Subsequent Events

12 Months Ended

Feb. 28, 2023

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On March 21, 2023, the Company entered into an agreement to sell substantially all of the Company’s non-core patent assets to Malikie Innovations Limited (“Malikie”) for $170 million in cash on closing, an additional $30 million in cash by no later than the third anniversary of closing and potential future royalties in the aggregate amount of up to $900 million. BlackBerry will be entitled to receive annual cash royalties from the profits generated by the patents, on the following basis:

–8% of the first $500 million of profits

–15% of the next $250 million of profits

–30% of the next $250 million of profits; and

–50% of all subsequent profits.

Completion of the transaction is conditional upon, among other things, satisfaction of all regulatory conditions under the Hart-Scott-Rodino Antitrust Improvements Act in the United States and the Investment Canada Act. Pursuant to the patent sale agreement, the Company expects to receive a license back to the patents being sold, which relate primarily to mobile devices, messaging and wireless networking. Patents that are essential to the Company’s current core business operations, as well as certain non-core patent families relating to mobile devices, are excluded from the transaction. Contemporaneously, the Company also terminated a prior agreement with Catapult relating to the proposed sale of the patent portfolio subject to the Malikie agreement as well as certain additional non-core patents.