CALAMP CORP. MANAGEMENT’S DISCUSSION AND ANALYSIS OF

Our discussion and analysis of financial condition and results of operations is
based upon our condensed consolidated financial statements, which have been
prepared in accordance with accounting principles generally accepted in the
United States of America ("GAAP"). The preparation of these financial statements
requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues, costs and expenses during the
reporting periods. Actual results could differ materially from these estimates.
The critical accounting policies listed below involve our more significant
accounting judgments and estimates that are used in the preparation of the
consolidated financial statements. These policies are described in greater
detail in Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") under Part II, Item 7 of our Annual Report on
Form 10-K for the fiscal year ended February 28, 2022, as filed with the U.S.
Securities and Exchange Commission (the "SEC") on April 28, 2022, and include
the following areas:
  • Revenue recognition;


  • Patent litigation and other contingencies;


  • Goodwill and long-lived assets; and


  • Deferred income tax assets and uncertain tax positions.

OUR COMPANY

We are a connected intelligence company that leverages a data-driven solutions
ecosystem to help people and organizations improve operational performance. We
solve complex problems for customers within the market verticals of
transportation and logistics, commercial and government fleets, industrial
equipment, government and consumer vehicles by providing solutions that track,
monitor and recover their vital assets. The data and insights enabled by CalAmp
solutions provide real-time visibility into a user's vehicles, assets, drivers,
and cargo, giving organizations greater understanding and control of their
operations. Ultimately, these insights drive operational visibility, safety,
efficiency, maintenance, and sustainability for organizations around the world.
We are a global organization that is headquartered in Irvine, California. We
have two reportable segments, Software & Subscription Services and Telematics
Products. Our organizational structure is based on a number of factors that our
CEO, as the Chief Operating Decision Maker ("CODM"), uses to evaluate and
operate the business, which include, but are not limited to, customer base,
homogeneity of products, and technology. A description of the reportable
business segments is provided below.

Software & Subscription Services

Our Software & Subscription Services segment offers cloud-based application
enablement and telematics service platforms that facilitate integration of our
own applications, as well as those of third parties, through open APIs to
deliver full-featured mobile IoT solutions to a wide range of customers and
markets. Our scalable proprietary applications and other subscription services
enable rapid and cost-effective development of high-value solutions for
customers all around the globe. Services include tracking and monitoring
services within Fleet Management as well as Supply Chain Integrity and
International Vehicle Location.

Telematics Products

Our Telematics Products segment offers a series of advanced telematics products
for the broader connected vehicle and emerging industrial IoT marketplace, which
enable customers to optimize their operations by collecting, monitoring and
effectively reporting business-critical information and desired intelligence
from high-value remote and mobile assets. Our telematics products include asset
tracking units, mobile telematics devices, fixed and mobile wireless gateways,
and routers. These wireless networking devices underpin a wide range of
solutions, and are ideal for applications demanding secure, reliable and
business-critical communications. Products and sales channels include OEM and
MRM products.


Adjusted EBITDA

In addition to our GAAP results, we present Adjusted EBITDA as a supplemental
non-GAAP measure of our performance. Our CEO, the CODM, uses Adjusted EBITDA to
evaluate and monitor segment performance. A non-GAAP financial measure is
defined as a numerical measure of a company's financial performance that
excludes or includes amounts to be different than the most directly comparable
measure calculated and presented in accordance with GAAP in the statements of
comprehensive income (loss), balance sheets or statements of cash flows. We
define Adjusted EBITDA as earnings before investment income, interest expenses,
taxes, depreciation, amortization, net income (loss) from discontinued
operations, stock-based compensation, acquisition and integration expenses,
non-cash costs and expenses arising from purchase accounting adjustments,
litigation provisions, gain from legal settlement, impairment losses and certain
other adjustments. We believe this non-GAAP financial information provides
additional insight into our ongoing performance and have therefore chosen to
provide this information to investors for a more consistent basis of comparison
to help investors evaluate our results of ongoing operations and enable more
meaningful period-to-period comparisons. Pursuant to the rules and regulations
of the SEC regarding the use of non-GAAP financial measures, we have provided a
reconciliation of non-GAAP financial measures to the most directly comparable
financial measure. See Note 14, Segment Information and Geographic Data, to the
accompanying condensed consolidated financial statements for additional
information related to Adjusted EBITDA by reportable segment and reconciliation
to net loss.


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Recent Developments

COVID-19 Impact and Supply Chain Constraints

In March 2020, the World Health Organization declared COVID-19 to be a public
health pandemic of international concern, which has resulted in travel
restrictions and in some cases, prohibitions of non-essential activities,
disruption and shutdown of businesses and greater uncertainty in global
financial markets.

Since March 2020 our revenues have been negatively impacted by COVID-19 as
various small-to-medium sized customers postponed their capital expenditures due
to the pandemic and related macro-economic uncertainties. More recently, we have
experienced supply shortages as a result of global supply imbalances driven by
the global pandemic. These global supply imbalances have negatively impacted all
parts of our business, both in the form of reduced availability of components
and devices as well as increased costs to procure available components
and devices. It is difficult to predict the extent to which these factors will
continue to impact our future business or operating results, which is highly
dependent on uncertain future developments, including the severity of the
continuing pandemic, the actions taken or to be taken by governments and private
businesses in relation to its containment and resolution of supply chain issues
and supply shortages. Because our business and operating results depend on
telematics product sales, device installations and related subscription-based
services, the ultimate effect of the pandemic and the current supply
shortages may not be fully reflected in our operating results until future
periods.

We have considered all known and reasonably available information that existed
throughout the three months ended and as of May 31, 2022, in making accounting
judgements, estimates and disclosures. We are monitoring the potential effects
of the health care related and economic conditions of COVID-19 in assessing
certain matters including (but not limited to) supply chain disruptions and
inflationary impacts, decreases in customer demand for our products and
services, potential longer-term effects on our customer and distribution
channels particularly in the U.S. and relevant end markets as well as other
developments. If the impact results in longer term closures of businesses and
economic recessionary conditions, we may recognize material asset impairments
and charges for uncollectible accounts receivable in future periods.


Transition of MRM Telematics Customers to Subscription Arrangements

In the second half of fiscal 2022, we prompted a strategic shift with customers
who have historically purchased MRM telematics devices from us. These customers
are being transitioned to new arrangements by way of bundling subscription
services with telematics devices under multi-year (generally three years)
subscription contracts. Our plan is to transition the entire base of MRM
business to multi-year subscription contracts over the course of fiscal 2023. As
a result, our financial results associated with such subscription arrangements
will be reported within our Software & Subscription Services reporting segment
prospectively from the effective date of such underlying contracts. In the short
term, we expect that this will lead to significant growth in our Software &
Subscription Services business with a corresponding decline in our Telematics
Products business. Long term, we believe this shift will allow us to drive
revenue growth as we generate incremental revenue from our existing customer
base as well as new customers through current and anticipated broader future
subscription service offerings.

Sale of LoJack North America Operations

Effective March 15, 2021, we sold certain assets and transferred certain
liabilities of the LoJack North America business.

As further described in Note 2, Discontinued Operations, to the accompanying
condensed consolidated financial statements, the LoJack North America operations
are presented as discontinued operations in the accompanying condensed
consolidated financial statements for the three months ended May 31, 2021. For
the three months ended May 31, 2021, we have reported the operating results and
cash flows related to the LoJack North America operations through March 14,
2021.

                                       25

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OPERATING RESULTS

Three months ended May 31, 2022 compared to three months ended May 31, 2021:

Revenue by Segment

                                   Three Months Ended May 31,
                              2022                             2021
(In thousands)        $          % of Revenue          $          % of Revenue       $ Change       % Change
Segment
Software &
Subscription
Services          $   39,557              61.1 %   $   35,043              44.0 %   $    4,514            12.9 %
Telematics
Products              25,169              38.9 %       44,631              56.0 %      (19,462 )         (43.6 %)
Total             $   64,726             100.0 %   $   79,674             100.0 %   $  (14,948 )         (18.8 %)



Our Software & Subscription Services enable customers to gather and analyze
critical data used to track, monitor and recover vital mobile assets with
real-time visibility and insights. Our services focus on three principal end
markets: (i) transportation and logistics, (ii) government and municipalities,
and (iii) connected car services. As described above, in the second half of
fiscal 2022, we began entering into subscription-based arrangements with
customers that historically purchased MRM telematics hardware from us, a shift
that favorably impacts revenues in our Software & Subscription Services segment
and unfavorably impacts revenues in our Telematics Products segment. This is a
transition that we expect will continue throughout fiscal 2023 as we work toward
transitioning the entire MRM telematics customer base into subscription
arrangements. In fiscal 2022 we began experiencing supply shortages driven by
the global pandemic. These supply imbalances have intensified in the past few
quarters and adversely impacted all parts of our business, including
particularly our Telematics Products revenues. We expect these supply shortages
to continue for the foreseeable future as suppliers strive to create additional
production capacity.

As of May 31, 2022, our remaining contractual performance obligations were
approximately $216 million, compared to $144 million as of May 31, 2021. The
majority of the growth in contractual performance obligations was driven by the
conversion of telematics products customers to multi-year subscription contracts
as well as new customer acquisitions within the government and municipality
markets and connected car markets.

Software & Subscription Services revenue increased by $4.5 million or 12.9% for
the three months ended May 31, 2022 compared to the same period last year. This
increase was primarily due to a $6.4 million increase in transportation and
logistics revenues. Active subscribers increased by 25% in the three months
ended May 31, 2022 when compared to the prior year period. As mentioned above,
supply shortages have impacted our ability to procure the devices we utilize to
deliver our subscription services, which has constrained our ability to install
our devices and initiate new subscription services.

Telematics Products revenue, comprised primarily of mobile resource management
("MRM") telematics and OEM/network products, decreased by $19.5 million or 43.6%
for the three months ended May 31, 2022 compared to the same period last year.
This decrease was largely attributable to the global supply imbalances described
above, thereby limiting our ability to fulfill customer orders during the three
months ended May 31, 2022. Additionally, $8.5 million of this decrease was
driven by the conversion of certain MRM telematics customers onto multi-year
subscription contracts, and thus revenues generated after the contract effective
dates for these customers are classified within Software & Subscription Services
revenues to the extent they are associated with a subscription arrangement. We
expect the conversion of the rest of our MRM customer base to continue over the
remainder of fiscal 2023 as we continue to implement our strategy to engage with
our customers under subscription arrangements, which will lead to further
decreases in Telematics Products segment revenues with an associated increase in
Software & Subscription Services revenues.

Gross Profit by Segment

                                    Three Months Ended May 31,
                              2022                              2021
(In thousands)        $           % of Revenue          $           % of Revenue       $ Change        % Change
Segment
Software &
Subscription
Services          $   18,058               45.7 %   $   16,822               48.0 %   $     1,236             7.3 %
Telematics
Products               7,589               30.2 %       15,625               35.0 %        (8,036 )         (51.4 %)
Gross profit      $   25,647               39.6 %   $   32,447               40.7 %   $    (6,800 )         (21.0 %)




                                       26
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Consolidated gross profit decreased by $6.8 million or 21.0% for the three
months ended May 31, 2022 compared to the same period last year largely due to
decreased revenues in our Telematics Products business. Consolidated gross
margin decreased by 110 basis points for the three months ended May 31, 2022
compared to the same period last year primarily due to an unfavorable shift in
product mix coupled with increased costs incurred in the manufacture and
procurement of our telematics devices.

Software & Subscription Services: Gross profit increased by $1.2 million or 7.3%
for the three months ended May 31, 2022 compared to the same period last year,
primarily as a result of increased revenues. Gross margin decreased by 230 basis
points primarily due to subscription mix and increased costs in the manufacture
and procurement of our telematics devices.

Telematics Products: Gross profit decreased by $8.0 million or 51.4% for the
three months ended May 31, 2022 compared to the same period last year primarily
due to decreased revenues. Gross margin decreased by 480 basis points primarily
due to product mix and increased costs in the manufacture and procurement of our
telematics devices. As mentioned above, we are presently experiencing adverse
impacts to product sales as a result of global supply shortages of certain
components, which is also leading to cost increases on many of these components.
As a result, in the coming quarters we may experience lower gross margins if we
are unable to effectively offset the impacts of these cost increases.

Operating Expenses

                                    Three Months Ended May 31,
                              2022                              2021
(In thousands)        $           % of Revenue          $           % of Revenue       $ Change        % Change
Research and
development       $    7,000               10.8 %   $    6,940                8.7 %   $        60             0.9 %
Selling and
marketing             11,478               17.7 %       12,462               15.6 %          (984 )          (7.9 %)
General and
administrative        15,162               23.4 %       13,022               16.3 %         2,140            16.4 %
Intangible asset
amortization           1,342                2.1 %        1,253                1.6 %            89             7.1 %
Total             $   34,982               54.0 %   $   33,677               42.2 %   $     1,305             3.9 %



Consolidated research and development expense increased slightly for the three
months ended May 31, 2022 compared to the same period last year due to continued
development efforts around expanding our telematics service offering both
domestically and internationally. Consolidated research and development expense
as a percentage of revenues increased to 10.8% for the three months ended May
31, 2022 compared to 8.7% in the prior year period. We plan to continue to
invest in research and development of new products and technologies.

Consolidated selling and marketing expense decreased by $1.0 million or 7.9% for
the three months ended May 31, 2022 compared to the same period last year
primarily due to decreased compensation costs resulting from changes in the
composition of our salesforce to drive sales of our telematics subscription
services.

Consolidated general and administrative expenses increased by $2.1 million or
16.4% for the three months ended May 31, 2022 compared to the same period last
year primarily driven by the recording of $1.9 million of incremental litigation
reserves related to the final settlement of the Omega legal matter, which is
described in Note 15, Legal Proceedings, to the accompanying condensed
consolidated financial statements.

Amortization of intangibles increased slightly for the three months ended May
31, 2022
compared to the same period last year.

Non-operating Income (Expense)

Investment income (loss) decreased to a loss of $0.1 million for the three
months ended May 31, 2022 from investment income of $0.6 million for the three
months ended May 31, 2021. The decrease was primarily driven by lower investment
returns on invested funds.

Interest expense decreased to $1.5 million for the three months ended May 31,
2022 from $3.8 million for the three months ended May 31, 2021 due to the
adoption of ASU 2020-06 effective March 1, 2022 under which the conversion
feature associated with our convertible notes is no longer separately accounted
for as a debt discount and amortized to interest expense. The impacts of the
adoption of ASU 2020-06 are more fully described in Note 1, under the caption
"Recently Adopted Accounting Pronouncements", to the accompanying condensed
consolidated financial statements.

Other non-operating expense was $0.9 million for the three months ended May 31,
2022 as compared to $1.3 million for the three months ended May 31, 2021, and
was largely comprised of costs incurred related to the wind down and transition
of the LoJack North America business.

Net Income from Discontinued Operations, Net of Tax

Net income from discontinued operations, net of tax was $4.1 million for the
three months ended May 31, 2021 and related to the sale of the LoJack North
America business that was completed on March 15, 2021. See Note 2, Discontinued
Operations, to the accompanying condensed consolidated financial statements for
additional information.

                                       27

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Overall Profitability Measures

Net Loss:

GAAP-basis net loss for the three months ended May 31, 2022 was $12.2 million
compared to a net loss of $1.9 million in the three months ended May 31, 2021.
The change in the net loss was largely driven by lower revenues in the current
year period and the gain recognized on the sale of the LoJack North America
business in the prior year period.

Adjusted EBITDA:

                                      Three Months Ended May 31,
(In thousands)                     2022          2021       $ Change      % Change
Segment

Software & Subscription Services $ 3,955 $ 5,894 $ (1,939 )

  (32.9 %)
Telematics Products                   (747 )      3,632        (4,379 )      (120.6 %)
Corporate Expenses                  (1,352 )     (1,141 )        (211 )       (18.5 %)
Total Adjusted EBITDA            $   1,856     $  8,385     $  (6,529 )       (77.9 %)



Adjusted EBITDA for Software & Subscription Services decreased $1.9 million
compared to the same period last year primarily due to operating expenses as a
result of investments we are making to develop, market and sell our telematics
solutions, partially offset by higher revenues. Adjusted EBITDA for Telematics
Products decreased $4.4 million compared to the same period last year as a
result of the decrease in revenues. Corporate Expenses increased by $0.2 million
compared to the same period last year.

See Note 14, Segment Information and Geographic Data, to the accompanying
condensed consolidated financial statements for information related to Adjusted
EBITDA by reportable segment and a reconciliation to GAAP-basis net loss.

Income Tax Provision

We evaluate our estimated annual effective tax rate ("ETR") on a quarterly basis
based on current and forecasted operating results. The relationship between our
income tax provision or benefit and our pretax book income or loss can vary
significantly from period to period considering, among other factors, the
overall level of pretax book income or loss and changes in the blend of
jurisdictional income or loss that is taxed at different rates and changes in
valuation allowances. Consequently, our ETR may fluctuate significantly period
to period and may make quarterly comparisons less meaningful.

Income tax expense was $0.2 million for the three months ended May 31, 2022,
compared to $0.3 million in the same period last year. The $0.1 million decrease
in tax expense was primarily driven by a decrease in pre-tax income attributable
to one of our foreign subsidiaries in the current period.


LIQUIDITY AND CAPITAL RESOURCES

Consistent with fiscal 2022, our primary recurring cash needs have been for
working capital purposes and to a lesser extent, capital expenditures. We have
historically funded our principal business activities through cash flows
generated from operations and cash on hand. As we continue to grow our customer
base to a subscription model while increasing our revenues, there will be a need
for working capital in the future. Our immediate sources of liquidity are cash
and cash equivalents, and our revolving credit facility. As of May 31, 2022, we
have $59.0 million of cash and cash equivalents and $50 million available under
our revolving credit facility. We expect to continue to finance our operations
with cash on hand and cash generated from operations.

Our revolving credit facility with JPMorgan Chase Bank, N.A. provides for
borrowings of up to $50 million and was set to expire on March 30, 2022. We have
entered into an amendment to extend the term of this credit facility to June 30,
2022 with the intention of entering into a new revolving credit facility.
Borrowings under our existing credit facility bear interest at either a Prime or
LIBOR-based variable rate as selected by us on a periodic basis. As of May 31,
2022, there were no borrowings outstanding on this revolving credit facility.
Although we intend to enter into a replacement credit facility, there can be no
assurance that we will be able to obtain a credit facility with similar terms or
at all.

We are a defendant in various legal proceedings, including the Philips patent
infringement claim, involving intellectual property claims and contract
disputes. On May 17, 2022, we executed an agreement with Omega for the
settlement and release of the Omega claim and a covenant not to sue under
certain patents and on June 1, 2022, we paid $4.9 million pursuant to that
settlement agreement. On June 16, 2022, the court dismissed the Omega case with
prejudice. Regarding the Philips matter, a final resolution of the ITC matter
has not been determined at this time and the Delaware District Court cases are
stayed pending resolution of the ITC matter. In connection with this matter, we
may be required to enter into a license agreement or other settlement
arrangement that requires us to make a significant payment in the future. While
it is not feasible to predict with certainty the outcome of this legal
proceeding, based on currently available information, we believe that the
ultimate resolution of this matter will not have a material adverse effect on
our condensed consolidated results of operations, financial condition and cash
flows.

                                       28

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See Note 15, Legal Proceedings, of the Notes to Unaudited Condensed Consolidated
Financial Statements for additional information on legal proceedings.

Sale of LoJack North America Operations

On March 14, 2021, we entered into an agreement with Spireon pursuant to which
we sold certain assets and transferred certain liabilities of the LoJack North
America business for a purchase price of $8.0 million. The transaction was
completed effective March 15, 2021 and we received net proceeds of approximately
$6.6 million. Subsequently, on November 9, 2021, the purchase price was reduced
by $0.9 million, which was paid to Spireon, due to final working capital
adjustments. We also entered into a Transition Service Agreement with Spireon on
March 15, 2021 ("TSA") to support Spireon in the transition of LoJack North
America customers and to provide recovery services to the existing installed
base of LoJack North America customers as an agent of Spireon, which effectively
terminated on March 31, 2022. During the service period, we invoiced Spireon for
certain costs incurred in operating this business.

We also entered into a post-TSA Services Agreement with Spireon on March 15,
2021 ("SA"), that commenced April 1, 2022 upon the expiration of the TSA, under
which we will continue to provide certain services related to the LoJack North
America radio frequency tower infrastructure for a period of no longer than
forty-eight months, as needed. As consideration for these services, Spireon will
pay us a monthly service fee over the stipulated contract term.

Future Cash Obligations

During the first quarter of fiscal 2023, there were no significant changes to
our estimates of future payments under our fixed contractual obligations and
commitments as presented in Part II, Item 7, Management's Discussion and
Analysis of Financial Condition and Results of Operations, included in our
Annual Report on Form 10-K for our fiscal year ended February 28, 2022 as filed
with the SEC on April 28, 2022.

Cash flows from operating activities

Cash flows from operating activities consist of net loss adjusted for certain
non-cash items, including depreciation, intangible asset amortization,
stock-based compensation expense, amortization of discount and debt issue costs,
deferred income taxes, amortization of certain revenue assignment arrangements
and the effect of changes in components of working capital.


Our cash flow from operating activities are attributable to our net loss as well
as how well we manage our working capital, which is dictated by the volume of
products we purchase from our manufacturers or suppliers and then sell to our
customers along with the payment and collection terms that we negotiate with
them. We purchase a majority of our products from significant suppliers located
in Asia and Mexico that generally provide us 60-day payment terms for products
purchased.



Our significant customers are located in the United States as well as certain
foreign countries. We believe that our relationships with our key customers are
good and that these customers are in good financial condition. We generally
grant credit to our customers based on their financial viability and our
historical collections experience with them. We typically require payment from
our customers within 30 to 45 days of our invoice date with a few exceptions
that extend the credit terms up to 90 days. Historically, since we paid our
suppliers at or within 60 days of inventory purchase and our payment terms on
our accounts receivable are generally within 45 days, generated positive cash
flows from operating activities. In the second half of fiscal 2022, we began
entering into subscription arrangements with key customers who previously
purchased telematics devices from us. While these subscription arrangements
create recurring multi-year revenue, they elongate the cash conversion cycle as
we must outlay cash for the associated device but recover this cash outlay over
a subscription period. Thus the conversion of customers onto subscription
arrangements has had an unfavorable impact on cash flows. We anticipate that
this trend will continue in the coming year as we continue our efforts to
transition our entire MRM telematics customer base onto similar multi-year
subscription arrangements.


For the three months ended May 31, 2022, net cash used in operating activities
was $15.6 million and net loss was $12.2 million. Our non-cash expenses from
continuing operations, comprised principally of depreciation, intangible asset
amortization, stock-based compensation expense, amortization of debt discount
and issuance costs, noncash operating lease costs and changes in deferred income
taxes totaled $9.8 million. These non-cash expenses were slightly offset by
non-cash revenues of $0.8 million related to acquired revenue assignment
arrangements. Changes in operating assets and liabilities from continuing
operations used $12.4 million of cash, largely as a result of the increase in
accounts receivable, despite a decline in quarterly revenues in the current year
quarter, and the decrease in deferred revenue. Both the increase in accounts
receivable and decrease in deferred revenue were driven by differences in timing
of collections under new subscription arrangements such that less cash is
collected at contract inception. Operating cash flows were also negatively
impacted by the timing of payments on accounts payable.


For the three months ended May 31, 2021, net cash provided by operating
activities was $0.1 million and net loss was $1.9 million. Our non-cash expenses
from continuing operations, comprised principally of depreciation, intangible
asset amortization, stock-based compensation expense, amortization of debt
discount and issue costs, noncash operating lease costs and changes in deferred
income taxes totaled $11.7 million. These non-cash expenses were partially
offset by non-cash revenues of $1.4 million related to acquired revenue
assignment arrangements. Changes in operating assets and liabilities from
continuing operations used $3.9 million of cash, primarily driven by a net
decrease in accounts payable and accrued liabilities, partly offset by the
impact of lower inventory levels. Net cash used in discontinued operations was
$0.4 million.

                                       29

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Cash flow from investing activities

For the three months ended May 31, 2022 and 2021, our net cash used in investing
activities of continuing operations was $3.6 million and $3.1 million,
respectively. In each of these periods, our primary investing activities
consisted of capital expenditures. We expect that we will make additional
capital expenditures in the future, including the devices that we lease to
customers under subscription agreements in order to support the future growth of
our business.



Net cash provided by investing activities of discontinued operations was $6.6
million during the three months ended May 31, 2021 and was comprised of cash
proceeds received from the sale of the LoJack North America business.

Cash flow from financing activities

For the three months ended May 31, 2022 and 2021, our net cash used in financing
activities was $0.4 million and $0.8 million, respectively, driven primarily by
payments for taxes related to the net share settlement of vested equity awards.

We continue to monitor the impact of the pandemic and supply chain constraints
on our operating results and liquidity as they have had an unfavorable impact on
our financial condition and results of operations and we believe the pandemic
and supply chain constraints may continue to have an unfavorable impact going
forward.

FORWARD LOOKING STATEMENTS

Forward looking statements in this Form 10-Q which include, without limitation,
statements relating to our plans, strategies, objectives, expectations,
intentions, projections and other information regarding future performance, are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The words "may", "will", "could", "plans", "intends",
"seeks", "believes", "anticipates", "expects", "estimates", "judgment", "goal",
and variations of these words and similar expressions, are intended to identify
forward-looking statements. These forward-looking statements reflect our current
views with respect to future events and financial performance and are subject to
certain risks and uncertainties that are difficult to predict, including,
without limitation, product demand, competitive pressures and pricing declines
in our markets, the timing of customer approvals of new product designs,
intellectual property infringement claims, interruption or failure of our
Internet-based systems used to wirelessly configure and communicate with the
tracking and monitoring devices that we sell, global component supply shortages
due to ongoing supply chain constraints, the effect of tariffs on exports from
China and other countries, the ongoing effects of the COVID-19 pandemic, and
other risks and uncertainties that are set forth in Part I, Item 1A of the
Annual Report on Form 10-K for the fiscal year ended February 28, 2022 as filed
with the SEC on April 28, 2022. Such risks and uncertainties could cause actual
results to differ materially from historical or anticipated results. Although we
believe the expectations reflected in such forward-looking statements are based
upon reasonable assumptions, we can give no assurance that our expectations will
be attained. We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.

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