NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2025 7. INTANGIBLE ASSETS (CONT’D) Impairment testing of goodwill Goodwill acquired through business combinations have been allocated to the Group’s cash-generating units (CGU) identified according to each individual business unit for impairment testing. The carrying amounts of goodwill less accumulated impairment losses are allocated as follows: Group 2025 2024 $’000 $’000 CSE W-Industries, Inc. – Gulf Coast Power & Control of Louisiana, LLC 1,520 1,610 – Volta, LLC 17,172 18,189 – W-Industries of Texas, LLC 7,534 7,981 CSE-Global (Australia) Pty Ltd – Uniserve Group 4,756 4,671 – CSE New Zealand Ltd 695 978 – Telecommunications business 17,432 16,917 CSE-Global (Asia) Pte Ltd – CSE-EIS (Malaysia) Sdn Bhd 486 486 CSE Crosscom UK group – Chatterbox Ltd 2,534 2,493 – Zycomm Electronics Ltd 33 32 – Radiotek Ltd 1,230 1,210 – DTS.Solutions (U.K.) Ltd 488 480 CSE Technologies Pte Ltd – Logic Wireless 12,242 12,314 CSE Crosscom USA Inc – Radio One 13,551 14,354 – RFC Wireless, Inc 6,825 7,230 – Chicago Communications, Inc 8,927 − Grid Communications Pte Ltd 397 397 Carlton Staffing 1,027 1,088 96,849 90,430 The recoverable amounts of the CGUs are determined based on value-in-use (“VIU”) calculations. The VIU calculations use 5-year cash flow projections based on financial forecasts with terminal value approved by management. Management has considered and determined the factors applied in these financial forecasts which include forecasted gross margins and average growth rates. The forecasted gross margins are based on past performance and its expectation of market development. Average growth rates of 3% to 10% (2024: 0.5% to 15%) used are consistent with forecasts based on existing contracts and book orders. The discount rate applied are assumed at 7.5% to 10.5% (2024: 5.8%) for VIU calculations, which the Group has assessed as its weighted average cost of capital. 158 CSE GLOBAL LIMITED
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