11 unchanged sentences
The Company does not use derivative instruments for speculative purposes.
−Removed: If overall foreign currency exchanges rates to the U.S.
+Added: If overall foreign currency exchange rates to the U.S.
dollar uniformly weakened or strengthened by 10% related to the Company’s net monetary asset or liability balances in foreign currencies at February 29, 2024 or February 28, 2023 (after hedging activities), the impact to the Company would be immaterial.
3 unchanged sentences
Interest Rate
−Removed: 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: Cash and cash equivalents and investments are invested in certain instruments with fixed interest rates 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.
−Removed: The Company has also issued 1.75% Debentures with a fixed interest rate as described in Note 6 to the Consolidated Financial Statements.
−Removed: The fair value of the 1.75% Debentures will fluctuate with changes in prevailing interest rates.
−Removed: Consequently, the Company is exposed to interest rate risk as a result of the 1.75% Debentures.
−Removed: The Company does not currently utilize interest rate derivative instruments to hedge its investment portfolio or changes in the market value of the 1.75% Debentures.
+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.
+Added: The Company has also issued Notes with a fixed interest rate, as described in Note 6 to the Consolidated Financial Statements.
+Added: The Company is exposed to interest rate risk as a result of the Notes.
+Added: The Company does not currently utilize interest rate derivative instruments.
Credit and Customer Concentration
1 unchanged sentence
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 February 28, 2023 was $1 million (February
−Removed: 28, 2022 - $4 million).
−Removed: There were two customers that comprised more than 10% of accounts receivable as at February 28, 2023 (February 28, 2022 - no customer that comprised more than 10%).
−Removed: As at February 28, 2023, the percentage of the Company’s receivable balance that was past due decreased by 7.9% compared to February 28, 2022.
+Added: The ACL as at February 29, 2024 was $6 million (February 28, 2023 - $1 million).
+Added: There were two customers that comprised more than 10% of accounts receivable as at February 29, 2024 (February 28, 2023 - two customers comprised more than 10%).
+Added: As at February 29, 2024, the percentage of the Company’s receivable balance that was past due increased by 7.3% compared to February 28, 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 distributor 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 one customer that comprised 12% of the Company’s revenue in fiscal 2023 (fiscal 2022 - one customer that comprised 11%).
+Added: There was one customer that comprised 27% of the Company’s revenue in fiscal 2024 due to the completed Malikie Transaction (fiscal 2023 - one customer that comprised 12%).
Market values are determined for each individual security in the investment portfolio.
2 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.