REVENUE

3 Months Ended

Mar. 31, 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 March 31,
	2022		2021
Product		33,193		25,836
Transportation		4,061		2,499
License fees from Distribution Partners		197		207
Total product revenue		37,451		28,542
Installation and other services		835		923
		38,286		29,465

 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,
	2022		2021
At a point in time		37,254		28,335
Over time		1,032		1,130
		38,286		29,465

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, 2022		December 31, 2021		December 31, 2020
Customer deposits		5,311		1,959		1,292
Deferred revenue		457		461		527
Contract liabilities		5,768		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 March 31, 2022 compared to December 31, 2021 mainly due to the timing of orders and payments. Contract liabilities as at December 31, 2021 and 2020, respectively, totaling $2.1 million and $1.5 million were recognized as revenue during the three months ended March 31, 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 March 31,
	2022		2021
Commercial		24,044		16,144
Healthcare		6,964		6,487
Government		3,281		4,181
Education		2,965		1,523
License fees from Distribution Partners		197		207
Total product and transportation revenue		37,451		28,542
Installation and other services		835		923
		38,286		29,465