Revenue and Segment Disclosure (Tables)

3 Months Ended

May 31, 2023

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, 2023 and May 31, 2022:

	For the Three Months Ended
	Cybersecurity				IoT				Licensing and Other				Segment Totals
	May 31,				May 31,				May 31,				May 31,
	2023		2022		2023		2022		2023		2022		2023		2022
Segment revenue	$	93	$	113	$	45	$	51	$	235	$	4	$	373	$	168
Segment cost of sales	37		53		9		8		147		2		193		63
Segment gross margin (1)	$	56	$	60	$	36	$	43	$	88	$	2	$	180	$	105

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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, 2023 and May 31, 2022 to the Company’s consolidated totals:

	Three Months Ended
	May 31, 2023		May 31, 2022
Total segment gross margin	$	180	$	105
Adjustments (1):
Less: Stock compensation	1		1
Less:
Research & development	54		53
Selling, marketing and administration	99		82
Amortization	15		27
Debentures fair value adjustment	22		(46)
Litigation settlement	—		165
Investment income (loss), net	(3)		1
Consolidated loss before income taxes	$	(8)	$	(178)

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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, 2023			May 31, 2022
North America (1)	$	317		$	89
Europe, Middle East and Africa	37			60
Other regions	19			19
Total	$	373		$	168
North America (1)	85.0		%	53.0		%
Europe, Middle East and Africa	9.9		%	35.7		%
Other regions	5.1		%	11.3		%
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, 2023		May 31, 2022
Products and services transferred over time	$	85	$	97
Products and services transferred at a point in time	288		71
Total	$	373	$	168

Revenue Contract Balances

The following table sets forth the activity in the Company’s revenue contract balances for the three months ended May 31, 2023:

	Accounts and Other Receivable		Deferred Revenue		Deferred Commissions
Opening balance as at February 28, 2023	$	120	$	215	$	17
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other	396		127		6
Decrease due to payment, fulfillment of performance obligations, or other	(347)		(139)		(6)
Increase (decrease), net	49		(12)		—
Closing balance as at May 31, 2023	$	169	$	203	$	17

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, 2023 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.

The disclosure excludes estimates of variable consideration relating to future royalty revenues from the patent sale to Malikie, which have been constrained based on the Company’s accounting policies and critical accounting estimates as described in Note 1 and under “Patent Sale” in this Note 10.

	As at May 31, 2023
	Less than 12 Months		12 to 24 Months		Thereafter		Total
Remaining performance obligations	$	177	$	11	$	15	$	203

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, 2023				February 28, 2023
	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	$	94	$	323	$	98	$	375
United States	735		1,262		742		1,208
Other	27		89		27		96
	$	856	$	1,674	$	867	$	1,679