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Revenue and Segment Disclosure (Tables)
 9 Months Ended
Nov. 30, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table shows information by operating segment for the three and nine months ended November 30, 2024 and November 30, 2023:
 For the Three Months Ended
Secure CommunicationsIoTLicensingSegment Totals
November 30,November 30,November 30,November 30,
20242023202420232024202320242023
Segment revenue$74 $91 $62 $55 $7 $6 $143 $152 
Segment cost of sales20 23 9 8 2 1 31 32 
Segment gross margin (1)
$54 $68 $53 $47 $5 $5 $112 $120 
Segment research and development11 12 16 15 — — 27 27 
Segment sales and marketing12 15 11 10 — — 23 25 
Segment general and administrative10 9 9 10 1 6 20 25 
Less amortization included in the above1 1 1 — 2 3 4 4 
Total Segment EBITDA (1)
$22 $33 $18 $12 $6 $2 $46 $47 
For the Nine Months Ended
Secure CommunicationsIoTLicensingSegment Totals
November 30,November 30,November 30,November 30,
20242023202420232024202320242023
Segment revenue$205 $212 $170 $149 $16 $245 $391 $606 
Segment cost of sales67 62 28 24 5 150 100 236 
Segment gross margin (1)
$138 $150 $142 $125 $11 $95 $291 $370 
Segment research and development36 44 47 49 — — 83 93 
Segment sales and marketing34 45 32 31 — — 66 76 
Segment general and administrative30 35 25 32 5 19 60 86 
Less amortization included in the above3 4 2 2 6 8 11 14 
Total Segment EBITDA (1)
$41 $30 $40 $15 $12 $84 $93 $129 
______________________________
(1) A reconciliation of total segment gross margin and segment EBITDA to consolidated totals is set forth below.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
 Three Months EndedNine Months Ended
November 30, 2024November 30, 2023November 30, 2024November 30, 2023
Total Segment EBITDA$46 $47 $93 $129 
Adjustments (1):
Stock compensation expense4 7 16 25 
Restructuring expenses7 9 16 17 
Less
Corporate general and administrative expense9 10 31 24 
Amortization6 7 19 26 
Impairment of long-lived assets1 9 4 9 
Prior Debentures fair value adjustment— (13)— 3 
Investment income— (5)(8)(15)
Consolidated income from continuing operations before income taxes$19 $23 $15 $40 
______________________________
(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.
Restructuring expenses - Restructuring costs relate to employee termination benefits, facilities, streamlining many of the Company’s centralized corporate functions into Secure Communications (previously Cybersecurity) and IoT specific teams, and other costs pursuant to programs to reduce the Company’s annual expenses amongst R&D, infrastructure and other functions do not reflect expected future operating expenses, are not indicative of the
Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.
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 EndedNine Months Ended
 November 30, 2024November 30, 2023November 30, 2024November 30, 2023
North America (1)
$63 $62 $177 $418 
Europe, Middle East and Africa53 47 141 116 
Other regions27 43 73 72 
Total $143 $152 $391 $606 
North America (1)
44.1 %40.8 %45.3 %69.0 %
Europe, Middle East and Africa37.0 %30.9 %36.0 %19.2 %
Other regions18.9 %28.3 %18.7 %11.9 %
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 Nine Months Ended
November 30, 2024November 30, 2023November 30, 2024November 30, 2023
Products and services transferred over time$62 $60 $182 $179 
Products and services transferred at a point in time81 92 209 427 
Total$143 $152 $391 $606 
Revenue Contract Balances
The following table sets forth the activity in the Company’s revenue contract balances for the nine months ended November 30, 2024:
Accounts and Other ReceivableDeferred RevenueDeferred Commissions
Opening balance as at February 29, 2024$234 $162 $15 
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other403 355 15 
Decrease due to payment, fulfillment of performance obligations, or other(411)(375)(16)
Decrease, net(8)(20)(1)
Closing balance as at November 30, 2024$226 $142 $14 
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 November 30, 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 11.
As at November 30, 2024
Less than 12 Months12 to 24 MonthsThereafterTotal
Remaining performance obligations$133 $3 $6 $142 
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
 November 30, 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$76 $357 $78 $342 
United States455 841 467 923 
Other28 111 29 130 
$559 $1,309 $574 $1,395