3 unchanged sentences
The Company is exposed to foreign exchange risk as a result of transactions in currencies other than its functional currency, the U.S.
−Removed: The majority of the Company’s revenue in the second quarter of fiscal 2024 was transacted in U.S.
+Added: The majority of the Company’s revenue in the third quarter of fiscal 2024 was transacted in U.S.
Portions of the revenue were denominated in Canadian dollars, euros and British pounds.
1 unchanged sentence
dollars, euros and British pounds.
−Removed: At August 31, 2023, approximately 22% of cash and cash equivalents, 38% of accounts receivables and 49% of accounts payable were denominated in foreign currencies (February 28, 2023 – 19%, 24% and 36%, respectively).
+Added: At November 30, 2023, approximately 13% of cash and cash equivalents, 36% of accounts receivables and 48% of accounts payable were denominated in foreign currencies (February 28, 2023 – 19%, 24% and 36%, respectively).
These foreign currencies primarily include the Canadian dollar, euro and British pound.
2 unchanged sentences
If overall foreign currency exchanges rates to the U.S.
−Removed: dollar uniformly weakened or strengthened by 10% related to the Company’s net monetary asset or liability balances in foreign currencies at August 31, 2023 (after hedging activities), the impact to the Company would be immaterial.
+Added: dollar uniformly weakened or strengthened by 10% related to the Company’s net monetary asset or liability balances in foreign currencies at November 30, 2023 (after hedging activities), the impact to the Company would be immaterial.
The Company regularly reviews its currency forward and option positions, both on a stand-alone basis and in conjunction with its underlying foreign currency exposures.
3 unchanged sentences
Cash and cash equivalents and investments are invested in certain instruments of varying maturities.
−Removed: Consequently, the Company is exposed to interest rate risk as a result of holding investments of varying maturities.
+Added: Consequently, the Company is exposed to interest rate risk as a result of holding investments of varying maturities and the significant financing components within certain revenue contracts with customers.
The fair value of investments, as well as the investment income derived from the investment portfolio, will fluctuate with changes in prevailing interest rates.
+Added: The Company also has significant financing components within certain revenue contracts with customers and is exposed to interest rate risk as a result of discounting the future payments from customers with a fixed interest rate.
The Company has also issued Debentures with a fixed interest rate, as described in Note 6 to the Consolidated Financial Statements.
5 unchanged sentences
The Company establishes an allowance for credit losses (“ACL”) that corresponds to the specific credit risk of its customers, historical trends and economic circumstances.
−Removed: The ACL as at August 31, 2023 was $6 million (February 28, 2023 - $1 million).
−Removed: There was one customer that comprised more than 10% of accounts receivable as at August 31, 2023 (February 28, 2023 - two customers that comprised more than 10%).
−Removed: During the second quarter of fiscal 2024, the percentage of the Company’s receivable balance that was past due decreased by 2.0% compared to the fourth quarter of fiscal 2023.
+Added: The ACL as at November 30, 2023 was $6 million (February 28, 2023 - $1 million).
+Added: There were two customers that comprised more than 10% of accounts receivable as at November 30, 2023 (February 28, 2023 - two customers that comprised more than 10%).
+Added: During the third quarter of fiscal 2024, the percentage of the Company’s receivable balance that was past due decreased by 5.4% compared to the fourth quarter of fiscal 2023.
Although the Company actively monitors and attempts to collect on its receivables as they become due, the risk of further delays or challenges in obtaining timely payments of receivables from resellers and other distribution partners exists.
The occurrence of such delays or challenges in obtaining timely payments could negatively impact the Company’s liquidity and financial condition.
−Removed: There was no customer that comprised more than 10% of the Company’s revenue and one customer that comprised 45% of the Company’s revenue in the three and six months ended August 31, 2023, respectively, due to the completed Malikie Transaction (three and six months ended August 31, 2022 - one customer that comprised 16% and 15% of the Company’s revenue, respectively).
+Added: There was one customer that comprised 15% of the Company’s revenue in the three months ended November 30, 2023 and one customer that comprised 33% of the Company’s revenue in the nine months ended November 30, 2023, respectively, due to the completed Malikie Transaction (three and nine months ended November 30, 2022 - one customer that comprised 11% and 14% of the Company’s revenue, respectively).
Market values are determined for each individual security in the investment portfolio.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.