REVENUE

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

11. 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 12 for the disaggregation of revenue by geographic region.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Product		39,092		29,569		110,383		91,867
Transportation		5,022		3,294		13,878		9,277
License fees from Construction Partners		193		191		588		539
Total product revenue		44,307		33,054		124,849		101,683
Installation and other services		2,440		1,044		4,885		2,982
		46,747		34,098		129,734		104,665

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 September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
At a point in time		44,114		32,863		124,261		101,144
Over time		2,633		1,235		5,473		3,521
		46,747		34,098		129,734		104,665

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
	September 30, 2022		December 31, 2021		December 31, 2020
Customer deposits		2,598		1,959		1,292
Deferred revenue		429		461		527
Contract liabilities		3,027		2,420		1,819

Contract liabilities primarily relate to deposits received from customers and deferred revenue from license subscriptions. The balance of contract liabilities was higher as at September 30, 2022 compared to December 31, 2021 mainly due to the timing of orders and payments. Contract liabilities as at December 31, 2021 and 2020 totaling $2.4 million and $1.7 million, respectively, were recognized as revenue during the nine months ended September 30, 2022 and 2021, respectively.

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.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Commercial		31,796		20,805		85,458		55,981
Healthcare		3,638		5,017		15,693		25,680
Government		3,358		3,149		11,680		11,579
Education		5,322		3,892		11,430		7,904
License fees from Construction Partners		193		191		588		539
Total product and transportation revenue		44,307		33,054		124,849		101,683
Installation and other services		2,440		1,044		4,885		2,982
		46,747		34,098		129,734		104,665