Revenue and Segment Disclosure (Tables)

3 Months Ended

May 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table shows information by operating segment for the three months ended May 31, 2022 and May 31, 2021:

	For the Three Months Ended
	Cybersecurity				IoT				Licensing and Other				Segment Totals
	May 31,				May 31,				May 31,				May 31,
	2022		2021		2022		2021		2022		2021		2022		2021
Segment revenue	$	113	$	107	$	51	$	43	$	4	$	24	$	168	$	174
Segment cost of sales	53		46		8		7		2		6		63		59
Segment gross margin (1)	$	60	$	61	$	43	$	36	$	2	$	18	$	105	$	115

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(1) A reconciliation of total segment gross margin to consolidated totals is set forth below.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table reconciles total segment gross margin for the three months ended May 31, 2022 and May 31, 2021 to the Company’s consolidated totals:

	Three Months Ended
	May 31, 2022		May 31, 2021
Total segment gross margin	$	105	$	115
Adjustments (1):
Less: Stock compensation	1		1
Less:
Research & development	53		57
Selling, marketing and administration	82		73
Amortization	27		46
Debentures fair value adjustment	(46)		(4)
Litigation settlement	165		—
Investment loss, net	1		2
Consolidated loss before income taxes	$	(178)	$	(60)

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(1) The CODM reviews segment information on an adjusted basis, which excludes certain amounts as described below:

Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management.

Revenue from External Customers by Geographic Areas

The Company’s revenue, classified by major geographic region in which the Company’s customers are located, was as follows:

	Three Months Ended
	May 31, 2022			May 31, 2021
North America (1)	$	89		$	111
Europe, Middle East and Africa	60			45
Other regions	19			18
Total	$	168		$	174
North America (1)	53.0		%	63.8		%
Europe, Middle East and Africa	35.7		%	25.9		%
Other regions	11.3		%	10.3		%
Total	100.0		%	100.0		%

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(1) North America includes all revenue from the Company’s intellectual property arrangements, due to the global applicability of the patent portfolio and licensing arrangements thereof.

Revenue Classified by Timing of Recognition

Revenue, classified by timing of recognition, was as follows:

	Three Months Ended
	May 31, 2022		May 31, 2021
Products and services transferred over time	$	97	$	107
Products and services transferred at a point in time	71		67
Total	$	168	$	174

Revenue Contract Balances

The following table sets forth the activity in the Company’s revenue contract balances for the three months ended May 31, 2022:

	Accounts Receivable		Deferred Revenue		Deferred Commissions
Opening balance as at February 28, 2022	$	138	$	244	$	16
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other	159		137		6
Decrease due to payment, fulfillment of performance obligations, or other	(195)		(159)		(6)
Decrease, net	(36)		(22)		—
Closing balance as at May 31, 2022	$	102	$	222	$	16

Transaction Price Allocated to the Remaining Performance Obligation

The table below discloses the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as at May 31, 2022 and the time frame in which the Company expects to recognize this revenue. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property.

	As at May 31, 2022
	Less than 12 Months		12 to 24 Months		Thereafter		Total
Remaining performance obligations	$	191	$	27	$	10	$	228

Long-lived Assets and Total Assets by Geographic Areas

Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic region in which the Company’s assets are located, were as follows:

	As at
	May 31, 2022				February 28, 2022
	Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill		Total Assets		Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill		Total Assets
Canada	$	118	$	391	$	117	$	447
United States	1,285		1,934		1,313		1,989
Other	27		135		27		131
	$	1,430	$	2,460	$	1,457	$	2,567