DIRTT Environmental Solutions Q3 2024 Update

TL;DR

DIRTT's Q3 2024 filing is out, detailing stock and debt instruments. No major surprises, but check the specifics.

AI Summary

DIRTT Environmental Solutions Ltd. reported its third-quarter results for the period ending September 30, 2024. The company's filing indicates ongoing financial activities and corporate structure details, including information on common stock, restricted stock units, and convertible debentures. Specific financial figures and dates related to these instruments are detailed within the report.

Why It Matters

This filing provides insight into DIRTT's financial health and corporate governance, which can influence investor decisions and market perception.

Risk Assessment

Risk Level: medium — The filing contains details about various financial instruments and corporate actions, which could indicate underlying financial complexities or strategic shifts.

Key Numbers

• Q3 2024 — Reporting Period (The third quarter of 2024, ending September 30.)
• 2024-09-30 — Fiscal Period End (The specific date marking the end of the reporting quarter.)
• 2024-11-06 — Filing Date (The date the 10-Q report was officially filed with the SEC.)

Key Players & Entities

• DIRTT ENVIRONMENTAL SOLUTIONS LTD (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241106 (date) — Filing date of the report
• 0001340476 (company) — Central Index Key for DIRTT Environmental Solutions Ltd.
• TwentyTwoNwFundLpMember (company) — Mentioned in relation to a repurchase agreement

FAQ

Filing Documents

• drttf-20240930.htm (10-Q) — 2900KB
• drttf-ex31_1.htm (EX-31.1) — 16KB
• drttf-ex31_2.htm (EX-31.2) — 16KB
• drttf-ex32_1.htm (EX-32.1) — 9KB
• drttf-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-24-122442.txt ( ) — 11476KB
• drttf-20240930.xsd (EX-101.SCH) — 1533KB
• drttf-20240930_htm.xml (XML) — 2126KB

– 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 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 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 45

Controls and Procedures

Item 4. Controls and Procedures 45

– OTHER INFORMATION

PART II – OTHER INFORMATION 47

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 48

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 48

Other Information

Item 5. Other Information 48

Exhibits

Item 6. Exhibits 49 i Cautionary Statement Regardin g Forward-Looking Statements Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended September 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 gro

– 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 September 30, As at December 31, 2024 2023 ASSETS Current Assets Cash and cash equivalents 23,626 24,744 Restricted cash 241 355 Trade and accrued receivables, net of expected credit losses of $ 0.1 million at September 30, 2024 and at December 31, 2023 20,385 15,787 Other receivables 521 484 Inventory 14,751 16,577 Prepaids and other current assets 3,601 4,023 Assets held for sale - 1,555 Total Current Assets 63,125 63,525 Property, plant and equipment, net 21,587 25,077 Capitalized software, net 3,175 2,450 Operating lease right-of-use assets, net 27,132 29,813 Other assets 3,203 3,452 Total Assets 118,222 124,317 LIABILITIES Current Liabilities Accounts payable and accrued liabilities 16,297 19,880 Other liabilities 3,027 2,482 Customer deposits and deferred revenue 3,524 5,290 Current portion of long-term debt and accrued interest 377 841 Current portion of lease liabilities 5,762 5,255 Total Current Liabilities 28,987 33,748 Long-term debt 23,536 55,267 Long-term lease liabilities 25,694 28,201 Total Liabilities 78,217 117,216 SHAREHOLDERS' EQUITY Common shares, unlimited authorized without par value, 193,392,884 issued and outstanding at September 30, 2024 and 105,377,667 issued and outstanding at December 31, 2023 218,915 196,128 Additional paid-in capital 7,565 7,954 Accumulated other comprehensive loss ( 16,346 ) ( 16,125 ) Accumulated deficit ( 170,129 ) ( 180,856 ) Total Shareholders' Equity 40,005 7,101 Total Liabilities and Shareholders' Equity 118,222 124,317 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 4 DIRTT E

View Full Filing

View this 10-Q filing on SEC EDGAR