REVENUE

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

10. 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 11 for the disaggregation of revenue by geographic region.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Product		38,098		36,462		71,291		62,298
Transportation		4,795		3,484		8,856		5,983
License fees from Construction Partners		198		141		395		348
Total product revenue		43,091		40,087		80,542		68,629
Installation and other services		1,610		1,015		2,445		1,938
		44,701		41,102		82,987		70,567

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 June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
At a point in time		42,893		39,946		80,147		68,281
Over time		1,808		1,156		2,840		2,286
		44,701		41,102		82,987		70,567

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
	June 30, 2022		December 31, 2021		December 31, 2020
Customer deposits		5,683		1,959		1,292
Deferred revenue		439		461		527
Contract liabilities		6,122		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 June 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 $2.3 million and $1.6 million, respectively, were recognized as revenue during the six months ended June 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 June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Commercial		29,618		19,032		53,662		35,176
Healthcare		5,091		14,176		12,055		20,663
Government		5,041		4,249		8,322		8,430
Education		3,143		2,489		6,108		4,012
License fees from Construction Partners		198		141		395		348
Total product and transportation revenue		43,091		40,087		80,542		68,629
Installation and other services		1,610		1,015		2,445		1,938
		44,701		41,102		82,987		70,567