REVENUE

3 Months Ended

Mar. 31, 2021

Revenue From Contract With Customer [Abstract]

REVENUE

8. 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 9 for the disaggregation of revenue by geographic region.

	For the Three Months Ended March 31,
	2021		2020
Product		25,836		35,998
Transportation		2,499		3,995
License fees from Distribution Partners		207		306
Total product revenue		28,542		40,299
Installation and other services		923		682
		29,465		40,981

 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 March 31,
	2021		2020
At a point in time		28,335		39,993
Over time		1,130		988
		29,465		40,981

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
	March 31, 2021		December 31, 2020		December 31, 2019
Customer deposits		2,975		1,292		2,436
Deferred revenue		455		527		1,131
Contract liabilities		3,430		1,819		3,567

Contract liabilities primarily relate to deposits received from customers and deferred revenue from license subscriptions. The balance of contract liabilities was higher as at March 31, 2021 compared to December 31, 2020 mainly due to the timing of orders and payments. Contract liabilities as at December 31, 2020 and 2019, respectively, totaling $1.5 million and $2.7 million were recognized as revenue during the three months ended March 31, 2021 and 2020, 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 March 31,
	2021		2020
Commercial		16,144		28,274
Healthcare		6,487		5,063
Government		4,181		3,127
Education		1,523		3,529
License fees from Distribution Partners		207		306
Total product and transportation revenue		28,542		40,299
Installation and other services		923		682
		29,465		40,981