Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Entity Registrant Name | DIRTT ENVIRONMENTAL SOLUTIONS LTD | |
Entity Central Index Key | 0001340476 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Address, State or Province | AB | |
Entity Interactive Data Current | Yes | |
Trading Symbol | DRTT | |
Title of 12(b) Security | Common Shares | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 84,681,364 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 43,460 | $ 47,174 |
Trade and other receivables, net of expected credit losses of $0.7 million at March 31, 2020 and $0.1 million at December 31, 2019 | 23,165 | 24,941 |
Inventory | 16,526 | 17,566 |
Prepaids and other current assets | 4,033 | 3,340 |
Total Current Assets | 87,184 | 93,021 |
Property, plant and equipment, net | 38,772 | 41,365 |
Capitalized software, net | 7,801 | 8,213 |
Operating lease right-of-use assets, net | 18,802 | 20,661 |
Deferred tax assets, net | 5,638 | 5,364 |
Goodwill | 1,301 | 1,421 |
Other assets | 4,766 | 5,518 |
Total Assets | 164,264 | 175,563 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 21,744 | 20,384 |
Other liabilities | 4,850 | 5,187 |
Customer deposits and deferred revenue | 4,609 | 3,567 |
Current portion of lease liability | 5,014 | 5,287 |
Total Current Liabilities | 36,217 | 34,425 |
Other long-term liabilities | 13 | 35 |
Long-term lease liabilities | 14,480 | 16,116 |
Total Liabilities | 50,710 | 50,576 |
SHAREHOLDERS' EQUITY | ||
Common shares, unlimited authorized without par value, 84,681,364 issued and outstanding at March 31, 2020 and December 31, 2019 | 180,639 | 180,639 |
Additional paid-in capital | 9,006 | 8,343 |
Accumulated other comprehensive loss | (24,796) | (18,028) |
Accumulated deficit | (51,295) | (45,967) |
Total Shareholders' Equity | 113,554 | 124,987 |
Total Liabilities and Shareholders' Equity | $ 164,264 | $ 175,563 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Trade and other receivables, expected credit losses | $ 741 | $ 84 |
Common shares, no par value | $ 0 | $ 0 |
Common shares, shares issued | 84,681,364 | 84,681,364 |
Common shares, shares outstanding | 84,681,364 | 84,681,364 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues [Abstract] | ||
Total revenue | $ 40,981 | $ 65,061 |
Total cost of sales | 29,666 | 41,457 |
Gross profit | 11,315 | 23,604 |
Expenses | ||
Sales and marketing | 7,408 | 7,787 |
General and administrative | 7,825 | 6,897 |
Operations support | 2,532 | 2,482 |
Technology and development | 2,165 | 2,117 |
Stock-based compensation | 461 | 6,447 |
Reorganization | 2,639 | |
Total operating expenses | 20,391 | 28,369 |
Operating income (loss) | (9,076) | (4,765) |
Foreign exchange (gain) loss | (2,319) | 519 |
Interest income | (138) | (54) |
Interest expense | 35 | 49 |
Non Operating (income) loss | (2,422) | 514 |
Income (loss) before tax | (6,654) | (5,279) |
Income taxes | ||
Current tax expense (recovery) | (581) | 152 |
Deferred tax recovery | (745) | (166) |
Income tax expense | (1,326) | (14) |
Net income (loss) for the year | $ (5,328) | $ (5,265) |
Income (loss) per share | ||
Basic and diluted income (loss) per share | $ (0.06) | $ (0.06) |
Basic and diluted weighted average number of shares outstanding | 84,681 | 84,661 |
Interim Condensed Consolidated Statement of Comprehensive Income (loss) | ||
Loss for the period | $ (5,328) | $ (5,265) |
Exchange differences on translation of foreign operations | (6,768) | 2,096 |
Comprehensive loss for the period | (12,096) | (3,169) |
Product [Member] | ||
Revenues [Abstract] | ||
Total revenue | 40,299 | 63,840 |
Total cost of sales | 27,290 | 40,068 |
Service [Member] | ||
Revenues [Abstract] | ||
Total revenue | 682 | 1,221 |
Total cost of sales | 366 | $ 1,389 |
Under-utilized Capacity [Member] | ||
Revenues [Abstract] | ||
Total cost of sales | $ 2,010 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Beginning Balance at Dec. 31, 2018 | $ 123,514 | $ 180,562 | $ 6,615 | $ (22,092) | $ (41,571) |
Beginning Balance (in shares) at Dec. 31, 2018 | 84,660,319 | ||||
Issued on exercise of stock options | 3 | $ 4 | (1) | ||
Issued on exercise of stock options (in shares) | 1,053 | ||||
Stock-based compensation | (429) | (429) | |||
Foreign currency translation adjustment | 2,096 | 2,096 | |||
Net loss for the period | (5,265) | (5,265) | |||
Ending Balance at Mar. 31, 2019 | 119,919 | $ 180,566 | 6,185 | (19,996) | (46,836) |
Ending Balance (in shares) at Mar. 31, 2019 | 84,661,372 | ||||
Beginning Balance at Dec. 31, 2019 | 124,987 | $ 180,639 | 8,343 | (18,028) | (45,967) |
Beginning Balance (in shares) at Dec. 31, 2019 | 84,681,364 | ||||
Stock-based compensation | 663 | 663 | |||
Foreign currency translation adjustment | (6,768) | (6,768) | |||
Net loss for the period | (5,328) | (5,328) | |||
Ending Balance at Mar. 31, 2020 | $ 113,554 | $ 180,639 | $ 9,006 | $ (24,796) | $ (51,295) |
Ending Balance (in shares) at Mar. 31, 2020 | 84,681,364 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss for the period | $ (5,328) | $ (5,265) |
Adjustments: | ||
Depreciation and amortization | 3,132 | 3,395 |
Stock-based compensation, net of cash settlements | 461 | 5,681 |
Foreign exchange gain | (2,214) | (2) |
Loss on disposal of property, plant and equipment | 62 | |
Deferred income tax recovery | (745) | (166) |
Changes in operating assets and liabilities: | ||
Trade and other receivables | 1,436 | 6,918 |
Inventory | 35 | 439 |
Prepaid and other current assets | (897) | (301) |
Other assets | 173 | 112 |
Trade accounts payable and other liabilities | 2,130 | (1,626) |
Lease liabilities | (27) | (146) |
Customer deposits | 1,084 | (1,701) |
Net cash flows (used in) provided by operating activities | (760) | 7,400 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (1,678) | (1,384) |
Capitalized software development expenditures and other asset expenditures | (970) | (503) |
Recovery of software development expenditures | 75 | 75 |
Proceeds on sale of property, plant and equipment | 44 | |
Changes in accounts payable related to investing activities | 118 | (336) |
Net cash flows used in investing activities | (2,455) | (2,104) |
Cash flows from financing activities: | ||
Cash received on exercise of stock options | 5 | |
Repayment of long-term debt | (5,561) | |
Net cash flows used in financing activities | (5,556) | |
Effect of foreign exchange on cash and cash equivalents | (499) | 907 |
Net increase (decrease) in cash and cash equivalents | (3,714) | 647 |
Cash and cash equivalents, beginning of period | 47,174 | 53,412 |
Cash and cash equivalents, end of period | 43,460 | 54,059 |
Supplemental disclosure of cash flow information: | ||
Interest paid | (35) | (49) |
Income taxes paid | $ 0 | $ (48) |
GENERAL INFORMATION
GENERAL INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION DIRTT Environmental Solutions Ltd. and its subsidiaries (“DIRTT,” the “Company,” “we” or “our”) is a leading technology-driven manufacturer of highly customized interiors. DIRTT combines its proprietary 3D design, configuration and manufacturing software (“ICE ® in-house |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION The accompanying unaudited interim condensed consolidated financial statements (the “Financial Statements”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q S-X 10-K In these Financial Statements, unless otherwise indicated, all dollar amounts are expressed in United States (“U.S.”) dollars. DIRTT’s financial results are consolidated in Canadian dollars, the Company’s functional currency, and the Company has adopted the U.S. dollar as its reporting currency. All references to US$ or $ are to U.S. dollars and references to C$ are to Canadian dollars. Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated on consolidation. Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and certain components of stock-based compensation that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Company’s quarterly tax provision is based upon an estimated annual effective tax rate. Seasonality Sales of the Company’s products are driven by consumer and industrial demand for interior construction solutions. The timing of customer’s construction projects can be influenced by a number of factors including the prevailing economic climate and weather. |
COVID-19
COVID-19 | 3 Months Ended |
Mar. 31, 2020 | |
COVID-19 | |
Unusual Risk or Uncertainty [Line Items] | |
Accounting Changes and Error Corrections [Text Block] | 3. COVID-19 On March 11, 2020, the coronavirus (“COVID-19”) COVID-19 mid-term Key sources of estimation uncertainty can be found in the Company’s a c f s COVID-19 Credit risk COVID-19 COVID-19 Liquidity risk The Company may have lower cash flows from operating activities available to service debts due to lower sales or collections. Information about our credit facilities is presented in Note 6. Impairment At March 31, 2020, our market capitalization was less than the book value of our equity which is an indicator of impairment. Management compared forecasted undiscounted cash flows to the book values of non-current COVID-19 COVID-19 Deferred tax assets (“DTA”) The Company’s ability to generate future taxable income may be impacted by COVID-19 |
ADOPTION OF NEW AND REVISED ACC
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS | 4. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS On January 1, 2020, the Company adopted ASU No. 2016-13, Measurement of Credit Losses in Financial Instruments No. 2019-04, No. 2019-05 No. 2020-02 held-to-maturity off-balance available-for-sale The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable accounting principles generally accepted in the United States of America (“GAAP”). The adoption of this standard did not have a significant impact on the Company, and no adjustment was required to retained earnings as of January 1, 2020 for the cumulative effect of adopting ASC 326. On January 1, 2020, the Company adopted ASU 2018-15, 350-40, Intangibles – Goodwill and Other – Internal-Use 2018-15”). 2018-15 2018-15. 2018-15 350-40 of The Company adopted this amendment using the prospective transition approach, and no adjustments were required as a result of adoption. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of notes and other receivables | |
TRADE AND OTHER RECEIVABLES | 5 Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates an allowance for credit losses using the lifetime expected credit loss at each measurement date taking into account historical credit loss experience as well as forward-looking information in order to establish rates for each class of financial receivable with similar risk characteristics. Adjustments to this estimate are recognized in the statement of operations. In order to manage and assess our risk, management maintains credit policies that include regular review of credit limits of individual receivables and systematic monitoring of aging of trade receivables and the financial wellbeing of our customers. The majority of our trade balances are spread over a broad Distribution Partner base, which is geographically dispersed. No Distribution Partner accounts for greater than 10% of revenue. In addition, and where possible, we collect a 50% deposit on sales, excluding government and certain other clients. The Company’s aged receivables were as follows: As at March 31, December 31, Current 18,729 20,087 Overdue 2,018 2,401 20,747 22,488 Less: expected credit losses (741 ) (84 ) 20,006 22,404 Sales tax receivable 444 402 Income tax receivable 2,715 2,135 23,165 24,941 Due to the uncertainties associated with the COVID 19 pandemic as well as the disruption to businesses in North America, the overall credit quality of certain receivables has declined at March 31, 2020 compared to January 1, 2020. As a result of this consideration and the Company’s ongoing review of credit quality of receivables, expected credit losses were increased by $0.6 million during the quarter ended March 31, 2020. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 6 On July 19, 2019, the Company entered into a C$50.0 million senior secured revolving credit facility with the Royal Bank of Canada (the “RBC Facility”). The RBC Facility has a three-year term and can be extended for up to two additional years at the Company’s option. Interest is calculated at the Canadian or U.S. prime rate with no adjustment, or the bankers’ acceptance rate plus 125 basis points. The RBC Facility is subject to a minimum fixed charge coverage ratio of 1.15:1 and a maximum debt to Adjusted EBITDA ratio of 3.0:1 (earnings before interest, tax, depreciation and amortization, non-cash non-recurring , $30.0 million . Subsequent to March 31, 2020, the Company entered into a C$5.0 million equipment leasing facility in Canada and a $16.0 million equipment leasing facility in the United States (the “Leasing Facilities”), which are available for certain expenditures already incurred. The Leasing Facilities, respectively, have seven and five-year terms and bear interest at 4.25% and 3.5%. The U.S. leasing facility is extendible for an additional year. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 7 Stock-based compensation expense For the three months ended March 31, 2020 2019 Stock options 663 6,275 PSUs (8 ) 18 DSUs (194 ) 154 461 6,447 Stock Options For the three months ended March 31, 2020, stock-based compensation expense related to stock options was $0.7 million (2019 – $6.3 million expense). During the three months ended March 31, 2019, the Company accounted for the fair value of outstanding stock options at the end of the reporting period as a liability, with changes in the liability recorded through net income as a stock-based compensation fair value adjustment (“cash-settlement”). On October 9, 2019, following its listing on N a sdaq Number of Weighted average Outstanding at December 31, 2018 6,858,376 5.88 Surrendered for cash (819,765 ) 5.21 Exercised (1,053 ) 3.72 Forfeited (108,191 ) 5.32 Expired (2,084 ) 5.97 Outstanding at March 31, 2019 5,927,283 5.88 Outstanding at December 31, 2019 6,156,652 6.49 Forfeited (523,549 ) 6.80 Outstanding at March 31, 2020 5,633,103 6.46 Exercisable at March 31, 2020 2,188,745 6.06 Range of exercise prices of op tions Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$4.01 – C$5.00 22,537 4.64 4.12 — C$5.01 – C$6.00 686,811 1.64 5.76 686,811 1.64 5.76 C$6.01 – C$7.00 4,131,512 2.92 6.32 1,501,934 1.94 6.19 C$7.01 – C$8.00 792,243 4.13 7.84 — Total 5,633,103 2,188,745 Performance share units (“PSUs”) As at March 31, 2020, there were 197,471 P Deferred share units (“DSUs”) As at h 31, 2020, ther e , which is Dilutive instruments For the three months ended March 31, 2020, 5.6 |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 8 In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 9 For the three months ended March 31, 2020 2019 Product 35,998 56,949 Transportation 3,995 6,359 Licenses 306 532 Total product revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061 DIRTT sells its products and services pursuant to fixed-price contracts, which generally have a term of one year or less. The transaction price used in determining the amount of revenue to recognize is based upon agreed contractual terms with the customer and is not subject to variability. For the three months ended March 31, 2020 2019 At a point in time 39,993 63,308 Over time 988 1,753 40,981 65,061 Revenue recognized at a point in time represents the majority of the Company’s sales and revenue is recognized when a customer obtains legal title to the product, which is when ownership of products is transferred to, or services are delivered to the contract counterparty. Revenue recognized over time is limited to installation and other services provided to customers and is recorded as performance obligations which are satisfied over the term of the contract. Contract Liabilities As at March 31, 2020 December 31, 2019 December 31, 2018 Customer deposits 3,590 2,436 6,746 Deferred revenue 1,019 1,131 955 Contract liabilities 4,609 3,567 7,701 Contract liabilities primarily relate to deposits received from customers and deferred revenue from license subscriptions. The balance of contract liabilities was year-to-date Sales by Industry The Company periodically reviews the growth of product and transportation revenue by vertical market to evaluate the success of industry-specific sales initiatives. The nature of products sold to the various industries is consistent and therefore review is focused on sales performance. The three months ended March 31, 2020 2019 Commercial 28,274 42,149 Healthcare 5,063 12,914 Government 3,127 4,099 Education 3,529 4,146 License fees from Distribution Partners 306 532 Total product and transportation revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 9 The non-current Revenue from external customers For the three months ended March 31, 2020 2019 Canada 5,986 7,068 U.S. 34,995 57,993 40,981 65,061 Non-current As at March 31, 2020 1 December 31, 2019 1 Canada 42,645 47,892 U.S. 28,797 29,286 71,442 77,178 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES Stock based compensation expense is not deductible in the calculation of income taxes in Canada. Accordingly, the fair value adjustment recorded during the period ended March 31, 2019 impacted our effective tax rate during that period. |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 11. COMMITMENTS As at March 31, 2020, the Company had outstanding purchase obligations of approximately $9.8 million related to inventory and property, plant and equipment purchases. As at March 31, 2020, the Company had undiscounted operating lease liabilities of $22.4 million. During 2019, the Company entered into a lease agreement with a term of 25 years, expected to commence in the second half of 2020, associated with the construction of a new combined tile and millwork facility in Rock Hill, South Carolina (“South Carolina Plant”). Undiscounted rent obligations associated with this lease are $26.6 million. During the first quarter of 2020, the Company entered into a lease agreement with a term of 12 years, expected to commence in the second half of 2020, associated with a new DIRTT Experience Center (“DXC”) in Plano, Texas. Undiscounted rent obligations associated with this lease are $6.3 million. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation The Financial Statements include the accounts of DIRTT and its subsidiaries. All intercompany balances, income and expenses, unrealized gains and losses and dividends resulting from intercompany transactions have been eliminated on consolidation. |
Basis of measurement | Basis of measurement These Financial Statements have been prepared on the historical cost convention except for certain financial instruments and certain components of stock-based compensation that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Company’s quarterly tax provision is based upon an estimated annual effective tax rate. |
Seasonality | Seasonality Sales of the Company’s products are driven by consumer and industrial demand for interior construction solutions. The timing of customer’s construction projects can be influenced by a number of factors including the prevailing economic climate and weather. |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of notes and other receivables | |
Schedule of accounts, notes, loans and financing receivable | The Company’s aged receivables were as follows: As at March 31, December 31, Current 18,729 20,087 Overdue 2,018 2,401 20,747 22,488 Less: expected credit losses (741 ) (84 ) 20,006 22,404 Sales tax receivable 444 402 Income tax receivable 2,715 2,135 23,165 24,941 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock-based compensation expense | Stock-based compensation expense For the three months ended March 31, 2020 2019 Stock options 663 6,275 PSUs (8 ) 18 DSUs (194 ) 154 461 6,447 Stock Options |
Summary of options granted, exercised, surrendered, forfeited and expired | The following summarizes options granted, exercised, surrendered, forfeited and expired during the periods: Number of Weighted average Outstanding at December 31, 2018 6,858,376 5.88 Surrendered for cash (819,765 ) 5.21 Exercised (1,053 ) 3.72 Forfeited (108,191 ) 5.32 Expired (2,084 ) 5.97 Outstanding at March 31, 2019 5,927,283 5.88 Outstanding at December 31, 2019 6,156,652 6.49 Forfeited (523,549 ) 6.80 Outstanding at March 31, 2020 5,633,103 6.46 Exercisable at March 31, 2020 2,188,745 6.06 |
Summary of options outstanding by range of exercise prices | Range of exercise prices of op tions Options outstanding Options exercisable Range of exercise prices Number Weighted Weighted Number Weighted Weighted C$4.01 – C$5.00 22,537 4.64 4.12 — C$5.01 – C$6.00 686,811 1.64 5.76 686,811 1.64 5.76 C$6.01 – C$7.00 4,131,512 2.92 6.32 1,501,934 1.94 6.19 C$7.01 – C$8.00 792,243 4.13 7.84 — Total 5,633,103 2,188,745 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue by major products and services lines and timing of revenue recognition | In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. See Note 9 For the three months ended March 31, 2020 2019 Product 35,998 56,949 Transportation 3,995 6,359 Licenses 306 532 Total product revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061 For the three months ended March 31, 2020 2019 At a point in time 39,993 63,308 Over time 988 1,753 40,981 65,061 |
Summary of contract liabilities | Contract Liabilities As at March 31, 2020 December 31, 2019 December 31, 2018 Customer deposits 3,590 2,436 6,746 Deferred revenue 1,019 1,131 955 Contract liabilities 4,609 3,567 7,701 |
Schedule of sales by industry | The three months ended March 31, 2020 2019 Commercial 28,274 42,149 Healthcare 5,063 12,914 Government 3,127 4,099 Education 3,529 4,146 License fees from Distribution Partners 306 532 Total product and transportation revenue 40,299 63,840 Installation and other services 682 1,221 40,981 65,061 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenue from external customers | Revenue from external customers For the three months ended March 31, 2020 2019 Canada 5,986 7,068 U.S. 34,995 57,993 40,981 65,061 |
Schedule of non-current assets, excluding deferred tax assets | Non-current As at March 31, 2020 1 December 31, 2019 1 Canada 42,645 47,892 U.S. 28,797 29,286 71,442 77,178 (1) Amounts include property, plant and equipment, capitalized software, operating lease right-of-use |
TRADE AND OTHER RECEIVABLES - S
TRADE AND OTHER RECEIVABLES - Schedule of accounts, notes, loans and financing receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of notes and other receivables | ||
Current | $ 18,729 | $ 20,087 |
Overdue | 2,018 | 2,401 |
Total accounts receivable | 20,747 | 22,488 |
Less: expected credit losses | (741) | (84) |
Net accounts receivable | 20,006 | 22,404 |
Sales tax receivable | 444 | 402 |
Income tax receivable | 2,715 | 2,135 |
Accounts and other receivables, net, current | $ 23,165 | $ 24,941 |
TRADE AND OTHER RECEIVABLES (Ad
TRADE AND OTHER RECEIVABLES (Additional Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Provision for doubtful accounts | $ 741 | $ 84 |
Percentage of Total Account Receivable | 50.00% | |
Increase in credit losses | $ 600 | |
Accounts Receivable [Member] | ||
Percentage of Total Account Receivable | 10.00% |
LONG-TERM DEBT - (Additional In
LONG-TERM DEBT - (Additional Information) (Detail) - CAD ($) $ in Millions | Jul. 19, 2019 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Available Borrowing | $ 30 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.25% | |
Revolving credit facility, basis spread on variable rate | 4.25% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.50% | |
Revolving credit facility, basis spread on variable rate | 3.50% | |
Canadian Dollar Advances [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility, maximum borrowing capacity | $ 5 | |
US Dollar Advances [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility, maximum borrowing capacity | $ 16 | |
Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
Revolving credit facility, maximum borrowing capacity | $ 50 | |
Revolving credit facility, term | 3 years | |
Revolving credit facility, additional term | 2 years | |
Revolving credit facility, interest rate terms | Interest is calculated at the Canadian or U.S. prime rate with no adjustment, or the bankers’ acceptance rate plus 125 basis points | |
Revolving credit facility, basis spread on variable rate | 1.25% | |
Debt instrument covenant terms | The RBC Facility is subject to a minimum fixed charge coverage ratio of 1.15:1 and a maximum debt to Adjusted EBITDA ratio of 3.0:1 |
STOCK-BASED COMPENSATION - (Add
STOCK-BASED COMPENSATION - (Additional Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 461 | $ 6,447 | |
Securities excluded from calculation of net income (loss) per share | 5,600,000 | 5,900,000 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 663 | $ 6,275 | |
Payments on surrender of cash settled stock options | 800 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ (8) | 18 | |
Share based compensation, share units outstanding | 197,471 | 223,052 | |
Share-based arrangements, liability | $ 10 | $ 20 | |
Deferred Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ (194) | $ 154 | |
Share based compensation, share units outstanding | 216,512 | 132,597 | |
Share-based arrangements, liability | $ 200 | $ 400 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 461 | $ 6,447 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 663 | 6,275 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | (8) | 18 |
Deferred Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ (194) | $ 154 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Options Granted, Exercised, Surrendered, Forfeited and Expired (Detail) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options, Outstanding at the beginning | 6,156,652 | 6,858,376 |
Number of options, Exercised | (1,053) | |
Number of options, Surrendered for cash | (819,765) | |
Number of options, Forfeited | (523,549) | (108,191) |
Number of options, Expired | (2,084) | |
Number of options, Outstanding at the end | 5,633,103 | 5,927,283 |
Number of options, Exercisable | 2,188,745 | |
Weighted average exercise price, Outstanding at the beginning | $ 6.49 | $ 5.88 |
Weighted average exercise price, Exercised | 3.72 | |
Weighted average exercise price, Surrendered for cash | 5.21 | |
Weighted average exercise price, Forfeited | 6.80 | 5.32 |
Weighted average exercise price, Expired | 5.97 | |
Weighted average exercise price, Outstanding at the end | 6.46 | $ 5.88 |
Weighted average exercise price, Exercisable | $ 6.06 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Options Outstanding by Range of Exercise Prices (Detail) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, Number | shares | 5,633,103 |
Options exercisable, Number | shares | 2,188,745 |
Exercise Price Range $4.01 to $5.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | $ 4.01 |
Range of exercise prices, Maximum | $ 5 |
Options outstanding, Number | shares | 22,537 |
Options outstanding, Weighted average remaining | 4 years 7 months 20 days |
Options outstanding, Weighted average exercise price | $ 4.12 |
Exercise Price Range $5.01 to $6.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 5.01 |
Range of exercise prices, Maximum | $ 6 |
Options outstanding, Number | shares | 686,811 |
Options outstanding, Weighted average remaining | 1 year 7 months 20 days |
Options outstanding, Weighted average exercise price | $ 5.76 |
Options exercisable, Number | shares | 686,811 |
Options exercisable, Weighted average remaining | 1 year 7 months 20 days |
Options exercisable, Weighted average exercise price | $ 5.76 |
Exercise Price Range $6.01 to $7.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 6.01 |
Range of exercise prices, Maximum | $ 7 |
Options outstanding, Number | shares | 4,131,512 |
Options outstanding, Weighted average remaining | 2 years 11 months 1 day |
Options outstanding, Weighted average exercise price | $ 6.32 |
Options exercisable, Number | shares | 1,501,934 |
Options exercisable, Weighted average remaining | 1 year 11 months 8 days |
Options exercisable, Weighted average exercise price | $ 6.19 |
Exercise Price Range $7.01 to $8.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, Minimum | 7.01 |
Range of exercise prices, Maximum | $ 8 |
Options outstanding, Number | shares | 792,243 |
Options outstanding, Weighted average remaining | 4 years 1 month 17 days |
Options outstanding, Weighted average exercise price | $ 7.84 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue by Major Products and Services Lines (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 40,981 | $ 65,061 |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 35,998 | 56,949 |
Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,995 | 6,359 |
Licenses [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 306 | 532 |
Total product revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 40,299 | 63,840 |
Installation and other services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 682 | $ 1,221 |
REVENUE - Disaggregation of R_2
REVENUE - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 40,981 | $ 65,061 |
At a point in time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 39,993 | 63,308 |
Over time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 988 | $ 1,753 |
REVENUE - Summary of Contract L
REVENUE - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Customer deposits | $ 3,590 | $ 2,436 | $ 6,746 |
Deferred revenue | 1,019 | 1,131 | 955 |
Contract liabilities | $ 4,609 | $ 3,567 | $ 7,701 |
REVENUE - (Additional Informati
REVENUE - (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities recognized as revenue | $ 2.7 | $ 6.8 |
REVENUE - Schedule of Sales by
REVENUE - Schedule of Sales by Industry (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 40,981 | $ 65,061 |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 28,274 | 42,149 |
Healthcare [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,063 | 12,914 |
Government [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,127 | 4,099 |
Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,529 | 4,146 |
License Fees from Distribution Partners [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 306 | 532 |
Total product and transportation revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 40,299 | 63,840 |
Installation and other services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 682 | $ 1,221 |
SEGMENT REPORTING - (Additional
SEGMENT REPORTING - (Additional Information) (Detail) | 3 Months Ended |
Mar. 31, 2020SegmentCountry | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Number of principal geographic locations | Country | 2 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Revenue from External Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from external customers | $ 40,981 | $ 65,061 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from external customers | 5,986 | 7,068 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from external customers | $ 34,995 | $ 57,993 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of Non-current Assets Excluding Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | $ 71,442 | $ 77,178 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | 42,645 | 47,892 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Non-current assets, excluding deferred tax assets | $ 28,797 | $ 29,286 |
COMMITMENTS - (Additional Infor
COMMITMENTS - (Additional Information) (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term Purchase Commitment [Line Items] | ||
Operating lease term | 12 years | 25 years |
Undiscounted obligation | $ 6.3 | $ 26.6 |
Undiscounted operating lease liabilities | 22.4 | |
Inventory And Property Plant And Equipment [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase obligation, outstanding | $ 9.8 |