Earnings (Loss) Per Share

12 Months Ended

Feb. 28, 2021

EARNINGS (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per share:


	For the Years Ended
	February 28, 2021		February 29, 2020		February 28, 2019
Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders	$	(1,104)	$	(152)	$	93
Less: Debentures fair value adjustment (1) (2)	—		(66)		(117)
Add: interest expense on Debentures (1) (2)	—		23		24
Net income (loss) for diluted earnings (loss) per share available to common shareholders	$	(1,104)	$	(195)	$	—

Weighted average number of shares outstanding (000’s) - basic (3)	561,305		553,861		540,477
Effect of dilutive securities (000’s)
Stock-based compensation (4) (5)	—		—		11,308
Conversion of Debentures (1) (2)	—		60,500		60,500
Exchange shares from Cylance acquisition (6)	—		—		4,182
Weighted average number of shares and assumed conversions (000’s) diluted	561,305		614,361		616,467
Earnings (loss) per share - reported
Basic	$	(1.97)	$	(0.27)	$	0.17
Diluted	$	(1.97)	$	(0.32)	$	0.00

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(1) The Company has not presented the dilutive effect of the Debentures using the if-converted method in the calculation of diluted earnings (loss) per share for the year ended February 28, 2021, as to do so would be antidilutive. See Note 7 for details on the Debentures.

(2) The Company has presented the dilutive effect of the Debentures using the if-converted method, assuming conversion at the beginning of the fiscal year for the years ended February 29, 2020 and February 28, 2019. Accordingly, to calculate diluted earnings (loss) per share, the Company adjusted net income (loss) by eliminating the fair value adjustment made to the Debentures and interest expense incurred on the Debentures in the years ended February 29, 2020 and February 28, 2019, and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding. See Note 7 for details on the Debentures.

(3) The year ended February 28, 2021, includes approximately 1,421,945 common shares (Exchange Shares) remaining to be issued on the third anniversary date of the Cylance acquisition, in consideration for the acquisition. The year ended February 29, 2020, includes approximately 2,802,067 common shares to be issued in equal installments on the two anniversary dates of the Cylance acquisition thereafter, in consideration for the acquisition. There are no service or other requirements associated with the issuance of these shares.

(4) The Company has not presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted earnings (loss) per share for the years ended February 28, 2021 and February 29, 2020, as to do so would be antidilutive.

(5) The Company has presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted earnings (loss) per share for the years ended February 28, 2019. As at February 28, 2019, there were 8,985,836 options and 9,300,191 RSUs outstanding that were in-the-money and may have a dilutive effect on earnings (loss) per share in future periods.

(6) The Company has presented the dilutive effect of the Exchange Shares in connection with the Cylance acquisition completed on February 21, 2019 in the calculation of diluted earnings (loss) per share for the year ended February 28, 2019. The remaining Exchange Shares are included in the calculation of weighted average number of shares outstanding for the years ended February 28, 2021 and February 29, 2020 as noted in footnote 3 above.