DIRTT Environmental Solutions Q2 2024 10-Q Filed

TL;DR

DIRTT filed its Q2 10-Q. Financials and operational details for period ending June 30, 2024 are now public.

AI Summary

DIRTT Environmental Solutions Ltd. filed its Q2 2024 10-Q report on August 7, 2024, covering the period ending June 30, 2024. The company's fiscal year ends on December 31st. Key dates mentioned include April 1, 2023, to June 30, 2023, and January 1, 2024, to June 30, 2024, related to various share issuances and agreements. The company is based in Calgary, Alberta.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for DIRTT Environmental Solutions, crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the company's financial health and operational performance, not detailed here, could present risks.

Key Numbers

• Q2 2024 — Reporting Period (Covers financial performance up to June 30, 2024.)
• 1231 — Fiscal Year End (Indicates when the company's annual financial reporting cycle concludes.)

Key Players & Entities

• DIRTT ENVIRONMENTAL SOLUTIONS LTD (company) — Filer
• CALGARY ALBERTA T2C 1N6 (location) — Business Address
• 20240630 (date) — Period of Report
• 20240807 (date) — Filed as of Date

FAQ

Filing Documents

• drttf-20240630.htm (10-Q) — 2830KB
• drttf-ex31_1.htm (EX-31.1) — 16KB
• drttf-ex31_2.htm (EX-31.2) — 16KB
• drttf-ex32_1.htm (EX-32.1) — 8KB
• drttf-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-092954.txt ( ) — 11370KB
• drttf-20240630.xsd (EX-101.SCH) — 1497KB
• drttf-20240630_htm.xml (XML) — 2197KB

– 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 Income (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 10

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 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 43

– OTHER INFORMATION

PART II – OTHER INFORMATION 45

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 46

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 46

Other Information

Item 5. Other Information 46

Exhibits

Item 6. Exhibits 47 i Cautionary Statement Regardin g Forward-Looking Statements Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended June 30, 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 p

– 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 June 30, As at December 31, 2024 2023 ASSETS Current Assets Cash and cash equivalents 39,529 24,744 Restricted cash 241 355 Trade and accrued receivables, net of expected credit losses of $ 0.1 million at June 30, 2024 and at December 31, 2023 17,726 15,787 Other receivables 746 484 Inventory 14,912 16,577 Prepaids and other current assets 3,520 4,023 Assets held for sale - 1,555 Total Current Assets 76,674 63,525 Property, plant and equipment, net 22,546 25,077 Capitalized software, net 2,827 2,450 Operating lease right-of-use assets, net 27,925 29,813 Other assets 3,353 3,452 Total Assets 133,325 124,317 LIABILITIES Current Liabilities Accounts payable and accrued liabilities 16,740 19,880 Other liabilities 3,025 2,482 Customer deposits and deferred revenue 2,910 5,290 Current portion of long-term debt and accrued interest 725 841 Current portion of lease liabilities 5,687 5,255 Total Current Liabilities 29,087 33,748 Long-term debt 45,847 55,267 Long-term lease liabilities 26,491 28,201 Total Liabilities 101,425 117,216 SHAREHOLDERS' EQUITY Common shares, unlimited authorized without par value, 192,967,643 issued and outstanding at June 30, 2024 and 105,377,667 issued and outstanding at December 31, 2023 218,729 196,128 Additional paid-in capital 7,118 7,954 Accumulated other comprehensive loss ( 16,732 ) ( 16,125 ) Accumulated deficit ( 177,215 ) ( 180,856 ) Total Shareholders' Equity 31,900 7,101 Total Liabilities and Shareholders' Equity 133,325 124,317 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 4 DIRTT Environmental S

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View this 10-Q filing on SEC EDGAR