As at June 30, 2026, the Company has goodwill of $1,643 (June 30, 2025 - $1,643). Goodwill is attributable to the following cash generating units (“CGUs”) arising on the respective dates of acquisition. All goodwill and impairment losses were allocated to CGUs within the IPP Production segment.

As at June 30, 2026, the Company performed an annual impairment testing of goodwill and long-lived assets in accordance with IAS 36. The recoverable amounts were determined based on the higher of value in use (“VIU”) and fair value less costs of disposal (“FVLCD”), using discounted cash flow models. The key assumptions applied in estimating the recoverable amounts based on VIU of the impairment tests were as follows:

Cash flows beyond the contract period were not assumed for the solar projects as they are expected to cease operating at FIT contract expiry under current forecasts. The pre-tax discount rates were derived from the Company’s weighted average cost of capital. The carrying values, recoverable amounts and impairment losses recognized were as follows:

A 1% increase in the discount rate would result in an additional impairment loss of $1,810 in SFF for the year ended June 30, 2026. Management is not aware of any other reasonable change in key assumptions that would significantly vary the recoverable amount for the valuation. Other net assets or liabilities represent the sum of operating assets and liabilities not specifically mentioned in the tables above, which include accounts receivable, prepaid expenses, right-of-use assets, accounts payable, asset retirement obligation, lease liabilities, and other liabilities.

(Expressed in thousands of Canadian dollars, except per share amounts and as otherwise indicated)

As at July 9, 2024, the Company performed an impairment testing of goodwill and long-lived assets at the CGU level for SFF due to an indicator of impairment arising from the internal rate of return implied in the enterprise value being lower than the weighted average cost of capital. Based on this test, the Company recognized the following impairment loss of $17,778 as a write-down of goodwill related to the SFF CGUs.


SFF Cash Generating Units	Construction in progress		Intangible assets		Other net assets (Restated – note 2(e)(ii))		Goodwill (Restated – note 2(e)(ii))			Total
Carrying value, July 9, 2024	$	10,564	$	20,920	$	23,663	$	19,421		$	74,568
Impairment		-		-		-		(17,778	)		(17,778	)
Recoverable amount, July 9, 2024	$	10,564	$	20,920	$	23,663	$	1,643		$	56,790

As at June 30, 2025, the Company performed an annual impairment testing of goodwill and long-lived assets in accordance with IAS 36. The recoverable amounts were determined based on the higher of value in use (“VIU”) and fair value less costs of disposal (“FVLCD”), using discounted cash flow models. The key assumptions applied in estimating the recoverable amounts based on VIU of the impairment tests were as follows:

Cash Generating Unit	OFIT GM			OFIT RT			SFF
Discount rate (pre-tax)		13.50	%		13.90	%		9.18	%
Revenue equipment degradation rate		0.55	%		0.55	%		0.74	%
Normal use life of assets		Remaining contract life of power purchase agreements
Operating expense inflation		2.00	%		2.00	%		2.00	%


OFIT GM Cash Generating Unit	Property, plant, and equipment			Intangible assets			Other net liabilities			Goodwill			Total
Carrying value, June 30, 2025	$	1,913		$	1,307		$	(22	)	$	289		$	3,487
Impairment		(490	)		(335	)		-			(289	)		(1,114	)
Recoverable amount, June 30, 2025	$	1,423		$	972		$	(22	)	$	-		$	2,373


OFIT GM Cash Generating Unit	Property, plant, and equipment		Intangible assets		Other net assets		Goodwill			Total
Carrying value, June 30, 2024	$	2,064	$	1,423	$	-	$	3,522		$	7,009
Impairment		-		-		-		(3,233	)		(3,233	)
Recoverable amount, June 30, 2024	$	2,064	$	1,423	$	-	$	289		$	3,776


OFIT RT Cash Generating Unit	Property, plant, and equipment			Intangible assets			Other net assets		Goodwill			Total
Carrying value, June 30, 2025	$	826		$	532		$	25	$	150		$	1,533
Impairment		(347	)		(224	)		-		(150	)		(721	)
Recoverable amount, June 30, 2025	$	479		$	308		$	25	$	-		$	812

(Expressed in thousands of Canadian dollars, except per share amounts and as otherwise indicated)


OFIT RT Cash Generating Unit	Property, plant, and equipment		Intangible assets		Other net assets		Goodwill			Total
Carrying value, June 30, 2024	$	891	$	579	$	-	$	1,017		$	2,487
Impairment		-		-		-		(867	)		(867	)
Recoverable amount, June 30, 2024	$	891	$	579	$	-	$	150		$	1,620


SFF Cash Generating Units	Construction in progress			Intangible assets			Other net assets (Restated – note 2(e)(ii))			Goodwill (Restated – note 2(e)(ii))		Total
Carrying value, June 30, 2025	$	25,540		$	19,611		$	26,921		$	1,643	$	73,715
Impairment		(3,908	)		(1,624	)		(5,229	)		-		(10,761	)
Recoverable amount, June 30, 2025	$	21,632		$	17,987		$	21,692		$	1,643	$	62,954

The goodwill balances of $289 (OFIT GM), and $150 (OFIT RT) were written off as part of these impairment losses. The CGU’s recoverable amount estimate is sensitive to the discount rate due to uncertainties in the forecast. A 1% increase in the discount rate would result in an additional impairment loss of $88, $29, and $4,060 in OFIT GM, OFIT RT, and SFF for the year ended June 30, 2025. Management is not aware of any other reasonable change in key assumptions that would significantly vary the recoverable amount for the valuation. Other net assets or liabilities represent the sum of operating assets and liabilities not specifically mentioned in the tables above, which include accounts receivable, prepaid expenses, right-of-use assets, accounts payable, asset retirement obligation, lease liabilities, and other liabilities.

(Expressed in thousands of Canadian dollars, except per share amounts and as otherwise indicated)