DIRTT Environmental Solutions Ltd. Files Q1 2024 10-Q Report

TL;DR

<b>DIRTT Environmental Solutions Ltd. has submitted its Q1 2024 10-Q filing, detailing financial activities and agreements.</b>

AI Summary

DIRTT ENVIRONMENTAL SOLUTIONS LTD (DRTTF) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. DIRTT Environmental Solutions Ltd. filed its quarterly report on Form 10-Q for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. Key dates mentioned include various agreements and settlements dating back to 2021 and 2022. The report details financial activities and asset classifications for Q1 2024 and comparative periods. Specific financial instruments like Convertible Unsecured Subordinated Debentures and Performance Shares are referenced.

Why It Matters

For investors and stakeholders tracking DIRTT ENVIRONMENTAL SOLUTIONS LTD, this filing contains several important signals. This filing provides stakeholders with an update on the company's financial performance and position as of the end of the first quarter of 2024. The inclusion of various past dates related to agreements and debt settlements offers context for the company's ongoing financial strategies and obligations.

Risk Assessment

Risk Level: medium — DIRTT ENVIRONMENTAL SOLUTIONS LTD shows moderate risk based on this filing. The company's financial health and operational status are subject to various agreements and potential restructuring events, as indicated by the numerous dated entries related to debt settlements and specific financial instruments.

Analyst Insight

Review the detailed financial statements and disclosures within the 10-Q to understand the company's current financial standing and any material changes from previous periods.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-08 — Filing Date (Filed as of Date)

Key Players & Entities

• DIRTT ENVIRONMENTAL SOLUTIONS LTD (company) — Filer name
• 0000950170-24-055864 (other) — Accession Number
• 20240331 (date) — Conformed Period of Report
• 20240508 (date) — Filed as of Date
• 7303 30 ST S E CALGARY ALBERTA T2C 1N6 (address) — Business Address
• TwentyTwoNwFundLp (company) — Mentioned in Debt Settlement Agreement context

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides an update on the company's financial performance and position during the quarter.)

Convertible Unsecured Subordinated Debentures

A type of debt security that can be converted into equity under certain conditions and is subordinate to other debts. (Indicates a specific form of financing or debt obligation the company has.)

Performance Shares

Stock awards granted to employees or executives that vest or become exercisable only if certain performance goals are met. (Relates to executive compensation and company performance metrics.)

Debt Settlement Agreement

A formal agreement to resolve outstanding debt obligations. (Highlights specific financial restructuring or resolution activities.)

Filing Documents

• drttf-20240331.htm (10-Q) — 1946KB
• drttf-ex10_1.htm (EX-10.1) — 185KB
• drttf-ex31_1.htm (EX-31.1) — 15KB
• drttf-ex31_2.htm (EX-31.2) — 16KB
• drttf-ex32_1.htm (EX-32.1) — 8KB
• drttf-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-055864.txt (&nbsp;) — 9399KB
• drttf-20240331.xsd (EX-101.SCH) — 1382KB
• drttf-20240331_htm.xml (XML) — 1694KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 4

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 4 Interim Condensed Consolidated Balance Sheets 4 Interim Condensed Consolidated Statement of Operations and Comprehensive Loss 5 Interim Condensed Consolidated Statement of Changes in Shareholders' Equity 7 Interim Condensed Consolidated Statement of Cash Flows 8 Notes to the Unaudited Interim Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

– OTHER INFORMATION

PART II – OTHER INFORMATION 37

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 39 i Cautionary Statement Regardin g Forward-Looking Statements Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (this "Quarterly Report") are "forward-looking statements" within the meaning of "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and "forward-looking information" within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact included in this Quarterly Report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report, the words "anticipate," "believe," "expect," "estimate," "intend," "plan," "project," "outlook," "may," "will," "should," "would," "could," "can," "continue," the negatives thereof, variations thereon and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on certain estimates, beliefs, expectations and assumptions made in light of management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that may be appropriate. Forward-looking statements necessarily involve unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from those contained in, or expressed or implied by such statements. Due to the risks, uncertainties and assumptions inherent in forward-looking information, you should not place undue reliance on forward-looking statements. Factors that could have a material adverse effect on our business, financial condition, results of operations and growth

– FINANC IAL INFORMATION

PART I – FINANC IAL INFORMATION

Financial Sta tements (Unaudited)

Item 1. Financial Sta tements (Unaudited) DIRTT Environmental Solutions Ltd. Interim Condensed Consol idated Balance Sheets (Unaudited – Stated in thousands of U.S. dollars) As at March 31, As at December 31, 2024 2023 ASSETS Current Assets Cash and cash equivalents 38,989 24,744 Restricted cash 241 355 Trade and accrued receivables, net of expected credit losses of $ 0.1 million at March 31, 2024 and at December 31, 2023 15,782 15,787 Other receivables 476 484 Inventory 15,669 16,577 Prepaids and other current assets 2,426 4,023 Assets held for sale - 1,555 Total Current Assets 73,583 63,525 Property, plant and equipment, net 23,801 25,077 Capitalized software, net 2,700 2,450 Operating lease right-of-use assets, net 28,442 29,813 Other assets 3,442 3,452 Total Assets 131,968 124,317 LIABILITIES Current Liabilities Accounts payable and accrued liabilities 15,360 19,880 Other liabilities 2,906 2,482 Customer deposits and deferred revenue 3,080 5,290 Current portion of long-term debt and accrued interest 675 841 Current portion of lease liabilities 5,449 5,255 Total Current Liabilities 27,470 33,748 Long-term debt 46,125 55,267 Long-term lease liabilities 26,957 28,201 Total Liabilities 100,552 117,216 SHAREHOLDERS' EQUITY Common shares, unlimited authorized without par value, 191,880,226 issued and outstanding at March 31, 2024 and 105,377,667 issued and outstanding at December 31, 2023 218,294 196,128 Additional paid-in capital 7,355 7,954 Accumulated other comprehensive loss ( 16,422 ) ( 16,125 ) Accumulated deficit ( 177,811 ) ( 180,856 ) Total Shareholders' Equity 31,416 7,101 Total Liabilities and Shareholders' Equity 131,968 124,317 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 4 DIRTT Environmenta

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View this 10-Q filing on SEC EDGAR