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Revenue and Segment Disclosure (Tables)
 6 Months Ended
Aug. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table shows information by operating segment for the three and six months ended August 31, 2024 and August 31, 2023:
 For the Three Months Ended
CybersecurityIoTLicensingSegment Totals
August 31,August 31,August 31,August 31,
20242023202420232024202320242023
Segment revenue$87 $79 $55 $49 $3 $4 $145 $132 
Segment cost of sales39 36 10 8 1 2 50 46 
Segment gross margin (1)
$48 $43 $45 $41 $2 $2 $95 $86 
For the Six Months Ended
CybersecurityIoTLicensingSegment Totals
August 31,August 31,August 31,August 31,
20242023202420232024202320242023
Segment revenue$172 $172 $108 $94 $9 $239 $289 $505 
Segment cost of sales74 73 20 17 3 149 97 239 
Segment gross margin (1)
$98 $99 $88 $77 $6 $90 $192 $266 
______________________________
(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 and six months ended August 31, 2024 and August 31, 2023 to the Company’s consolidated totals:
 Three Months EndedSix Months Ended
August 31, 2024August 31, 2023August 31, 2024August 31, 2023
Total segment gross margin$95 $86 192 $266 
Adjustments (1):
Less: Stock compensation1 1 2 2 
Less:
Research & development37 50 79 104 
Sales and marketing34 43 72 88 
General and administrative33 30 73 84 
Amortization11 14 23 29 
Impairment of long-lived assets— 1 3 1 
Debentures fair value adjustment— (6)— 16 
Investment income, net(3)(7)(8)(10)
Loss before income taxes$(18)$(40)$(52)$(48)
______________________________
(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 EndedSix Months Ended
 August 31, 2024August 31, 2023August 31, 2024August 31, 2023
North America (1)
$69 $72 $137 $389 
Europe, Middle East and Africa47 39 94 76 
Other regions29 21 58 40 
Total $145 $132 $289 $505 
North America (1)
47.6 %54.5 %47.4 %77.0 %
Europe, Middle East and Africa32.4 %29.6 %32.5 %15.1 %
Other regions20.0 %15.9 %20.1 %7.9 %
Total 100.0 %100.0 %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 Six Months Ended
August 31, 2024August 31, 2023August 31, 2024August 31, 2023
Products and services transferred over time$79 $79 $156 $165 
Products and services transferred at a point in time66 53 133 340 
Total$145 $132 $289 $505 
Revenue Contract Balances
The following table sets forth the activity in the Company’s revenue contract balances for the six months ended August 31, 2024:
Accounts and Other ReceivableDeferred RevenueDeferred 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 other272 248 11 
Decrease due to payment, fulfillment of performance obligations, or other(317)(281)(12)
Decrease, net(45)(33)(1)
Closing balance as at August 31, 2024$210 $189 $20 
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 August 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 Malikie Transaction, 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 August 31, 2024
Less than 12 Months12 to 24 MonthsThereafterTotal
Remaining performance obligations$161 $13 $15 $189 
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
 August 31, 2024February 29, 2024
Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and GoodwillTotal AssetsProperty, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and GoodwillTotal Assets
Canada$79 $323 $78 $342 
United States640 886 662 923 
Other29 90 29 130 
$748 $1,299 $769 $1,395