Revenue and Segment Disclosure (Tables)

3 Months Ended

May 31, 2024

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, 2024 and May 31, 2023:

	For the Three Months Ended
	Cybersecurity				IoT				Licensing and Other				Segment Totals
	May 31,				May 31,				May 31,				May 31,
	2024		2023		2024		2023		2024		2023		2024		2023
Segment revenue	$	85	$	93	$	53	$	45	$	6	$	235	$	144	$	373
Segment cost of sales	35		37		10		9		2		147		47		193
Segment gross margin (1)	$	50	$	56	$	43	$	36	$	4	$	88	$	97	$	180

______________________________

(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, 2024 and May 31, 2023 to the Company’s consolidated totals:

	Three Months Ended
	May 31, 2024		May 31, 2023
Total segment gross margin	$	97	$	180
Adjustments (1):
Less: Stock compensation	1		1
Less:
Research & development	42		54
Sales and marketing	38		45
General and administrative	40		54
Amortization	12		15
Impairment of long-lived assets	3		—
Debentures fair value adjustment	—		22
Investment income, net	(5)		(3)
Loss before income taxes	$	(34)	$	(8)

______________________________

(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, 2024			May 31, 2023
North America (1)	$	68		$	317
Europe, Middle East and Africa	47			37
Other regions	29			19
Total	$	144		$	373
North America (1)	47.2		%	85.0		%
Europe, Middle East and Africa	32.7		%	9.9		%
Other regions	20.1		%	5.1		%
Total	100.0		%	100.0		%

______________________________

(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, 2024		May 31, 2023
Products and services transferred over time	$	78	$	85
Products and services transferred at a point in time	66		288
Total	$	144	$	373

Revenue Contract Balances

The following table sets forth the activity in the Company’s revenue contract balances for the three months ended May 31, 2024:

	Accounts and Other Receivable		Deferred Revenue		Deferred Commissions
Opening balance as at February 29, 2024	$	255	$	222	$	21
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other	134		123		5
Decrease due to payment, fulfillment of performance obligations, or other	(182)		(139)		(7)
Decrease, net	(48)		(16)		(2)
Closing balance as at May 31, 2024	$	207	$	206	$	19

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, 2024 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 potential future royalty revenues from the patent sale to Malikie, which have been constrained based on the Company’s accounting policies and critical accounting estimates and as described under “Patent Sale” in this Note 10.

	As at May 31, 2024
	Less than 12 Months		12 to 24 Months		Thereafter		Total
Remaining performance obligations	$	174	$	16	$	16	$	206

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical 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, 2024				February 29, 2024
	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	$	73	$	338	$	78	$	342
United States	649		883		662		923
Other	30		102		29		130
	$	752	$	1,323	$	769	$	1,395