Condensed Consolidated Statements of Financial Position

UNAUDITED (thousands of Canadian $)	December 31, 2020	March 31, 2020

Assets
Current assets:
Cash	39,176	40,505
Trade and other receivables	15,420	26,277
Prepaid expenses	983	913
Prepaid income taxes (note 11)	42	771
	55,621	68,466
Property and equipment	12,459	13,507
Right-of-use assets	36,106	37,901
Deferred tax asset (note 11)	1,546	992
Total assets	105,732	120,866

Liabilities and shareholders' equity
Current liabilities:
Trade payables and accrued liabilities	5,596	6,224
Income taxes payable (note 11)	400	60
Deferred revenue (note 5)	15,347	33,838
Lease liability (note 6)	1,345	1,313
	22,688	41,435
Lease liability (note 6)	40,088	41,062
Total liabilities	62,776	82,497

Shareholders' equity:
Share capital (note 12)	80,051	79,851
Contributed surplus	14,064	13,533
Deficit	(51,159)	(55,015)
Total shareholders' equity	42,956	38,369
Total liabilities and shareholders' equity	105,732	120,866

Subsequent event (note 16)

Condensed Consolidated Statements of Operations and Comprehensive Income

	Three months ended		Nine months ended
		December 31	December 31
UNAUDITED (thousands of Canadian $ except per share amounts)	2020	2019	2020	2019

Revenue (note 7)	16,038	19,275	50,562	57,271

Operating expenses (note 8)
Sales, marketing and professional services	3,335	4,744	11,209	13,728
Research and development (note 9)	3,092	5,171	11,158	14,461
General and administrative	1,174	1,822	4,186	5,133
	7,601	11,737	26,553	33,322
Operating profit	8,437	7,538	24,009	23,949

Finance income (note 10)	92	278	288	922
Finance costs (note 10)	(1,119)	(762)	(3,122)	(2,028)
Profit before income and other taxes	7,410	7,054	21,175	22,843
Income and other taxes (note 11)	1,535	1,942	5,278	6,421

Net and total comprehensive income	5,875	5,112	15,897	16,422

Earnings per share
Basic and diluted (note 12(d))	0.07	0.06	0.20	0.20

Condensed Consolidated Statements of Changes in Equity

	Share	Contributed		Total
UNAUDITED (thousands of Canadian $)	capital	surplus	Deficit	equity

Balance, April 1, 2019	79,711	12,808	(46,403)	46,116
Total comprehensive income for the year	-	-	16,422	16,422
Dividends paid	-	-	(24,073)	(24,073)
Shares issued on redemption of restricted share units (note 12(b))	140	-	-	140
Stock-based compensation:
Current period expense (note 12(c))	-	571	-	571
Balance, December 31, 2019	79,851	13,379	(54,054)	39,176

Balance, April 1, 2020	79,851	13,533	(55,015)	38,369
Total comprehensive income for the year	-	-	15,897	15,897
Dividends paid	-	-	(12,041)	(12,041)
Shares issued on redemption of restricted share units (note 12(b))	200	-	-	200
Stock-based compensation:
Current period expense (note 12(c))	-	531	-	531
Balance, December 31, 2020	80,051	14,064	(51,159)	42,956

	Three months ended		Nine months ended
	December 31		December 31
UNAUDITED (thousands of Canadian $)	2020	2019	2020	2019

Operating activities
Net income	5,875	5,112	15,897	16,422
Adjustments for:
Depreciation	1,072	1,106	3,200	3,239
Deferred income tax recovery (note 11)	(120)	(246)	(554)	(348)
Stock-based compensation (note 12(c))	495	1,394	1,473	1,937
Funds flow from operations	7,322	7,366	20,016	21,250
Movement in non-cash working capital:
Trade and other receivables	(4,345)	(1,419)	10,857	7,448
Trade payables and accrued liabilities	676	325	(1,371)	(1,414)
Prepaid expenses	98	301	(70)	211
Income taxes payable	(23)	(15)	1,069	(60)
Deferred revenue	(4,202)	(8,170)	(18,491)	(19,336)
Increase in non-cash working capital	(7,796)	(8,978)	(8,006)	(13,151)
Net cash (used in) provided by operating activities	(474)	(1,612)	12,010	8,099

Financing activities
Repayment of lease liability (note 6)	(310)	(289)	(942)	(849)
Dividends paid	(4,015)	(8,025)	(12,041)	(24,073)
Net cash used in financing activities	(4,325)	(8,314)	(12,983)	(24,922)

Investing activities
Property and equipment additions	(7)	(351)	(356)	(694)
Decrease in cash	(4,806)	(10,277)	(1,329)	(17,517)
Cash, beginning of period	43,982	47,050	40,505	54,290
Cash, end of period	39,176	36,773	39,176	36,773

Supplementary cash flow information
Interest received	91	277	289	931
Interest paid (notes 6 and 10)	517	532	1,563	1,600
Income taxes paid	722	1,663	4,200	5,723

Condensed Consolidated Statements of Cash Flows

Notes to Condensed Consolidated Interim Financial Statements

For the three and nine months ended December 31, 2020 and 2019 (unaudited).

1. Reporting Entity:

Computer Modelling Group Ltd. ("CMG") is a company domiciled in Alberta, Canada and is incorporated pursuant to the Alberta Business Corporations Act, with its common shares listed on the Toronto Stock Exchange under the symbol "CMG". The address of CMG's registered office is 3710 33 Street N.W., Calgary, Alberta, Canada, T2L 2M1. The condensed consolidated interim financial statements as at and for the three and nine months ended December 31, 2020 comprise CMG and its subsidiaries (together referred to as the "Company"). The Company is a computer software technology company engaged in the development and licensing of reservoir simulation software. The Company also provides professional services consisting of highly specialized support, consulting, training, and contract research activities.

2. Basis of Preparation:

(a) Statement of Compliance:

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements and should be read in conjunction with the Company's most recent annual consolidated financial statements as at and for the year ended March 31, 2020, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

These unaudited condensed consolidated interim financial statements as at and for the three and nine months ended December 31, 2020 were authorized for issuance by the Board of Directors on February 8, 2021.

(b) Basis of Measurement:

The condensed consolidated interim financial statements have been prepared on the historical cost basis, which is based on the fair value of the consideration at the time of the transaction.

(c) Functional and Presentation Currency:

The condensed consolidated interim financial statements are presented in Canadian dollars, which is the Company's functional currency. All financial information presented in Canadian dollars has been rounded to the nearest thousand.

(d) Use of Estimates, Judgments and Assumptions:

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, costs and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual results may differ from such estimates and it is possible that the differences could be material. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Significant estimates and judgments used in the preparation of these condensed consolidated interim financial statements were the same as those that applied to the consolidated financial statements for the year ended March 31, 2020.

(e) Impact of the COVID-19 Pandemic:

In March 2020, the World Health Organization declared the coronavirus outbreak ("COVID-19") a pandemic. Responses to the spread of COVID-19 resulted in a partial shutdown of the global economy leading to significant disruption to business

operations and a significant increase in economic uncertainty with volatile commodity prices and currency exchange rates. In addition, the decrease in demand for crude oil has resulted in a significant decline in global energy prices.

While market conditions improved during the nine months ended December 31, 2020 as countries began easing lockdown restrictions, a challenging economic climate persists, and it is difficult to reliably estimate the length or severity of the pandemic and its financial impact. A potential adverse impact to the Company includes reductions in revenues and cash flows and increased risk of non-payment from customers. At December 31, 2020, there has not been a significant increase in credit risk related to the Company's accounts receivable arising from COVID-19. As such, no allowance for doubtful accounts has been established at December 31, 2020 (none at March 31, 2020).

Estimates made during this period of extreme volatility are subject to a higher level of uncertainty and as a result, there may be a further prospective impact in future periods.

3. Significant Accounting Policies:

Except as described below, the accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Company's consolidated financial statements as at and for the year ended March 31, 2020.

Government Grants

Government grants are recognized when the Company has reasonable assurance that it has complied with the relevant conditions of the grant and that it will be received. The Company recognizes the grant against the financial statement line item that it is intended to compensate (note 8).

4. Segmented Information:

The Company is organized into one operating segment represented by the development and licensing of reservoir simulation software. The Company provides professional services, consisting of support, training, consulting and contract research activities, to promote the use and development of its software; however, these activities are not evaluated as a separate business segment.

Property, equipment and right-of-use assets of the Company are located in the following geographic regions (for revenue by geographic region, refer to note 7):

(thousands of $)	December 31, 2020	March 31, 2020
Canada	47,366	49,957
United States	808	972
South America	351	427
Eastern Hemisphere(1)	40	52
	48,565	51,408

(1) Includes Europe, Africa, Asia and Australia.

5. Deferred Revenue:

The following table presents changes in the deferred revenue balance for the nine months ended December 31, 2020:

(thousands of $)
Balance, March 31, 2020	33,838
Invoiced during the period, excluding amount recognized as revenue during the period	13,214
Recognition of deferred revenue included in the balance at the beginning of the period	(31,705)
Balance, December 31, 2020	15,347

6. Lease Liability:

The Company's leases are for office space, the most significant of which is the twenty-year head office lease that commenced in 2017. These leases contain renewal options for additional terms, but since the Company is not reasonably certain it will exercise the renewal options, they have not been included in the measurement of the lease obligations.

(thousands of $)
Balance, March 31, 2020	42,375
Interest on lease liability (note 10)	1,563
Lease payments	(2,505)
Balance, December 31, 2020	41,433

Current	1,345
Long-term	40,088

The following table presents contractual undiscounted payments for lease liability as at December 31, 2020:

(thousands of $)
Less than one year	3,369
Between one and five years	14,128
More than five years	44,073
Total undiscounted payments	61,570

7. Revenue:

In the following table, revenue is disaggregated by geographical region and timing of revenue recognition:

		Three months ended December 31		Nine months ended December 31
(thousands of $)	2020	2019	2020	2019
Annuity/maintenance license revenue
Canada	3,097	3,950	9,452	11,653
United States	3,649	5,147	11,533	15,131
South America	1,320	2,015	4,412	5,931
Eastern Hemisphere	5,411	5,500	16,747	16,026
	13,477	16,612	42,144	48,741
Perpetual license revenue
Canada	-	-	-	-
United States	-	-	-	298
South America	41	511	1,020	1,280
Eastern Hemisphere	619	453	1,415	1,691
	660	964	2,435	3,269
Total software license revenue	14,137	17,576	44,579	52,010
Professional services
Canada	1,690	1,499	5,241	4,668
United States	45	89	436	154
South America	-	21	26	89
Eastern Hemisphere	166	90	280	350
	1,901	1,699	5,983	5,261
Total revenue
Canada	4,787	5,449	14,693	16,321
United States	3,694	5,236	11,969	15,583
South America	1,361	2,547	5,458	7,300
Eastern Hemisphere	6,196	6,043	18,442	18,067
	16,038	19,275	50,562	57,271

The amount of revenue recognized during the nine months ended December 31, 2020 from performance obligations satisfied (or partially satisfied) in previous periods is $1.3 million.

The Company applies the practical expedient available under IFRS 15 and does not disclose the amount of the transaction price allocated to unsatisfied performance obligations if the underlying contract has an expected duration of one year or less.

Receivables from contracts with customers were as follows:

(thousands of $)	December 31, 2020	March 31, 2020
Receivables (included in "Trade and other receivables")	13,559	26,020

During the nine months ended December 31, 2020, one customer comprised 12.9% of the Company's total revenue. During the nine months ended December 31, 2019, one customer comprised 10.9% of the Company's total revenue.

8. Canada Emergency Wage Subsidy and Canada Emergency Rent Subsidy

As a result of the decline in revenue, CMG became eligible for the Canada Emergency Wage Subsidy ("CEWS") and the Canada Emergency Rent Subsidy ("CERS") programs and during the three and nine months ended December 31, 2020 recorded a CEWS benefit of $1.6 million and $4.1 million, respectively, and a CERS benefit of $0.1 million and $0.1 million, respectively. The CEWS and CERS benefits were recorded against the financial statement line items that they are intended to compensate, resulting in the following credits to the operating expense categories:

Three months ended December 31,	2020
(thousands of $)
Sales, marketing and professional services	(287)
Research and development	(1,131)
General and administrative	(271)
	(1,689)

Nine months ended December 31,	2020
(thousands of $)
Sales, marketing and professional services	(719)
Research and development	(2,833)
General and administrative	(677)
	(4,229)

9. Research and Development Costs:

Three months ended December 31,(thousands of $)	2020	2019
Research and development, net of government grantsScientific research and experimental development ("SR&ED") investment tax credits	3,231(139)	5,480(309)
	3,092	5,171
Nine months ended December 31,(thousands of $)	2020	2019
Research and development, net of government grants	11,709	15,642
Scientific research and experimental development ("SR&ED") investment tax credits	(551)	(1,181)
	11,158	14,461

10. Finance Income and Finance Costs:

Three months ended December 31,	2020	2019
(thousands of $)
Interest income	92	278
Finance income	92	278

Interest expense on lease liability (note 6)	(517)	(532)
Net foreign exchange loss	(602)	(230)
Finance costs	(1,119)	(762)

Nine months ended December 31,	2020	2019
(thousands of $)
Interest income	288	922
Finance income	288	922

Interest expense on lease liability (note 6)	(1,563)	(1,600)
Net foreign exchange loss	(1,559)	(428)
Finance costs	(3,122)	(2,028)

11. Income and Other Taxes:

The major components of income tax expense are as follows:

Nine months ended December 31,(thousands of $)	2020	2019
Current year income tax expense	5,515	6,613
Adjustment for prior year	(44)	47
Current income taxes	5,471	6,660
Deferred tax recoveryForeign withholding and other taxes	(554)361	(348)109
	5,278	6,421

During the nine months ended December 31, 2020, the blended statutory tax rate was 23.5% (2019 – 26%). In May 2019, the Alberta government announced that the provincial corporate income tax rate will be reduced from 12% to 8% over a four-year period. Accordingly, the rate was reduced from 12% to 11% effective July 1, 2019 and from 11% to 10% on January 1, 2020. In October 2020, the previously scheduled tax rate reduction was accelerated, with the tax rate reduced to 8% effective July 1, 2020.

The provision for income and other taxes reported differs from the amount computed by applying the combined Canadian Federal and Provincial statutory rate to the profit before income and other taxes. The reasons for this difference and the related tax effects are as follows:

Nine months ended December 31,	2020	2019
(thousands of $, unless otherwise stated)
Combined statutory tax rate	23.50%	26.00%
Expected income tax	4,976	5,939
Non-deductible costs	148	210
Effect of statutory tax rate reduction	(8)	225
Withholding taxes	195	18
Effect of tax rates in foreign jurisdictions	(15)	(6)
Adjustment for prior year	(44)	47
Other	26	(12)
	5,278	6,421

The components of the Company's deferred tax asset are as follows:

(thousands of $)	December 31, 2020	March 31, 2020
SR&ED investment tax credits	(127)	(274)
Property and equipment	101	50
Right-of-use assets	1,184	999
Stock-based compensation liability	388	217
Net deferred tax asset	1,546	992

All movement in deferred tax assets and liabilities is recognized through net income of the respective period.

Prepaid income taxes and current income taxes payable have not been offset as the amounts relate to income taxes levied by different tax authorities on different taxable entities.

12. Share Capital:

(a) Authorized:

An unlimited number of common shares, an unlimited number of non-voting shares, and an unlimited number of preferred shares, issuable in series.

(b) Issued:

(thousands of shares)	Common shares
Balance, April 1, 2019	80,227
Issued on redemption of restricted share units	22
Balance, December 31, 2019	80,249

Balance, April 1, 2020	80,249
Issued on redemption of restricted share units	37
Balance, December 31, 2020	80,286

(c) Stock-Based Compensation:

Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense:

Three months ended December 31,	2020	2019
(thousands of $)
Equity-settled plans	190	170
Cash-settled plans	339	1,223
Total stock-based compensation expense	529	1,393

Nine months ended December 31,	2020	2019
(thousands of $)
Equity-settled plans	531	571
Cash-settled plans	1,742	1,809
Total stock-based compensation expense	2,273	2,380

Liability Recognized for Stock-Based Compensation (1)

The following table summarizes liabilities for the Company's cash-settled plans, recorded within trade payables and accrued liabilities:

(thousands of $)	December 31, 2020	March 31, 2020
SARs	207	15
RSUs	1,009	745
PSUs	121	-
DSUs	350	183
Total stock-based compensation liability	1,687	943

(1) The intrinsic value of the vested awards at December 31, 2020 was $0.4 million.

The Company has several stock-based compensation plans, including a stock option plan, a share appreciation rights plan, a performance share unit and restricted share unit plan, and a deferred share unit plan.

The maximum number of common shares reserved for issuance under the Company's security-based compensation plans is limited to 10% of the issued and outstanding common shares. Based on this calculation, at December 31, 2020, the Company may reserve up to 8,028,000 common shares for issuance under its security-based compensation plans.

(i) Stock Option Plan

The Company adopted a rolling stock option plan as of July 13, 2005, which was reaffirmed by the Company's shareholders on July 16, 2020. Pursuant to the stock option plan, the maximum term of an option granted cannot exceed five years from the date of grant. Fifty percent of stock options vest on the first year anniversary from the grant date and then 25% vest on each of the second and third year anniversary dates. Stock options have a five-year life.

The following table outlines changes in stock options:

		Nine months endedDecember 31, 2020		Year endedMarch 31, 2020
	Number ofOptions(thousands)	WeightedAverageExercise Price($/share)	Number ofOptions(thousands)	WeightedAverageExercise Price($/share)
Outstanding at beginning of periodGranted	3,900786	9.645.08	5,108757	11.346.37
Forfeited/expired	(1,166)	12.04	(1,965)	12.80
Outstanding at end of period	3,520	7.82	3,900	9.64
Options exercisable at end of period	2,236	8.96	2,704	10.61

The range of exercise prices of stock options outstanding and exercisable at December 31, 2020 is as follows:

			Outstanding		Exercisable
Exercise Price($/option)	Number ofOptions(thousands)	WeightedAverageRemainingContractual Life(years)	WeightedAverageExercise Price($/option)	Number ofOptions(thousands)	WeightedAverageExercise Price($/option)
5.08 to 6.30	786	4.6	5.08	-	-
6.31 to 6.60	738	3.6	6.32	369	6.32
6.61 to 9.20	497	2.7	9.18	368	9.19
9.21 to 9.33	775	1.6	9.33	775	9.33
9.34 to 10.16	724	0.6	9.79	724	9.79
	3,520	2.6	7.82	2,236	8.96

The fair value of stock options was estimated using the Black-Scholes option pricing model under the following assumptions:

	Nine months endedDecember 31, 2020	Year endedMarch 31, 2020

Fair value at grant date ($/option)	1.00 to 1.01	0.72 to 1.42
Share price at grant date ($/share)	5.08	6.31 to 8.70
Risk-free interest rate (%)	0.32 to 0.37	1.28 to 1.53
Estimated hold period prior to exercise (years)	3 to 4	3 to 4
Volatility in the price of common shares (%)	35 to 38	28 to 31
Dividend yield per common share (%)	3.71	4.71 to 6.28

(ii) Share Appreciation Rights Plan

The Company adopted a share appreciation rights plan ("SAR Plan") in November 2015. A share appreciation right ("SAR") entitles the holder to receive a cash payment equal to the difference between the stated exercise price and the market price of the Company's common shares on the date the SAR is exercised. SARs are granted to executive officers and employees residing and working outside of Canada. Fifty percent of SARs vest on the first year anniversary from the grant date and then 25% vest on each of the second and third year anniversary dates. SARs have a five-year life.

The following table outlines changes in SARs:

		Nine months ended		Year ended
		December 31, 2020		March 31, 2020
		Weighted Average		Weighted
	Number of SARs	Exercise Price	Number of SARs	Average Exercise
	(thousands)	($/SAR)	(thousands)	Price ($/SAR)
Outstanding at beginning of period	1,152	8.80	952	9.38
Granted	221	5.08	221	6.31
Forfeited	-	-	(21)	9.42
Outstanding at end of period	1,373	8.19	1,152	8.80
SARs exercisable at end of period	948	9.04	657	9.44

(iii) Share Unit Plans

Performance Share Units (PSUs) and Restricted Share Units (RSUs)

The Performance Share Unit and Restricted Share Unit Plan ("PSU & RSU Plan") is open to all employees and contractors of the Company. PSUs cliff-vest at the end of three years, with the vesting multiplier ranging from 0.0 to 2.0 contingent upon achieving certain corporate performance criteria. RSUs vest annually over a three-year period. Upon vesting, PSUs and RSUs can be exchanged for common shares of the Company or surrendered for cash at the option of the holder. As such, the Company accounts for PSUs and RSUs as cash-settled awards and recognizes a liability for potential cash settlements.

The International Employees PSU & RSU Plan includes substantially the same terms, conditions and PSU performance criteria as the PSU & RSU Plan, with the main two exceptions being that (i) it is available only to employees and contractors residing and working outside of Canada and (ii) PSUs and RSUs under this plan can be redeemed for cash only. As such, the Company accounts for PSUs and RSUs issued under the International Employees PSU & RSU Plan as cash-settled awards and recognizes a liability for potential cash settlements.

Deferred Share Units (DSUs)

The DSU Plan was adopted in May 2017 and is limited to non-employee members of the Board of Directors. DSUs vest immediately, but are redeemable for cash only after a director ceases Board membership.

The following table summarizes the activity related to the Company's share unit plans:

(thousands)	Nine months endedDecember 31, 2020				Year endedMarch 31, 2020
	RSUs	PSUs	DSUs	RSUs	PSUs	DSUs
Outstanding at beginning of period	421	30	48	237	-	24
Granted	375	62	31	309	30	24
Exercised	(181)	-	(7)	(91)	-	-
Forfeited	(29)	-	-	(34)	-	-
Outstanding at end of period	586	92	72	421	30	48

(d) Earnings Per Share:

The following table summarizes the earnings and weighted average number of common shares used in calculating basic and diluted earnings per share:

Three months ended December 31,			2020			2019
(thousands except per share amounts)
		Weighted			Weighted
		average	Earnings		average	Earnings
	Earnings	shares	per share	Earnings	shares	per share
	($)	outstanding	($/share)	($)	outstanding	($/share)
Basic	5,875	80,286	0.07	5,112	80,249	0.06
Dilutive effect of share-based awards		182			132
Diluted	5,875	80,468	0.07	5,112	80,381	0.06

Nine months ended December 31,			2020			2019
(thousands except per share amounts)
		Weighted			Weighted
		average	Earnings		average	Earnings
	Earnings	shares	per share	Earnings	shares	per share
	($)	outstanding	($/share)	($)	outstanding	($/share)
Basic	15,897	80,267	0.20	16,422	80,238	0.20
Dilutive effect of share-based awards		218			117
Diluted	15,897	80,485	0.20	16,422	80,355	0.20

During the three and nine months ended December 31, 2020, nil and 115,000 awards, respectively (three and nine months ended December 31, 2019 – nil and 189,000 awards, respectively), were excluded from the computation of the weighted average number of diluted shares outstanding because their effect was not dilutive.

13. Financial Instruments:

Financial assets include cash and trade and other receivables which are classified as and measured at amortized cost, which approximates their fair values.

Financial liabilities include trade payables and accrued liabilities which are classified as other financial liabilities and are measured at amortized cost, which approximates their fair values.

14. Commitments:

(a) Research Commitment:

CMG, in partnership with Shell Global Solutions International B.V. ("Shell") at present, and also in partnership with Petroleo Brasileiro S.A. historically, is the developer of CoFlow, the newest generation of reservoir and production system simulation software.

On January 1, 2017, Shell and CMG entered into an agreement (the "CoFlow Agreement") with an initial five year term whereby CMG would be responsible for the research and development costs of CoFlow (estimated to be $6.7 million in fiscal 2021) and Shell would be responsible for providing a contribution for the continuing development of the software (estimated to be $6.9 million in fiscal 2021).

On December 21, 2020, the CoFlow Agreement was amended when Shell exercised its right to request a five-year term extension, commencing January 1, 2022. All other terms and conditions in the CoFlow Agreement, including any related amendments, remain unchanged and in full force and effect during the extended term.

During the three and nine months ended December 31, 2020, the Company recorded professional services revenue of $1.7 million and $5.2 million, respectively (three and nine months ended December 31, 2019 – $1.0 million and $3.0 million, respectively), and CoFlow costs of $1.4 million and $5.0 million, respectively, to research and development expenses (three and nine months ended December 31, 2019 – $1.9 million and $5.2 million, respectively).

(b) Commitments:

The Company's non-lease commitments include operating cost commitments and short-term office leases:

(thousands of $)	December 31, 2020
Less than one year	1,115
Between one and five years	4,496
More than five years	13,119
	18,730

15. Line Of Credit:

The Company has arranged for a $2.0 million line of credit with its principal banker, which can be drawn down by way of a demand operating credit facility or may be used to support letters of credit. As at December 31, 2020, $1.0 million (March 31, 2020 – $1.0 million) had been reserved on this line of credit for letters of credit supporting performance bonds.

16. Subsequent Event:

On February 8, 2021, the Board of Directors declared a quarterly cash dividend of $0.05 per share on its common shares, payable on March 15, 2021 to all shareholders of record at the close of business on March 5, 2021.