DragonWave (DRWI) 20-F 8 Jun 17 2017 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Feb. 28, 2017shares
Document and Entity Information
Entity Registrant Name	DRAGONWAVE INC
Entity Central Index Key	1,178,946
Document Type	20-F
Document Period End Date	Feb. 28, 2017
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	7,305,219
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Feb. 28, 2017	Feb. 29, 2016
Current Assets
Cash and cash equivalents	$ 4,073	$ 4,277
Trade receivables	11,876	18,986
Inventory	21,415	22,702
Other current assets	1,791	2,777
Total Current Assets	39,155	48,742
Long-term Assets
Property and equipment	2,517	3,702
Intangible assets	336	623
Total Long Term Assets	2,853	4,325
Total Assets	42,008	53,067
Current Liabilities
Debt facility	17,030	22,152
Accounts payable and accrued liabilities	25,206	23,832
Deferred revenue	539	1,944
Deferred tax liability	148	294
Warrant liability		117
Total Current Liabilities	42,923	48,339
Long-term Liabilities
Deferred revenue	435	498
Warrant liability	1,090	3
Total Long Term Liabilities	1,525	501
Commitments and contingencies
Shareholders' Equity (Deficiency)
Capital stock	229,995	221,128
Contributed surplus	10,503	9,235
Deficit	(234,113)	(218,225)
Accumulated other comprehensive loss	(9,618)	(9,618)
Total Shareholders' Equity (Deficiency)	(3,233)	2,520
Non-controlling interest	793	1,707
Total Equity (Deficiency)	(2,440)	4,227
Total Liabilities and Equity (Deficiency)	$ 42,008	$ 53,067
Shares issued and outstanding	7,305,219	3,020,069

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Hardware and other	$ 32,742	$ 70,491
Services	11,174	15,804
REVENUE	43,916	86,295
COST OF SALES
Hardware and other	25,672	58,991
Services	5,477	8,917
Inventory provision	953	4,416
Total Cost of Sales	32,102	72,324
Gross profit	11,814	13,971
EXPENSES
Research and development	7,825	13,406
Selling and marketing	7,363	10,572
General and administrative	12,734	13,798
Total Expenses	27,922	37,776
Loss before other items	(16,108)	(23,805)
Goodwill impairment		(11,927)
Restructuring costs		(1,549)
Amortization of deferred financing cost	(442)
Amortization of intangible assets	(369)	(577)
Accretion expense	(102)	(205)
Interest expense	(1,464)	(2,014)
Warrant issuance expenses	(561)
Change in fair value of warrant liability	4,242	1,119
Foreign exchange loss	(110)	(331)
Loss before income taxes	(14,914)	(39,289)
Income tax expense	783	2,275
Net loss and comprehensive loss	(15,697)	(41,564)
Net income attributable to non-controlling interest	(191)	(740)
Net loss and comprehensive loss attributable to shareholders	$ (15,888)	$ (42,304)
Net loss and comprehensive loss per share
Basic and diluted	$ (3.26)	$ (14.01)
Weighted average shares outstanding
Basic and diluted	4,879,738	3,019,259

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Operating activities
Net loss	$ (15,697)	$ (41,564)
Items not affecting cash
Goodwill impairment		11,927
Amortization of deferred financing cost	442
Amortization of property and equipment	1,791	1,931
Amortization of intangible assets	369	577
Accretion expense	102	205
Change in fair value of warrant liability	(4,242)	(1,119)
Stock-based compensation	750	988
Unrealized foreign exchange loss	114	485
Deferred income tax expense	(146)	1,841
Net cash used in operating activities before adjusting non-cash working capital items	(16,517)	(24,729)
Changes in non-cash working capital items	9,344	18,236
Net Cash Used in Operating Activities	(7,173)	(6,493)
Investing activities
Acquisition of property and equipment	(606)	(1,311)
Acquisition of intangible assets	(82)	(406)
Net Cash Used in Investing Activities	(688)	(1,717)
Financing activities
Repayments on capital lease obligation	(55)	(507)
Proceeds from debt facility		1,300
Repayment of debt facility	(5,122)	(11,548)
Dividend paid to non-controlling interest in DW-HFCL	(1,105)
Issuance of warrants	5,809
Issuance of common shares, net	8,244	35
Net Cash (Used in) Provided by Financing Activities	7,771	(10,720)
Effect of foreign exchange on cash and cash equivalents	(114)	(485)
Net decrease in cash and cash equivalents	(204)	(19,415)
Cash and cash equivalents at beginning of period	4,277	23,692
Cash and cash equivalents at end of period	4,073	4,277
Cash paid during the period for interest	1,320	2,335
Cash paid during the period for taxes	$ 1,061	$ 522

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIENCY) - USD ($) $ in Thousands	Common Shares	Contributed Surplus	Deficit	AOCL	Non-Controlling Interest	Total
Balance at Feb. 28, 2015	$ 220,952	$ 8,388	$ (175,921)	$ (9,618)	$ 967	$ 44,768
Balance, shares at Feb. 28, 2015	3,011,632
Stock-based compensation		988				988
Exercise of restricted share units	$ 133	(133)
Exercise of restricted share units (in shares)	2,400
Share issuance - ESPP	$ 43	(8)				35
Share issuance - ESPP (in shares)	6,037
Net income (loss)			(42,304)		740	(41,564)
Balance at Feb. 29, 2016	$ 221,128	9,235	(218,225)	(9,618)	1,707	4,227
Balance, shares at Feb. 29, 2016	3,020,069
Stock-based compensation		750				750
Share issuance	$ 4,232					4,232
Share issuance (in shares)	2,423,878
Exercise of pre-funded warrants, shares	30,164
Exercise of warrants	$ 4,562					4,562
Exercise of warrants, shares	1,811,578
Exercise of stock options	$ 69	(26)				$ 43
Exercise of stock options, shares	18,220					18,220
Share issuance - ESPP	$ 4					$ 4
Share issuance - ESPP (in shares)	1,310					1,051
Fair value of warrants to Comerica		544				$ 544
Dividend paid to non-controlling interest in DW-HFCL					(1,105)	(1,105)
Net income (loss)			(15,888)		191	(15,697)
Balance at Feb. 28, 2017	$ 229,995	$ 10,503	$ (234,113)	$ (9,618)	$ 793	$ (2,440)
Balance, shares at Feb. 28, 2017	7,305,219

NATURE OF BUSINESS, BASIS OF PR

NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN	12 Months Ended
	Feb. 28, 2017
NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN
NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN	1. NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN DragonWave Inc. [the "Company"], incorporated under the Canada Business Corporations Act in February 2000, is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. The Company's common shares are traded on the Toronto Stock Exchange under the trading symbol DRWI and on the NASDAQ Capital Market under the symbol DRWI. These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: DragonWave Corp., incorporated in the state of Delaware, USA; DragonWave PTE. LTD., incorporated in Singapore; DragonWave S.à r.l., incorporated in Luxembourg; DragonWave Telecommunication Technology (Shanghai) Co., Ltd., incorporated in China; DragonWave Mexico S.A. de C.V., incorporated in Mexico; Axerra Networks Asia Pacific Limited, incorporated in Hong Kong; DragonWave India Private Limited, incorporated in India; and DragonWave Inc.'s majority owned subsidiary, DragonWave HFCL India Private Limited, incorporated in India. All intercompany accounts and transactions have been eliminated upon consolidation. The consolidated financial statements of the Company have been prepared in United States dollars following United States Generally Accepted Accounting Principles ["U.S. GAAP"]. The consolidated financial statements for the year ended February 28, 2017 have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the disbursement of liabilities and commitments in the normal course of business in the foreseeable future. The Company has a history of losses and has consumed significant cash resources in the past, and has continued to do so in the year ended February 28, 2017. During the last two fiscal years, additional pressure has been placed on the Company's liquidity position as a result of reduced revenue from a significant Original Equipment Manufacturer ["OEM"] channel and a dispute over inventory shipped to a customer in India in June 2015. The Company has been able to make progress in restructuring the business. This progress includes the following highlights: Operational improvements: • Selected by Sprint for its network densification and optimization strategy; • Improved the gross profit percentage in fiscal year 2017 to 26.9% from 16.2% in fiscal year 2016; • Reduced operating expenses by 26% in the twelve months of fiscal year 2017 compared to the same period in the previous year primarily through reduction in staff levels internationally; Debt Facility: • Reduced outstanding debt on the Company's credit facility by $5,122 and $10,248 in the twelve months ending February 28, 2017 and February 29, 2016, respectively, by leveraging its working capital; New Capital: • Raised $9,502 in cash (net of commissions and expenses) with a public offering in August 2016 and a registered direct offering in April 2016 which in both cases included common shares and warrants; • Received $4,180 in cash from the exercise of warrants during the twelve months ended February 28, 2017; Other: • Initiated arbitration proceedings to seek resolution to its customer dispute in India. Despite the progress identified above, the Company remains in breach of the original terms of its debt facility, and has not yet been able to achieve a quarterly break-even level. See Note 11 for further details on the debt facility. The continued consumption of cash has raised substantial doubt about DragonWave Inc.'s ability to continue as a going concern. Management's plans to restructure the business, improve its financial results and overcome these difficulties include initiatives in a number of areas, including: • Targeting its sales efforts to direct and indirect opportunities in markets with higher gross margins, and lower working capital requirements; • Adjusting its business focus and resources away from Nokia in order to support new sales channels; • Renegotiating the terms of existing debt facilities, or finding new debt providers; • Actively investigating and pursuing alternative forms of financing; • Seeking to reduce fixed and variable operating expenses further, by tightly controlling discretionary spending and headcount growth; • Continuing to collect accounts receivable from customers in a timely manner; • Reducing inventory levels in both raw material and finished goods inventory; • Working closely with vendors to ensure supply continuity; and • Investigating strategic and financial alternatives that may be available including a potential sale of the Company, alternative debt and equity, and business combinations. In addition, the Company no longer complies with Nasdaq Listing Rule 5550(b)(1) due to its failure to maintain a minimum of $2,500 in shareholders' equity or any alternatives to such requirement, and was granted an extension to April 17, 2017 to remedy the deficiency. The Company did not regain compliance and has requested a hearing before the Nasdaq Listing Qualifications Panel to request a further extension. There can be no assurance that the Panel will ultimately grant an extension of the compliance period. Continued listing of its common shares on the Nasdaq increases the Company's ability to raise additional capital in the future. Trading of the Company's securities under the symbol "DRWI" on the Toronto Stock Exchange, the Company's primary listing, is not impacted by this decision. These plans may be difficult to achieve. They are dependent on a number of key assumptions including the timing of significant new customer projects, success in arbitration with the customer located in India, and accommodations from the Company's suppliers and credit lenders. It is possible that the plans described above may not be fully executed or may occur too slowly to solve the Company's current liquidity concerns. There can be no assurance that the existing financing facility can be renegotiated or that any other forms of financing can be arranged on satisfactory terms. These consolidated financial statements do not include any adjustments to the accounts and classification of assets and liabilities that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Feb. 28, 2017
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Use of accounting estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent amounts of assets and liabilities as at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Actual results could differ from the estimates made by management. The following includes estimates by management: allowance for doubtful accounts, inventory allocations, inventory provisions, accrued liabilities, warranty provisions, warrant liability, property and equipment amortization, tax valuation allowance, impairment of long-lived assets, vendor specific objective evidence, estimated selling price and estimated returns as it relates to revenue recognition, and stock-based compensation. These estimates and assumptions are based on management's historical experience, best knowledge of current events and conditions and actions that the Company may undertake in the future. Certain of these estimates require subjective or complex judgments by management about matters that are uncertain and changes in those estimates could materially impact the amounts reported in the consolidated financial statements and accompanying notes. Foreign currency translation The Company's operations and balances denominated in foreign currencies, including those of its foreign subsidiaries that are primarily a direct and integral component or extension of the Company's operations, are translated into US dollars ["USD"] using the following: monetary assets and liabilities are translated at the period end exchange rate, non-monetary assets are translated at the historical exchange rate, and revenue and expense items are translated at the average exchange rate. Gains or losses resulting from the translation adjustments are included in the consolidated statements of operations and comprehensive loss. Revenue recognition The Company derives revenue from the sale of broadband wireless backhaul equipment, which includes embedded software and a license to use said software and extended product warranties. Software is considered to be incidental to the product. Services range from installation and training to basic consulting. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred and there are no significant remaining vendor obligations, collection of receivables is reasonably assured and the fee is fixed and determinable. Where conditions to final acceptance of the product are specified by the customer, revenue is deferred until acceptance criteria have been met. The Company's sales agreements may also contain multiple elements. Accordingly, the Company is required to determine the appropriate accounting, including whether the deliverables specified in a multiple element arrangement should be treated as separate units of accounting for revenue recognition purposes, the fair value of these separate units of accounting and when to recognize revenue for each element. For arrangements involving multiple elements, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence ["VSOE"] if available, third party evidence ["TPE"] if VSOE is not available, or estimated selling price ["ESP"] if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. The Company has determined the selling price for both the undelivered items and the delivered items using ESP. The Company generates revenue through direct sales and sales to distributors. The Company defers the recognition of a portion of sales to distributors based on estimated sales return and stock rotation granted to customers on products in the same period the related revenues are recorded. These estimates are based on historical sales returns, stock rotations and other known factors. Revenue from engineering services or development agreements is recognized according to the specific terms and acceptance criteria as services are rendered. Revenue associated with extended warranty and advanced replacement warranty is recognized ratably over the life of the contracted service. The Company accrues estimated potential product liability as warranty costs when revenue on the sale of equipment is recognized. Warranty liability is estimated based on recent actual return experience and repair costs. Where product defects have been identified that would cause the cost or warranty experience to change, additional warranty costs are recognized. Shipping and handling costs borne by the Company are recorded in cost of sales. Shipping and handling costs charged to customers are recorded as revenue, if billed at the time of shipment. Costs charged to customers after delivery are recorded in cost of sales. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Financial instruments The Company classifies its financial instruments as assets held at fair value, loans and receivables, other financial liabilities, or liabilities held at fair value. The classification depends on the purpose for which the financial instruments were acquired, their characteristics and management's intent. Management determines the classification of financial assets and liabilities at initial recognition and the classification is not changed subsequent to initial recognition. The Company designated its cash and cash equivalents and foreign exchange contracts as assets held at fair value, which are measured at fair value, with changes in fair value being recorded in net earnings. Trade receivables and other receivables have been classified as loans and receivables which are measured at amortized cost. Accounts payable, accrued liabilities and the debt facility have been classified as other financial liabilities, which are measured at amortized cost. Liabilities held at fair value include the warrant liability, which is measured at fair value, with changes in fair value being recorded in net loss. Transaction costs directly attributable to the acquisition of financial assets are recorded in net loss in the period in which they are incurred. Inventory Inventory is valued at the lower of cost and net realizable value ["NRV"]. The cost of inventory is calculated on a standard cost basis, which approximates weighted average actual cost. NRV is determined as the market value for finished goods, replacement cost for raw materials, and finished goods market value less cost to complete for work in progress inventory. The Company regularly reviews inventory quantities on hand and records an impairment for excess and obsolete inventory based on factors including its estimated forecast of product demand, the stage of the product life cycle and production requirements for the units in question. Indirect manufacturing costs and direct labour expenses are allocated systematically to the total production inventory. The Company carries inventory for the purposes of supporting its product warranty. Standard warranty is typically 13 to 36 months, but the Company earns revenue by providing enhanced and extended warranty and repair service during and beyond the standard warranty period. Customer service inventory consists of both component parts and finished units. Income taxes Income taxes are accounted for using the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based on differences between the tax and accounting basis of assets and liabilities as well as for the benefit of losses available to be carried forward to future years for tax purposes that are more likely than not to be realized. Deferred income tax assets and liabilities are measured using enacted tax rates that apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The Company provides a valuation allowance against its deferred tax assets when it believes that it is more likely than not that the assets will not be realized. The Company determines whether it is more likely than not that an uncertain tax position will be sustained upon examination by the tax authorities. The tax benefit of any uncertain tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon successful resolution. To the extent a full benefit is not expected to be realized, an income tax liability is effectively established. The Company recognizes accrued interest and penalties on unrecognized tax benefits as interest expense. Management periodically reviews the Company's provision for income taxes and valuation allowance to determine whether the overall tax estimates are reasonable. When management performs its assessments of the provision and valuation allowance, it may be determined that an adjustment is required. This adjustment may have a material impact on the Company's financial position and results of operations. Property and equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the anticipated useful lives of the assets as follows: Test equipment, research and development equipment 4 - 5 years Computer hardware 2 years Production fixtures 3 years Leasehold improvements 5 years Other 3 - 5 years Intangible assets Intangible assets include software and are amortized over their estimated useful life of between 2 and 3 years. Impairment of long-lived assets The Company reviews long-lived assets ["LLA"] such as property, equipment and intangible assets with finite useful lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. These events and circumstances may include significant decreases in the market price of an asset or asset group, significant changes in the extent or manner in which an asset or asset group is being used by the Company or in its physical condition, a significant change in legal factors or in the business climate, a history or forecast of future operating or cash flow losses, significant disposal activity, a significant decline in the Company's share price, a significant decline in revenue or adverse changes in the economic environment. The LLA impairment requires the Company to identify its asset groups and test impairment of each asset group separately. To conduct the LLA impairment test, the asset group is tested for recoverability using undiscounted cash flows over the remaining useful life of the primary asset. If forecasted net cash flows are less than the carrying amount of the asset group, an impairment charge is measured by comparing the fair value of the asset group to its carrying value. Determining the Company's asset groups and related primary assets requires significant judgment by management. Different judgments could yield different results. When indicators of impairment exist, LLA impairment is tested using a two-step process. The Company performs a cash flow recoverability test as the first step, which involves comparing the asset group's estimated undiscounted future cash flows to the carrying amount of its net assets. If the net cash flows of the asset group exceed the carrying amount of its net assets, LLA are not considered to be impaired. If the carrying amount exceeds the net cash flows, there is an indication of potential impairment and the second step of the LLA impairment test is performed to measure the impairment amount. The second step involves determining the fair value of the asset group. Fair values are determined using valuation techniques that are in accordance with U.S. GAAP, including the market approach, income approach and cost approach. If the carrying amount of the asset group's net assets exceeds the fair value of the Company, then the excess represents the maximum amount of potential impairment that will be allocated to the asset group, with the limitation that the carrying value of each separable asset cannot be reduced to a value lower than its individual fair value. The total impairment amount allocated is recognized as a non-cash impairment loss. The Company reviews any changes in events and circumstances that have occurred on a quarterly basis to determine if indicators of LLA impairment exist. Share-based compensation plan and employee share purchase plan The Company accounts for stock options granted to employees using the fair value method calculated by the Black-Scholes option pricing model. In accordance with the fair value method, the Company recognizes estimated compensation expense related to stock options over the vesting period of the options granted, with the related credit being charged to contributed surplus. The Company estimates the volatility at the date of grant based on the volatility of a group of comparator companies. The employee share purchase plan includes provisions to allow employees to purchase common shares. The Company will match the employees' contribution at a rate of 25%. Proceeds from employees are received and the cost of the matching shares is recorded in share capital, with the related debit applied to contributed surplus at the time the shares are issued. The shares contributed by the Company will vest 12 months after issuance with a corresponding compensation expense recognized in loss. Research and development Research costs are expensed as incurred. Development costs are expensed as incurred unless they meet generally accepted accounting criteria for deferral and amortization. Development costs incurred prior to establishment of technological feasibility do not meet these criteria, and are expensed as incurred. Loss per share Basic loss per share is calculated by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. For all periods presented, the net loss available to common shareholders equates to the net loss. In the computation of diluted earnings per share, the Company includes the number of additional common shares that would have been outstanding if the dilutive potential equity instruments had been issued. Non-controlling interest Non-controlling interest consists of the minority-owned portion of the Company's 50.1% owned subsidiary, DragonWave HFCL India Private Limited. FUTURE ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ["FASB"] issued ASU No. 2014-9, "Revenue from Contracts with Customers". The amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and create new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers" which reflects decisions reached by the FASB at its meeting earlier in the year to defer the effective date to fiscal years beginning after December 15, 2017, with early adoption permitted for the year beginning after December 15, 2016. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements – Going Concern". The update provides U.S. GAAP guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes". The amendments in this update eliminate the current requirement for companies to separate deferred income tax liabilities and assets into current and non-current amounts in a classified statement of financial position. Instead, companies will be required to classify all deferred tax liabilities and assets as non-current. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases". The amendments in this Update create Topic 842, Leases, and supersede the lease requirements in Topic 840, Leases. The Update will require companies to recognize a right-of-use asset and a lease liability in their balance sheets, while still distinguishing between finance leases and operating leases. For finance leases, the lessee would recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income, and for operating leases, the lessee would recognize a straight-line lease expense. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting". The amendments in this Update simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash". The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements.

NON-CONTROLLING INTEREST

NON-CONTROLLING INTEREST	12 Months Ended
	Feb. 28, 2017
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST	3. NON-CONTROLLING INTEREST DragonWave HFCL India Private Limited Non-controlling interest consists of the minority owned portion of the Company's 50.1% owned subsidiary, DragonWave HFCL India Private Limited. During the year ended February 28, 2017, DragonWave HFCL India Private Limited paid a dividend excluding withholding taxes totaling $1,839 to its shareholders. The Company received $921 and the minority-owned portion received $918.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS	12 Months Ended
	Feb. 28, 2017
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS	4. CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. February 28, 2017 February 29, 2016 Currency USD Amount % of USD Amount % of US dollar Canadian dollar Indian rupee Other Total Cash and Cash Equivalents In accordance with the fourth forbearance agreement which is valid until April 1, 2017 the Company is required to have a minimum of $1,000 held at Comerica Bank [2016 – $1,000]. The Company could elect to repatriate funds from its foreign subsidiaries and this may result in withholding taxes.

TRADE RECEIVABLES

TRADE RECEIVABLES	12 Months Ended
	Feb. 28, 2017
TRADE RECEIVABLES
TRADE RECEIVABLES	5. TRADE RECEIVABLES The Company is exposed to credit risk with respect to trade receivables in the event that its counterparties do not meet their obligations. The Company minimizes its credit risk with respect to trade receivables by performing credit reviews for each of its customers. The Company's allowance for doubtful accounts reflects the Company's assessment of collectability across its global customer base. February 28, February 29, Trade receivables Allowance for doubtful accounts ) ) Total trade receivables As at February 28, 2017, three customers exceeded 10% of the total receivable balance. These customers represented 21%, 17% and 15% of the trade receivables balance [2016 – two customers represented 52% and 16% of the trade receivables balance]. Included in general and administrative expenses is an expense of $82 related to bad debt expense for the year ended February 28, 2017 [2016 – expense of $240].

INVENTORY

INVENTORY	12 Months Ended
	Feb. 28, 2017
INVENTORY
INVENTORY	6. INVENTORY Inventory consists of the following: February 28, February 29, Raw materials Work in progress Finished goods Total production inventory Inventory held for customer service/warranty Total inventory Cost of sales for the year ended February 28, 2017 was $32,102 [2016 – $72,324], which included $22,982 of product costs [2016 – $56,296]. The remaining costs of $9,120 [2016 – $16,028] related principally to the costs of sub-contractors for services, warehousing, freight, warranty, overhead and other direct costs of sales. For the year ended February 28, 2017, the Company recognized an impairment loss on inventory of $953 [2016 – $4,416], which included an impairment loss of $648 for inventory held by contract manufacturers that it does not expect to be fully used [2016 – $1,497]. The Company allocates overhead and labour to inventory. Included in cost of sales for the year ended February 28, 2017 were overhead and labour allocations of $753 [2016 – $1,746]. Included in inventory at February 28, 2017 were overhead and labour allocations of $454 [2016 – $551]. The Company uses an outsourced manufacturing model in which most of the component acquisition and assembly of its products is executed by third parties. The Company's contract manufacturers currently have inventory intended for use in the production of its products, and the Company has purchase orders or demand forecasts in place for raw materials and manufactured products with these contract manufacturers. When a product has been purchased by a contract manufacturer but not pulled on for a build after a certain amount of time, the Company may be required to take ownership of it. The value of the inventory held by the Company's primary contract manufacturer as at February 28, 2017 was $12,939 [2016 – $16,848].

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	12 Months Ended
	Feb. 28, 2017
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS	7. OTHER CURRENT ASSETS Other current assets consist of the following: February 28, February 29, Deposits on inventory Prepaid expenses Indirect taxes receivable Deferred financing costs — Receivable from contract manufacturers and other items Total other current assets

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Feb. 28, 2017
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	8. PROPERTY AND EQUIPMENT Property and equipment are apportioned as follows: February 28, 2017 February 29, Cost Accumulated Net Book Net Book Test equipment, research and development equipment Computer hardware Production fixtures Leasehold improvements Other Total Amortization expense relating to the above property and equipment was allocated to operating expenses as follows: February 28, February 29, Research and development Selling and marketing General and administrative Amortization expense includes amortization of assets recorded under capital lease.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Feb. 28, 2017
INTANGIBLE ASSETS
INTANGIBLE ASSETS	9. INTANGIBLE ASSETS Intangible assets are apportioned as follows: February 28, 2017 February 29, Cost Accumulated Net Book Net Book Software For the year ended February 28, 2017, the Company recognized amortization of intangible assets of $369 [2016 – $577]. The Company estimates that it will recognize $181 and $155, respectively, for the next two succeeding years.

ACCOUNTS PAYABLES AND ACCRUED L

ACCOUNTS PAYABLES AND ACCRUED LIABILITIES	12 Months Ended
	Feb. 28, 2017
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are apportioned as follows: February 28, February 29, Trade payables Accrued liabilities Termination fee Payroll related accruals Warranty accrual Income taxes payable Capital lease obligation Total accounts payable and accrued liabilities On April 10, 2013, the Company announced changes to its existing operational framework with Nokia. Included in the changes was an agreement to a termination fee in the amount of $8,668 to be paid to Nokia in installments. Payments totaling $4,351 were made by the year ended February 29, 2016. As at February 28, 2017, the liability is valued at $3,351 and is considered short term in nature [2016 – $3,337 short term]. Warranty accrual: The Company records a liability for future warranty costs based on management's best estimate of probable claims within the Company's product warranties. The accrual is based on the terms of the warranty, which vary by customer, product, or service and historical experience of returns and cost of repairs. The Company regularly evaluates the appropriateness of the remaining accrual. The following table details the changes in the warranty accrual for the respective years: February 28, February 29, Balance at the beginning of the period Accruals Utilization ) ) Balance at the end of the period

DEBT FACILITY

DEBT FACILITY	12 Months Ended
	Feb. 28, 2017
DEBT FACILITY
DEBT FACILITY	11. DEBT FACILITY On October 12, 2016, the Company signed a fourth forbearance agreement which is valid until April 1, 2017 against a credit facility with Comerica Bank and Export Development Canada which matured on June 1, 2016. This asset-based credit facility was for a total of $40,000 plus $4,000 for letters of credit and foreign exchange facilities. Credit availability is subject to ongoing compliance with borrowing covenants and short-term assets on hand. The Company had drawn $17,030 on the facility as at February 28, 2017 [2016 – $22,152] and $1,845 against its letter of credit facility [2016 – $1,853]. The credit facility that was extended on January 6, 2014, matured on June 1, 2016 and is secured by a first priority charge on all of the assets of the Company and its principal direct and indirect subsidiaries. The terms of the credit facility include other customary terms, conditions, covenants, and representations and warranties. Borrowing options under the credit facility include US dollar, Canadian dollar, and Euro loans. Interest rates vary with market rate fluctuations, with loans bearing interest in the range of 3% to 4% above the applicable base rates. Direct costs associated with obtaining the debt facility such as closing fees, registration and legal expenses have been capitalized and were expensed over the original 30-month term of the facility. During the year ended February 28, 2017, the weighted average debt outstanding was $17,916 [2016 – $29,765] and the Company recognized $1,300 in interest expense related to the debt facility [2016 – $2,007] and expensed $18 in deferred financing cost [2016 – $55]. The credit facility contains financial covenants including minimum tangible net worth requirements, minimum cash levels to be held at Comerica Bank and minimum liquidity ratio requirements. The credit facility also imposes certain restrictions on the Company's ability to acquire capital assets above a threshold over a trailing six-month period. The fourth forbearance agreement identified new minimum covenant levels reflecting the Company's revised financial plans. The forbearance agreement includes a requirement to hold a minimum of $1,000 at Comerica Bank. In addition, the forbearance agreement reduces the facility commitment from $40,000 to $30,000, includes additional compliance requirements and implements more frequent monitoring. Warrants to purchase 375,000 common shares were agreed to be issued to the lenders at an exercise price of $4.00 per share and will expire five years from the date of issuance. The expense associated with the warrant issuance was calculated using a Black-Scholes warrant pricing model and recognized rateably over the term of the forbearance agreement which expired on April 1, 2017. In the twelve months ending February 28, 2017, the Company recognized an expense of $442 in deferred financing costs relating to these warrants. As at May 26, 2017, the Company's fourth forbearance agreement had expired, and a new forbearance agreement has not yet been agreed.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Feb. 28, 2017
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	12. SHAREHOLDERS' EQUITY Number of shares authorized The Company has an unlimited amount of common shares authorized for issuance. On September 23, 2013, the Company completed a public offering. Under the terms of the offering, the Company issued and sold 11,910,000 units at $2.10 on a pre-consolidation basis, for aggregate gross proceeds of $25,011. After deducting commissions and listing expenses, the Company realized net proceeds of $22,434. Each unit consisted of one common share of the Company and three quarters of one warrant. Each whole warrant entitles the holder to purchase 1/25 th of one common share at an exercise price of $2.80 per share following the August 8, 2016 public offering, until September 23, 2018, subject to certain adjustments. Upon issuance, the Company recognized a liability in the amount of $6,425 for the warrants. See Warrants section for further details. On February 2, 2016, the Company effected a share consolidation of the Company's common shares at a ratio of 1-for-25. As a result of the share consolidation, every 25 shares of the issued and outstanding common shares consolidated into one newly-issued outstanding common share. Each fractional share remaining after the share consolidation was cancelled. The number of outstanding stock options and restricted share units were proportionately adjusted by the consolidation ratio and the exercise prices correspondingly increased by the same consolidation ratio. All shares and exercise prices are presented on a post-consolidation basis in these consolidated financial statements. On April 11, 2016, the Company completed a registered direct offering. Under the terms of the offering, the Company issued and sold 599,998 units at $7.25, for aggregate gross proceeds of $4,350. After deducting commissions and listing expenses, the Company realized net proceeds of $4,014. Each unit consisted of one common share of the Company and one half of one warrant. Each whole warrant entitles the holder to purchase one common share of the Company at an exercise price of $8.50 per share until April 11, 2021. Upon issuance, the Company recognized a liability in the amount of $1,137 for the warrants. See Warrants section for further details. On August 8, 2016 the Company completed a public offering. Under the terms of the offering, the Company issued and sold 1,760,880 Class A units at $3.35 and 30,164 Class B units at $3.34, for aggregate gross proceeds of $6,000. After deducting commissions and expenses, the Company realized net proceeds of $5,277. Concurrent with the underwritten public offering in the United States, the Company issued an additional 63,000 Class A Units on a private placement basis to purchasers in Canada for additional gross proceeds of $211. Each Class A unit consisted of one common share, one five-year warrant [the "Long-Term Warrant"] to purchase one common share and two six-month warrants [the "Short-Term Warrant"]. Each Class B unit consisted of a pre-funded warrant [the "Pre-Funded Warrant"] to purchase one common share, one Long-Term Warrant and two Short-Term Warrants. The Long-Term Warrants have an exercise price of $4.37 per share, are exercisable immediately and will expire on August 8, 2021. The Short-Term Warrants have an exercise price of $4.00 per share, are exercisable immediately and expired on February 8, 2017. The Pre-Funded Warrants are exercisable immediately with no expiration date, are deemed purchased for a price of $3.34 per underlying common share by virtue of purchasing a Class B Unit and have an exercise price of $0.01 per share. Upon issuance, the Company recognized a liability in the amount of $4,672 for the warrants. See Warrants section for further details. Share-based compensation plan On June 20, 2014, the Shareholders approved the adoption of a new Share-based Compensation Plan [the "Plan"] to replace the Previous Plan. The Plan includes provision for granting of performance share units ["PSUs"], restricted share units ["RSUs"], deferred share units ["DSUs"], Bonus Shares (as defined in the Plan) and options to purchase common shares. Settlement of vested PSUs, RSUs and DSUs is effected by delivering common shares acquired in the open market and/or issued from treasury, or by making a cash payment equal to the number of PSUs, RSUs or DSUs multiplied by the volume weighted average trading price of the common shares on the applicable stock exchange for the five trading days preceding the settlement date, or by a combination of these methods. The manner of settlement for RSUs, PSUs and DSUs is determined by the Compensation Committee in its sole discretion. Options are granted with an exercise price equal to the fair value of the common shares of the Company, and generally vest at a rate between six months to four years from the date of the option grant. All remaining outstanding options expire five years from the grant date, or upon termination of employment. The maximum number of common shares issuable under the Plan is 730,522, which represents 10% of the common shares issued and outstanding as at February 28, 2017. The following is a summary of stock option activity: February 28, 2017 February 29, 2016 Options Weighted Options Weighted Opening balance $ $ Granted $ $ Exercised ) $ — $ — Expired ) $ ) $ Closing balance $ $ The following table shows the weighted average values used in determining the fair value of options granted during the three months ended February 28, 2017 and February 29, 2016: February 28, February 29, Volatility Risk-free rate Dividend yield Nil Nil Average expected life 4 yrs 4 yrs The 324,895 options granted during the year ended February 28, 2017 were determined to have a fair value of $773 [2016-172,974 options valued at $683]. The following table summarizes the various exercise prices inherent in the Company's stock options outstanding and exercisable on February 28, 2017: Exercise Price Options Outstanding Options Exercisable Low High Quantity of Weighted Weighted Quantity of Weighted Weighted $ $ $ $ $ $ $ — — — $ $ $ $ $ $ $ $ $ $ $ $ $ $ The Company has recognized $750 for the year ended February 28, 2017 as compensation expense for stock-based grants, with a corresponding credit to contributed surplus [2016 – $941]. Stock compensation expense was allocated to operating expenses as follows: February 28, February 29, Research and development Selling and marketing General and administrative As at February 28, 2017, compensation costs not yet recognized relating to stock option awards outstanding are $1,276 [2016 – $1,476] net of estimated forfeitures. Performance vesting awards will vest as performance conditions are met. Compensation will be adjusted for subsequent changes in estimated forfeitures. The total intrinsic value of options exercised during the year ended February 28, 2017 is $29 [2016 – nil]. The intrinsic value associated with outstanding and fully vested options as at February 28, 2017 is nil [2016 – nil]. Restricted Share Units The Company has recognized nil for the year ended February 28, 2017 as compensation expense for RSUs, with a corresponding credit to contributed surplus [2016 – $39]. Restricted shares and employee share purchase plan The Company launched an Employee Share Purchase Plan ["ESPP"] on October 20, 2008. The plan includes provisions to allow employees to purchase common shares. The Company will match the employees' contribution at a rate of 25%. During the year ended February 28, 2017, a total of 1,051 common shares were purchased by employees at fair market value, while the Company issued 259 common shares, net of forfeitures, as its matching contribution during the year ended February 28, 2017. The shares contributed by the Company will vest 12 months after issuance. The Company records an expense equal to the fair value of shares granted pursuant to the ESPP over the period the shares vest, with a corresponding credit to contributed surplus. The total fair value of the shares earned during the year ended February 28, 2017 was $8 [2016 – $13]. The fair value of the unearned ESPP shares as at February 28, 2017 was $1 [2016 – $8]. The number of shares held for release, and still restricted under the plan, as at February 28, 2017 was 259 [2016-978]. Warrants Effective May 30, 2007, the Company granted warrants to purchase up to 5,050 common shares of the Company at a price of $88.75 CAD per share. The warrants expire 10 years after the date of issuance. The warrants vested based on the achievement of pre-determined business milestones and resulted in 31,562 warrants being eligible for exercise. Each whole warrant entitles the holder to purchase 1/25 th of one common share of the Company. On September 23, 2013, the Company completed a public offering. Under the terms of the offering, the Company issued and sold 11,910,000 units at $2.10 on a pre-consolidation basis, for aggregate gross proceeds of $25,011. Equity issuance expenses relating to the offering totaled $2,576, of which $662 was expensed as the proportionate warrant costs. Each unit consisted of one common share of the Company and three quarters of one warrant (warrants issued – 8,932,500). Each whole warrant entitles the holder to purchase 1/25 th of one common share of the Company at an exercise price of $2.80 per share until September 23, 2018 following the August 8, 2016 equity financing undertaken by the Company. In the event of a fundamental transaction, the Company may be required to settle the warrants with a cash payment. As a result, the Company recognized a warrant liability of $6,425, which represented the estimated fair value of the liability as at September 23, 2013. The warrant liability is adjusted quarterly to its estimated fair value. Increases or decreases in the fair value of the warrants are presented as "Change in fair value of warrant liability" in the consolidated statements of operations and comprehensive loss. As at February 28, 2017, 738,750 warrants were outstanding. During the year ended February 28, 2017, the Company realized a loss in the amount of $75 in the consolidated statement of operations and comprehensive loss which represented the change in fair value of the remaining warrant liability of $7. On August 1, 2014, the Company completed a public offering. Under the terms of the offering, the Company issued and sold 15,927,500 units at $1.80 CAD on a pre-consolidation basis for aggregate gross proceeds of $28,670 CAD. Each unit consisted of one common share of the Company and one half of one warrant. Each whole warrant entitles the holder to purchase 1/25 th of one common share of the Company at an exercise price of $56.25 CAD per share until August 1, 2016, subject to certain adjustments. Equity issuance expenses relating to the offering totaled $2,275, of which $221 was expensed as the proportionate warrant costs. As a result of the offering, the Company issued warrants totaling 7,963,750 and recognized a warrant liability of $2,551, which represented the estimated fair value of the liability as at August 1, 2014. During the year ended February 28, 2017, the Company realized a gain in the amount of $117 in the consolidated statements of operations and comprehensive loss which represented the change in fair value of the warrant liability. On April 11, 2016, the Company completed a registered direct offering. Under the terms of the offering, the Company issued and sold 599,998 units at $7.25, for aggregate gross proceeds of $4,350. Each unit consisted of one common share of the Company and one half of one warrant. Each whole warrant entitles the holder to purchase one common share of the Company at an exercise price of $8.50 per share until April 11, 2021, subject to certain adjustments. Equity issuance expenses relating to the offering totaled $428 of which $92 was expensed as the proportionate warrant costs. As a result of the offering, the Company issued 299,999 warrants and recognized a warrant liability of $1,137, which represented the estimated fair value of the liability as at April 11, 2016. During the year ended February 28, 2017, the Company realized a gain in the amount of $1,038 in the consolidated statements of operations and comprehensive loss, which represented the change in fair value of the remaining warrant liability of $99. On August 8, 2016, the Company completed a public offering. Under the terms of the offering, the Company issued and sold 1,760,880 Class A units at $3.35 and 30,164 Class B units at $3.34, for aggregate gross proceeds of $6,000. After deducting commissions and expenses, the Company realized net proceeds of $5,277. Concurrent with the underwritten public offering in the United States, the Company issued an additional 63,000 Class A Units on a private placement basis to purchasers in Canada for additional gross proceeds of $211. Each Class A unit consisted of one common share, one Long-Term Warrant to purchase one common share and two Short-Term Warrants. Each Class B unit consisted of a Pre-Funded Warrant to purchase one common share, one Long-Term Warrant and two Short-Term Warrants. The Long-Term Warrants have an exercise price of $4.37 per share, are exercisable immediately and will expire on August 8, 2021. The Short-Term Warrants have an exercise price of $4.00 per share, are exercisable immediately and expired on February 8, 2017. The Pre-Funded Warrants are exercisable immediately with no expiration date, are deemed purchased for a price of $3.34 per underlying common share by virtue of purchasing a Class B Unit and have an exercise price of $0.01 per share. The Pre-Funded Warrants were fully exercised on August 25, 2016. Equity issuance expenses relating to the offering totaled $723, of which $469 was expensed as the proportionate warrant costs. As a result of the offering, the Company issued 1,854,044 Long-Term Warrants and 3,708,088 Short-Term Warrants and recognized a warrant liability of $4,672, which represented the estimated fair value of the liability as at August 31, 2016. As at February 28, 2017, 1,854,044 Long-Term Warrants were outstanding. During the year ended February 28, 2017 the Company realized a gain in the amount of $3,162 in the consolidated statements of operations and comprehensive loss, which represented the change in fair value of the remaining warrant liability of $984. The following is a summary of granted warrants: February 28, 2017 Warrants Shares Exercise Price Termination date May 2007 Issuance $ 88.75 CAD May 30, 2017 September 2013 Issuance $ September 23, 2018 April 2016 Issuance $ April 11, 2021 August 2016 Issuance – Long-Term Warrants $ August 8, 2021 Sub-total warrants issued and outstanding Comerica Warrants – granted but not issued $ five years from issuance date Total warrants granted The warrants to Comerica were granted but not issued at February 28, 2017. See Note 11 for further details on these warrants.

NET LOSS PER SHARE

NET LOSS PER SHARE	12 Months Ended
	Feb. 28, 2017
NET LOSS PER SHARE
NET LOSS PER SHARE	13. NET LOSS PER SHARE Basic loss per share is calculated by dividing net loss available to shareholders by the weighted average number of common shares outstanding during the period. In the computation of diluted earnings per share, the Company includes the number of additional common shares that would have been outstanding if the dilutive potential equity instruments had been issued. As at February 28, 2017, a total of 529,324 options and 3,299,355 warrants have been excluded from the diluted net loss per share calculations, as their effect would have been anti-dilutive. The following table illustrates the net loss per share during the year ended February 28, 2017 and February 29, 2016 excluding the effect of outstanding options and warrants: Twelve months ended February 28, February 29, Net loss attributable to shareholders ) ) Weighted average number of shares outstanding Basic net loss / dilutive net loss per share $ ) $ )

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Feb. 28, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	14. COMMITMENTS AND CONTINGENCIES Future minimum operating lease payments per fiscal year that relate to office and warehouse space in various countries as at February 28, 2017 are as follows: 2018 2019 2020 2021 Thereafter For the year ended February 28, 2017, the Company incurred rental expenses of $1,357 [2016 – $1,590]. In January 2016, a customer in India initiated an arbitration process with the Company to resolve the dispute over inventory shipped to this customer in June 2015, with a carrying amount of $4,707. The customer has now submitted its claim statement, which discloses an aggregate claim amount of approximately $6,425 in respect of, among other things, damages claimed with respect to lost revenue, import duties, and inventory replacement costs. The Company believes that the claim has no merit. The Company has not recognized the revenue related to this shipment and has recorded the cost of the inventory provided to the customer as an asset with a value of $4,600. The Company has not received any payment with respect to this inventory. The Company submitted a counter-claim in June 2016 for the full value of the contract and damages. Frequent arbitration meetings have been held to date and are planned during the first half of calendar 2017. No decision has been made as of the date of this report and the outcome of this matter is not determinable. In the normal course of business, the Company is subject to patent infringement complaints. The Company defends itself vigorously in these matters and does not believe any known complaint is material. See Note 6 for the discussion on the purchase order commitments with contract manufacturers.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Feb. 28, 2017
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION	15. SUPPLEMENTAL CASH FLOW INFORMATION February 28, February 29, Changes in non-cash working capital balances: Trade receivables Inventory Other current assets Accounts payable and accrued liabilities ) Deferred revenue )

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Feb. 28, 2017
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS	16. FINANCIAL INSTRUMENTS Financial instruments are classified into one of the following categories: assets held at fair value, loans and receivables, other financial liabilities, or liabilities held at fair value. Categories for financial assets and liabilities The following table summarizes the carrying values of the Company's financial instruments: February 28, February 29, Assets held at fair value (A) Loans and receivables (B) Other financial liabilities (C) Liabilities held at fair value (D) (A) Includes cash and cash equivalents (B) Includes trade receivables and other miscellaneous receivables (C) Includes accounts payable and accrued liabilities, payroll-related accruals, debt facility and termination fee (D) Includes warrant liability The Company classifies its fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The accounting standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs fall into three levels that may be used to measure fair value. Level 1 – Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that are supported by little or no market activity. Cash and cash equivalents are measured using Level 1 inputs. The warrant liability is classified as Level 3 as it is measured at fair value calculated by the Black-Scholes model using significant unobservable inputs. Significant assumptions used as at February 28, 2017 for the warrants include a dividend yield of 0%, volatility of 75%, and a risk-free spot rate term structure. The Company held the following Level 3 financial instruments carried at fair value on the consolidated balance sheet. February 28, February 29, Level 3 Level 3 Financial Liabilities Warrant liability A reconciliation of the Level 3 warrant liability measured at fair value for the year ended February 28, 2017 follows: Level 3 Warrants $ Balance at February 29, 2016 Issuance of warrants Exercise of warrants ) ) Expiry of warrants and change in fair value of warrant liability ) ) Balance at February 28, 2017 Interest rate risk Cash and cash equivalents and the Company's debt facility, which has interest rates with market rate fluctuations, expose the Company to interest rate risk on these consolidated financial instruments. Interest expense, excluding deferred financing costs, recognized during the year ended February 28, 2017 was $1,446 on the Company's cash and cash equivalents, and debt facility [2016 – expense of $1,959]. Credit risk In addition to trade receivables and other receivables, the Company is exposed to credit risk on its cash and cash equivalents in the event that its counterparties do not meet their obligations. The Company does not use credit derivatives or similar instruments to mitigate this risk and, as such, the maximum exposure is the full carrying value or fair value of the financial instrument. The Company minimizes credit risk on trade receivables and other receivables, and cash and cash equivalents by transacting with only reputable financial institutions and customers. Foreign exchange risk Foreign exchange risk arises because of fluctuations in exchange rates. As at February 28, 2017, if the US dollar had appreciated by 1% against all foreign currencies to which the Company is exposed, with all other variables held constant, the impact of this foreign currency change on the Company's foreign denominated financial instruments would have resulted in a decrease in after-tax net loss of $43 for the year ended February 28, 2017 [2016 – increase of $27], with an equal and opposite effect if the US dollar had depreciated by 1% against all foreign currencies as at February 28, 2017. Liquidity risk A risk exists that the Company will encounter difficulty in satisfying its financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows from operations and anticipated investing and financing activities. As at February 28, 2017, the Company had cash and cash equivalents totaling $4,073 [2016 – $4,277]. See Note 1 for further discussion of liquidity risk associated with the Company and Note 11 for details of the debt facility requirement.

SEGMENTED INFORMATION

SEGMENTED INFORMATION	12 Months Ended
	Feb. 28, 2017
SEGMENTED INFORMATION
SEGMENTED INFORMATION	17. SEGMENTED INFORMATION The Company operates in one operating segment – broadband wireless backhaul equipment. The following table presents total net book value of property, equipment and intangible assets by geographic location: February 28, 2017 February 29, 2016 Amount % Amount % Canada Malaysia Other Total The Company analyzes its sales according to geographic region and targets product development and sales strategies by region. The following tables present total revenue by geographic location through direct and indirect sales and through its OEM partner, Nokia: Year Ended February 28, 2017 Year Ended February 29, 2016 Direct & OEM Total % of Direct & OEM Total % of Canada — — Europe, Middle East and Africa India United States — Rest of World The Company has shown revenue by the customers' purchasing entities' geographic location, except in cases where the geographic location of the product deployment is explicitly known.

ECONOMIC DEPENDENCE

ECONOMIC DEPENDENCE	12 Months Ended
	Feb. 28, 2017
ECONOMIC DEPENDENCE
ECONOMIC DEPENDENCE	18. ECONOMIC DEPENDENCE For the year ended February 28, 2017, the Company was dependent on three key customers with respect to revenue. These customers represented approximately 25%, 14% and 13% of sales during that twelve month period [2016 – three customers represented 44%, 15% and 11%].

INCOME TAXES

INCOME TAXES	12 Months Ended
	Feb. 28, 2017
INCOME TAXES
INCOME TAXES	19. INCOME TAXES The components of the Company's income (loss) before income taxes, by taxing jurisdiction, were as follows: February 28, February 29, Canada ) ) Luxembourg ) ) India China Other ) ) ) Income tax expense, both current and deferred, relates to jurisdictions outside of Canada where losses are not sufficient to cover the tax liability in the region. For the year ended February 28, 2017, the current income tax expenses were $931 [2016 – $434] and the deferred income tax expense (recovery) was ($148) [2016 – $1,841]. The reported income tax provision differs from the amount computed by applying the Canadian statutory rate to the net loss, for the following reasons: 2017 2016 Loss before income taxes ) ) Statutory income tax rate Expected income tax recovery ) ) Foreign tax rate differences Non-deductible expenses and non-taxable income ) Change in valuation allowances Share issue costs ) — Goodwill impairment — Foreign bank, minimum and withholding taxes — Prior year adjustments ) Other ) The Company's deferred tax assets and liabilities include the following significant components: 2017 2016 Income tax loss carryforwards Capital loss Research and development tax credits SR&ED expenditures Book and tax differences on assets Share issue expenses Income and expense reserves Total gross deferred tax assets Valuation allowance ) ) Income and expense reserves ) ) Net deferred tax liability ) ) As at February 28, 2017, the Company had cumulative tax loss carryforwards in the following jurisdictions: Canada – $155,054, United States – $7,783, Luxembourg – $38,165. The Company also has capital losses being carried forward in the following jurisdictions: Canada – $16,302; United States – $45,543. The losses in Canada expire starting in fiscal 2031 until fiscal 2037. The losses in Luxembourg can be carried forward indefinitely. Income tax benefits relating to the losses in Canada and Luxembourg have not been recognized in the consolidated financial statements as the recognition requirements under the liability method of accounting for income taxes have not been met. The losses in the U.S. expire between fiscal 2022 and fiscal 2032. Internal Revenue Code Section 382 imposes an annual limitation on the use of a company's net operating loss carryforwards when a company has an ownership change. The acquisition of Axerra Networks, Inc. by the Company resulted in an ownership change as understood by Section 382. As a result, the annual restriction of the amount of losses of Axerra Networks, Inc. that may be used has been calculated as $521. As at February 28, 2017, the Company had $14,720 of investment tax credits available to reduce future federal Canadian income taxes payable. These investment tax credits begin to expire in 2022. In addition, the Company had provincial research and development tax credits of $2,361, which are available to reduce future provincial income taxes payable. These provincial tax credits begin to expire in 2029. The tax benefit of the federal and provincial tax credits has not been recognized in the consolidated financial statements. As at February 28, 2017, the Company has not recorded any liabilities associated with uncertain tax positions. The Company remains subject to examination by tax authorities in Canada for years 2011 to 2017 and in the major jurisdictions for tax years 2012 to 2017.

COMPARATIVE FIGURES

COMPARATIVE FIGURES	12 Months Ended
	Feb. 28, 2017
COMPARATIVE FIGURES
COMPARATIVE FIGURES	20. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to the presentation adopted in the current fiscal year. The Company reclassified an amount of $902 from hardware revenue to service revenue to conform with the current fiscal year presentation.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Feb. 28, 2017
SUBSEQUENT EVENT
SUBSEQUENT EVENT	21. SUBSEQUENT EVENT On March 17, 2017, the Company issued 1,198,666 common shares in a Registered Direct Offering, and concurrently in a private placement, issued warrants to purchase 599,333 common shares exercisable in the future at an exercise price of $1.50. The price per common share and one half of a warrant was $1.50 and resulted in total gross proceeds to the Company of $1,798. The warrants are not exercisable for six months and one day from issuance and will expire five years from the date of issuance.

SIGNIFICANT ACCOUNTING POLICI27

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Feb. 28, 2017
SIGNIFICANT ACCOUNTING POLICIES
Use of accounting estimates	Use of accounting estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent amounts of assets and liabilities as at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Actual results could differ from the estimates made by management. The following includes estimates by management: allowance for doubtful accounts, inventory allocations, inventory provisions, accrued liabilities, warranty provisions, warrant liability, property and equipment amortization, tax valuation allowance, impairment of long-lived assets, vendor specific objective evidence, estimated selling price and estimated returns as it relates to revenue recognition, and stock-based compensation. These estimates and assumptions are based on management's historical experience, best knowledge of current events and conditions and actions that the Company may undertake in the future. Certain of these estimates require subjective or complex judgments by management about matters that are uncertain and changes in those estimates could materially impact the amounts reported in the consolidated financial statements and accompanying notes.
Foreign currency translation	Foreign currency translation The Company's operations and balances denominated in foreign currencies, including those of its foreign subsidiaries that are primarily a direct and integral component or extension of the Company's operations, are translated into US dollars ["USD"] using the following: monetary assets and liabilities are translated at the period end exchange rate, non-monetary assets are translated at the historical exchange rate, and revenue and expense items are translated at the average exchange rate. Gains or losses resulting from the translation adjustments are included in the consolidated statements of operations and comprehensive loss.
Revenue recognition	Revenue recognition The Company derives revenue from the sale of broadband wireless backhaul equipment, which includes embedded software and a license to use said software and extended product warranties. Software is considered to be incidental to the product. Services range from installation and training to basic consulting. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred and there are no significant remaining vendor obligations, collection of receivables is reasonably assured and the fee is fixed and determinable. Where conditions to final acceptance of the product are specified by the customer, revenue is deferred until acceptance criteria have been met. The Company's sales agreements may also contain multiple elements. Accordingly, the Company is required to determine the appropriate accounting, including whether the deliverables specified in a multiple element arrangement should be treated as separate units of accounting for revenue recognition purposes, the fair value of these separate units of accounting and when to recognize revenue for each element. For arrangements involving multiple elements, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence ["VSOE"] if available, third party evidence ["TPE"] if VSOE is not available, or estimated selling price ["ESP"] if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. The Company has determined the selling price for both the undelivered items and the delivered items using ESP. The Company generates revenue through direct sales and sales to distributors. The Company defers the recognition of a portion of sales to distributors based on estimated sales return and stock rotation granted to customers on products in the same period the related revenues are recorded. These estimates are based on historical sales returns, stock rotations and other known factors. Revenue from engineering services or development agreements is recognized according to the specific terms and acceptance criteria as services are rendered. Revenue associated with extended warranty and advanced replacement warranty is recognized ratably over the life of the contracted service. The Company accrues estimated potential product liability as warranty costs when revenue on the sale of equipment is recognized. Warranty liability is estimated based on recent actual return experience and repair costs. Where product defects have been identified that would cause the cost or warranty experience to change, additional warranty costs are recognized. Shipping and handling costs borne by the Company are recorded in cost of sales. Shipping and handling costs charged to customers are recorded as revenue, if billed at the time of shipment. Costs charged to customers after delivery are recorded in cost of sales.
Cash and cash equivalents	Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Financial instruments	Financial instruments The Company classifies its financial instruments as assets held at fair value, loans and receivables, other financial liabilities, or liabilities held at fair value. The classification depends on the purpose for which the financial instruments were acquired, their characteristics and management's intent. Management determines the classification of financial assets and liabilities at initial recognition and the classification is not changed subsequent to initial recognition. The Company designated its cash and cash equivalents and foreign exchange contracts as assets held at fair value, which are measured at fair value, with changes in fair value being recorded in net earnings. Trade receivables and other receivables have been classified as loans and receivables which are measured at amortized cost. Accounts payable, accrued liabilities and the debt facility have been classified as other financial liabilities, which are measured at amortized cost. Liabilities held at fair value include the warrant liability, which is measured at fair value, with changes in fair value being recorded in net loss. Transaction costs directly attributable to the acquisition of financial assets are recorded in net loss in the period in which they are incurred.
Inventory	Inventory Inventory is valued at the lower of cost and net realizable value ["NRV"]. The cost of inventory is calculated on a standard cost basis, which approximates weighted average actual cost. NRV is determined as the market value for finished goods, replacement cost for raw materials, and finished goods market value less cost to complete for work in progress inventory. The Company regularly reviews inventory quantities on hand and records an impairment for excess and obsolete inventory based on factors including its estimated forecast of product demand, the stage of the product life cycle and production requirements for the units in question. Indirect manufacturing costs and direct labour expenses are allocated systematically to the total production inventory. The Company carries inventory for the purposes of supporting its product warranty. Standard warranty is typically 13 to 36 months, but the Company earns revenue by providing enhanced and extended warranty and repair service during and beyond the standard warranty period. Customer service inventory consists of both component parts and finished units.
Income taxes	Income taxes Income taxes are accounted for using the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based on differences between the tax and accounting basis of assets and liabilities as well as for the benefit of losses available to be carried forward to future years for tax purposes that are more likely than not to be realized. Deferred income tax assets and liabilities are measured using enacted tax rates that apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The Company provides a valuation allowance against its deferred tax assets when it believes that it is more likely than not that the assets will not be realized. The Company determines whether it is more likely than not that an uncertain tax position will be sustained upon examination by the tax authorities. The tax benefit of any uncertain tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon successful resolution. To the extent a full benefit is not expected to be realized, an income tax liability is effectively established. The Company recognizes accrued interest and penalties on unrecognized tax benefits as interest expense. Management periodically reviews the Company's provision for income taxes and valuation allowance to determine whether the overall tax estimates are reasonable. When management performs its assessments of the provision and valuation allowance, it may be determined that an adjustment is required. This adjustment may have a material impact on the Company's financial position and results of operations.
Property and equipment	Property and equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the anticipated useful lives of the assets as follows: Test equipment, research and development equipment 4 - 5 years Computer hardware 2 years Production fixtures 3 years Leasehold improvements 5 years Other 3 - 5 years
Intangible assets	Intangible assets Intangible assets include software and are amortized over their estimated useful life of between 2 and 3 years.
Impairment of long-lived assets	Impairment of long-lived assets The Company reviews long-lived assets ["LLA"] such as property, equipment and intangible assets with finite useful lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. These events and circumstances may include significant decreases in the market price of an asset or asset group, significant changes in the extent or manner in which an asset or asset group is being used by the Company or in its physical condition, a significant change in legal factors or in the business climate, a history or forecast of future operating or cash flow losses, significant disposal activity, a significant decline in the Company's share price, a significant decline in revenue or adverse changes in the economic environment. The LLA impairment requires the Company to identify its asset groups and test impairment of each asset group separately. To conduct the LLA impairment test, the asset group is tested for recoverability using undiscounted cash flows over the remaining useful life of the primary asset. If forecasted net cash flows are less than the carrying amount of the asset group, an impairment charge is measured by comparing the fair value of the asset group to its carrying value. Determining the Company's asset groups and related primary assets requires significant judgment by management. Different judgments could yield different results. When indicators of impairment exist, LLA impairment is tested using a two-step process. The Company performs a cash flow recoverability test as the first step, which involves comparing the asset group's estimated undiscounted future cash flows to the carrying amount of its net assets. If the net cash flows of the asset group exceed the carrying amount of its net assets, LLA are not considered to be impaired. If the carrying amount exceeds the net cash flows, there is an indication of potential impairment and the second step of the LLA impairment test is performed to measure the impairment amount. The second step involves determining the fair value of the asset group. Fair values are determined using valuation techniques that are in accordance with U.S. GAAP, including the market approach, income approach and cost approach. If the carrying amount of the asset group's net assets exceeds the fair value of the Company, then the excess represents the maximum amount of potential impairment that will be allocated to the asset group, with the limitation that the carrying value of each separable asset cannot be reduced to a value lower than its individual fair value. The total impairment amount allocated is recognized as a non-cash impairment loss. The Company reviews any changes in events and circumstances that have occurred on a quarterly basis to determine if indicators of LLA impairment exist.
Share-based compensation plan and employee share purchase plan	Share-based compensation plan and employee share purchase plan The Company accounts for stock options granted to employees using the fair value method calculated by the Black-Scholes option pricing model. In accordance with the fair value method, the Company recognizes estimated compensation expense related to stock options over the vesting period of the options granted, with the related credit being charged to contributed surplus. The Company estimates the volatility at the date of grant based on the volatility of a group of comparator companies. The employee share purchase plan includes provisions to allow employees to purchase common shares. The Company will match the employees' contribution at a rate of 25%. Proceeds from employees are received and the cost of the matching shares is recorded in share capital, with the related debit applied to contributed surplus at the time the shares are issued. The shares contributed by the Company will vest 12 months after issuance with a corresponding compensation expense recognized in loss.
Research and development	Research and development Research costs are expensed as incurred. Development costs are expensed as incurred unless they meet generally accepted accounting criteria for deferral and amortization. Development costs incurred prior to establishment of technological feasibility do not meet these criteria, and are expensed as incurred.
Loss per share	Loss per share Basic loss per share is calculated by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. For all periods presented, the net loss available to common shareholders equates to the net loss. In the computation of diluted earnings per share, the Company includes the number of additional common shares that would have been outstanding if the dilutive potential equity instruments had been issued.
Non-controlling interest	Non-controlling interest Non-controlling interest consists of the minority-owned portion of the Company's 50.1% owned subsidiary, DragonWave HFCL India Private Limited.
FUTURE ACCOUNTING PRONOUNCEMENTS	FUTURE ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ["FASB"] issued ASU No. 2014-9, "Revenue from Contracts with Customers". The amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and create new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers" which reflects decisions reached by the FASB at its meeting earlier in the year to defer the effective date to fiscal years beginning after December 15, 2017, with early adoption permitted for the year beginning after December 15, 2016. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements – Going Concern". The update provides U.S. GAAP guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes". The amendments in this update eliminate the current requirement for companies to separate deferred income tax liabilities and assets into current and non-current amounts in a classified statement of financial position. Instead, companies will be required to classify all deferred tax liabilities and assets as non-current. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases". The amendments in this Update create Topic 842, Leases, and supersede the lease requirements in Topic 840, Leases. The Update will require companies to recognize a right-of-use asset and a lease liability in their balance sheets, while still distinguishing between finance leases and operating leases. For finance leases, the lessee would recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income, and for operating leases, the lessee would recognize a straight-line lease expense. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting". The amendments in this Update simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact this amendment will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash". The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICI28

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Feb. 28, 2017
SIGNIFICANT ACCOUNTING POLICIES
Schedule of Property And Equipment Anticipated Useful Lives	Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the anticipated useful lives of the assets as follows: Test equipment, research and development equipment 4 - 5 years Computer hardware 2 years Production fixtures 3 years Leasehold improvements 5 years Other 3 - 5 years

CASH AND CASH EQUIVALENTS (Tabl

CASH AND CASH EQUIVALENTS (Tables)	12 Months Ended
	Feb. 28, 2017
CASH AND CASH EQUIVALENTS
Schedule of Cash, Cash Equivalents and Restricted Cash	The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. February 28, 2017 February 29, 2016 Currency USD Amount % of USD Amount % of US dollar Canadian dollar Indian rupee Other Total Cash and Cash Equivalents

TRADE RECEIVABLES (Tables)

TRADE RECEIVABLES (Tables)	12 Months Ended
	Feb. 28, 2017
TRADE RECEIVABLES
Schedule of Trade Receivables	The Company's allowance for doubtful accounts reflects the Company's assessment of collectability across its global customer base. February 28, February 29, Trade receivables Allowance for doubtful accounts ) ) Total trade receivables

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Feb. 28, 2017
INVENTORY
Schedule of Inventory	Inventory consists of the following: February 28, February 29, Raw materials Work in progress Finished goods Total production inventory Inventory held for customer service/warranty Total inventory

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Feb. 28, 2017
OTHER CURRENT ASSETS
Schedule of Other Current Assets	Other current assets consist of the following: February 28, February 29, Deposits on inventory Prepaid expenses Indirect taxes receivable Deferred financing costs — Receivable from contract manufacturers and other items Total other current assets

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Feb. 28, 2017
PROPERTY AND EQUIPMENT
Schedule of Property and Equipment	Property and equipment are apportioned as follows: February 28, 2017 February 29, Cost Accumulated Net Book Net Book Test equipment, research and development equipment Computer hardware Production fixtures Leasehold improvements Other Total
Schedule of amortization expense relating to property and equipment allocated to operating expenses	Amortization expense relating to the above property and equipment was allocated to operating expenses as follows: February 28, February 29, Research and development Selling and marketing General and administrative

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Feb. 28, 2017
INTANGIBLE ASSETS
Schedule of Intangible assets	Intangible assets are apportioned as follows: February 28, 2017 February 29, Cost Accumulated Net Book Net Book Software

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
	Feb. 28, 2017
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Schedule of Accounts Payable and Accrued Liabilities	Accounts payable and accrued liabilities are apportioned as follows: February 28, February 29, Trade payables Accrued liabilities Termination fee Payroll related accruals Warranty accrual Income taxes payable Capital lease obligation Total accounts payable and accrued liabilities
Changes in the Warranty Liability	The following table details the changes in the warranty accrual for the respective years: February 28, February 29, Balance at the beginning of the period Accruals Utilization ) ) Balance at the end of the period

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Feb. 28, 2017
SHAREHOLDERS' EQUITY
Summary of Stock Option Activity	The following is a summary of stock option activity: February 28, 2017 February 29, 2016 Options Weighted Options Weighted Opening balance $ $ Granted $ $ Exercised ) $ — $ — Expired ) $ ) $ Closing balance $ $
Schedule of Assumptions Used to Estimate Fair Value of Stock Option Awards	The following table shows the weighted average values used in determining the fair value of options granted during the three months ended February 28, 2017 and February 29, 2016: February 28, February 29, Volatility Risk-free rate Dividend yield Nil Nil Average expected life 4 yrs 4 yrs
Schedule of Stock Options Outstanding and Exercisable	The following table summarizes the various exercise prices inherent in the Company's stock options outstanding and exercisable on February 28, 2017: Exercise Price Options Outstanding Options Exercisable Low High Quantity of Weighted Weighted Quantity of Weighted Weighted $ $ $ $ $ $ $ — — — $ $ $ $ $ $ $ $ $ $ $ $ $ $
Schedule of Stock-Based Compensation Expense	Stock compensation expense was allocated to operating expenses as follows: February 28, February 29, Research and development Selling and marketing General and administrative
Summary of granted warrants	The following is a summary of granted warrants: February 28, 2017 Warrants Shares Exercise Price Termination date May 2007 Issuance $ 88.75 CAD May 30, 2017 September 2013 Issuance $ September 23, 2018 April 2016 Issuance $ April 11, 2021 August 2016 Issuance – Long-Term Warrants $ August 8, 2021 Sub-total warrants issued and outstanding Comerica Warrants – granted but not issued $ five years from issuance date Total warrants granted

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	12 Months Ended
	Feb. 28, 2017
NET LOSS PER SHARE
Schedule of Calculation Basic and Diluted Earnings per Share	The following table illustrates the net loss per share during the year ended February 28, 2017 and February 29, 2016 excluding the effect of outstanding options and warrants: Twelve months ended February 28, February 29, Net loss attributable to shareholders ) ) Weighted average number of shares outstanding Basic net loss / dilutive net loss per share $ ) $ )

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Feb. 28, 2017
COMMITMENTS AND CONTINGENCIES
Schedule of Future Minimum Payments under Operating Leases	Future minimum operating lease payments per fiscal year that relate to office and warehouse space in various countries as at February 28, 2017 are as follows: 2018 2019 2020 2021 Thereafter

SUPPLEMENTAL CASH FLOW INFORM39

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	12 Months Ended
	Feb. 28, 2017
SUPPLEMENTAL CASH FLOW INFORMATION
Schedule of Changes in non-cash working capital balances	February 28, February 29, Changes in non-cash working capital balances: Trade receivables Inventory Other current assets Accounts payable and accrued liabilities ) Deferred revenue )

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Feb. 28, 2017
FINANCIAL INSTRUMENTS
Schedule of Fair Value of Financial Instruments	The following table summarizes the carrying values of the Company's financial instruments: February 28, February 29, Assets held at fair value (A) Loans and receivables (B) Other financial liabilities (C) Liabilities held at fair value (D) (A) Includes cash and cash equivalents (B) Includes trade receivables and other miscellaneous receivables (C) Includes accounts payable and accrued liabilities, payroll-related accruals, debt facility and termination fee (D) Includes warrant liability
Schedule of Level 2 and Level 3 Financial instruments carried at fair value	The Company held the following Level 3 financial instruments carried at fair value on the consolidated balance sheet. February 28, February 29, Level 3 Level 3 Financial Liabilities Warrant liability
Schedule of Level 3 warrant liability measured at fair value	A reconciliation of the Level 3 warrant liability measured at fair value for the year ended February 28, 2017 follows: Level 3 Warrants $ Balance at February 29, 2016 Issuance of warrants Exercise of warrants ) ) Expiry of warrants and change in fair value of warrant liability ) ) Balance at February 28, 2017

SEGMENTED INFORMATION (Tables)

SEGMENTED INFORMATION (Tables)	12 Months Ended
	Feb. 28, 2017
SEGMENTED INFORMATION
Schedule of Net Book Value by Geographic Area	The following table presents total net book value of property, equipment and intangible assets by geographic location: February 28, 2017 February 29, 2016 Amount % Amount % Canada Malaysia Other Total
Schedule of Revenues by Geographic Area	The following tables present total revenue by geographic location through direct and indirect sales and through its OEM partner, Nokia: Year Ended February 28, 2017 Year Ended February 29, 2016 Direct & OEM Total % of Direct & OEM Total % of Canada — — Europe, Middle East and Africa India United States — Rest of World

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Feb. 28, 2017
INCOME TAXES
Schedule of Income (Loss) Before Income Taxes	The components of the Company's income (loss) before income taxes, by taxing jurisdiction, were as follows: February 28, February 29, Canada ) ) Luxembourg ) ) India China Other ) ) )
Schedule of Reported Income Tax Provision Reconciliation	The reported income tax provision differs from the amount computed by applying the Canadian statutory rate to the net loss, for the following reasons: 2017 2016 Loss before income taxes ) ) Statutory income tax rate Expected income tax recovery ) ) Foreign tax rate differences Non-deductible expenses and non-taxable income ) Change in valuation allowances Share issue costs ) — Goodwill impairment — Foreign bank, minimum and withholding taxes — Prior year adjustments ) Other )
Schedule of Deferred Tax Assets and Liabilities	The Company's deferred tax assets and liabilities include the following significant components: 2017 2016 Income tax loss carryforwards Capital loss Research and development tax credits SR&ED expenditures Book and tax differences on assets Share issue expenses Income and expense reserves Total gross deferred tax assets Valuation allowance ) ) Income and expense reserves ) ) Net deferred tax liability ) )

NATURE OF BUSINESS, BASIS OF 43

NATURE OF BUSINESS, BASIS OF PRESENTATION AND GOING CONCERN (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Effects from restructuring the business
Gross profit (as a percent)	26.90%	16.20%
Line of Credit Facility, Decrease, Net	$ 5,122	$ 10,248
Proceeds from Issuance Initial Public Offering	9,502
Proceeds from Warrant Exercises	$ 4,180
Operating Expenses
Effects from restructuring the business
Reduction of operating expenses	26%

SIGNIFICANT ACCOUNTING POLICI44

SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details)	12 Months Ended
	Feb. 28, 2017
Minimum
Standard Warranty Period	13 months
Maximum
Standard Warranty Period	36 months

SIGNIFICANT ACCOUNTING POLICI45

SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details)	12 Months Ended
	Feb. 28, 2017
Test equipment, research and development equipment | Minimum
Property and equipment
Useful lives	4 years
Test equipment, research and development equipment | Maximum
Property and equipment
Useful lives	5 years
Computer hardware
Property and equipment
Useful lives	2 years
Production fixtures
Property and equipment
Useful lives	3 years
Leasehold improvements
Property and equipment
Useful lives	5 years
Other | Minimum
Property and equipment
Useful lives	3 years
Other | Maximum
Property and equipment
Useful lives	5 years

SIGNIFICANT ACCOUNTING POLICI46

SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Details) - Software	12 Months Ended
	Feb. 28, 2017
Minimum
Intangible assets
Amortization Period	2 years
Maximum
Intangible assets
Amortization Period	3 years

SIGNIFICANT ACCOUNTING POLICI47

SIGNIFICANT ACCOUNTING POLICIES - Share Based Compensation and Non-Controlling Interest (Details)	12 Months Ended
	Feb. 28, 2017
Share based compensation plan and employee share purchase plan
Employer match percentage	25.00%
Vesting period	12 months
DragonWave HFCL India Private Limited
Non-controlling Interest
Ownership interest (as a percent)	50.10%

NON-CONTROLLING INTEREST - Drag

NON-CONTROLLING INTEREST - DragonWave HFCL India Private Limited (Details) $ in Thousands	12 Months Ended
	Feb. 28, 2017USD ($)
Noncontrolling Interest
Dividend paid to minority share holders	$ 1,105
DragonWave HFCL India Private Limited
Noncontrolling Interest
Ownership interest (as a percent)	50.10%
Dividend paid to share holders	$ 1,839
Dividend paid to parent company share holders	921
Dividend paid to minority share holders	$ 918

CASH AND CASH EQUIVALENTS (Deta

CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2015
Cash and Cash Equivalents
Total Cash and Cash Equivalents	$ 4,073	$ 4,277	$ 23,692
Percent of total, cash and cash equivalents	100.00%	100.00%
Forbearance Agreement | Minimum
Cash and Cash Equivalents
Bank Cash Requirement	$ 1,000	$ 1,000
US Dollar
Cash and Cash Equivalents
Total Cash and Cash Equivalents	$ 2,320	$ 1,600
Percent of total, cash and cash equivalents	57.00%	37.40%
Canadian Dollar
Cash and Cash Equivalents
Total Cash and Cash Equivalents	$ 44	$ 39
Percent of total, cash and cash equivalents	1.10%	0.90%
Indian Rupee
Cash and Cash Equivalents
Total Cash and Cash Equivalents	$ 1,279	$ 2,317
Percent of total, cash and cash equivalents	31.40%	54.20%
Other
Cash and Cash Equivalents
Total Cash and Cash Equivalents	$ 430	$ 321
Percent of total, cash and cash equivalents	10.50%	7.50%

TRADE RECEIVABLES (Details)

TRADE RECEIVABLES (Details) $ in Thousands	12 Months Ended
	Feb. 28, 2017USD ($)customer	Feb. 29, 2016USD ($)customer
Trade Receivables
Trade Receivables (gross)	$ 12,099	$ 19,209
Allowance for doubtful accounts	(223)	(223)
Trade Receivables (net)	11,876	18,986
General and Administration
Trade Receivables
Bad Debt Expense	$ 82	$ 240
Credit Concentration Risk | Accounts Receivable
Trade Receivables
Number of customers exceeding 10% of the total receivable balance | customer	3	2
Credit Concentration Risk | Accounts Receivable | Customer 1
Trade Receivables
Concentration Risk, Percentage	21.00%	52.00%
Credit Concentration Risk | Accounts Receivable | Customer 2
Trade Receivables
Concentration Risk, Percentage	17.00%	16.00%
Credit Concentration Risk | Accounts Receivable | Customer 3
Trade Receivables
Concentration Risk, Percentage	15.00%

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
INVENTORY
Raw materials	$ 2,844	$ 2,389
Work in progress	2,089	614
Finished goods	14,384	16,986
Total production inventory	19,317	19,989
Inventory held for customer service/warranty	2,098	2,713
Total inventory	21,415	22,702
Total Cost of Sales	32,102	72,324
Product costs included in cost of sales	22,982	56,296
Warehousing, freight, warranty, overhead and other direct costs of sales	9,120	16,028
Impairment loss on inventory	953	4,416
Impairment loss for inventory held by contract manufacturers	648	1,497
Overhead and labor allocations included in Cost of Sales	753	1,746
Overhead and labor allocations included in Inventory	454	551
Inventory held by primary contract manufacturer	$ 12,939	$ 16,848

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Feb. 28, 2017	Feb. 29, 2016
OTHER CURRENT ASSETS
Deposits on inventory	$ 368	$ 670
Prepaid expenses	840	1,355
Indirect taxes receivable	388	610
Deferred financing costs		18
Receivable from contract manufacturers and other items	195	124
Total other current assets	$ 1,791	$ 2,777

PROPERTY AND EQUIPMENT (Detail)

PROPERTY AND EQUIPMENT (Detail) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Property and equipment
Cost	$ 33,658
Accumulated Amortization	31,141
Net Book Value	2,517	$ 3,702
Depreciation Expense
Amortization of property and equipment	1,791	1,931
Research and Development
Depreciation Expense
Amortization of property and equipment	290	364
Selling and Marketing
Depreciation Expense
Amortization of property and equipment	34	40
General and Administration
Depreciation Expense
Amortization of property and equipment	1,467	1,527
Test equipment, research and development equipment
Property and equipment
Cost	24,627
Accumulated Amortization	22,736
Net Book Value	1,891	2,655
Computer hardware
Property and equipment
Cost	3,717
Accumulated Amortization	3,656
Net Book Value	61	213
Production fixtures
Property and equipment
Cost	2,633
Accumulated Amortization	2,228
Net Book Value	405	559
Leasehold improvements
Property and equipment
Cost	1,081
Accumulated Amortization	1,031
Net Book Value	50	103
Other
Property and equipment
Cost	1,600
Accumulated Amortization	1,490
Net Book Value	$ 110	$ 172

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Intangible Assets
Amortization of intangible assets	$ 369	$ 577
Estimated amortization of intangible assets for 2018	181
Estimated amortization of intangible assets for 2019	155
Software
Intangible Assets
Cost	7,094
Accumulated Amortization	6,758
Net Book Value	$ 336	$ 623

ACCOUNTS PAYABLE AND ACCRUED 55

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Components of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 29, 2016	Feb. 28, 2017	Apr. 10, 2013
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Trade payables	$ 11,858	$ 14,726
Accrued liabilities	5,830	5,061
Termination Fee, Current	3,337	3,351
Payroll related accruals	1,257	1,033
Warranty accrual	926	697
Income taxes payable	555	303
Capital lease obligation	69	35
Total Accounts Payable and Accrued Liabilities	23,832	25,206
Termination Fee	3,337	$ 3,351	$ 8,668
Payments for Termination Fees	$ 4,351

ACCOUNTS PAYABLE AND ACCRUED 56

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Warranty Accrual (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Balance at the beginning of the period	$ 926	$ 678
Accruals	1,314	2,057
Utilization	(1,543)	(1,809)
Ending Balance	$ 697	$ 926

DEBT FACILITY (Details)

DEBT FACILITY (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Debt Facility
Long-term credit facility, weighted average debt outstanding	$ 17,916	$ 29,765
Long-term credit facility, interest expense during period	1,300	2,007
Interest expense related to deferred financing cost	$ 18	55
Period during which company is restricted from acquiring capital assets over a threshold amount	6 months
Repayments of debt facility	$ 5,122	11,548
Aggregate number of common shares that may be purchased from warrants	2,184,855
Deferred financing costs related to warrants	$ 442
Minimum
Debt Facility
Long-term credit facility, interest rate above base rate	3.00%
Maximum
Debt Facility
Long-term credit facility, interest rate above base rate	4.00%
Forbearance Agreement
Debt Facility
Aggregate number of common shares that may be purchased from warrants	375,000
Exercise price, warrants	$ 4
Expiration term of warrants	5 years
Forbearance Agreement | Minimum
Debt Facility
Bank Cash Requirement	$ 1,000	1,000
Comerica Bank and Export Development Canada | Line of Credit
Debt Facility
Long-term credit facility, borrowing capacity	40,000
Debt facility	17,030	22,152
Comerica Bank and Export Development Canada | Line of Credit | Forbearance Agreement
Debt Facility
Long-term credit facility, borrowing capacity	30,000
Bank Cash Requirement	1,000
Comerica Bank and Export Development Canada | Letter of Credit
Debt Facility
Long-term credit facility, borrowing capacity	4,000
Debt facility	$ 1,845	$ 1,853

SHAREHOLDERS' EQUITY - Number o

SHAREHOLDERS' EQUITY - Number of shares authorized (Details) CAD / shares in Units, $ / shares in Units, CAD in Thousands, $ in Thousands	Aug. 08, 2016USD ($)item$ / sharesshares	Apr. 11, 2016USD ($)$ / sharesshares	Feb. 02, 2016	Aug. 01, 2014CADCAD / sharesshares	Sep. 23, 2013USD ($)$ / sharesshares	Feb. 28, 2017USD ($)shares	Feb. 28, 2017CAD / shares	Feb. 28, 2017USD ($)$ / shares	Aug. 01, 2014USD ($)shares	May 30, 2007shares
Number of shares authorized
Aggregate gross proceeds from equity offering | $						$ 9,502
Fair value of warrant liability | $	$ 4,672	$ 1,137			$ 6,425
Class A unit
Number of shares authorized
Numbers of common shares each warrant may be converted into	1
Class B unit
Number of shares authorized
Numbers of common shares each warrant may be converted into	1
Long-Term Warrants
Number of shares authorized
Exercise price, warrants | $ / shares	$ 4.37
Long-Term Warrants | Class A unit
Number of shares authorized
Expiration term of warrants	5 years
Number of warrants in each class | item	1
Long-Term Warrants | Class B unit
Number of shares authorized
Number of warrants in each class | item	1
Short-Term Warrants
Number of shares authorized
Exercise price, warrants | $ / shares	$ 4
Short-Term Warrants | Class A unit
Number of shares authorized
Expiration term of warrants	6 months
Number of warrants in each class | item	2
Short-Term Warrants | Class B unit
Number of shares authorized
Number of warrants in each class | item	2
Pre-Funded Warrants
Number of shares authorized
Exercise price, warrants | $ / shares	$ 0.01
Pre-Funded Warrants | Class B unit
Number of shares authorized
Number of warrants in each class | item	1
Share price | $ / shares	$ 3.34
Common Shares
Number of shares authorized
Share issuance (in shares)						2,423,878
Share consolidation ratio			0.04
Warrants
Number of shares authorized
Numbers of common shares each warrant may be converted into										0.04
Public Offering September 23 2013
Number of shares authorized
Shares issued under public equity offering (in shares)					11,910,000
Shares issued under public equity offering (in dollars per share) | $ / shares					$ 2.10
Aggregate gross proceeds from equity offering | $					$ 25,011
Net realized proceeds from equity offering | $					$ 22,434
Exercise price, warrants | $ / shares					$ 2.80
Fair value of warrant liability | $					$ 6,425
Public Offering September 23 2013 | Common Shares
Number of shares authorized
Share issuance (in shares)					1
Public Offering September 23 2013 | Warrants
Number of shares authorized
Share issuance (in shares)					0.75
Numbers of common shares each warrant may be converted into					0.04
Exercise price, warrants | $ / shares								$ 2.80
Fair value of warrant liability | $								$ 7
Public Offering September 23 2013 | Scenario 2 | Warrants
Number of shares authorized
Exercise price, warrants | $ / shares					$ 2.80
Public Offering August 1 2014
Number of shares authorized
Shares issued under public equity offering (in shares)									15,927,500
Shares issued under public equity offering (in dollars per share) | CAD / shares				CAD 1.80
Aggregate gross proceeds from equity offering | CAD				CAD 28,670
Fair value of warrant liability | $									$ 2,551
Public Offering August 1 2014 | Common Shares
Number of shares authorized
Share issuance (in shares)				1
Public Offering August 1 2014 | Warrants
Number of shares authorized
Share issuance (in shares)				0.5
Numbers of common shares each warrant may be converted into									0.04
Exercise price, warrants | CAD / shares				CAD 56.25
Registered Direct Offering April 11, 2016
Number of shares authorized
Shares issued under public equity offering (in shares)		599,998
Shares issued under public equity offering (in dollars per share) | $ / shares		$ 7.25
Aggregate gross proceeds from equity offering | $		$ 4,350
Net realized proceeds from equity offering | $		$ 4,014
Registered Direct Offering April 11, 2016 | Common Shares
Number of shares authorized
Share issuance (in shares)		1
Registered Direct Offering April 11, 2016 | Warrants
Number of shares authorized
Share issuance (in shares)		0.5
Numbers of common shares each warrant may be converted into		1
Exercise price, warrants | $ / shares		$ 8.50						$ 8.50
Public Equity Offering August 8, 2016
Number of shares authorized
Aggregate gross proceeds from equity offering | $	$ 6,000
Net realized proceeds from equity offering | $	5,277
Fair value of warrant liability | $	$ 4,672
Public Equity Offering August 8, 2016 | Class A unit
Number of shares authorized
Shares issued under public equity offering (in shares)	1,760,880
Shares issued under public equity offering (in dollars per share) | $ / shares	$ 3.35
Public Equity Offering August 8, 2016 | Class B unit
Number of shares authorized
Shares issued under public equity offering (in shares)	30,164
Shares issued under public equity offering (in dollars per share) | $ / shares	$ 3.34
Public Equity Offering August 8, 2016 | Short-Term Warrants
Number of shares authorized
Exercise price, warrants | CAD / shares							CAD 4.37
Private Equity Offering August 8, 2016 | Class A unit
Number of shares authorized
Shares issued under private placement (in shares)	63,000
Aggregate proceeds from private equity placement | $	$ 211

SHAREHOLDERS' EQUITY - Share ba

SHAREHOLDERS' EQUITY - Share based compensation plan (Details) - shares	1 Months Ended	12 Months Ended
	Jun. 19, 2014	Feb. 28, 2017
Previous plan
Share based compensation plan
Number of trading days prior to settlement date	5 days	5 days
Plan
Share based compensation plan
Expiration period		5 years
Common stock reserved for issuance under plan		730,522
Maximum number of shares issuable as a percentage of shares issued and outstanding		10.00%
Plan | Minimum
Share based compensation plan
Vesting period		6 months
Plan | Maximum
Share based compensation plan
Vesting period		4 years

SHAREHOLDERS' EQUITY - Schedule

SHAREHOLDERS' EQUITY - Schedule of stock option activity (Details) - CAD / shares	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Options
Opening Balance	276,728	159,421
Granted	324,895	172,974
Exercised	(18,220)
Expired	(54,079)	(55,667)
Closing Balance	529,324	276,728
Weighted Average Price (CAD)
Opening Balance	CAD 32.82	CAD 76.34
Granted	4.36	8.64
Exercised	3.05
Expired	61.43	82.34
Closing Balance	CAD 13.45	CAD 32.82

SHAREHOLDERS' EQUITY - Schedu61

SHAREHOLDERS' EQUITY - Schedule of fair value assumptions (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Weighted average values used in determining the fair value of options granted
Granted	324,895	172,974
Stock Options
Weighted average values used in determining the fair value of options granted
Volatility	75.00%	95.60%
Risk-free rate	1.05%	0.58%
Dividend yield	0.00%	0.00%
Average expected life	4 years	4 years
Fair value of options granted	$ 773	$ 683

SHAREHOLDERS' EQUITY - Schedu62

SHAREHOLDERS' EQUITY - Schedule of stock option exercise prices (Details)	12 Months Ended
	Feb. 28, 2017CAD / sharesshares
Options Outstanding
Quantity of options | shares	529,324
Weighted average remaining contractual life (in years)	3 years 9 months 4 days
Weighted average exercise price	CAD 13.45
Options Exercisable
Quantity of options | shares	184,336
Weighted average remaining contractual life	2 years 8 months 23 days
Weighted average exercise price	CAD 26.07
$3.00 to $3.34
Exercise Price
Exercise Price, Low	3
Exercise Price, High	CAD 3.34
Options Outstanding
Quantity of options | shares	84,639
Weighted average remaining contractual life (in years)	3 years 9 months
Weighted average exercise price	CAD 3
Options Exercisable
Quantity of options | shares	83,389
Weighted average remaining contractual life	3 years 8 months 23 days
Weighted average exercise price	CAD 3
$3.35 to $3.83
Exercise Price
Exercise Price, Low	3.35
Exercise Price, High	CAD 3.83
Options Outstanding
Quantity of options | shares	232,990
Weighted average remaining contractual life (in years)	4 years 6 months 15 days
Weighted average exercise price	CAD 3.66
$3.84 to $6.78
Exercise Price
Exercise Price, Low	3.84
Exercise Price, High	CAD 6.78
Options Outstanding
Quantity of options | shares	75,050
Weighted average remaining contractual life (in years)	4 years 2 months 12 days
Weighted average exercise price	CAD 6.16
Options Exercisable
Quantity of options | shares	725
Weighted average remaining contractual life	3 years 7 months 17 days
Weighted average exercise price	CAD 4
$6.79 to $46.88
Exercise Price
Exercise Price, Low	6.79
Exercise Price, High	CAD 46.88
Options Outstanding
Quantity of options | shares	63,688
Weighted average remaining contractual life (in years)	2 years 11 months 12 days
Weighted average exercise price	CAD 21.19
Options Exercisable
Quantity of options | shares	37,477
Weighted average remaining contractual life	2 years 7 months 10 days
Weighted average exercise price	CAD 24.01
$46.89 to $73.50
Exercise Price
Exercise Price, Low	46.89
Exercise Price, High	CAD 73.50
Options Outstanding
Quantity of options | shares	72,957
Weighted average remaining contractual life (in years)	1 year 6 months 15 days
Weighted average exercise price	CAD 57.59
Options Exercisable
Quantity of options | shares	62,745
Weighted average remaining contractual life	1 year 5 months 12 days
Weighted average exercise price	CAD 58.21

SHAREHOLDERS' EQUITY - Schedu63

SHAREHOLDERS' EQUITY - Schedule of Expenses (Details) - Stock Options - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Compensation expense
Share-based compensation	$ 750	$ 941
Unrecognized compensation costs relating to stock option awards outstanding	1,276	1,476
Total intrinsic value of exercised options	29	0
Intrinsic value associated with outstanding options	0	0
Total intrinsic value of fully vested options	0	0
Research and Development
Compensation expense
Share-based compensation	182	172
Selling and Marketing
Compensation expense
Share-based compensation	239	204
General and Administration
Compensation expense
Share-based compensation	$ 329	$ 565

SHAREHOLDERS' EQUITY - Restrict

SHAREHOLDERS' EQUITY - Restricted Shares and Employee Share Purchase Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Restricted Shares & Employee Share Purchase Plan
Employer match percentage	25.00%
Shares issued for employees' portion of Employee Stock Purchase Plan	1,051
Shares issued for Company portion of Employee Stock Purchase Plan	259
Vesting period	12 months
Fair value of shares earned	$ 8	$ 13
Fair value of unearned Employee Stock Purchase Plan shares	$ 1	$ 8
Shares held for release under the Employee Stock Purchase Plan	259	978
Restricted Stock Units
Restricted Share Units
Compensation expense	$ 0	$ 39

SHAREHOLDERS' EQUITY - Warrants

SHAREHOLDERS' EQUITY - Warrants (Details) CAD / shares in Units, $ / shares in Units, CAD in Thousands, $ in Thousands	Aug. 08, 2016USD ($)item$ / sharesshares	Apr. 11, 2016USD ($)$ / sharesshares	Aug. 01, 2014CADCAD / sharesshares	Aug. 01, 2014USD ($)shares	Sep. 23, 2013USD ($)$ / sharesshares	May 30, 2007shares	Feb. 28, 2017USD ($)$ / sharesshares	Feb. 28, 2017CAD / shares	Feb. 28, 2017USD ($)$ / sharesshares	Aug. 01, 2014USD ($)shares
Warrants
Shares Purchasable									2,184,855
Shares purchasable for Comerica Warrants - granted but not issued									375,000
Shares purchasable for total warrants granted									2,559,855
Warrants outstanding									2,924,355
Comerica Warrants - granted but not issued									375,000
Total warrants granted									3,299,355
Exercise price of Comerica Warrants - granted but not issued | $ / shares							$ 4
Termination period for Comerica Warrants - granted but not issued							5 years
Aggregate gross proceeds from equity offering | $							$ 9,502
Fair value of warrant liability | $	$ 4,672	$ 1,137			$ 6,425
Issuance Of Warrants, May 30, 2007
Warrants
Shares Purchasable									1,262
Warrants outstanding									31,562
Exercise price, warrants | CAD / shares								CAD 88.75
Public Offering September 23 2013
Warrants
Shares Purchasable									29,550
Warrants outstanding					8,932,500				738,750
Exercise price, warrants | $ / shares					$ 2.80
Shares issued under public equity offering (in shares)					11,910,000
Shares issued under public equity offering (in dollars per share) | $ / shares					$ 2.10
Aggregate gross proceeds from equity offering | $					$ 25,011
Equity issuance expenses related to offering | $					2,576
Warrant costs | $					662
Fair value of warrant liability | $					$ 6,425
Change in fair value of warrant liability | $							75
Registered Direct Offering April 11, 2016
Warrants
Shares Purchasable									299,999
Warrants outstanding		299,999							299,999
Shares issued under public equity offering (in shares)		599,998
Shares issued under public equity offering (in dollars per share) | $ / shares		$ 7.25
Aggregate gross proceeds from equity offering | $		$ 4,350
Equity issuance expenses related to offering | $		428
Warrant costs | $		$ 92
Realized gain in fair value of warrant | $							1,038
Change in fair value of warrant liability | $							99
Public Equity Offering August 8, 2016
Warrants
Shares Purchasable									1,854,044
Warrants outstanding									1,854,044
Aggregate gross proceeds from equity offering | $	6,000
Equity issuance expenses related to offering | $	723
Warrant costs | $	469
Fair value of warrant liability | $	$ 4,672
Realized gain in fair value of warrant | $							3,162
Change in fair value of warrant liability | $							984
Public Offering August 1 2014
Warrants
Warrants outstanding										7,963,750
Shares issued under public equity offering (in shares)										15,927,500
Shares issued under public equity offering (in dollars per share) | CAD / shares			CAD 1.80
Aggregate gross proceeds from equity offering | CAD			CAD 28,670
Equity issuance expenses related to offering | $				$ 2,275
Warrant costs | $				$ 221
Fair value of warrant liability | $										$ 2,551
Realized gain in fair value of warrant | $							$ 117
Common Shares
Warrants
Share issuance (in shares)							2,423,878
Common Shares | Public Offering September 23 2013
Warrants
Share issuance (in shares)					1
Common Shares | Registered Direct Offering April 11, 2016
Warrants
Share issuance (in shares)		1
Common Shares | Public Offering August 1 2014
Warrants
Share issuance (in shares)			1	1
Warrants
Warrants
Warrants outstanding						31,562
Warrant expiration period						10 years
Numbers of common shares each warrant may be converted into						0.04
Warrants | Maximum
Warrants
Shares Purchasable						5,050
Warrants | Public Offering September 23 2013
Warrants
Exercise price, warrants | $ / shares									$ 2.80
Numbers of common shares each warrant may be converted into					0.04
Share issuance (in shares)					0.75
Fair value of warrant liability | $									$ 7
Warrants | Registered Direct Offering April 11, 2016
Warrants
Exercise price, warrants | $ / shares		$ 8.50							$ 8.50
Numbers of common shares each warrant may be converted into		1
Share issuance (in shares)		0.5
Warrants | Public Offering August 1 2014
Warrants
Exercise price, warrants | CAD / shares			CAD 56.25
Numbers of common shares each warrant may be converted into										0.04
Share issuance (in shares)			0.5	0.5
Scenario 2 | Warrants | Public Offering September 23 2013
Warrants
Exercise price, warrants | $ / shares					$ 2.80
Long-Term Warrants
Warrants
Exercise price, warrants | $ / shares	$ 4.37
Long-Term Warrants | Public Equity Offering August 8, 2016
Warrants
Warrants outstanding	1,854,044								1,854,044
Short-Term Warrants
Warrants
Exercise price, warrants | $ / shares	$ 4
Short-Term Warrants | Public Equity Offering August 8, 2016
Warrants
Warrants outstanding	3,708,088
Exercise price, warrants | CAD / shares								CAD 4.37
Pre-Funded Warrants
Warrants
Exercise price, warrants | $ / shares	$ 0.01
Class A unit
Warrants
Numbers of common shares each warrant may be converted into	1
Class A unit | Public Equity Offering August 8, 2016
Warrants
Shares issued under public equity offering (in shares)	1,760,880
Shares issued under public equity offering (in dollars per share) | $ / shares	$ 3.35
Class A unit | Private Equity Offering August 8, 2016
Warrants
Shares issued under private placement (in shares)	63,000
Aggregate proceeds from private equity placement | $	$ 211
Class A unit | Long-Term Warrants
Warrants
Number of warrants in each class | item	1
Class A unit | Short-Term Warrants
Warrants
Number of warrants in each class | item	2
Class B unit
Warrants
Numbers of common shares each warrant may be converted into	1
Class B unit | Public Equity Offering August 8, 2016
Warrants
Shares issued under public equity offering (in shares)	30,164
Shares issued under public equity offering (in dollars per share) | $ / shares	$ 3.34
Class B unit | Long-Term Warrants
Warrants
Number of warrants in each class | item	1
Class B unit | Short-Term Warrants
Warrants
Number of warrants in each class | item	2
Class B unit | Pre-Funded Warrants
Warrants
Number of warrants in each class | item	1

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Basic Net Income (Loss) per share
Net loss applicable to shareholders	$ (15,888)	$ (42,304)
Diluted Net Income (Loss) per share
Net loss attributable to shareholders	$ (15,888)	$ (42,304)
Weighted average number of shares outstanding	4,879,738	3,019,259
Basic net loss/dilutive net loss per share	$ (3.26)	$ (14.01)
Stock Options
Diluted Net Income (Loss) per share
Anti-dilutive securities	529,324
Warrants
Diluted Net Income (Loss) per share
Anti-dilutive securities	3,299,355

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Future minimum operating lease payments
2,018	$ 1,074
2,019	915
2,020	905
2,021	905
Thereafter	660
Operating Leases, Future Minimum Payments Due, Total	4,459
Rental expenses incurred	$ 1,357	$ 1,590

COMMITMENTS AND CONTINGENCIES68

COMMITMENTS AND CONTINGENCIES - Customer Claims (Details) - Pending Arbitration $ in Thousands	Feb. 28, 2017USD ($)
Customer Claims
Value of inventory shipped to customer	$ 4,707
Amount of damages claimed by the customer	6,425
Cost of inventory provided to customer treated as asset	$ 4,600

SUPPLEMENTAL CASH FLOW INFORM69

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Changes in non-cash working capital balances:
Trade receivables	$ 7,110	$ 29,640
Inventory	1,287	1,592
Other current assets	986	3,074
Accounts payable and accrued liabilities	1,429	(16,880)
Deferred revenue	(1,468)	810
Total changes in non-cash working capital items	$ 9,344	$ 18,236

FINANCIAL INSTRUMENTS (Schedule

FINANCIAL INSTRUMENTS (Schedule of Categories for financial assets and liabilities) (Details) - USD ($) $ in Thousands	Feb. 28, 2017	Feb. 29, 2016
FINANCIAL INSTRUMENTS
Assets held at fair value	$ 4,073	$ 4,277
Loans and receivables	12,071	19,110
Other financial liabilities	41,201	44,434
Liabilities held at fair value	$ 1,090	$ 120

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Feb. 28, 2017	Feb. 29, 2016
Financial Liabilities
Warrant liability	$ 1,090	$ 3
Level 3
Financial Liabilities
Warrant liability	$ 1,090	$ 3

FINANCIAL INSTRUMENTS Schedule

FINANCIAL INSTRUMENTS Schedule of warrant liability measured at fair value (Details) $ in Thousands	12 Months Ended
	Feb. 28, 2017USD ($)shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	$ 3
End balance (in shares) | shares	2,924,355
End balance	$ 1,090
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance (in shares) | shares	2,088,750
Beginning balance	$ 3
Issuance of warrants, shares | shares	5,862,131
Warrants Issued	$ 5,809
Exercise of warrants (in shares) | shares	(3,107,572)
Exercise Of Warrants	$ (527)
Expiry of warrants and change in fair value of warrant liability (in shares) | shares	(1,950,516)
Expiry of warrants and change in fair value of warrant liability	$ (4,195)
End balance (in shares) | shares	2,892,793
End balance	$ 1,090

FINANCIAL INSTRUMENTS (Narrativ

FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2015
Interest rate risk
Interest expense	$ 1,446	$ 1,959
Foreign exchange risk
Impact of a 1% appreciation in the exchange rate of the reporting currency against all foreign currencies on net income (loss)	43	27
Liquidity risk
Cash and cash equivalents	$ 4,073	$ 4,277	$ 23,692
Expected dividend yields	0.00%
Expected volatility	75.00%

SEGMENTED INFORMATION (Details)

SEGMENTED INFORMATION (Details) $ in Thousands	12 Months Ended
	Feb. 28, 2017USD ($)segment	Feb. 29, 2016USD ($)
Segmented Information
Number of Segments | segment	1
Net book value of property and equipment, intangible assets and goodwill by geographic location
Total Net Book Value	$ 2,853	$ 4,325
Percentage of Total Net Book Value	100.00%	100.00%
Total revenues by geographic location
Total Revenue	$ 43,916	$ 86,295
Percentage of Revenues	100.00%	100.00%
Product Sales	$ 32,742	$ 70,491
Subsegment Sales Type Indirect And Direct Sales
Total revenues by geographic location
Total Revenue	32,786	48,673
Subsegment Sales Type Sales Through Original Equipment Manufacturers Partner, Nokia
Total revenues by geographic location
Total Revenue	11,130	37,622
Canada
Net book value of property and equipment, intangible assets and goodwill by geographic location
Total Net Book Value	$ 1,586	$ 1,860
Percentage of Total Net Book Value	56.00%	43.00%
Total revenues by geographic location
Total Revenue	$ 2,648	$ 2,255
Percentage of Revenues	6.00%	3.00%
Canada | Subsegment Sales Type Indirect And Direct Sales
Total revenues by geographic location
Total Revenue	$ 2,648	$ 2,255
Europe, Middle East & Africa
Total revenues by geographic location
Total Revenue	$ 15,112	$ 37,862
Percentage of Revenues	34.00%	44.00%
Europe, Middle East & Africa | Subsegment Sales Type Indirect And Direct Sales
Total revenues by geographic location
Total Revenue	$ 4,825	$ 6,753
Europe, Middle East & Africa | Subsegment Sales Type Sales Through Original Equipment Manufacturers Partner, Nokia
Total revenues by geographic location
Total Revenue	10,287	31,109
India
Total revenues by geographic location
Total Revenue	$ 4,692	$ 17,780
Percentage of Revenues	11.00%	21.00%
India | Subsegment Sales Type Indirect And Direct Sales
Total revenues by geographic location
Total Revenue	$ 4,391	$ 13,993
India | Subsegment Sales Type Sales Through Original Equipment Manufacturers Partner, Nokia
Total revenues by geographic location
Total Revenue	301	3,787
Unites States
Total revenues by geographic location
Total Revenue	$ 13,261	$ 19,596
Percentage of Revenues	30.00%	23.00%
Unites States | Subsegment Sales Type Indirect And Direct Sales
Total revenues by geographic location
Total Revenue	$ 13,261	$ 19,577
Unites States | Subsegment Sales Type Sales Through Original Equipment Manufacturers Partner, Nokia
Total revenues by geographic location
Total Revenue		19
Malaysia
Net book value of property and equipment, intangible assets and goodwill by geographic location
Total Net Book Value	$ 786	$ 1,492
Percentage of Total Net Book Value	28.00%	34.00%
Rest of World
Total revenues by geographic location
Total Revenue	$ 8,203	$ 8,802
Percentage of Revenues	19.00%	9.00%
Rest of World | Subsegment Sales Type Indirect And Direct Sales
Total revenues by geographic location
Total Revenue	$ 7,661	$ 6,095
Rest of World | Subsegment Sales Type Sales Through Original Equipment Manufacturers Partner, Nokia
Total revenues by geographic location
Total Revenue	542	2,707
Other
Net book value of property and equipment, intangible assets and goodwill by geographic location
Total Net Book Value	$ 481	$ 973
Percentage of Total Net Book Value	16.00%	23.00%

ECONOMIC DEPENDENCE (Details)

ECONOMIC DEPENDENCE (Details) - Customer Concentration Risk - Revenue - customer	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Economic Dependence
Number of key customers	3	3
Customer 1
Economic Dependence
Percentage	25.00%	44.00%
Customer 2
Economic Dependence
Percentage	14.00%	15.00%
Customer 3
Economic Dependence
Percentage	13.00%	11.00%

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) $ in Thousands	12 Months Ended
	Feb. 28, 2017USD ($)
Canadian Tax Authority
Income Tax Disclosure
Capital loss carryforward	$ 16,302
Net operating loss carry forward	155,054
Canadian Tax Authority | Investment Tax Credit Carryforward
Income Tax Disclosure
Tax credit carryforwards	14,720
Luxembourg
Income Tax Disclosure
Net operating loss carry forward	38,165
United States Tax Authority (IRS)
Income Tax Disclosure
Capital loss carryforward	45,543
Net operating loss carry forward	7,783
United States Tax Authority (IRS) | Axerra Networks [Member] | Maximum
Income Tax Disclosure
Section 382 loss limitation	521
Provincial Tax Authority | Research Tax Credit Carryforward
Income Tax Disclosure
Tax credit carryforwards	$ 2,361

INCOME TAXES (Components of Inc

INCOME TAXES (Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Income Taxes
Income (loss) before income taxes	$ (14,914)	$ (39,289)
Canada
Income Taxes
Income (loss) before income taxes	(14,156)	(22,994)
Luxembourg
Income Taxes
Income (loss) before income taxes	(2,004)	(7,222)
India
Income Taxes
Income (loss) before income taxes	728	1,756
China
Income Taxes
Income (loss) before income taxes	414	706
Other
Income Taxes
Income (loss) before income taxes	$ 104	$ (11,535)

INCOME TAXES (Components of the

INCOME TAXES (Components of the Income Tax Expense (Recovery)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Current:
Current income tax expenses	$ 931	$ 434
Deferred:
Deferred income tax expense (recovery)	$ (148)	$ 1,841

INCOME TAXES (Reconciliation of

INCOME TAXES (Reconciliation of Canadian Statutory Rate to Net Income (Loss)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
INCOME TAXES
Loss before income taxes	$ (14,914)	$ (39,289)
Statutory income tax rate	26.50%	26.50%
Expected income tax recovery	$ (3,952)	$ (10,412)
Foreign tax rate differences	563	578
Non-deductible expenses and non-taxable income	(785)	37
Change in valuation allowances	4,967	6,043
Share issue costs	(156)
Goodwill impairment		4,420
Foreign bank, minimum and withholding taxes	353
Prior year adjustments	(183)	1,444
Other	(24)	165
Income tax expense	$ 783	$ 2,275

INCOME TAXES (Schedule of the C

INCOME TAXES (Schedule of the Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Feb. 28, 2017	Feb. 29, 2016
Deferred Tax Assets
Income tax loss carryforwards	$ 44,541	$ 39,322
Capital Loss	19,011	19,011
Research and development tax credits	13,180	13,180
SR&ED expenditures	6,872	6,872
Book and tax differences on assets	960	1,256
Share issue expenses	529	443
Income and expense reserves	194	236
Gross future tax assets	85,287	80,320
Valuation allowance	(85,287)	(80,320)
Deferred tax liabilities
Income and expense reserves	(148)	(294)
Net deferred tax liability	$ (148)	$ (294)

COMPARATIVE FIGURES (Details)

COMPARATIVE FIGURES (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Comparative figures adjustments
Hardware revenue	$ 32,742	$ 70,491
Service revenue	11,174	$ 15,804
Adjustment
Comparative figures adjustments
Hardware revenue	(902)
Service revenue	$ 902

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 17, 2017	Feb. 28, 2017	Feb. 29, 2016
Subsequent Event
Aggregate number of common shares that may be purchased from warrants		2,184,855
Total gross proceeds		$ 8,244	$ 35
Subsequent Event | Registered Direct Offering and Private Placement
Subsequent Event
Common shares issued	1,198,666
Aggregate number of common shares that may be purchased from warrants	599,333
Exercise price, warrants	$ 1.50
Price per common share and one half of a warrant	$ 1.50
Total gross proceeds	$ 1,798,000
Period during which warrants are not exercisable	6 months + one day
Class Of Warrant Or Right Expiration Period	5 years