The carrying amount and movements of goodwill was as follows:



	Note	$
Balance at July 1, 2024		187,502


Disposal of VoIP Supply LLC	19	(662)
Balance at June 30, 2025		186,840


Goodwill Impairment		(68,394)
Balance at June 30, 2026		118,446

There is no addition to goodwill for the year ended June 30, 2026 and June 30, 2025.

The Company performed an annual impairment test for its single CGU as at June 30, 2026. The recoverable amount of the Company’s only CGU (“Sangoma”) was determined based on a fair value less costs to sell valuation model which used cash flow projections based on financial forecasts from management covering a five-year period and an after-tax discount rate of 14.5% to 16.3% (pre-tax – 17.6% to 19.8% ) per annum. The terminal value beyond the five-year period was determined using an enterprise value to earnings before interest, taxes, depreciation, amortization, and EV/EBITDA exit multiple based on peer group valuations. The cash flow projections used in estimating the recoverable amount were generally consistent with results achieved historically adjusted for anticipated growth. The Company concluded that the carrying value of its CGU was higher than the recoverable amount, therefore, a $68,394 non-cash goodwill impairment charge was recognized in the year ended June 30, 2026 (year ended June 30, 2025 - $nil). As of June 30, 2026, the carrying value of the Sangoma CGU was $241,322 and the recoverable amount was $172,928 giving rise to a deficiency of $68,394.

The Company performed sensitivities of key assumptions used in the impairment test at June 30, 2026 and determined that if all other assumptions were held constant:

•A 0.5% increase or decrease in the after-tax discount rate would change the estimated fair value by $3,400.

•A 0.25 times increase or decrease in the EV/EBITDA exit multiple used in determining the terminal value would change the estimated fair value by $6,500.