DIRTT ENVIRONMENTAL SOLUTIONS LTD

Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 (this “Quarterly Report”) are “forward-looking statements” within the meaning of “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and “forward-looking information” within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact included in this Quarterly Report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report, the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “plan,” “project,” “outlook,” “may,” “will,” “should,” “would,” “could,” “can,” “continue,” the negatives thereof, variations thereon and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on certain estimates, beliefs, expectations and assumptions made in light of management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that may be appropriate.

Forward-looking statements necessarily involve unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from those contained in, or expressed or implied by such statements. Due to the risks, uncertainties and assumptions inherent in forward-looking information, you should not place undue reliance on forward-looking statements. Factors that could have a material adverse effect on our business, financial condition, results of operations and growth prospects can be found in the section titled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) and applicable securities commissions or similar regulatory authorities in Canada on February 26, 2025 (the “Annual Report on Form 10-K”), and in this Quarterly Report under “Part II, Item 1A. Risk Factors.” These factors include, but are not limited to, the following:

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the effects of tariffs or other trade barriers on exports or imports to and from Canada and the U.S., and retaliatory measures in response thereto, including potential increases in the cost of our raw materials and ultimately our products;

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general economic and business conditions in the jurisdictions in which we operate, including potential recession risks in North America;

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our ability to successfully implement the Company’s strategic transformation plan to grow DIRTT’s revenue and manage profitability;

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inflation and material fluctuations of commodity prices, including raw materials, and our ability to set prices for our products that satisfactorily adjust for inflation, tariffs, and fluctuations in commodity prices;

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shortages of supplies of certain key components and materials or disruption in supplies due to global events;

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volatility of our share price and potentially limited liquidity for U.S. investors due to our common shares being quoted on the “OTC Pink Tier”;

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the availability of capital or financing on acceptable terms, or at all, which may impact our liquidity and impair our ability to make investments in the business;

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turnover of our key executives and difficulties in recruiting or retaining key employees;

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our ability to generate sufficient revenue to achieve and sustain profitability and positive cash flows;

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our ability to attract, train and retain qualified hourly labor on a timely basis to increase overall productive capacity in our manufacturing facilities to enable us to capture any rising demand in the construction industry;

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our ability to achieve and manage growth effectively;

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competition in the interior construction industry;

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the voting influence our two largest shareholders are able to exercise over the Company due to their ownership of our common shares;

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competitive behaviors by our co-founders and former executives;

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the condition and changing trends of the overall construction industry;

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our reliance on our network of Construction Partners (as defined herein) for sales, marketing and installation of our solutions;

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our ability to introduce new designs, solutions and technology and gain client and market acceptance;

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defects in our designing and manufacturing software and warranty and product liability claims brought against us;

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the effectiveness of our manufacturing processes and our success in implementing improvements to those processes;

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the effectiveness of certain elements of our administrative systems and the need for investment in those systems;

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global economic, political and social conditions affecting financial markets, such as the war in Ukraine and the conflict in the Middle East;

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our exposure to currency exchange rates, tax rates, interest rates and other fluctuations, including those resulting from changes in laws or administrative practice, or changes in monetary policies;

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legal and regulatory proceedings brought against us;

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infringement on our patents and other intellectual property and our ability to protect and enforce our intellectual property rights, including certain intellectual property rights that are jointly owned with a third party;

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cyber-attacks and other security breaches of our information and technology systems;

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damage to our information technology and software systems;

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our requirements to comply with applicable environmental, health, safety and other similar laws;

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the impact of environmental, social and governance (“ESG”) matters on our business, including potentially incurring additional expenses implementing Canadian, U.S. and other regulations requiring additional disclosures regarding greenhouse gas emissions and/or broader ESG related-factors;

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periodic fluctuations in our results of operations and financial conditions;

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the effect of being governed by the corporate laws of a foreign country, including the difficulty of enforcing civil liabilities against directors and officers residing in a foreign country;

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the availability and treatment of government subsidies (including any current or future requirements to repay or return such subsidies); and

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future mergers, acquisitions, agreements, consolidations or other corporate transactions we may engage in.

These risks are not exhaustive. Because of these risks and other uncertainties, our actual results, performance or achievement, or industry results, may be materially different from the anticipated or estimated results discussed in the forward-looking statements in this Quarterly Report. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or expressed or implied by, any forward-looking statements. Our past results of operations are not necessarily indicative of our future results. You should not place undue reliance on any forward-looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. We undertake no obligation to update these forward-looking statements, even though circumstances may change in the future, except as required under applicable securities laws. We qualify all of our forward-looking statements by these cautionary statements.

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