$DRTTF

DIRTT ENVIRONMENTAL SOLUTIONS LTD

CIK:0001340476|SEC Filings

Interim Condensed Consolidated Statement of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenue	$ 40,310	$ 38,922	$ 82,742	$ 80,217
Total cost of sales	26,326	28,104	55,757	54,857
Gross profit	13,984	10,818	26,985	25,360
Expenses
Sales and marketing	4,216	5,293	9,247	10,470
General and administrative	4,548	5,743	9,984	11,223
Operations support	1,237	1,872	2,852	3,902
Technology and development	902	1,480	1,843	2,708
Stock-based compensation	724	594	1,599	1,333
Reorganization	1,056	174	3,423	384
Total operating expenses	12,683	15,156	28,948	30,020
Operating income (loss)	1,301	(4,338)	(1,963)	(4,660)
Interest income	105	232	187	494
Gain on extinguishment of convertible debentures	0	7	0	14
Foreign exchange gain (loss)	46	(1,912)	385	(2,024)
Interest expense	(354)	(485)	(704)	(936)
Nonoperating Income (Expense)	(203)	(2,158)	(132)	(2,452)
Net income (loss) before tax	1,098	(6,496)	(2,095)	(7,112)
Income taxes
Current and deferred income tax expense	39	106	119	151
Net loss after tax	$ 1,059	$ (6,602)	$ (2,214)	$ (7,263)
Net loss per share [Abstract]
Net loss per share - basic	$ 0.01	$ (0.03)	$ (0.01)	$ (0.04)
Net loss per share - diluted	$ 0.01	$ (0.03)	$ (0.01)	$ (0.04)
Weighted average number of shares outstanding (in thousands)
Basic	193,789	190,537	193,081	190,597
Diluted	197,472	190,537	193,081	190,597
Product [Member]
Total revenue	$ 38,891	$ 37,741	$ 79,707	$ 78,087
Total cost of sales	24,388	27,362	51,707	53,718
Service [Member]
Total revenue	1,419	1,181	3,035	2,130
Total cost of sales	$ 1,938	$ 742	$ 4,050	$ 1,139

Interim Condensed Consolidated Statement of Cash Flows Unaudited - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss (loss) for the period	$ 1,059	$ (6,602)	$ (2,214)	$ (7,263)
Adjustments:
Depreciation and amortization	1,406	1,547	2,833	3,027
Stock-based compensation	724	594	1,599	1,333
Foreign exchange (gain) loss	(27)	1,809	(464)	2,065
Gain on extinguishment of convertible debt	0	(7)	0	(14)
Accretion of convertible debentures	50	91	111	175
Loss on disposal	0	0	0	115
Changes in operating assets and liabilities:
Trade and accrued receivables	4,974	(632)	3,466	2,661
Other receivables	(503)	(420)	(524)	(667)
Inventory	859	(727)	1,495	(76)
Prepaid and other assets, current and long term	(364)	(582)	237	(565)
Accounts payable and accrued liabilities	(4,756)	1,263	(3,326)	(431)
Other liabilities	439	0	347	0
Customer deposits and deferred revenue	(2,626)	(286)	(903)	(657)
Current portion of long-term debt and accrued interest	(159)	7	(293)	(3)
Lease liabilities	(135)	23	(216)	62
Net cash flows provided by (used in) operating activities	941	(3,922)	2,148	(238)
Cash flows from investing activities:
Purchase of property, plant and equipment, net of accounts payable changes	(256)	(503)	(692)	(801)
Capitalized software development expenditures	(192)	(451)	(466)	(930)
Other asset expenditures	(149)	(85)	(170)	(91)
Recovery of software development expenditures	59	60	59	114
Net cash flows (used in) investing activities	(538)	(979)	(1,269)	(1,708)
Cash flows from financing activities:
Common share repurchases	0	(488)	(138)	(3,993)
Repayment of long-term debt	(321)	(94)	(12,386)	(190)
Employee tax payments on vesting of RSUs	(3)	(60)	(404)	(60)
Net proceeds received on long-term debt	0	0	6,908	0
Net cash flows (used in) provided by financing activities	(324)	(642)	(6,020)	(4,243)
Effect of foreign exchange on cash, cash equivalents and restricted cash	(252)	200	(359)	1
Net decrease in cash, cash equivalents and restricted cash	(173)	(5,343)	(5,500)	(6,188)
Cash, cash equivalents and restricted cash, beginning of period	15,248	28,686	20,575	29,531
Cash, cash equivalents and restricted cash, end of period	15,075	23,343	15,075	23,343
Supplemental disclosure of cash flow information:
Interest paid	(439)	(351)	(836)	(709)
Income taxes paid	$ (103)	$ 1	$ (176)	$ (4)

Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 14,826	$ 20,326
Restricted cash	249	249
Trade and accrued receivables, net of expected credit losses of $0.1 million at June 30, 2026 and December 31, 2025	19,085	22,369
Other receivables	1,192	716
Inventory	13,856	15,757
Prepaids and other current assets	2,843	2,970
Total Current Assets	52,051	62,387
Property, plant and equipment, net	13,348	14,930
Capitalized software, net	2,802	3,009
Operating lease right-of-use assets, net	16,744	18,900
Other assets	2,946	3,278
Total Assets	87,891	102,504
Current Liabilities
Accounts payable and accrued liabilities	16,118	19,430
Other liabilities	6,530	5,436
Customer deposits and deferred revenue	2,593	3,507
Current portion of long-term debt and accrued interest	12,220	23,159
Current portion of lease liabilities	4,853	5,215
Total Current Liabilities	42,314	56,747
Long-term debt	4,905	220
Long-term lease liabilities	14,953	17,002
Total Liabilities	62,172	73,969
SHAREHOLDERS’ EQUITY
Common shares, unlimited authorized without par value, 194,332,596 issued and outstanding at June 30, 2026 and 191,912,548 issued and outstanding at December 31, 2025	216,942	214,990
Additional paid-in capital	9,768	11,189
Accumulated other comprehensive loss	(17,669)	(17,065)
Accumulated deficit	(183,322)	(180,579)
Total Shareholders’ Equity	25,719	28,535
Total Liabilities and Shareholders’ Equity	$ 87,891	$ 102,504