Warranty claims have historically not been material and do not constitute a separate performance obligation. |
Stock-based compensation | Stock-based compensation The Company follows the fair value-based approach to account for options and restricted share units (“RSUs”). Compensation expense and an increase in “Additional paid-in capital” are recognized for options and RSUs over their vesting period based on their estimated fair values on the grant date, as determined using the Black-Scholes option pricing model for the majority of options and the market value of the Company’s common shares on the grant date for RSUs. Certain executive stock options and RSUs have performance conditions and are valued using a Monte Carlo model. On exercise of stock options and RSUs, the recorded fair value of the option or RSU is removed from “Additional paid-in capital” and credited to “Share capital”. For options, any consideration paid by employees is credited to “Share capital” when the option is exercised. The Company’s stock options and RSUs are not shares of the Company and have no rights to vote, receive dividends, or any other rights as a shareholder of the Company. During 2018 and 2019, the Company provided a cash settlement alternative for certain stock options. The fair value on grants attributable to those awards was reclassified on the balance sheet from shareholders’ equity to other liabilities, and at period end the liability is adjusted to fair value and the excess of fair value over previously recognized stock-based compensation is expensed. The fair value of the awards at the date of modification was greater than the grant date fair value of the previously vested equity awards, therefore the additional fair value was treated as an expense at the date of modification. Increases or decreases in fair value subsequent to the modification date will be recorded in earnings except that the Company shall not recognize a cumulative expense lower than the grant date fair value of the original equity awards. On October 9, 2019, following the listing of its common shares on Nasdaq, the Company ceased cash-settlement of stock options and the associated liability accounting for stock options and returned to equity settlement accounting for stock options, as described above. Stock based compensation expense is also recognized for performance share units (“PSUs”) and deferred share units (“DSUs”) using the fair value method. Compensation expense is recognized over the vesting period and the corresponding amount is recorded as a liability on the balance sheet. |
Technology and development expenditures | Technology and development expenditures Technology and development expenses are comprised primarily of salaries and benefits associated with the Company’s product and software development personnel which do not qualify for capitalization. These costs are expensed as incurred and exclude certain information and technology costs used in operations which are classified as general and administrative costs. |
Government Subsidies | Government subsidies The Company accounts for government subsidies on an accrual basis when the conditions for eligibility are met. The Company has adopted an accounting policy to present government subsidies as other income. |
Earnings per share ("EPS") | Earnings per share (“EPS”) Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive impact of stock options. The Company follows the “if converted” method for accounting for the impact of convertible debentures on earnings (loss) per share, whereby interest charges applicable to the convertible debentures are added to the numerator and the convertible debentures are assumed to have been converted at the beginning of the period (or time of issuance, if later), and the resulting common shares are added to the denominator. |
Fair value of financial instruments | Fair value of financial instruments ASC 820, “Fair Value Measurements,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s fair value analysis is based on the degree to which the fair value is observable and grouped into categories accordingly: • Level 1 financial instruments are those which can be derived from quoted market prices (unadjusted) in active markets for similar financial assets or liabilities. • Level 2 financial instruments are those which can be derived from inputs that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 2 financial instruments include current and long-term debt. The carrying amounts of these instruments approximates fair value due to limited changes to interest rates and the Company’s credit rating since issuance. • Level 3 financial instruments are those derived from valuation techniques that include inputs for the financial asset or liability which are not based on observable market data (unobservable inputs). The Company does not have any Level 3 financial instruments. The carrying amounts of cash and cash equivalents and restricted cash; trade and other receivables; accounts payable and accrued liabilities; other liabilities; and customer deposits approximate fair value due to their short-term nature. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful live of property plant and equipment | The estimated useful lives of the Company’s property, plant and equipment are as follows: Building 25 years Manufacturing equipment 10 years Leasehold improvements Over term of lease (1 to 10 years) Office equipment 5 years Tooling and prototypes 4 years Computer equipment 3 years Vehicles 3 years |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of ROU assets | The following table includes ROU assets included on the balance sheet at December 31, 2021 and 2020: ROU Assets Cost Accumulated depreciation Net book value At January 1, 2020 24,778 (4,117 ) 20,661 Additions 16,805 - 16,805 Depreciation expense - (3,884 ) (3,884 ) Exchange differences 257 (196 ) 61 At December 31, 2020 41,840 (8,197 ) 33,643 Additions 2,401 - 2,401 Depreciation expense - (4,989 ) (4,989 ) Exchange differences (186 ) 11 (175 ) At December 31, 2021 44,055 (13,175 ) 30,880 |
Schedule of lease liabilities | The following table includes lease liabilities included on the balance sheet at December 31, 2021 and 2020: Lease Liability 2021 2020 At January 1, 35,284 21,403 Additions 2,401 17,255 Accretion 1,758 1,175 Repayment of lease liabilities (6,509 ) (5,358 ) Lease inducements 720 750 Exchange differences (173 ) 59 At December 31, 33,481 35,284 Current lease liabilities 6,214 5,503 Long-term lease liabilities 27,267 29,781 |
Schedule of maturities of operating lease liabilities | The following table includes maturities of operating lease liabilities at December 31, 2021: 2022 6,406 2023 4,751 2024 3,150 2025 3,184 2026 3,267 Thereafter 28,963 Total 49,721 Total lease liability 33,481 Difference between undiscounted cash flows and lease liability 16,240 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts, notes, loans and financing receivable | As at December 31, 2021 2020 Current 13,659 12,500 Overdue 621 1,211 14,280 13,711 Less: expected credit losses (130 ) (588 ) 14,150 13,123 Sales tax receivable 196 242 Government subsidies receivable - 1,743 Income tax receivable 3,194 3,845 17,540 18,953 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, current | As at December 31, 2021 2020 Raw material 18,388 16,730 Allowance for obsolescence (646 ) (1,073 ) Work in progress 715 321 18,457 15,978 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, plant and Equipment | Office and computer equipment Factory equipment Leasehold improvements Total Cost At December 31, 2019 22,743 54,640 39,231 116,614 Additions 1,139 11,719 3,777 16,635 Disposals (28 ) (120 ) (138 ) (286 ) Exchange differences 1,134 284 235 1,653 At December 31, 2020 24,988 66,523 43,105 134,616 Additions 3,422 4,515 4,372 12,309 Disposals - (53 ) - (53 ) Exchange differences 236 499 90 825 At December 31, 2021 28,646 71,484 47,567 147,697 Accumulated depreciation and impairment At December 31, 2019 13,912 32,274 29,063 75,249 Depreciation expense 1,723 3,059 3,656 8,438 Disposals (28 ) (120 ) (138 ) (286 ) Exchange differences 755 311 302 1,368 At December 31, 2020 16,362 35,524 32,883 84,769 Depreciation expense 3,589 3,670 3,817 11,076 Disposals - (23 ) - (23 ) Exchange differences 30 100 48 178 At December 31, 2021 19,981 39,271 36,748 96,000 Net book value At December 31, 2020 8,626 30,999 10,222 49,847 At December 31, 2021 8,665 32,213 10,819 51,697 |
CAPITALIZED SOFTWARE, NET (Tabl
CAPITALIZED SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capitalized Software [Abstract] | |
Schedule of capitalized software | For the Year Ended December 31, 2021 2020 Cost As at January 1 35,480 32,419 Additions 2,340 2,998 Recovery of software development expenditures (461 ) (674 ) Exchange differences 133 737 As at December 31 37,492 35,480 Accumulated amortization As at January 1 27,136 24,206 Amortization expense 2,878 2,428 Exchange differences 83 502 As at December 31 30,097 27,136 Net book value 7,395 8,344 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | For the Year Ended December 31, 2021 2020 As at January 1 1,449 1,421 Goodwill impairment (1,443 ) - Exchange differences (6 ) 28 - 1,449 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As at December 31, 2021 2020 Trade accounts payable 7,820 4,921 Accrued liabilities 9,649 9,266 Wages and commissions payable 4,275 4,577 Rebates accrued (1) 1,007 1,586 22,751 20,350 (1) |
Schedule of Other Liabilities | Other liabilities During the year December 31, 2021, the Company separately classified the current portion of long-term debt and accrued interest on the balance sheet, prior year figures have been reclassified to conform with the current year’s presentation: As at December 31, 2021 2020 Legal provisions (1) 143 45 Deferred and performance share unit liability 785 971 Warranty and other provisions (2) 1,451 1,763 Current portion of long-term debt and accrued interest 3,323 898 Other liabilities, as previously presented 5,702 3,677 Reclassified to "Current portion of long-term debt and accrued interest" (3,323 ) (898 ) Other liabilities 2,379 2,779 (1) The Company has provided $0.1 million (2020 - $0.05 million) as the estimated amount likely payable for various claims against the Company. The amount provided for is management’s best estimate of the potential payments for amounts claimed (2) The following table presents a reconciliation of the warranty and other provisions balance: As at December 31, 2021 2020 As at January 1 1,763 4,008 Adjustments to timber provision (500 ) (1,750 ) Additions to warranty provision 1,019 1,301 Payments related to warranties (831 ) (1,796 ) 1,451 1,763 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt Reconciliation | Revolving Credit Facility Leasing Facilities Convertible Debentures Total Debt Balance on January 1, 2020 - - - - Issuances - 6,130 - 6,130 Accrued interest - 103 - 103 Interest payments - (103 ) - (103 ) Principal repayments - (406 ) - (406 ) Exchange differences - 243 - 243 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 - 9,805 55,107 64,912 Accretion of issue costs - - 352 352 Accrued interest - 556 1,935 2,491 Interest payments - (556 ) (987 ) (1,543 ) Principal repayments - (1,808 ) - (1,808 ) Exchange differences - (55 ) 326 271 Balance at December 31, 2021 - 13,909 56,733 70,642 Current portion of long-term debt and accrued interest - 2,386 937 3,323 Long-term debt - 11,523 55,796 67,319 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of income taxes | The following reconciles income taxes calculated at the Canadian statutory rate with the actual income tax expense. The Canadian statutory rate includes federal and provincial income taxes. This rate was used because Canada is the domicile of the parent entity of the Company. For the Year Ended December 31, 2021 2020 2019 Net loss before tax (53,872 ) (9,194 ) (3,377 ) Canadian statutory rate 23.3 % 24.2 % 26.5 % Expected income tax (12,552 ) (2,225 ) (895 ) Effect on taxes resulting from: Valuation allowance 12,046 5,241 - Non-deductible expenses 542 261 550 Non-deductible stock-based compensation 189 269 674 Tax rate impacts (488 ) (1,288 ) 999 Adjustments related to prior year tax filings 59 (105 ) (205 ) Other - (49 ) (104 ) Income tax expense (recovery) (204 ) 2,104 1,019 Current tax expense (recovery) 210 (3,521 ) 1,064 Deferred tax expense (recovery) (414 ) 5,625 (45 ) Income tax expense (204 ) 2,104 1,019 |
Deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities at December 31, 2021 and 2020 were as follows: At December 31, 2021 Assets Liabilities Net Operating losses 24,032 - 24,032 Research and development expenditures 362 - 362 Property and equipment - (7,572 ) (7,572 ) Capitalized software and other assets - (2,023 ) (2,023 ) Valuation allowance (17,291 ) - (17,291 ) Other - 2,492 2,492 Net deferred taxes 7,103 (7,103 ) - At December 31, 2020 Assets Liabilities Net Operating losses 9,528 - 9,528 Research and development expenditures 360 - 360 Property and equipment - (2,218 ) (2,218 ) Capitalized software and other assets - (4,588 ) (4,588 ) Valuation allowance - (5,330 ) (5,330 ) Other 1,834 - 1,834 Net deferred taxes 11,722 (12,136 ) (414 ) |
Summary of temporary difference movements | Summary of temporary difference movements during the year: Balance Recognized Foreign Balance January 1, 2021 in Income Exchange December 31, 2021 Operating losses 9,528 14,542 (38 ) 24,032 Research and development expenditures 360 (87 ) 89 362 Property and equipment (4,588 ) (2,844 ) (140 ) (7,572 ) Capitalized software and other assets (2,218 ) 209 (14 ) (2,023 ) Valuation allowance (5,330 ) (12,046 ) 85 (17,291 ) Other 1,834 640 18 2,492 Net deferred taxes (414 ) 414 - - Balance Recognized Foreign Balance January 1, 2020 in Income Exchange December 31, 2020 Operating losses 6,899 2,451 178 9,528 Research and development expenditures 353 594 (587 ) 360 Property and equipment (1,916 ) (3,600 ) 928 (4,588 ) Capitalized software and other assets (2,345 ) 251 (124 ) (2,218 ) Valuation allowance - (5,241 ) (89 ) (5,330 ) Other 2,373 (80 ) (459 ) 1,834 Net deferred taxes 5,364 (5,625 ) (153 ) (414 ) |
Tax loss carryforwards and other tax pools | The significant components of the Company’s net future income tax deductions in these consolidated financial statements are summarized as follows: As at December 31, 2021 2020 2021 2020 Canadian Entity C$ US Entity $ Non-capital loss carry-forwards 64,961 45,299 42,220 - Undepreciated capital costs 12,267 13,225 10,268 3,944 Scientific research and experimental development tax incentives 1,971 1,971 - - Total future tax deductions 79,199 60,495 52,488 3,944 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of stock-based compensation expense | Stock-based compensation expense For the Year Ended December 31, 2021 2020 2019 Equity-settled awards 4,453 1,832 3,512 Cash-settled awards 260 519 364 4,713 2,351 3,876 |
Summary of PSUs, DSUs and RSUs granted, exercised, forfeited and expired | The following summarizes PSUs, DSUs and RSUs 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 2,419,609 200,000 251,470 - Exercised - - (20,403 ) - Forfeited (5,546 ) - - (25,581 ) Outstanding at December 31, 2020 2,414,063 200,000 363,664 197,471 Granted 1,976,697 878,601 144,969 - Vested (661,775 ) (2,294 ) (147,056 ) (34,635 ) Withheld to settle employee tax obligations (174,103 ) (1,960 ) - - Forfeited (338,346 ) (52,608 ) - (5,636 ) Outstanding at December 31, 2021 3,216,536 1,021,739 361,577 157,200 |
Schedule of Percentage of PRSUs Vest upon Increases of Share Price | % 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 (227,368 ) 6.81 Expired (1,154,956 ) 6.29 Outstanding at December 31, 2020 4,774,328 6.52 Forfeited (44,102 ) 7.05 Expired (665,737 ) 5.76 Outstanding at December 31, 2021 4,064,489 6.64 Exercisable at December 31, 2021 2,079,479 6.71 |
Summary of options outstanding by range of exercise prices | Range of exercise prices outstanding at December 31, 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 lif e price C $ C$4.01 – C$5.00 22,537 2.89 4.12 15,025 2.89 4.12 C$5.01 – C$6.00 - - - - - - C$6.01 – C$7.00 3,281,199 1.79 6.38 1,549,301 1.87 6.36 C$7.01 – C$8.00 760,753 2.37 7.84 515,153 2.37 7.84 Total 4,064,489 2,079,479 Range of exercise prices outstanding at December 31, 2020: Options outstanding Options exercisable Weighted Weighted Weighted Weighted average average average average Number remaining exercise Number remaining exercise Range of exercise prices outstanding life price C$ exercisable life price C$ C$4.01 – C$5.00 22,537 3.89 4.12 7,513 3.89 4.12 C$5.01 – C$6.00 669,236 0.89 5.76 669,236 0.89 5.76 C$6.01 – C$7.00 3,299,993 2.79 6.38 1,126,772 2.93 6.34 C$7.01 – C$8.00 782,562 3.37 7.84 262,417 3.37 7.84 Total 4,774,328 2,065,938 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 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 16 for the disaggregation of revenue by geographic region. For the Year Ended December 31, 2021 2020 2019 Product 129,031 150,004 215,109 Transportation 13,231 15,491 23,903 License fees from Distribution Partners 738 1,194 1,647 Total product revenue 143,000 166,689 240,659 Installation and other services 4,593 4,818 7,076 147,593 171,507 247,735 For the Year Ended December 31, 2021 2020 2019 At a point in time 142,262 165,495 239,012 Over time 5,331 6,012 8,723 147,593 171,507 247,735 |
Summary of contract liabilities | Contract Liabilities As at December 31, 2021 2020 2019 Customer deposits 1,959 1,292 2,436 Deferred revenue 461 527 1,131 Contract liabilities 2,420 1,819 3,567 |
Schedule of sales by industry | For the Year Ended December 31, 2021 2020 2019 Commercial 84,488 102,245 158,256 Healthcare 30,130 35,400 44,197 Government 16,012 14,128 14,879 Education 11,632 13,722 21,680 License fees from Distribution Partners 738 1,194 1,647 Total product revenue 143,000 166,689 240,659 Service revenue 4,593 4,818 7,076 147,593 171,507 247,735 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenue from external customers | Revenue from external customers For the Year Ended December 31, 2021 2020 2019 Canada 17,299 18,848 34,085 U.S. 130,294 152,659 213,650 147,593 171,507 247,735 |
Schedule of non-current assets, excluding deferred tax assets | Non-current assets, excluding deferred tax assets As at December 31, 2021 2020 Canada 34,912 42,947 U.S. 60,723 55,352 95,635 98,299 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use assets, goodwill and other assets. Goodwill was included in the Canadian segment. |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)Segment | |
Operating segments | Segment | 1 |
Classified as other assets | $ | $ 0.7 |
Percentage of amounts realized up on settlements measured as largest amounts | 50.00% |
Percentage of progress payment on receipt of certain orders | 50.00% |
Maximum [Member] | |
Percentage of progress payment on receipt of certain orders | 15.00% |
Capitalized software costs [Member] | Minimum [Member] | |
Estimated useful live in years | 3 years |
Capitalized software costs [Member] | Maximum [Member] | |
Estimated useful live in years | 5 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Live of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 25 years |
Manufacturing equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 10 years |
Leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 1 year |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 10 years |
Office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 5 years |
Tooling and prototypes [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 4 years |
Computer equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 3 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful live of property plant and equipment | 3 years |
ADOPTION OF NEW AND REVISED A_2
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS - (Additional Information) (Detail) - USD ($) | Dec. 31, 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 |
COVID-19 - (Additional Informat
COVID-19 - (Additional Information) (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2021 | 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 | $ 25.6 | $ 29.5 |
LEASES - (Additional Informatio
LEASES - (Additional Information) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | |||||
Cash paid for operating lease | $ 6,509 | $ 5,358 | |||
Weighted average remaining lease term | 14 years | 14 years | 14 years | ||
Weighted average discount rate | 5.10% | 5.20% | 5.10% | ||
Operating lease term | 15 years | ||||
Operating lease undiscounted rent obligations | $ 35,284 | $ 28,100 | $ 33,481 | $ 35,284 | $ 21,403 |
Initial lease term | 15 years | ||||
Lease extension period | two 5 year | ||||
Rent obligations discount rate | 5.50% | ||||
Operating lease undiscounted rent obligations | $ 49,721 | ||||
DXC [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Initial lease term | 8 years | ||||
Lease extension period | one 5 year | ||||
Rent obligations discount rate | 4.75% | 4.75% | |||
Operating lease undiscounted rent obligations | $ 6,700 | $ 6,700 | |||
Minimum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating leases remaining lease terms | 1 year | ||||
Maximum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating leases remaining lease terms | 24 years |
LEASES - Schedule of ROU assets
LEASES - Schedule of ROU assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Lease Right Of Use Assets Original Cost [Abstract] | ||
Cost, Beginning balance | $ 41,840 | $ 24,778 |
Cost, Additions | 2,401 | 16,805 |
Cost, Exchange differences | (186) | 257 |
Cost, Ending balance | 44,055 | 41,840 |
Operating Lease Right Of Use Assets Accumulated Depreciation [Abstract] | ||
Accumulated Depreciation, Beginning balance | (8,197) | (4,117) |
Accumulated Depreciation, Depreciation expense | (4,989) | (3,884) |
Accumulated Depreciation, Exchange differences | 11 | (196) |
Accumulated Depreciation, Ending balance | (13,175) | (8,197) |
Operating Lease Right Of Use Assets Net Book Value [Abstract] | ||
Net Book Value, Beginning balance | 33,643 | 20,661 |
Net Book Value, Additions | 2,401 | 16,805 |
Net Book Value, Depreciation expense | (4,989) | (3,884) |
Net Book Value, Exchange differences | (175) | 61 |
Net Book Value, Ending balance | $ 30,880 | $ 33,643 |
LEASES - Schedule of Lease Liab
LEASES - Schedule of Lease Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Opening balance | $ 35,284 | $ 21,403 |
Additions | 2,401 | 17,255 |
Accretion | 1,758 | 1,175 |
Repayment of lease liabilities | (6,509) | (5,358) |
Lease inducements | 720 | 750 |
Exchange differences | (173) | 59 |
Ending Balance | 33,481 | 35,284 |
Current lease liabilities | 6,214 | 5,503 |
Long-term lease liabilities | $ 27,267 | $ 29,781 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||||
2022 | $ 6,406 | |||
2023 | 4,751 | |||
2024 | 3,150 | |||
2025 | 3,184 | |||
2026 | 3,267 | |||
Thereafter | 28,963 | |||
Total | 49,721 | |||
Total lease liability | 33,481 | $ 35,284 | $ 28,100 | $ 21,403 |
Difference between undiscounted cash flows and lease liability | $ 16,240 |
TRADE AND OTHER RECEIVABLES (Ad
TRADE AND OTHER RECEIVABLES (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Percent of trade accounts receivable insured | 90.00% | ||
Increase in credit losses | $ 0.6 | ||
Receivables, written off | $ 0.5 | $ 0.1 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Significant Customer [Member] | |||
Percentage of Total Account Receivable | 10.00% | 10.00% | |
Customer Concentration Risk [Member] | Sales Revenue [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 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Current | $ 13,659 | $ 12,500 |
Overdue | 621 | 1,211 |
Total accounts receivable | 14,280 | 13,711 |
Less: expected credit losses | (130) | (588) |
Net accounts receivable | 14,150 | 13,123 |
Sales tax receivable | 196 | 242 |
Government subsidies receivable | 1,743 | |
Income tax receivable | 3,194 | 3,845 |
Accounts and other receivables, net, current | $ 17,540 | $ 18,953 |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 18,388 | $ 16,730 |
Allowance for obsolescence | (646) | (1,073) |
Work in progress | 715 | 321 |
Inventory, net | $ 18,457 | $ 15,978 |
INVENTORY - (Additional Informa
INVENTORY - (Additional Information) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost recognized in cost of sales | $ 124,133 | $ 118,224 | $ 161,311 |
Underutilized Capacity [Member] | |||
Cost recognized in cost of sales | 1,756 | 2,010 | $ 2,240 |
Cost of Sales [Member] | |||
Inventory write down | 600 | 1,100 | |
Work In Progress [Member] | |||
Production overheads capitalized | $ 100 | $ 100 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cost | ||
Beginning Balance | $ 134,616 | $ 116,614 |
Additions | 12,309 | 16,635 |
Disposals | (53) | (286) |
Exchange differences | 825 | 1,653 |
Ending Balance | 147,697 | 134,616 |
Accumulated depreciation and impairment | ||
Beginning Balance | 84,769 | 75,249 |
Depreciation expense | 11,076 | 8,438 |
Disposals | (23) | (286) |
Exchange differences | 178 | 1,368 |
Ending Balance | 96,000 | 84,769 |
Net book value | ||
Carrying Value of assets | 51,697 | 49,847 |
Office And Computer Equipment | ||
Cost | ||
Beginning Balance | 24,988 | 22,743 |
Additions | 3,422 | 1,139 |
Disposals | (28) | |
Exchange differences | 236 | 1,134 |
Ending Balance | 28,646 | 24,988 |
Accumulated depreciation and impairment | ||
Beginning Balance | 16,362 | 13,912 |
Depreciation expense | 3,589 | 1,723 |
Disposals | (28) | |
Exchange differences | 30 | 755 |
Ending Balance | 19,981 | 16,362 |
Net book value | ||
Carrying Value of assets | 8,665 | 8,626 |
Factory Equipment | ||
Cost | ||
Beginning Balance | 66,523 | 54,640 |
Additions | 4,515 | 11,719 |
Disposals | (53) | (120) |
Exchange differences | 499 | 284 |
Ending Balance | 71,484 | 66,523 |
Accumulated depreciation and impairment | ||
Beginning Balance | 35,524 | 32,274 |
Depreciation expense | 3,670 | 3,059 |
Disposals | (23) | (120) |
Exchange differences | 100 | 311 |
Ending Balance | 39,271 | 35,524 |
Net book value | ||
Carrying Value of assets | 32,213 | 30,999 |
Leasehold improvements | ||
Cost | ||
Beginning Balance | 43,105 | 39,231 |
Additions | 4,372 | 3,777 |
Disposals | (138) | |
Exchange differences | 90 | 235 |
Ending Balance | 47,567 | 43,105 |
Accumulated depreciation and impairment | ||
Beginning Balance | 32,883 | 29,063 |
Depreciation expense | 3,817 | 3,656 |
Disposals | (138) | |
Exchange differences | 48 | 302 |
Ending Balance | 36,748 | 32,883 |
Net book value | ||
Carrying Value of assets | $ 10,819 | $ 10,222 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Additional information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Assets in progress | $ 2,200,000 | $ 16,200,000 |
Impairment charge on property, plant and equipment | $ 0 |
CAPITALIZED SOFTWARE, NET - Sch
CAPITALIZED SOFTWARE, NET - Schedule of Capitalized Software (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cost | ||
As at January 1 | $ 35,480 | $ 32,419 |
Additions | 2,340 | 2,998 |
Recovery of software development expenditures | (461) | (674) |
Exchange differences | 133 | 737 |
As at December 31 | 37,492 | 35,480 |
Accumulated amortization | ||
As at January 1 | 27,136 | 24,206 |
Amortization expense | 2,878 | 2,428 |
Exchange differences | 83 | 502 |
As at December 31 | 30,097 | 27,136 |
Net book value | $ 7,395 | $ 8,344 |
CAPITALIZED SOFTWARE, NET - Add
CAPITALIZED SOFTWARE, NET - Additional information (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Capitalized Software [Abstract] | |
2022 | $ 2.4 |
2023 | 1.5 |
2024 | 0.9 |
2025 | 0.7 |
2026 | $ 0.1 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
As at January 1 | $ 1,449 | $ 1,421 |
Goodwill impairment | (1,443) | |
Exchange differences | $ (6) | 28 |
As at December 31 | $ 1,449 |
GOODWILL - (Additional Informat
GOODWILL - (Additional Information) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Average compounded annual growth rate of revenues | 10.00% |
Percentage of progress payment on receipt of certain orders | 50.00% |
Reporting units goodwill discount rate | 13.00% |
Reporting units goodwill terminal growth rate | 2.00% |
Goodwill impairment | $ 1,443 |
Minimum [Member] | |
Goodwill [Line Items] | |
Annualized reduction in operating costs in model | 10.00% |
Maximum [Member] | |
Goodwill [Line Items] | |
Percentage of progress payment on receipt of certain orders | 15.00% |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Trade accounts payable | $ 7,820 | $ 4,921 |
Accrued liabilities | 9,649 | 9,266 |
Wages and commissions payable | 4,275 | 4,577 |
Rebates accrued | 1,007 | 1,586 |
Accounts Payable and Accrued Liabilities, Current | $ 22,751 | $ 20,350 |
ACCOUNTS PAYABLE AND ACCRUED _4
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule of Accounts Payable and Accrued Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Payables And Accruals [Abstract] | ||
Rebates Earned | $ 4.1 | $ 4.5 |
Rebates paid | $ 4.7 | $ 3.9 |
ACCOUNTS PAYABLE AND ACCRUED _5
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule Of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | |||
Legal provisions | $ 143 | $ 45 | |
Deferred and performance share unit liability | 785 | 971 | |
Warranty and other provisions | 1,451 | 1,763 | $ 4,008 |
Current portion of long-term debt and accrued interest | 3,323 | 898 | |
Other liabilities, as previously presented | 5,702 | 3,677 | |
Reclassified to "Current portion of long-term debt and accrued interest" | (3,323) | (898) | |
Other liabilities | $ 2,379 | $ 2,779 |
ACCOUNTS PAYABLE AND ACCRUED _6
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Schedule Of Other Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Estimated claims payable | $ 100 | $ 50 |
ACCOUNTS PAYABLE AND ACCRUED _7
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES AND OTHER LIABILITIES - Reconciliation of Warranty and Other Provisions Balance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Payables And Accruals [Abstract] | ||
Balance | $ 1,763 | $ 4,008 |
Adjustments to timber provision | (500) | (1,750) |
Additions to warranty provision | 1,019 | 1,301 |
Payments related to warranties | (831) | (1,796) |
Balance | $ 1,451 | $ 1,763 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long Term Debt Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long term debt | $ 5,967 | ||
Issuances | 64,912 | $ 6,130 | |
Accretion of issue costs | 352 | ||
Accrued interest | 2,491 | 103 | |
Interest payments | (1,543) | (103) | |
Principal repayments | (1,808) | (406) | $ (5,561) |
Exchange differences | 271 | 243 | |
Long term debt | 70,642 | 5,967 | |
Current portion of long-term debt and accrued interest | 3,323 | 898 | |
Long-term debt | 67,319 | 5,069 | |
Leasing Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 5,967 | ||
Issuances | 9,805 | 6,130 | |
Accrued interest | 556 | 103 | |
Interest payments | (556) | (103) | |
Principal repayments | (1,808) | (406) | |
Exchange differences | (55) | 243 | |
Long term debt | 13,909 | 5,967 | |
Current portion of long-term debt and accrued interest | 2,386 | 898 | |
Long-term debt | 11,523 | $ 5,069 | |
Convertible Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Issuances | 55,107 | ||
Accretion of issue costs | 352 | ||
Accrued interest | 1,935 | ||
Interest payments | (987) | ||
Exchange differences | 326 | ||
Long term debt | 56,733 | ||
Current portion of long-term debt and accrued interest | 937 | ||
Long-term debt | $ 55,796 |
LONG-TERM DEBT - (Additional In
LONG-TERM DEBT - (Additional Information) (Detail) $ / shares in Units, $ in Millions | Nov. 15, 2021USD ($)shares | Nov. 15, 2021CAD ($)$ / sharesshares | Jan. 25, 2021USD ($)shares | Jan. 25, 2021CAD ($)$ / sharesshares | Jan. 29, 2020USD ($) | Jan. 29, 2020CAD ($) | Jul. 19, 2019CAD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($)Day | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2021CAD ($)Day | Feb. 12, 2021CAD ($) | Dec. 31, 2020CAD ($) |
Convertible Debentures [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Issuance of convertible debentures | $ 27.4 | $ 35,000,000 | $ 27.5 | $ 35,000,000 | $ 4.1 | $ 5,250,000 | |||||||||||
Convertible debentures, maturity date | Dec. 31, 2026 | Dec. 31, 2026 | Jan. 31, 2026 | Jan. 31, 2026 | |||||||||||||
Convertible debentures, interest rate | 6.25% | 6.25% | 6.00% | 6.00% | |||||||||||||
Convertible debentures, frequency of interest payment | semi-annually | semi-annually | semi-annually | semi-annually | |||||||||||||
Convertible debentures, conversion price | $ / shares | $ 4.20 | $ 4.65 | |||||||||||||||
Convertible debentures, common shares issued | shares | 238.0952 | 238.0952 | 215.0538 | 215.0538 | |||||||||||||
Convertible debentures, principal amount | $ 1,000 | $ 1,000 | |||||||||||||||
Convertible debentures, transaction cost | $ 2,300,000 | $ 2,700,000 | |||||||||||||||
Canadian Dollar Advances [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 5,000,000 | ||||||||||||||||
Revolving credit facility, term | 7 years | ||||||||||||||||
Revolving credit facility, basis spread on variable rate | 4.25% | ||||||||||||||||
Cash consideration received under leasing facility | $ 2.6 | $ 3,600,000 | |||||||||||||||
US Dollar Advances [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 16 | $ 14 | 16 | ||||||||||||||
Revolving credit facility, term | 5 years | ||||||||||||||||
Revolving credit facility, basis spread on variable rate | 5.59% | ||||||||||||||||
Amortized term | 6 years | ||||||||||||||||
Cash consideration received under leasing facility | $ 9.8 | 3.5 | |||||||||||||||
Covenant Holiday Period [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, maximum borrowing capacity | 50 | 50 | |||||||||||||||
Cash balance | $ 10,000,000 | ||||||||||||||||
Line of credit available borrowing capacity | 10.6 | $ 10.6 | |||||||||||||||
Covenant Holiday Period [Member] | Accounts Receivable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Percent of maximum eligible amount to borrow | 75.00% | 75.00% | |||||||||||||||
Covenant Holiday Period [Member] | Inventory [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Percent of maximum eligible amount to borrow | 25.00% | 25.00% | |||||||||||||||
Minimum [Member] | Covenant Holiday Period [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Adjusted EBITDA | $ 3 | $ 16.5 | $ 7 | ||||||||||||||
Maximum [Member] | Covenant Holiday Period [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Capital expenditure | $ 8.8 | $ 10.7 | |||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 50,000,000 | ||||||||||||||||
Revolving credit facility, term | 3 years | ||||||||||||||||
Revolving credit facility, additional term | 2 years | ||||||||||||||||
Revolving credit facility, interest rate terms | Interest was 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 Previous RBC Facility was 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”). | ||||||||||||||||
Revolving Credit Facility [Member] | RBC Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | ||||||||||||||||
Debt instrument covenant terms | the Company is subject to a FCCR covenant of 1.10:1 on a trailing twelve month basis. Additionally, if the FCCR has been above 1.10:1 for the 3 immediately preceding months, the Company is required to maintain a reserve account equal to the aggregate of one-year of payments on the Leasing Facilities | ||||||||||||||||
Cash balance | $ 3.1 | ||||||||||||||||
Line of credit available borrowing capacity | $ 10.4 | $ 13,200,000 | |||||||||||||||
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”). | ||||||||||||||||
Revolving credit facility, aggregate excess availability | $ 5,000,000 | ||||||||||||||||
Number of consecutive business days | Day | 5 | 5 | |||||||||||||||
Revolving Credit Facility [Member] | Prime Rate [Member] | RBC Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, basis spread on variable rate | 30.00% | ||||||||||||||||
Revolving Credit Facility [Member] | LIBOR [Member] | RBC Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, basis spread on variable rate | 155.00% | ||||||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument fixed charge coverage ratio | 1.15% | ||||||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument adjusted EBITDA ratio | 3.00% | ||||||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | RBC Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit facility, aggregate excess availability | $ 6,250,000 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Net loss before tax | $ (53,872) | $ (9,194) | $ (3,377) |
Canadian statutory rate | 23.30% | 24.20% | 26.50% |
Expected income tax | $ (12,552) | $ (2,225) | $ (895) |
Effect on taxes resulting from: | |||
Valuation allowance | 12,046 | 5,241 | |
Non-deductible expenses | 542 | 261 | 550 |
Non-deductible stock-based compensation | 189 | 269 | 674 |
Tax rate impacts | (488) | (1,288) | 999 |
Adjustments related to prior year tax filings | 59 | (105) | (205) |
Other | (49) | (104) | |
Income tax expense | (204) | 2,104 | 1,019 |
Current tax expense (recovery) | 210 | (3,521) | 1,064 |
Deferred income tax expense (recovery) | (414) | 5,625 | (45) |
Income tax expense | $ (204) | $ 2,104 | $ 1,019 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Operating losses | $ 24,032 | $ 9,528 |
Research and development expenditures | 362 | 360 |
Valuation allowance | (17,291) | |
Other | 1,834 | |
Net deferred taxes | 7,103 | 11,722 |
Valuation allowance | 17,291 | |
Liabilities | ||
Property and equipment | (7,572) | (2,218) |
Capitalized software and other assets | (2,023) | (4,588) |
Valuation allowance | (5,330) | |
Other | 2,492 | |
Net deferred taxes | (7,103) | (12,136) |
Assets | ||
Operating losses | 24,032 | 9,528 |
Research and development expenditures | 362 | 360 |
Property and equipment | (7,572) | (2,218) |
Capitalized software and other assets | (2,023) | (4,588) |
Valuation allowance | (17,291) | (5,330) |
Other | $ 2,492 | 1,834 |
Net deferred taxes | $ (414) |
INCOME TAXES - Summary of Tempo
INCOME TAXES - Summary of Temporary Difference Movements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Opening Balance | $ 5,364 | |
Opening Balance | $ (414) | |
Opening Balance | (12,136) | |
Recognized in Income | 414 | (5,625) |
Foreign Exchange | (153) | |
Ending Balance | (414) | |
Ending Balance | (7,103) | (12,136) |
Operating losses [Member] | ||
Opening Balance | 9,528 | 6,899 |
Recognized in Income | 14,542 | 2,451 |
Foreign Exchange | (38) | 178 |
Ending Balance | 24,032 | 9,528 |
Research and development expenditures [Member] | ||
Opening Balance | 360 | 353 |
Recognized in Income | (87) | 594 |
Foreign Exchange | 89 | (587) |
Ending Balance | 362 | 360 |
Property and equipment [Member] | ||
Opening Balance | (4,588) | (1,916) |
Recognized in Income | (2,844) | (3,600) |
Foreign Exchange | (140) | 928 |
Ending Balance | (7,572) | (4,588) |
Capitalized software and other assets [Member] | ||
Opening Balance | (2,218) | (2,345) |
Recognized in Income | 209 | 251 |
Foreign Exchange | (14) | (124) |
Ending Balance | (2,023) | (2,218) |
Valuation allowance [Member] | ||
Opening Balance | (5,330) | |
Recognized in Income | (12,046) | (5,241) |
Foreign Exchange | 85 | (89) |
Ending Balance | (17,291) | (5,330) |
Other [Member] | ||
Opening Balance | 1,834 | 2,373 |
Recognized in Income | 640 | (80) |
Foreign Exchange | 18 | (459) |
Ending Balance | $ 2,492 | $ 1,834 |
INCOME TAXES - (Additional Info
INCOME TAXES - (Additional Information) (Detail) $ in Thousands, $ in Millions | Jul. 01, 2020 | Jun. 30, 2019USD ($) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($) |
Schedule Of Income Tax [Line Items] | ||||||||
Valuation allowance against deferred tax assets | $ 17,291 | |||||||
Reduction in deferred tax assets | $ 900 | |||||||
Canada [Member] | ||||||||
Schedule Of Income Tax [Line Items] | ||||||||
Valuation allowance against deferred tax assets | $ 5,200 | $ 12 | ||||||
Corporate Tax Rate | 8.00% | 11.00% | 11.50% | 9.00% | 10.00% | |||
Canada [Member] | Forecast [Member] | ||||||||
Schedule Of Income Tax [Line Items] | ||||||||
Corporate Tax Rate | 8.00% |
INCOME TAXES - Tax Loss Carry F
INCOME TAXES - Tax Loss Carry Forwards and Other Tax Pools (Detail) $ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) |
Tax Credit Carryforward, Amount | $ 52,488 | $ 79,199 | $ 3,944 | $ 60,495 |
Non-capital loss carry-forwards [Member] | ||||
Tax Credit Carryforward, Amount | 42,220 | 64,961 | 45,299 | |
Undepreciated capital costs [Member] | ||||
Tax Credit Carryforward, Amount | $ 10,268 | 12,267 | $ 3,944 | 13,225 |
Scientific research and experimental development tax incentives [Member] | ||||
Tax Credit Carryforward, Amount | $ 1,971 | $ 1,971 |
STOCK-BASED COMPENSATION - (Add
STOCK-BASED COMPENSATION - (Additional Information) (Detail) $ in Thousands | Oct. 09, 2019$ / shares | Oct. 09, 2019$ / shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019$ / shares | Dec. 31, 2018$ / sharesshares | Dec. 31, 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-based compensation expense (recovery) | $ | $ 4,713 | $ 2,351 | $ 3,876 | |||||||||
Compensation expense charged to additional paid in capital | $ | $ 4,453 | $ 1,832 | $ 1,729 | |||||||||
Stock options granted | shares | 1,725,000 | |||||||||||
Options granted weighted average grant date fair value | $ / shares | $ 1.32 | $ 2.40 | ||||||||||
Stock options expected life | 2 years 10 months 24 days | 3 years 6 months | ||||||||||
Stock options risk free interest rate | 1.40% | 1.60% | ||||||||||
Stock options forfeiture rate | 4.20% | |||||||||||
Stock options expected volatility rate | 39.20% | 39.20% | ||||||||||
Securities excluded from calculation of net income (loss) per share | shares | 4,100,000 | 4,800,000 | 500,000 | |||||||||
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 | |||||||||||
Restricted Stock Units Time Based | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | |||||||||||
Weighted average fair value of the RSUs granted | $ / shares | $ 2.78 | $ 2.05 | ||||||||||
Performance-Based Restricted Share Units | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | |||||||||||
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. | |||||||||||
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 | 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% | |||||||||||
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 | ||||||||||
Deferred Share Units ("DSUs") [Member] | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Deferred Compensation Liability, Current and Noncurrent | $ | $ 800 | $ 800 | $ 900 | $ 900 | ||||||||
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 | |||||||||||
Deferred Compensation Liability, Current and Noncurrent | $ | $ 100 | $ 100 | ||||||||||
Employee Stock Option [Member] | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Stock-based compensation expense (recovery) | $ | $ 1,800 | |||||||||||
Compensation expense charged to additional paid in capital | $ | 400 | |||||||||||
Payments on surrender of cash settled stock options | $ | $ 3,600 | |||||||||||
Restricted Share Units ("RSUs") [Member] | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Securities excluded from calculation of net income (loss) per share | shares | 3,400,000 | 2,700,000 | ||||||||||
Shares Issuable on Principal Amount Settled in Common Shares [Member] | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Securities excluded from calculation of net income (loss) per share | shares | 27,400,000 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,713 | $ 2,351 | $ 3,876 |
Equity-settled Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 4,453 | 1,832 | 3,512 |
Cash-settled Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 260 | $ 519 | $ 364 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of PSUs, DSUs and RSUs Granted, Exercised, Forfeited and Expired (Detail) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units Time Based | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Outstanding at the beginning | 2,414,063 | |
Granted | 1,976,697 | 2,419,609 |
Vested | (661,775) | |
Withheld to settle employee tax obligations | (174,103) | |
Forfeited | (338,346) | (5,546) |
Number of units, Outstanding at the end | 3,216,536 | 2,414,063 |
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 | (52,608) | |
Number of units, Outstanding at the end | 1,021,739 | 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 | 144,969 | 251,470 |
Vested | (147,056) | |
Exercised | (20,403) | |
Number of units, Outstanding at the end | 361,577 | 363,664 |
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) - 12 months ended Dec. 31, 2021 - Performance-Based Restricted Share Units | $ / shares | $ / shares |
2021 PRSUs [ Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 66.70% | |
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] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 33.30% | |
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 Two [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 50.00% | |
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 Three | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 66.70% | |
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 Compensation Award Tranche Four | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 100.00% | |
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 Five | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
% of PRSUs vesting | 150.00% | |
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 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 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 | (44,102) | (227,368) |
Number of options, Expired | (665,737) | (1,154,956) |
Number of options, Outstanding at the end | 4,064,489 | 4,774,328 |
Number of options, Exercisable | 2,079,479 | |
Weighted average exercise price, Outstanding at the beginning | $ 6.52 | $ 6.49 |
Weighted average exercise price, Forfeited | 7.05 | 6.81 |
Weighted average exercise price, Expired | 5.76 | 6.29 |
Weighted average exercise price, Outstanding at the end | 6.64 | $ 6.52 |
Weighted average exercise price, Exercisable | $ 6.71 |
STOCK-BASED COMPENSATION - Su_4
STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Options outstanding, Number | 4,064,489 | 4,774,328 |
Options exercisable, Number | 2,079,479 | 2,065,938 |
Exercise Price Range $4.01 to $5.00 [Member] | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Range of exercise prices, Minimum | $ 4.01 | $ 4.01 |
Range of exercise prices, Maximum | $ 5 | $ 5 |
Options outstanding, Number | 22,537 | 22,537 |
Options outstanding, Weighted average remaining life | 2 years 10 months 20 days | 3 years 10 months 20 days |
Options outstanding, Weighted average exercise price | $ 4.12 | $ 4.12 |
Options exercisable, Number | 15,025 | 7,513 |
Options exercisable, Weighted average remaining life | 2 years 10 months 20 days | 3 years 10 months 20 days |
Options exercisable, Weighted average exercise price | $ 4.12 | $ 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 | 5.01 |
Range of exercise prices, Maximum | 6 | $ 6 |
Options outstanding, Number | 669,236 | |
Options outstanding, Weighted average remaining life | 10 months 20 days | |
Options outstanding, Weighted average exercise price | $ 5.76 | |
Options exercisable, Number | 669,236 | |
Options exercisable, Weighted average remaining life | 10 months 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 | 6.01 |
Range of exercise prices, Maximum | $ 7 | $ 7 |
Options outstanding, Number | 3,281,199 | 3,299,993 |
Options outstanding, Weighted average remaining life | 1 year 9 months 14 days | 2 years 9 months 14 days |
Options outstanding, Weighted average exercise price | $ 6.38 | $ 6.38 |
Options exercisable, Number | 1,549,301 | 1,126,772 |
Options exercisable, Weighted average remaining life | 1 year 10 months 13 days | 2 years 11 months 4 days |
Options exercisable, Weighted average exercise price | $ 6.36 | $ 6.34 |
Exercise Price Range $7.01 to $8.00 [Member] | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Range of exercise prices, Minimum | 7.01 | 7.01 |
Range of exercise prices, Maximum | $ 8 | $ 8 |
Options outstanding, Number | 760,753 | 782,562 |
Options outstanding, Weighted average remaining life | 2 years 4 months 13 days | 3 years 4 months 13 days |
Options outstanding, Weighted average exercise price | $ 7.84 | $ 7.84 |
Options exercisable, Number | 515,153 | 262,417 |
Options exercisable, Weighted average remaining life | 2 years 4 months 13 days | 3 years 4 months 13 days |
Options exercisable, Weighted average exercise price | $ 7.84 | $ 7.84 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue by Major Products and Services Lines (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 147,593 | $ 171,507 | $ 247,735 |
Product [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 129,031 | 150,004 | 215,109 |
Transportation [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 13,231 | 15,491 | 23,903 |
License fees from Distribution Partners [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 738 | 1,194 | 1,647 |
Total product revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 143,000 | 166,689 | 240,659 |
Installation and other services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 4,593 | $ 4,818 | $ 7,076 |
REVENUE - Disaggregation of R_2
REVENUE - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 147,593 | $ 171,507 | $ 247,735 |
At a point in time [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 142,262 | 165,495 | 239,012 |
Over time [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 5,331 | $ 6,012 | $ 8,723 |
REVENUE - Summary of Contract L
REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | |||
Customer deposits | $ 1,959 | $ 1,292 | $ 2,436 |
Deferred revenue | 461 | 527 | 1,131 |
Contract liabilities | $ 2,420 | $ 1,819 | $ 3,567 |
REVENUE - (Additional Informati
REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Contract liabilities recognized as revenue | $ 1.8 | $ 3.6 |
REVENUE - Schedule of Sales by
REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 147,593 | $ 171,507 | $ 247,735 |
Commercial [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 84,488 | 102,245 | 158,256 |
Healthcare [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 30,130 | 35,400 | 44,197 |
Government [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 16,012 | 14,128 | 14,879 |
Education [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 11,632 | 13,722 | 21,680 |
License Fees from Distribution Partners [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 738 | 1,194 | 1,647 |
Total product revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 143,000 | 166,689 | 240,659 |
Service [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 4,593 | $ 4,818 | $ 7,076 |
SEGMENT REPORTING - (Additional
SEGMENT REPORTING - (Additional Information) (Detail) | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | $ 147,593 | $ 171,507 | $ 247,735 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 17,299 | 18,848 | 34,085 |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | $ 130,294 | $ 152,659 | $ 213,650 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of Non-current Assets Excluding Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | $ 95,635 | $ 98,299 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | 34,912 | 42,947 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | $ 60,723 | $ 55,352 |
COMMITMENTS - (Additional Infor
COMMITMENTS - (Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory And Property Plant And Equipment [Member] | ||
Long Term Purchase Commitment [Line Items] | ||
Purchase obligation, outstanding | $ 3.7 | $ 3.2 |
LEGAL PROCEEDINGS - (Additional
LEGAL PROCEEDINGS - (Additional Information) (Detail) | Dec. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Accrued for legal proceedings | $ 0 |
SUBSEQUENT EVENTS - (Additional
SUBSEQUENT EVENTS - (Additional Information) (Detail) - Subsequent Event [Member] $ in Millions | Feb. 22, 2022USD ($) |
Subsequent Event [Line Items] | |
Reduction in salaried workforce | 18.00% |
One-time costs to be incurred in first half of 2022 | $ 5 |